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Taxation Laws Amendment Act 1991

Act No. 48 of 1991 as amended, taking into account amendments up to Act No. 75 of 2010
An Act to amend the law relating to taxation
Administered by: Treasury
Registered 12 Aug 2010
Start Date 29 Jun 2010
End Date 10 Mar 2016
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016

Taxation Laws Amendment Act 1991

Act No. 48 of 1991 as amended

This compilation was prepared on 3 August 2010
taking into account amendments up to Act No. 75 of 2010

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

  

  


TABLE OF PROVISIONS

 

PART 1 - PRELIMINARY 

Section

1. Short title [see Note 1]

2. Commencement [see Note 1]

PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 

3. Principal Act 

4. Reduction of taxable value - ”otherwise deductible” rule 

5. Reduction of taxable value - ”otherwise deductible” rule 

6. Interpretation 

7. Application of amendments 

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936 

8. Principal Act 

9. Foreign income and foreign tax 

10. Exemption of certain pensions 

11. Exemption of foreign branch profits of Australian companies 

12. Distribution benefits - CFCs 

13. Bad debts 

14. Insertion of new section:

    63D. Bad debts of money-lenders not allowable deductions where

         attributable to listed country branches

15. Certain provisions to be disregarded in calculating attributable income 

16. Insertion of new section:

    102AAZBA. Modified application of Part IIIA - effect of certain changes

              of residence

17. Interpretation 

18. Exploration and prospecting expenditure 

19. Interpretation 

20. Exploration and prospecting expenditure 

21. Application of Subdivision 

22. Application of Subdivision 

23. Interpretation 

24. Allowable capital expenditure in respect of cash bidding payments for exploration permits and production licences 

25. Exploration and prospecting expenditure 

26. Prospecting or mining by contractors, profit-sharing arrangements etc. 

27. Double deductions 

28. Interpretation 

29. Interpretation 

30. Qualifying expenditure 

31. Interpretation 

32. Rebate for medical expenses 

33. Passive income 

34. Interpretation 

35. Insertion of new section:

    160APHB. Life assurance companies - application of rebates against

             components of taxable income

36. Insertion of new section:

    160APKA. No credits of a mutual life assurance company or SGIO

37. Receipt of franked dividends 

38. Receipt of franked dividends through trusts and partnerships 

39. Insertion of new sections:

    160APVA. Life assurance companies - credit reducing section 160APYA debit

    160APVB. Life assurance companies - credit reducing section 160APYAA debit

    160APVC. Life assurance companies - credit reducing section 160APYB debit

    160APVD. Life assurance companies - credit reducing section 160APZ debit

    160APVE. Life assurance companies - credit reducing section 160AQA debit

40. Insertion of new section:

    160APWA. No debits of a mutual life assurance company or SGIO

41. Waiver of franking deficit tax 

42. Insertion of new sections:

    160AQCD. Life assurance companies - debit reducing section 160APMA credit

    160AQCE. Life assurance companies - debit reducing section 160APMB credit

    160AQCF. Life assurance companies - debit reducing section 160APN or

             160APNA credit

    160AQCG. Life assurance companies - debit reducing section 160APR credit

    160AQCH. Life assurance companies - debit reducing section 160APT credit

43. Liability to franking deficit tax 

44. Assets to which Part applies 

45. Taxpayer 

46. Associated persons 

47. Resident trust estates and unit trusts 

48. Part applies in respect of disposals of assets 

49. What constitutes a disposal or acquisition 

50. Disposal of taxable Australian assets 

51. Capital gains and capital losses 

52. Reductions of capital gains where amount otherwise assessable 

53. Consideration in respect of disposal 

54. Insertion of new section:

    160ZFB. Adjustment where change of residence by a company from unlisted

            country to listed country

55. Reduction of amounts for purposes of reduced cost base 

56. Transfer of assets from company or trust to spouse upon breakdown of

marriage 

57. Transfer of asset to wholly-owned company 

58. Insertion of new section:

    160ZZNA. Transfer of partnership assets to wholly-owned company

59. Transfer of asset between companies in the same group 

60. Repeal of section 160ZZOA 

61. Insertion of new Division:

    Division 19A - Transfers of Assets between Companies under Common Ownership

    160ZZRA. Interpretation

    160ZZRB. When companies under common ownership

    160ZZRC. Underlying interest

    160ZZRD. Transfers of assets between companies under common ownership

    160ZZRE. Shares in, and loans to, transferor - deemed disposal and

             re-acquisition

    160ZZRF. First asset acquired before transferor and transferee came under

             common ownership - shares in, and loans to, transferor – reduction

             in cost base etc.

    160ZZRG. Indirect equity or debt interests in transferor - reduction in

             cost base etc.

    160ZZRH. Equity interests in transferee - compensatory increase in cost

             base etc.

62. Transfers of assets between companies under common ownership 

63. Shares in, and loans to, transferor - deemed disposal and re-acquisition 

64. First asset acquired before transferor and transferee came under common ownership - shares in, and loans to, transferor - reduction in cost base etc. 

65. Insertion of new section:

    160ZZRFA. First asset acquired when transferor and transferee under common

              ownership - shares in, and loans to, transferor - reduction in

              cost base etc.

66. Equity interests in transferee - compensatory increase in cost base etc. 

67. Disposal of shares or of interest in trust 

68. Keeping of records 

69. Effect of incorrect quotation of tax file number 

70. Interpretation 

71. When income or profits subject to tax in a listed country 

72. Exempting receipt of an unlisted country company 

73. Certain provisions to be disregarded in calculating attributable income 

74. Notional allowable deduction for taxes paid 

75. Insertion of new section:

    398A. Modified application of Division 3A of Part III

76. Additional notional exempt income - unlisted or listed country CFC 

77. Modified application of Part IIIA - general modifications 

78. Insertion of new section:

    418A. Effect of change of residence from Australia to listed or unlisted

          country

79. Repeal of section 420 

80. Amounts excluded from active income test 

81. Insertion of new section:

    456A. Reduction of section 456 assessability where item subject to foreign

          accruals tax

82. Insertion of new section:

    459A. Assessability where CFC or CFT has interest in certain attributable

          taxpayers

83. Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution 

84. Application of amendments - general 

85. Application of bad debt amendments 

86. Savings - section 159GZZJ of the Principal Act 

87. Transitional - cancellation of franking surplus for mutual life assurance companies and SGIOs 

88. Transitional - application of Part IIIA of the Principal Act to partnerships 

89. Transitional - section 160ZZU of the amended Act 

PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986 

91. Principal Act 

92. Interpretation 

93. Limitation on tax payable by certain trustees 

94. Interpretation 

95. Tax cuts for 1990-91 

96. Tax cuts for 1991-92 and subsequent years 

97. Application of amendments 

98. Transitional - provisional tax for 1990-91 

PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953 

100. Principal Act 

101. Repeal of section 8XA and substitution of new section:

     8XA. Unauthorised access to taxation records

102. Secrecy 

PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (FOREIGN INCOME) ACT

1990 

103. Principal Act 

104. Transitional - section 108 of the amended Act 


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

 

            An Act to amend the law relating to taxation

 

PART 1 - PRELIMINARY

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 1

Short title [see Note 1]

 

  1. This Act may be cited as the Taxation Laws Amendment Act 1991.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 2

Commencement [see Note 1]

 

  2. (1) Subject to this section, this Act commences on the day on which it

receives the Royal Assent.

  (2) Sections 9, 15, 33, 70, 81, 82 and 83 and Part 6 are taken to have

commenced immediately after the commencement of the Taxation Laws Amendment

(Foreign Income) Act 1990.

  (3) Paragraph 34 (b) and sections 36, 40 and 87 are taken to have commenced

on 21 August 1990.

  (4) Section 32, subsections 84 (9) and 93 (2), section 96 and subsection 97

(3) commence on 1 July 1991.

  (5) Subsections 51 (2) and 59 (2), sections 62, 63, 64, 65 and 66 and

subsections 68 (2) and 84 (12) commence on the day after the day on which this

Act receives the Royal Assent.

 

PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 3

Principal Act

 

  3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment

Act 1986.*1*

*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,

1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,

1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; and

Nos. 37, 58, 60 and 135, 1990.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 4

Reduction of taxable value - "otherwise deductible" rule

 

  4. Sections 19, 44 and 52 of the Principal Act are amended by omitting from

subparagraph (1) (b) (i) and sub-subparagraph (1) (ba) (ii) (A) "foreign

source deduction" and substituting "foreign income deduction".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 5

Reduction of taxable value - "otherwise deductible" rule

 

  5. Section 24 of the Principal Act is amended by omitting from subparagraph

(1) (b) (iii) and sub-subparagraph (1) (ba) (ii) (A) "foreign source

deduction" and substituting "foreign income deduction".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 6

Interpretation

 

  6. Section 136 of the Principal Act is amended by omitting from subsection

(1) the definition of "foreign source deduction" and substituting the

following definition:

"`foreign income deduction' has the same meaning as in section 160AFD of the

Income Tax Assessment Act 1936;".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 7

Application of amendments

 

  7. The amendments made by this Part apply in relation to foreign income

deductions allowable under the Income Tax Assessment Act 1936 for the year of

income of the recipient of a fringe benefit commencing on 1 July 1990, or any

later year of income.

 

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 8

Principal Act

 

  8. In this Part, "Principal Act" means the Income Tax Assessment Act

1936.*2*

*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.

5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,

1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,

1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,

1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.

43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,

1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;

Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,

68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.

19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,

1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;

Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,

1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,

165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171

and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,

57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and

175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,

51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;

No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and

174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,

109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,

1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,

1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by

No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);

Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,

73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,

1989); and Nos. 20, 35, 37, 45, 57, 58, 60, 61, 87, 119 and 135, 1990.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 9

Foreign income and foreign tax

 

  9. Section 6AB of the Principal Act is amended:

  (a)  by omitting from subsection (1) "or 459" and substituting ", 459 or

459A";

  (b) by omitting from paragraph (3A) (a) "or 459" and substituting ", 459 or

459A".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 10

Exemption of certain pensions

 

  10. Section 23AD of the Principal Act is amended:

  (a) by omitting "Part VI" from subparagraph (b) (i) of the definition of

"excepted payment" in subsection (1) and substituting "VI, section 68";

  (b) by inserting "or Schedule 1B" before "of the" in subparagraph (b) (i) of

the definition of "excepted payment" in subsection (1);

  (c) by omitting paragraph (g) of the definition of "excepted payment" in

subsection (1) and substituting the following paragraph:

  "(g)   a payment under subsection 57A (2) or subparagraph 57A (3) (b) (ii)

of the Veterans' Entitlements Act 1986;";

  (d) by omitting from paragraph (a) of the definition of "excepted pension"

in subsection (1) "or section 237" and substituting "or section 67";

  (e) by omitting from paragraph (c) of the definition "excepted pension" in

subsection (1) "or the veteran being cared for by a person" and substituting

", the veteran being cared for by a person or the deceased veteran who was

being cared for by a person";

  (f) by inserting in subsection (1) the following definition:

    " `age-pension age' means:

  (a)  in the case of a woman - 60 years; or

  (b)  in the case of a man - 65 years;";

  (g) by inserting in paragraph (3) (a) "or payments under subsection 57A (2)

or subparagraph 57A (3) (b) (ii) of the Veterans' Entitlements Act 1986" after

"excepted payments" (first occurring);

  (h) by omitting paragraph (3) (aaa);

  (j) by omitting from paragraph (3) (c) "subsection 365 (2) of the Imperial

Act known as the Income and Corporation Taxes Act 1970" and substituting

"subsection 315 (2) of the Income and Corporation Taxes Act 1988 of the United

Kingdom";

  (k) by inserting in paragraph (3) (d) "or payments under subsection 66 (2)

or subparagraph 66 (3) (b) (ii) of the Social Security Act 1947" after

"excepted payments";

  (m) by omitting "and" from the end of paragraph (3) (d);

  (n) by omitting paragraph (3) (e) and substituting the following

paragraphs:

  "(e)   if a payment is made to or in respect of the taxpayer under

subsection 66 (2) of the Social Security Act 1947 on a particular pension

pay-day and both of the following subparagraphs apply:

  (i)  the taxpayer had not attained age-pension age on the pension pay-day;

  (ii)  no part of the pension or allowance payable to or in respect of the

taxpayer immediately before the death of the deceased pensioner concerned was

an excepted payment;

so much of that payment under that subsection as represents an amount covered

by paragraph (a) of that subsection;

  (f)  if a payment is made to or in respect of the taxpayer under subsection

66 (2) of the Social Security Act 1947 on a particular pension pay-day and all

of the following subparagraphs apply:

  (i)  the taxpayer had not attained age-pension age on the pension pay-day;

  (ii)  the whole or a part of the pension or allowance payable to or in

respect of the taxpayer immediately before the death of the deceased pensioner

concerned (which pension or allowance is in this paragraph called the

`original pension or allowance') was an excepted payment;

  (iii)  the deceased pensioner had attained age-pension age;

  (iv)  no part of the original pension or allowance would have been an

excepted payment if the deceased pensioner had not attained age-pension age

before the death;

so much of that payment under that subsection as represents an amount covered

by paragraph (a) of that subsection;

  (g)  if:

  (i)  a payment is made to or in respect of the taxpayer under subsection 66

(2) of the Social Security Act 1947; and

  (ii)  neither paragraph (e) nor (f) of this subsection applies to so much of

that payment as represents an amount covered by paragraph 66 (2) (a) of that

Act (which part of that payment is in this paragraph called the `paragraph 66

(2) (a) amount');

so much of the paragraph 66 (2) (a) amount as does not represent an excepted

payment;

  (h)  so much of a payment under subsection 66 (2) of the Social Security Act

1947 as represents an amount covered by paragraph (b) of that subsection;

  (j)  in the case of a taxpayer to whom paragraph 66 (3) (a) of the Social

Security Act 1947 applies - so much of the total excepted payments made to the

taxpayer under that Act on any one of the 7 pension pay-days after the death

of the deceased pensioner concerned as exceeds the total excepted payments

that would have been payable to or in respect of the taxpayer on that pension

pay-day if the deceased pensioner had not died;

  (k)  if paragraph 66 (3) (b) of the Social Security Act 1947 applies to the

taxpayer - so much of the sum of:

  (i)  the excepted payments made to the taxpayer under that Act:

    (A)  on the first available pension pay-day after the

notification day referred to in subparagraph 66 (3) (b) (i) of that Act; and

    (B)  on a subsequent pension pay-day, being one of the 7

pension pay-days after the death of the deceased pensioner concerned; and

  (ii)  the payment made to the taxpayer under subparagraph 66 (3) (b) (ii) of

that Act;

        as does not exceed the amount obtained by:

  (iii)  ascertaining for:

    (A)  the first available pension pay-day after the

notification day referred to in subparagraph 66 (3) (b) (i) of that Act; and

    (B)  each subsequent pension pay-day, being one of the 7

pension pay-days after the death of the deceased pensioner concerned;

the amount calculated using the following formula:

                 Notional CMR - Notional NR

where:

`Notional CMR' (Notional Combined Married Rate) means the sum of:

    (C)  so much of the amount that would have been payable to

the taxpayer on the pension pay-day if the deceased pensioner had not died as

is not an excepted payment; and

    (D)  the amount that would have been payable to the deceased

pensioner on the pension pay-day if the deceased pensioner had not died;

`Notional NR' (Notional New Rate) means so much of the amount that would have

been payable to the taxpayer as an unmarried person on the pension pay-day as

is not an excepted payment; and

  (iv)  aggregating the amounts calculated under subparagraph (iii) of this

paragraph;

  (m)  payments under subsection 66 (4) or section 69 or 70 of the Social

Security Act 1947;

  (p)  if a payment is made to or in respect of the taxpayer under subsection

57A (2) of the Veterans' Entitlements Act 1986 on a particular pension pay-day

and both of the following subparagraphs apply:

  (i)  the taxpayer had not attained age-pension age on the pension pay-day;

  (ii)  no part of the pension or allowance payable to or in respect of the

taxpayer immediately before the death of the deceased pensioner concerned was

an excepted payment;

so much of that payment under that subsection as represents an amount covered

by paragraph (a) of that subsection;

  (q)  if a payment is made to or in respect of the taxpayer under subsection

57A (2) of the Veterans' Entitlements Act 1986 on a particular pension pay-day

and all of the following subparagraphs apply:

  (i)  the taxpayer had not attained age-pension age on the pension pay-day;

  (ii)  the whole or a part of the pension or allowance payable to or in

respect of the taxpayer immediately before the death of the deceased pensioner

concerned (which pension or allowance is in this paragraph called the

`original pension or allowance') was an excepted payment;

  (iii)  the deceased pensioner had attained age-pension age;

  (iv)  no part of the original pension or allowance would have been an

excepted payment if the deceased pensioner had not attained age-pension age

before the death;

so much of that payment under that subsection as represents an amount covered

by paragraph (a) of that subsection;

  (r)  if:

  (i)  a payment is made to or in respect of the taxpayer under subsection 57A

(2) of the Veterans' Entitlements Act 1986; and

  (ii)  neither paragraph (p) nor (q) of this subsection applies to so much of

that payment as represents an amount covered by paragraph 57A (2) (a) of that

Act (which part of that payment is in this paragraph called the `paragraph 57A

(2) (a) amount');

so much of the paragraph 57A (2) (a) amount as does not represent an excepted

payment;

  (s)  so much of a payment under subsection 57A (2) of the Veterans'

Entitlements Act 1986 as represents an amount covered by paragraph (b) of that

subsection;

  (t)  in the case of a taxpayer to whom paragraph 57A (3) (a) of the

Veterans' Entitlements Act 1986 applies - so much of the total excepted

payments made to or in respect of the taxpayer under that Act on any one of

the 7 pension pay-days after the death of the deceased pensioner concerned as

exceeds the total excepted payments that would have been payable to or in

respect of the taxpayer on that pension pay-day if the deceased pensioner had

not died;

  (u)  if paragraph 57A (3) (b) of the Veterans' Entitlements Act 1986 applies

to the taxpayer - so much of the sum of:

  (i)  the excepted payments made to the taxpayer under that Act:

    (A)  on the first available pension pay-day after the

notification day referred to in subparagraph 57A (3) (b) (i) of that Act; and

    (B)  on a subsequent pension pay-day, being one of the 7

pension pay-days after the death of the deceased pensioner concerned; and

  (ii)  the payment made to the taxpayer under subparagraph 57A (3) (b) (ii)

of that Act;

       as does not exceed the amount obtained by:

  (iii)  ascertaining for:

    (A)  the first available pension pay-day after the

notification day referred to in subparagraph 57A (3) (b) (i) of that Act; and

    (B)  each subsequent pension pay-day, being one of the 7

pension pay-days after the death of the deceased pensioner concerned;

the amount calculated using the following formula:

                     Notional CMR - Notional NR

where:

`Notional CMR' (Notional Combined Married Rate) means the sum of:

    (C)  so much of the amount that would have been payable to

the taxpayer on the pension pay-day if the deceased pensioner had not died as

is not an excepted payment; and

    (D)  the amount that would have been payable to the deceased

pensioner on the pension pay-day if the deceased pensioner had not died;

`Notional NR' (Notional New Rate) means so much of the amount that would have

been payable to the taxpayer as an unmarried person on the pension pay-day as

is not an excepted payment; and

  (iv)  aggregating the amounts calculated under subparagraph (iii) of this

paragraph;

  (w)  payments under subsection 57A (4) or section 57C or 57D of the

Veterans' Entitlements Act 1986;

  (y)  payments under section 98A of the Veterans' Entitlements Act 1986;

  (z)  payments under section 24B of the Seamen's War Pensions and Allowances

Act 1940.";

  (p)  by inserting after subsection (3) the following subsections:

 "(3A) Subsections 66 (6), (12), (13) and (14) of the Social Security Act 1947

apply in working out amounts covered by paragraphs (3) (j) and (k) of this

section in a corresponding way to the way in which those subsections apply in

working out amounts referred to in section 66 of that Act.

 "(3B) Subsections 57A (6), (12), (13) and (14) of the Veterans' Entitlements

Act 1986 apply in working out amounts covered by paragraphs (3) (t) and (u) of

this section in a corresponding way to the way in which those subsections

apply in working out amounts referred to in section 57A of that Act.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 11

Exemption of foreign branch profits of Australian companies

 

  11. Section 23AH of the Principal Act is amended:

  (a)  by omitting from paragraph (6) (c) "the asset" and substituting "during

the period after the start of the year of income immediately preceding the

disposal year of income when the asset was owned by the taxpayer, the asset";

  (b)  by omitting paragraph (6) (d) and substituting the following

paragraph:

    "(d)   the disposal is not a disposal of a taxable

Australian asset of the taxpayer;";

  (c)  by omitting from paragraph (7) (c) "the partnership asset" and

substituting "during the period after the start of the year of income

immediately preceding the disposal year of income when the partnership asset

was a partnership asset of the partnership, the partnership asset";

  (d)  by omitting paragraph (7) (d) and substituting the following

paragraph:

    "(d)   the disposal of the taxpayer's asset is not a

disposal of a taxable Australian asset of the taxpayer;";

  (e)  by inserting after subsection (8) the following subsection:

 "(8A) Where:

  (a)  a taxpayer, being a company, disposes of an asset; and

  (b)  a loss of a capital nature is incurred by the taxpayer in respect of

the disposal; and

  (c)  if, instead, a gain or profit of a capital nature had accrued to the

taxpayer in respect of the disposal, that gain or profit would be a foreign

branch capital gain;

no capital loss is incurred by the taxpayer under Part IIIA in respect of the

disposal of the asset.";

  (f)  by inserting after subsection (9) the following subsection:

 "(9A) Where:

  (a)  a taxpayer, being the trustee of a trust estate, disposes of an asset;

and

  (b)  a loss of a capital nature is incurred by the taxpayer in respect of

the disposal; and

  (c)  if, instead, a gain or profit of a capital nature had accrued to the

taxpayer in respect of the disposal, that gain or profit would be a foreign

branch capital gain; and

  (d)  a capital loss is incurred by the taxpayer under Part IIIA in respect

of the disposal of the asset; and

  (e)  if no capital loss had been incurred by the taxpayer under Part IIIA in

respect of the disposal of the asset, the following conditions would have been

satisfied in relation to another taxpayer (in this subsection called the

`actual taxpayer'):

  (i)  the actual taxpayer is a company;

  (ii)  an amount (in this subsection called the `included amount') would have

been included in the assessable income of the actual taxpayer of a year of

income under subsection 92 (1) or section 97, 98A or 100;

the assessable income of the actual taxpayer of the year of income includes so

much of the included amount as is attributable to a period when the actual

taxpayer was a resident.";

  (g)  by omitting from subsection (10) "and (8)" and substituting ", (8),

(8A) and (9A)".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 12

Distribution benefits - CFCs

 

  12. Section 47A of the Principal Act is amended:

  (a)  by omitting from paragraph (2) (a) "either" and substituting "any";

  (b)  by omitting subparagraph (2) (a) (ii) and substituting the following

subparagraphs:

  "(ii)   by virtue of subsection (1), the whole or a part of the distribution

payment would, apart from section 23AI or 23AJ, be included in the assessable

income of a taxpayer of the year of income in which the distribution time

occurred under section 44;

   (iii)  by virtue of subsection (1), an amount is included in

the assessable income of a taxpayer of a year of income under section 458 in

respect of the distribution payment;

    (iv)  by virtue of subsection (1), an amount would, apart

from section 365 or Division 6 of Part X, be included in the assessable income

of a taxpayer of a year of income under section 458 in respect of the

distribution payment; and";

  (c)  by omitting paragraph (2) (b) and substituting the following

paragraph:

   "(b)   both of the following subparagraphs apply:

  (i)  the taxpayer's return of income for the year of income was not prepared

on the basis that the distribution payment had the consequence specified in

subsection (1);

  (ii)  the taxpayer has not notified the Commissioner, in writing, within 12

months after the end of the year of income, that the distribution payment had

the consequence specified in subsection (1);";

  (d)  by inserting after subsection (18) the following subsections:

 "(18A) An assessment may be made of a taxpayer on the assumption that

subsection (2) will not be applicable in relation to a particular distribution

payment made during a year of income of the taxpayer.

 "(18B) Where:

  (a)  the assessment mentioned in subsection (18A) is made; and

  (b)  after the making of the assessment, the Commissioner becomes aware that

subsection (2) was applicable in relation to the distribution payment

concerned;

then, in spite of anything in section 170, the Commissioner may amend the

assessment at any time for the purposes of ensuring that the assessment is

made as if subsection (18A) of this section were disregarded.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 13

Bad debts

 

  13. Section 63 of the Principal Act is amended by omitting from subsection

(3) "that amount" and substituting "the lesser of:

  (a)  the amount received; and

  (b)  the deduction, as reduced by any amount previously included in the

taxpayer's assessable income under this subsection in respect of the debt.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 14

 

  14. After section 63C of the Principal Act the following section is

inserted:

Bad debts of money-lenders not allowable deductions

where attributable to listed country branches

  "63D. (1) Where:

  (a)  apart from this section, a deduction would be allowable to a taxpayer

under section 51 or 63 in respect of the writing off of a debt as bad; and

  (b)  the debt was created or acquired in the ordinary course of a

money-lending business of the taxpayer who carries on that business; and

  (c)  during any part or parts (which part or the total of which parts is in

this subsection called the `listed country branch period') of the period since

the debt was so created or acquired (in this subsection called the `debt

holding period'), it is the case that, if income had been derived by the

taxpayer in respect of the debt, the income would not, because of section

23AH, have been included in the assessable income of the taxpayer;

then only so much of the deduction is allowable as equals the amount

calculated using the formula:

      Debt holding period - Listed country branch period

                 Eligible debt term

where:

`Debt holding period' means the number of days in the debt holding period;

`Listed country branch period' means the number of days in the listed country

branch period;

`Eligible debt term' means:

  (d)  where the debt was acquired from a person other than an associate,

within the meaning of Part IIIA - the number of days in the debt holding

period; or

  (e)  in any other case - the number of days in the period beginning on the

day on which the debt was created (whether by the taxpayer or another person)

and ending at the end of the day on which it was written off.

  "(2) Where a debt that is written off was acquired from another person, the

creation, and any previous acquisition, of the debt is to be disregarded for

the purposes of applying subsection (1), other than paragraph (1) (e).".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 15

Certain provisions to be disregarded in calculating attributable income

 

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

substituting ", 459 and 459A".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 16

 

  16. After section 102AAZB of the Principal Act the following section is

inserted:

Modified application of Part IIIA - effect of certain changes of residence

  "102AAZBA. For the purposes of applying this Act in calculating the

attributable income of a trust estate of a year of income (in this section

called the `attributable income year'), where:

  (a)  disregarding the assumption in paragraph 102AAZB (b), at any time (in

this section called the `residence-change time') during the attributable

income year or an earlier year of income, the trust estate ceased to be a

resident trust estate or a resident unit trust, as the case may be, within the

meaning of Part IIIA and became a non-resident trust estate; and

  (b)  the trust estate owned an asset at the residence-change time; and

  (c)  the trust estate disposed of the asset during the attributable income

year; and

  (d)  subsection 160M (9) or (10) applies to the asset in respect of the

change of residence for the purposes of the application of this Act apart from

this Subdivision;

then sections 411 to 417 (inclusive) apply to the asset as if:

  (e)  those sections had effect for the purposes of calculating attributable

income under this Subdivision instead of Part X; and

  (f)  any reference in those sections to an eligible CFC were a reference to

the trust estate; and

  (g)  any reference in those sections to a 30 June 1990 non-taxable

Australian asset were a reference to the asset; and

  (h)  any reference in those sections relating to 30 June 1990 or 1 July 1990

were a reference relating respectively to the residence-change time or a time

immediately after the residence-change time; and

    (j)    the following provisions were omitted:

    (i)    sub-subparagraphs 412 (2) (a) (i) (B) and (ii) (B);

    (ii)   subparagraphs 414 (2) (a) (ii) and (b) (ii);

    (iii)  subparagraphs 415 (2) (a) (ii) and (b) (ii);

    (iv)   subparagraphs 416 (2) (a) (ii) and (b) (ii);

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

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 17

Interpretation

 

  17. Section 122 of the Principal Act is amended:

  (a)  by omitting "in Australia" (wherever occurring) from the definition of

"mining or prospecting right" in subsection (1);

  (b)  by omitting "in Australia" from the definition of "prescribed mining

operations" in subsection (1).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 18

Exploration and prospecting expenditure

 

  18. Section 122J of the Principal Act is amended by omitting from subsection

(1) and subparagraph (4D) (b) (i) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 19

Interpretation

 

  19. Section 122JB of the Principal Act is amended:

  (a)  by omitting "in Australia" from the definition of "eligible quarrying

operations" in subsection (1);

  (b)  by omitting "in Australia" (wherever occurring) from the definition of

"quarrying or prospecting right" in subsection (1).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 20

Exploration and prospecting expenditure

 

  20. Section 122JF of the Principal Act is amended by omitting from

subsection (1) and subparagraph (7) (b) (i) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 21

Application of Subdivision

 

  21. Section 123A of the Principal Act is amended by omitting from

subsections (1) and (1A) "in Australia" (wherever occurring).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 22

Application of Subdivision

 

  22. Section 123BD of the Principal Act is amended by omitting from

subsection (1) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 23

Interpretation

 

  23. Section 124 of the Principal Act is amended by omitting "in Australia"

from the definition of "prescribed petroleum operations" in subsection (1).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 24

Allowable capital expenditure in respect of cash bidding payments for

exploration permits and production licences

 

  24. Section 124ABA of the Principal Act is amended by adding at the end the

following subsection:

  "(7) Where:

  (a)  a law of a foreign country is declared by the regulations to contain

provisions equivalent to those of Divisions 2 and 3 of Part III of the

Petroleum Act; and

  (b)  the Commissioner considers that, if the preceding provisions of this

section had applied in relation to the law of the foreign country in the same

way, with appropriate modifications, as they apply in relation to Divisions 2

and 3 of Part III of the Petroleum Act, the taxpayer would have been taken by

this section to have incurred an amount of expenditure of a capital nature at

a particular time;

then the taxpayer is taken by this section to have incurred that amount of

expenditure at that time.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 25

Exploration and prospecting expenditure

 

  25. Section 124AH of the Principal Act is amended by omitting from

subsection (1) and subparagraph (4C) (b) (i) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 26

Prospecting or mining by contractors, profit-sharing arrangements etc.

 

  26. Section 124AJ of the Principal Act is amended by omitting from

subsections (2) and (3) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 27

Double deductions

 

  27. Section 124AN of the Principal Act is amended by omitting from

subsection (2) "in Australia".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 28

Interpretation

 

  28. Section 124K of the Principal Act is amended by omitting from subsection

(1) the definition of "unit of industrial property" and substituting the

following definition:

"`unit of industrial property' means:

  (a)  rights possessed by a person under a law of Australia as:

      (i)  the grantee or proprietor of a patent for an invention;

           or

     (ii)  the owner of a copyright; or

    (iii)  the owner of a registered design; or

     (iv)  a licensee under such a patent, copyright or design;

and includes equitable rights in respect of such a patent, copyright or design

or in respect of a licence under such a patent, copyright or design; or

  (b)  rights possessed by a person under a law of a foreign country that are

equivalent to the rights referred to in paragraph (a).".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 29

Interpretation

 

  29. Section 124ZF of the Principal Act is amended by omitting from

subsection (1) the definition of "research and development activities" and

substituting the following definition: " `research and development activities'

means activities that:

  (a)  either:

  (i)  are research and development activities for the purposes of section

73B; or

  (ii)  would be research and development activities for the purposes of that

section if either or both of the following amendments were made:

  (A)  an amendment of the definition of `research and development activities'

in subsection (1) of that section so that references in that definition to

activities carried on in Australia included references to activities carried

on outside Australia;

  (B)  an amendment of subsection (2A) of that section so that references in

that subsection to an eligible company included references to a person other

than an eligible company; and

  (b)  are carried on by a person in connection with a business carried on by

the person for the purposes of gaining or producing assessable income;".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 30

Qualifying expenditure

 

  30. Section 124ZG of the Principal Act is amended by omitting from paragraph

(2A) (a) "in Australia" (wherever occurring).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 31

Interpretation

 

  31. Section 159GZZJ of the Principal Act is amended by omitting "or (c)"

from paragraph (c) of the definition of "notional writing-down assumptions".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 32

Rebate for medical expenses

 

  32. Section 159P of the Principal Act is amended by omitting from subsection

(3A) "21%" and substituting "20%".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 33

Passive income

 

  33. Section 160AEA of the Principal Act is amended by omitting "or 459" from

paragraph (n) of the definition of "passive income" in subsection (1) and

substituting ", 459 or 459A".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 34

Interpretation

 

  34. Section 160APA of the Principal Act is amended:

  (a) by inserting after paragraph (a) of the definition of "applicable

general company tax rate" the following paragraph:

  "(aa)   in relation to an amount calculated for a year of income using the

formula in any of the following provisions:

    (i)  sections 160APVA to 160APVE (inclusive);

    (ii)  sections 160AQCD to 160AQCH (inclusive);

the general company tax rate for the year of tax to which the year of income

relates;";

  (b)  by inserting the following definitions:

    " `AD/RLA component' has the same meaning as in Division 8

of Part III;

    `CS/RA component' has the same meaning as in Division 8 of

Part III;

    `mutual life assurance company' has the same meaning as in

Division 8 of Part III;

    `NCS component' has the same meaning as in Division 8 of

Part III;

    `non-fund component' has the same meaning as in Division 8

of Part III;".

  35. After section 160APHA of the Principal Act the following section is

inserted:

Life assurance companies - application of rebates against

components of taxable income

  "160APHB. (1) This section applies in working out any of the following for

the purposes of this Part:

  (a)  how much of the company tax assessed to a life assurance company for a

year of income is attributable to the non-fund component;

  (b)  how much of an amount of a reduction or increase in the company tax of

a life assurance company for a year of income is attributable to the non-fund

component;

  (c)  how much of the estimated tax of a life assurance company for a year of

income relates to the following components of taxable income:

  (i)  the CS/RA component;

  (ii)  the AD/RLA component;

  (iii)  the NCS component.

  "(2) Rebates of tax (other than rebates under section 46 or 46A) are taken

to be applied against components of taxable income in the following order:

  (a)  components other than the non-fund component;

  (b)  the non-fund component.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 36

 

  36. After section 160APK of the Principal Act the following section is

inserted:

No credits of a mutual life assurance company or SGIO

  "160APKA. A franking credit of a mutual life assurance company or SGIO does

not arise after 21 August 1990.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 37

Receipt of franked dividends

 

  37. Section 160APP of the Principal Act is amended by omitting from

subsection (5) "No franking credit arises" and substituting "The franking

credit is to be reduced by 80%".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 38

Receipt of franked dividends through trusts and partnerships

 

  38. Section 160APQ of the Principal Act is amended by omitting from

subsection (3) "No franking credit arises" and substituting "The franking

credit is to be reduced by 80%".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 39

 

  39. After section 160APV of the Principal Act the following sections are

inserted:

Life assurance companies - credit reducing section 160APYA debit

  "160APVA. (1) Where, on a particular day, a franking debit of a life

assurance company arises under section 160APYA in relation to an initial

payment of tax made by the company under section 221AP in respect of a year of

income (in this section called the `current year of income') that was applied

by the Commissioner, there arises on that day a franking credit of the company

worked out under subsection (2) of this section.

  "(2) The amount of the franking credit is equal to the adjusted amount in

relation to the amount calculated for the current year of income using the

formula:

                             Preceding         Non-fund component

              Initial          year's     -   of preceding year's

   0.8  X     payment   X   company tax           company tax

              applied

                             Preceding year's company tax

where:

`Initial payment applied' means the amount of the initial payment of tax that

was so applied;

`Preceding year's company tax' means the company tax assessed to the company

for the year of income (in this subsection called the `preceding year of

income') that immediately preceded the current year of income;

`Non-fund component of preceding year's company tax' means so much of the

company tax assessed to the company for the preceding year of income as is

attributable to the non-fund component.

Life assurance companies - credit reducing section 160APYAA debit

  "160APVB. (1) Where, on a particular day, a franking debit of a life

assurance company arises under section 160APYAA in relation to a further

payment on account of tax in respect of a year of income (in this section

called the `current year of income') that was applied by the Commissioner,

there arises on that day a franking credit of the company worked out under

subsection (2) of this section.

  "(2) The amount of the franking credit is equal to the adjusted amount in

relation to the amount calculated for the current year of income using the

formula:

                           Preceding                Non-fund component

           Further           year's        -        of preceding year's

  0.8  X   payment   X    company tax                   company tax

           applied

                                Preceding year's company tax

where:

`Further payment applied' means the amount of the further payment that was so

applied;

`Preceding year's company tax' means the company tax assessed to the company

for the year of income (in this subsection called the `preceding year of

income') that immediately preceded the current year of income;

`Non-fund component of preceding year's company tax' means so much of the

company tax assessed to the company for the preceding year of income as is

attributable to the non-fund component.

Life assurance companies - credit reducing section 160APYB debit

  "160APVC. (1) Where, on a particular day, a franking debit of a life

assurance company arises under section 160APYB in relation to an amount

received as a refund in relation to a year of income (in this section called

the `current year of income'), there arises on that day a franking credit of

the company worked out under subsection (2) of this section.

  "(2) The amount of the franking credit is equal to the adjusted amount in

relation to the amount calculated for the current year of income using the

formula:

                            Preceding               Non-fund component

           Refunded           year's       -        of preceding year's

   0.8  X   amount     X    company tax                company tax

                                 Preceding year's company tax

where:

`Refunded amount' means the amount received as a refund;

`Preceding year's company tax' means the company tax assessed to the company

for the year of income (in this subsection called the `preceding year of

income') that immediately preceded the current year of income;

`Non-fund component of preceding year's company tax' means so much of the

company tax assessed to the company for the preceding year of income as is

attributable to the non-fund component.

Life assurance companies - credit reducing section 160APZ debit

  "160APVD. Where, on a particular day, a franking debit of a life assurance

company arises under section 160APZ in relation to a reduction in the company

tax of the company for a year of income, there arises on that day a franking

credit of the company equal to the adjusted amount in relation to the amount

calculated using the formula:

       0.8    X     Overall              Non-fund

                    reduction      -     component

                                        of reduction

where:

`Overall reduction' means the amount of the reduction;

`Non-fund component of reduction' means so much of the amount of the reduction

as is attributable to the non-fund component.

Life assurance companies - credit reducing section 160AQA debit

  "160APVE. Where, on a particular day, a franking debit of a life assurance

company arises under section 160AQA in relation to a foreign tax credit, or an

increase in a foreign tax credit, allowable in relation to a year of income,

there arises on that day a franking credit of the company equal to the

adjusted amount in relation to the amount calculated using the formula:

           Original/increased             Non-fund component

  0.8  X   foreign tax credit     -     of original/increased

                                          foreign tax credit

where:

`Original/increased foreign tax credit' means the amount of the foreign tax

credit or of the increase, as the case requires;

`Non-fund component of original/increased foreign tax credit' means so much of

the foreign tax credit or of the increase, as the case requires, as is

attributable to the non-fund component.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 40

 

  40. After section 160APW of the Principal Act the following section is

inserted:

No debits of a mutual life assurance company or SGIO

  "160APWA. A franking debit of a mutual life assurance company or SGIO does

not arise after 21 August 1990.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 41

Waiver of franking deficit tax

 

  41. Section 160APYC of the Principal Act is amended:

  (a)  by inserting in paragraph (a) "or (e)" after "(c)";

  (b)  by omitting from paragraph (b) "tax." and substituting "tax; or";

  (c)  by adding at the end the following paragraph:

  "(c)   if paragraph 160AQJ (2) (f) applies - the adjusted amount in relation

to so much of the amount of the relevant franking deficit tax referred to in

that paragraph as is equal to the amount calculated using the formula:

        Initial payment - (0.8 X Fund component)

where:

`Initial payment' means the amount of the initial payment of tax;

`Fund component' means so much of the initial payment of tax as is

attributable to so much of the estimated tax as relates to the following

components of taxable income:

    (i)    the CS/RA component;

    (ii)   the AD/RLA component;

    (iii)  the NCS component.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 42

 

  42. After section 160AQCC of the Principal Act the following sections are

inserted:

Life assurance companies - debit reducing section 160APMA credit

  "160AQCD. (1) Where, on a particular day, a franking credit of a life

assurance company arises under section 160APMA in relation to an initial

payment of tax that the company is required to make under section 221AP in

respect of a year of income (in this section called the `current year of

income') there arises on that day a franking debit of the company worked out

under subsection (2) of this section.

  "(2) The amount of the franking debit is equal to the adjusted amount in

relation to the amount calculated for the current year of income using the

formula:

                           Preceding           Non-fund component

            Initial          year's       -    of preceding year's

   0.8  X   payment   X    company tax            company tax

                              Preceding year's company tax

where:

`Initial payment' means the initial payment of tax;

`Preceding year's company tax' means the company tax assessed to the company

for the year of income (in this subsection called the `preceding year of

income') that immediately preceded the current year of income;

`Non-fund component of preceding year's company tax' means so much of the

company tax assessed to the company for the preceding year of income as is

attributable to the non-fund component.

Life assurance companies - debit reducing section 160APMB credit

  "160AQCE. (1) Where, on a particular day, a franking credit of a life

assurance company arises under section 160APMB in relation to a further

payment on account of tax in respect of a year of income (in this section

called the `current year of income'), there arises on that day a franking

debit of the company worked out under subsection (2) of this section.

  "(2) The amount of the franking debit is equal to the adjusted amount in

relation to the amount calculated for the current year of income using the

formula:

                             Preceding           Non-fund component

             Further          year's             of preceding year's

  0.8   X    payment   X    company tax             company tax

                               Preceding year's company tax

where:

`Further payment' means the amount of the further payment;

`Preceding year's company tax' means the company tax assessed to the company

for the year of income (in this subsection called the `preceding year of

income') that immediately preceded the current year of income;

`Non-fund component of preceding year's company tax' means so much of the

company tax assessed to the company for the preceding year of income as is

attributable to the non-fund component.

Life assurance companies - debit reducing section 160APN or 160APNA credit

  "160AQCF. Where, on a particular day, a franking credit of a life assurance

company arises under section 160APN or 160APNA in relation to an original

company tax assessment for a year of income, there arises on that day a

franking debit of the company equal to the adjusted amount in relation to the

amount calculated using the formula:

              Company                        Non-fund

   0.8   X      tax           -             component of

                                            company tax

where:

`Company tax' means the company tax assessed to the company;

`Non-fund component of company tax' means so much of the company tax assessed

to the company for the year of income as is attributable to the non-fund

component.

Life assurance companies - debit reducing section 160APR credit

  "160AQCG. Where, on a particular day, a franking credit of a life assurance

company arises under section 160APR in relation to an increase in the company

tax of the company for a year of income, there arises on that day a franking

debit of the company equal to the adjusted amount in relation to the amount

calculated using the formula:

                Overall increase                      Non-fund

   0.8    X                               -         component of

                                                      increase

where:

`Overall increase' means the amount of the increase;

`Non-fund component of increase' means so much of the increase as is

attributable to the non-fund component.

Life assurance companies - debit reducing section 160APT credit

  "160AQCH. Where, on a particular day, a franking credit of a life assurance

company arises under section 160APT in relation to a reduction of a foreign

tax credit allowable in relation to a year of income, there arises on that day

a franking debit of the company equal to the adjusted amount in relation to

the amount calculated using the formula:

       0.8   X     Overall reduction                  Non-fund

                                            -       component of

                                                      reduction

where:

`Overall reduction' means the amount of the reduction;

`Non-fund component of reduction' means so much of the reduction as is

attributable to the non-fund component.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 43

Liability to franking deficit tax

 

  43. Section 160AQJ of the Principal Act is amended:

  (a) by inserting in paragraphs (2) (c) and (d) "the company is not a life

assurance company and" after "if";

  (b) by omitting from paragraph (2) (d) "excess." and substituting "excess;

or";

  (c) by adding at the end of subsection (2) the following paragraphs:

  "(e)   if the company is a life assurance company and the amount of the

relevant franking deficit tax does not exceed the amount calculated using the

formula:

        Initial payment -  (0.8 X Fund component)

where:

       `Initial payment' means the amount of the initial payment

of tax;

       `Fund component' means so much of the initial payment of

tax as is attributable to so much of the estimated tax as relates to the

following components of taxable income:

    (i)  the CS/RA component;

    (ii)  the AD/RLA component;

    (iii)  the NCS component;

the company is not liable to pay tax under subsection (1) in respect of that

franking year; or

  (f)  if the company is a life assurance company and the amount of the

relevant franking deficit tax exceeds the amount calculated using the

formula:

        Initial payment - (0.8 X Fund component)

where:

       `Initial payment' means the amount of the initial payment

of tax;

       `Fund component' means so much of the initial payment of

tax as is attributable to so much of the estimated tax as relates to the

following components of taxable income:

    (i)  the CS/RA component;

    (ii)  the AD/RLA component;

    (iii)  the NCS component;

the tax that the company is liable to pay under subsection (1) in respect of

that franking year is an amount equal to the excess.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 44

Assets to which Part applies

 

  44. Section 160A of the Principal Act is amended:

  (a) by omitting from paragraph (b) "and";

  (b) by omitting from paragraph (c) "acquired," and substituting

"acquired;";

  (c) by inserting after paragraph (c) the following paragraphs:

     "(d)   a taxpayer's interest in a partnership asset of a

partnership in which the taxpayer is a partner; and

      (e)  so much of a taxpayer's interest in a partnership as

is not covered by paragraph (d);".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 45

Taxpayer

 

  45. Section 160C of the Principal Act is amended by adding at the end the

following subsection:

  "(3) In calculating the net income of a partnership, or a partnership loss,

in accordance with section 90, the partnership is not taken to be a taxpayer

for the purposes of this Part.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 46

Associated persons

 

  46. Section 160E of the Principal Act is amended:

  (a)  by omitting from subparagraphs (a) (iv), (b) (iii) and (c) (i)",

partnerships";

  (b) by adding "or" at the end of paragraph (b);

  (c) by omitting "or" from the end of paragraph (c);

  (d) by omitting paragraph (d).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 47

Resident trust estates and unit trusts

 

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

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 48

Part applies in respect of disposals of assets

 

  48. Section 160L of the Principal Act is amended:

  (a) by omitting from subsection (5) "an asset of a partnership" and

substituting "a taxpayer's interest in a partnership asset of a partnership in

which the taxpayer is a partner";

  (b) by omitting from paragraph (5) (a) "its disposal, the" and substituting

"the disposal, the partnership".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 49

What constitutes a disposal or acquisition

 

  49. Section 160M of the Principal Act is amended:

  (a) by omitting subsection (11);

  (b) by omitting from subsection (11A) "or (11)";

  (c) by omitting from subsection (11A) "or a partnership ceased to be a

resident partnership, as the case may be,";

  (d) by omitting from paragraph (11B) (a) "or (11)";

  (e) by omitting from paragraph (11B) (a) "or a partnership ceased to be a

resident partnership, as the case may be";

  (f) by omitting from paragraph (11B) (c) "or (11), as the case may be,";

  (g) by omitting from paragraph (11B) (d) "or (11)";

  (h) by omitting subsection (12A) and substituting the following

subsections:

     "(12A) Where, at a particular time (in this section called

the `residence-change time'), a company that is a CFC ceases to be a resident

of an unlisted country or a listed country and becomes a resident within the

meaning of section 6, then:

  (a)  subsection (12) does not apply; and

  (b)  subsections (12AA) and (12AB) apply.

 "(12AA) For the purposes of the application of this Part, sections 411 to 417

        (inclusive) have, subject to subsection (12AB), the same effect, in relation

to every 30 June 1990 non-taxable Australian asset of the company owned by the

company at the residence-change time, as they would have if the taxable

income, instead of the attributable income, of the company were being

calculated under those sections.

 "(12AB) If any capital gain on a 30 June 1990 non-taxable Australian asset in

respect of the period before the residence-change time was subject to tax in a

listed country, then, for the purposes of the application of this Part,

sections 411 to 417 (inclusive) have the same effect in relation to the asset

as they would have if:

  (a)  the taxable income, instead of the attributable income, of the company

were being calculated under those sections; and

  (b)  any reference in those sections relating to 30 June 1990 or 1 July 1990

were a reference relating respectively to the residence-change time or a time

immediately after the residence-change time.";

  (j) by omitting from subsection (12B) "subsection (12A)" and substituting

"subsections (12A) to (12AB)";

  (k) by inserting before the definition of "CFC" in subsection (12B) the

following definitions:

" `30 June 1990 non-taxable Australian asset' has the same meaning as in Part

X;

`attributable income' has the same meaning as in Part X;";

  (m) by adding at the end of subsection (12B) the following definition:

    " `subject to tax' has the same meaning as in Part X.";

  (n) by omitting subsection (15).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 50

Disposal of taxable Australian assets

 

  50. Section 160T of the Principal Act is amended:

  (a)  by omitting paragraph (e);

  (b)  by inserting in subparagraph (j) (iii) ", 160ZZNA" after "160ZZMN.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 51

Capital gains and capital losses

 

  51. (1) Section 160Z of the Principal Act is amended by inserting in

subsection (5) ", subparagraph 160ZZO (1) (g) (iv), subsection 160ZZRE (3) or

(4)" after "160ZM (2)".

  (2) Section 160Z of the Principal Act is amended by inserting in subsection

(5) "or (h) (iv)" after "160ZZO (1) (g) (iv)".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 52

Reductions of capital gains where amount otherwise assessable

 

  52. Section 160ZA of the Principal Act is amended:

  (a) by omitting subsections (1), (2) and (3);

  (b) by adding at the end the following subsections:

 "(5) Where:

  (a)  apart from this subsection, a capital gain (in this subsection called

the `notional capital gain') would be taken for the purposes of this Part to

have accrued to a taxpayer during the year of income in respect of the

disposal of an asset (in this subsection called the `taxpayer's asset'); and

  (b)  the taxpayer's asset is the taxpayer's interest in a partnership asset

of a partnership in which the taxpayer is a partner; and

  (c)  as a result of the disposal, an amount or amounts (in this subsection

and subsection (6) called the `included amount' or the `included amounts') has

or have been, or will be, included in the assessable income of the partnership

of any year of income under a provision of this Act other than this Part (not

being an amount or amounts so included under a provision having effect where

the partnership recoups capital expenditure which was incurred in respect of

an asset and in respect of which a deduction has been allowed or is allowable

to the partnership);

the following provisions have effect:

  (d)  if the notional capital gain exceeds the partner's portion of the

included amount or included amounts - the amount of the capital gain that is

taken for the purposes of this Part to have accrued to the taxpayer during the

year of income in respect of the disposal of the taxpayer's asset is an amount

equal to the excess;

  (e)  if the notional capital gain does not exceed the partner's portion of

the included amount or included amounts - no capital gain is taken for the

purposes of this Part to have accrued to the taxpayer during the year of

income in respect of the disposal of the taxpayer's asset.

 "(6) A reference in subsection (5) to the partner's portion of the included

amount or included amounts is a reference to so much of the individual

interest of the partner in the net income, or the partnership loss, of the

partnership as is attributable to the included amount or sum of the included

amounts.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 53

Consideration in respect of disposal

 

  53. Section 160ZD of the Principal Act is amended:

  (a) by omitting from paragraph (5) (a) "of a partnership or";

  (b) by omitting from paragraph (5) (b) "in the partnership or".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 54

 

  54. After section 160ZFA of the Principal Act the following section is

inserted:

Adjustment where change of residence by a company from unlisted

country to listed country

  "160ZFB. (1) Where:

  (a)  because a company has, at a particular time (in this section called the

`residence-change time'), ceased to be a resident of an unlisted country and

become a resident of a listed country, an amount is or has been included in a

taxpayer's assessable income under section 457 (including under that section

because of paragraph 58 (1) (d) of the Taxation Laws Amendment (Foreign

Income) Act 1990); and

  (b)  the company later disposes (which disposal is in this section called

the `actual disposal') of a taxable Australian asset (in this section called

the `eligible asset') that it has held since the residence-change time;

then the consideration in respect of the actual disposal of the eligible asset

is, for the purposes of this Part, adjusted in accordance with this section.

  "(2) Where:

  (a)  the result of making the assumption, in subparagraph 457 (2) (a) (i) of

this Act or in paragraph 58 (2) (a) of the Taxation Laws Amendment (Foreign

Income) Act 1990, that all of the company's assets were disposed of at the

residence-change time for a consideration equal to their market value was:

  (i)  to increase, by a particular amount (in this section called the `DP

creation/increase amount'), the amount that would otherwise be the

distributable profits referred to in that subparagraph or paragraph; or

  (ii)  to create distributable profits of a particular amount (in this

section also called the `DP creation/increase amount') where there would

otherwise not be distributable profits; and

  (b)  if the eligible asset had been disposed of by the company at the

residence-change time for its market value at that time, the company would

have made a profit (in this section called the `eligible asset profit') on the

disposal;

then the consideration in respect of the actual disposal of the eligible asset

by the company is reduced by the amount calculated using the formula:

       Eligible asset profit     X    DP creation/increase amount

                       Total asset profits

where:

`Eligible asset profit' means the amount of the eligible asset profit;

`Total asset profits' means the amount that would result if:

  (c)  the company disposed of all of its assets at the residence-change time

for their market value; and

  (d)  the total of the profits from only those disposals that would have

resulted in a profit to the company were calculated;

`DP creation/increase amount' means the DP creation/increase amount.

  "(3) Where:

  (a)  the result of making the assumption, in subparagraph 457 (2) (a) (i) of

this Act or in paragraph 58 (2) (a) of the Taxation Laws Amendment (Foreign

Income) Act 1990, that all of the company's assets were disposed of at the

residence-change time for a consideration equal to their market value was to

reduce (including to nil), by an amount (in this section called the `DP

reduction amount'), the amount that would otherwise be the distributable

profits referred to in that subparagraph or paragraph; and

  (b)  if the eligible asset had been disposed of by the company at the

residence-change time for its market value at that time, the company would

have made a loss (in this section called the `eligible asset loss') on the

disposal;

then the consideration in respect of the actual disposal of the eligible asset

by the company is increased by the amount calculated using the formula:

            Eligible asset loss     X   DP reduction amount

                        Total asset losses

where:

`Eligible asset loss' means the amount of the eligible asset loss;

`Total asset losses' means the amount that would result if:

  (c)  the company disposed of all of its assets at the residence-change time

for their market value; and

  (d)  the total of the losses from only those disposals that would have

resulted in a loss to the company were calculated;

`DP reduction amount' means the DP reduction amount.

  "(4) In this section:

`resident of a listed country' has the same meaning as in Part X;

`resident of an unlisted country' has the same meaning as in Part X.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 55

Reduction of amounts for purposes of reduced cost base

 

  55. Section 160ZK of the Principal Act is amended:

  (a) by inserting in subsection (1) "(other than the taxpayer's interest in a

partnership asset of a partnership in which the taxpayer is a partner)" after

"asset" (first occurring);

  (b) by adding at the end the following subsections:

 "(3) A reference in subsection 160ZH (3) to the reduced amount of any

consideration, the reduced amount of incidental costs, or the reduced amount

of any expenditure, in respect of an asset (in this subsection called the

`taxpayer's asset'), being a taxpayer's interest in a partnership asset of a

partnership in which the taxpayer is a partner, is a reference to the sum of:

  (a)  the amount of the consideration, the amount of the costs or the amount

of the expenditure, as the case may be, reduced by any part of the

consideration, of the costs or of the expenditure that has been allowed or is

allowable, or would apart from section 61 be allowable, as a deduction to the

partnership in respect of any year of income; and

  (b)  any amount that, as a result of the disposal of the taxpayer's asset by

the taxpayer, is included in the assessable income of the partnership of any

year of income by virtue of a provision of this Act other than this Part and

is attributable to the part of the consideration, the part of the costs or the

part of the expenditure, as the case may be, that was allowed or is allowable

as a deduction.

 "(4) The reference in paragraph (3) (b) to an amount that is included in the

assessable income of the partnership includes a reference to an amount that is

taken by subsection 60 (1A) to be so included for the purposes of subsection

60 (1).".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 56

Transfer of assets from company or trust to spouse uponl 25310 breakdown of

marriage

 

  56. Section 160ZZMA of the Principal Act is amended by omitting from

subsection (6) ", partnerships".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 57

Transfer of asset to wholly-owned company

 

  57. Section 160ZZN of the Principal Act is amended:

  (a)  by omitting paragraph (2) (ca);

  (b)  by omitting subsections (6) and (6A).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 58

 

  58. After section 160ZZN of the Principal Act the following section is

inserted:

Transfer of partnership assets to wholly-owned company

  "160ZZNA. (1) In this section:

`asset' does not include a personal-use asset.

  "(2) This section applies where:

  (a)  2 or more taxpayers (in this section called the `ex-partners'), being

all of the partners in a partnership, dispose of their interests in a

partnership asset of the partnership (which partnership asset is in this

section called the `eligible asset') to a company; and

  (b)  subject to subsection (12), the consideration in respect of the

disposal consists only of non-redeemable shares in the company (which shares

are in this section called the `replacement shares'); and

  (c)  the market value of the replacement shares is substantially the same as

the market value of the eligible asset, reduced, if the company assumes in

connection with the disposal a liability or liabilities in respect of the

eligible asset, by the amount of the liability or the total of the amounts of

the liabilities; and

  (d)  immediately after the disposal:

     (i)  all of the shares in the company are beneficially owned

by the ex-partners; and

    (ii)  each ex-partner holds the shares in the company in the

same proportions as the ex-partner held the ex-partner's interest in the

eligible asset immediately before the disposal; and

  (e)  in the case of an ex-partner, being a taxpayer other than a taxpayer in

the capacity of a trustee - one of the following subparagraphs applies:

      (i)  both the taxpayer and the company are residents of

Australia at the time of the disposal;

     (ii)  all of the following conditions are satisfied:

         (A)  the taxpayer is not a resident of Australia at the time

of the disposal;

         (B)  the company is a resident of Australia at the time of the

disposal;

         (C)  the disposal is a disposal of a taxable Australian asset;

     (iii)  all of the following conditions are satisfied:

         (A)  the company is not a resident of Australia at the time of

the disposal;

        (B)  the disposal is a disposal of a taxable Australian asset;

        (C)  immediately after the disposal, the eligible asset is a

taxable Australian asset of the company; and

  (f)  in the case of an ex-partner, being a taxpayer in the capacity of a

trustee of a trust estate or of a unit trust - one of the following

subparagraphs applies:

       (i)  both of the following conditions are satisfied:

        (A)  the trust estate or the unit trust is a resident trust

estate or a resident unit trust in relation to the year of income in which the

disposal occurred;

  (B)  the company is a resident of Australia at the time of the disposal;

  (ii)  all of the following conditions are satisfied:

  (A)  the company is a resident of Australia at the time of the disposal;

  (B)  the trust estate or the unit trust is not a resident trust estate or a

resident unit trust in relation to the year of income in which the disposal

occurred;

  (C)  the disposal is a disposal of a taxable Australian asset of the trust

estate or of the unit trust;

  (iii)  all of the following conditions are satisfied:

  (A)  the company is not a resident of Australia at the time of the

disposal;

  (B)  the disposal is a disposal of a taxable Australian asset of the trust

estate or of the unit trust;

  (C)  immediately after the disposal, the eligible asset is a taxable

Australian asset of the company; and

  (g)  in the case of an ex-partner, being a taxpayer in the capacity of a

trustee - immediately after the disposal, the ex-partner holds the replacement

shares upon the same trust as the ex-partner held the ex-partner's interest in

the eligible asset; and

  (h)  all of the ex-partners have elected that this section is to apply in

relation to the disposal.

  "(3) This Part (other than this section) does not apply in respect of the

disposal.

  "(4) For the purposes of this section:

  (a)  an interest in the eligible asset that was acquired by anex-partner

before 20 September 1985 is taken to be a pre-20 September 1985 eligible asset

interest; and

  (b)  any other interest in the eligible asset is taken to be a post-20

September 1985 eligible asset interest.

  "(5) If an eligible asset relates wholly to pre-20 September 1985 eligible

asset interests - the company is taken, for the purposes of this Part, to have

acquired the eligible asset before 20 September 1985.

  "(6) If an eligible asset relates wholly to post-20 September 1985 eligible

asset interests - the eligible asset is taken, for the purposes of this

section, to be a post-20 September 1985 eligible asset.

  "(7) If an eligible asset relates partly to both of the following:

  (a)  pre-20 September 1985 eligible asset interests;

  (b)  post-20 September 1985 eligible asset interests;

the following provisions have effect:

  (c)  the eligible asset is taken, for the purposes of this Part, to comprise

2 separate assets, as follows:

  (i)  the eligible asset to the extent to which it relates to pre-20

September 1985 eligible asset interests;

  (ii)  the eligible asset to the extent to which it relates to post-20

September 1985 eligible asset interests;

  (d)  the company is to be treated, for the purposes of this Part, as if the

company had acquired the eligible asset referred to in subparagraph (c) (i)

before 20 September 1985;

  (e)  the eligible asset referred to in subparagraph (c) (ii) is taken, for

the purposes of this section, to be a post-20 September 1985 eligible asset;

  (f)  on the disposal of the actual eligible asset, the consideration in

respect of the disposal of the actual eligible asset is to be apportioned

between the separate assets.

  "(8) The company is taken to have paid or given as consideration in respect

of the acquisition of a post-20 September 1985 eligible asset:

  (a)  for the purposes of ascertaining whether a capital gain accrued to the

company in the event of a subsequent disposal of the eligible asset by the

company - the sum of the amounts that would have been the indexed cost bases

to the ex-partners of post-20 September 1985 eligible asset interests for the

purposes of this Part if this Part had applied in respect of the disposal of

those interests to the company; or

  (b)  for the purposes of ascertaining whether the company incurred a capital

loss in the event of a subsequent disposal of the eligible asset by the

company - the sum of the amounts that would have been the reduced cost bases

to the ex-partners of post-20 September 1985 eligible asset interests for the

purposes of this Part if this Part had applied in respect of the disposal of

those interests to the company.

  "(9) If a post-20 September 1985 eligible asset is disposed of by the

company within 12 months after the earliest day, being a day after19 September

1985, on which any post-20 September 1985 eligible asset interest was acquired

by an ex-partner, the reference in paragraph (8) (a) to the indexed cost bases

to the ex-partner of post-20 September 1985 eligible asset interests is a

reference to the cost bases to theex-partner of the post-20 September 1985

eligible asset interests.

  "(10) In the case of a particular taxpayer, being an ex-partner:

  (a)  if all of the interests in the eligible asset held by the taxpayer were

pre-20 September 1985 eligible asset interests - the taxpayer is taken, for

the purposes of this Part, to have acquired the replacement shares concerned

before 20 September 1985; and

  (b)  if:

  (i)  some, but not all, of the interests in the eligible asset held by the

taxpayer were pre-20 September 1985 eligible asset interests; and

  (ii)  the taxpayer, in the notice of election, nominates, as pre-CGT shares,

such of the replacement shares acquired by the taxpayer as are specified in

the notice; and

  (iii)  the number of replacement shares nominated by the taxpayer does not

exceed the number calculated using the formula:

                  MV of pre-CGT interests

       Shares  X  MV of total interests

where:

`Shares' means the number of replacement shares owned by the `MV of pre-CGT

interests' means the number of dollars in the `MV of total interests' means

the number of dollars in the taxpayer immediately after the disposal;

market value of the pre-20 September 1985 eligible asset interests immediately

before the disposal;

market value of the interest in the eligible asset held by the taxpayer

immediately before the disposal;

the taxpayer is taken, for the purposes of this Part, to have acquired the

nominated shares before 20 September 1985; and

  (c)  each replacement share acquired by the taxpayer that is nottaken by

paragraph (a) or (b) to have been acquired by the taxpayer before 20 September

1985 is taken to be a post-20 September 1985 replacement share for the

purposes of this section; and

  (d)  in the case of a post-20 September 1985 replacement share - the

taxpayer is taken to have paid or given as consideration in respect of the

acquisition of the share an amount equal to:

  (i)  for the purpose of ascertaining whether a capital gain accrued to the

taxpayer in the event of a subsequent disposal of the share by the taxpayer -

the amount calculated using the formula:

             ICB of post-CGT interests

                  Post-CGT shares

where:

`ICB of post-CGT interests' means the sum of the amounts that `Post-CGT

shares' means the number of post-20 September 1985 would have been the indexed

cost bases to the taxpayer of post-20 September 1985 eligible asset interests

for the purposes of this Part if this Part had applied in respect of the

disposal of the interests by the taxpayer to the company;

replacement shares owned by the taxpayer immediately after the disposal; or

  (ii)  for the purposes of ascertaining whether the taxpayer incurred a

capital loss in the event of a subsequent disposal of the share by the

taxpayer - the amount calculated using the formula:

             RCB of post-CGT interests

                 Post-CGT shares

where:

`RCB of post-CGT interests' means the sum of the amounts that `Post-CGT

shares' means the number of post-20 September 1985 would have been the reduced

cost bases to the taxpayer of post-20 September 1985 eligible asset interests

for the purposes of this Part if this Part had applied in respect of the

disposal of the interests by the taxpayer to the company;

replacement shares owned by the taxpayer immediately after the disposal.

  "(11) If a post-20 September 1985 replacement share is disposed of by a

taxpayer within 12 months after the earliest day, being a day after 19

September 1985, on which any partnership asset interest was acquired by the

taxpayer, the reference in paragraph (10) (d) to the indexed cost bases to the

taxpayer of interests is a reference to the cost bases to the taxpayer of the

interests.

  "(12) The consideration in respect of the disposal mentioned in subsection

(2) is not taken not to consist only of non-redeemable shares in the company

merely because the company assumes in connection with the disposal a liability

or liabilities in respect of the eligible asset but, if the company so assumes

such a liability or liabilities, this section does not apply in relation to

the disposal unless:

  (a)  in the case of a pre-20 September 1985 eligible asset interest - the

amount of the liability or the total of the amounts of the liabilities does

not exceed the market value of the interest at the time of the disposal; or

  (b)  in the case of a post-20 September 1985 eligible asset interest - the

amount of the liability or the total of the amounts of the liabilities does

not exceed the amount that, if this Part had applied in respect of the

disposal of the interest by the ex-partner to the company, would have been:

  (i)  if the interest was disposed of within the period of 12 months after

the day in which the interest was acquired by the ex-partner - the cost base

to the ex-partner of the interest; or

  (ii)  if the interest was disposed of after that period - the indexed cost

base to the ex-partner of the interest.

  "(13) An election under this subsection by a taxpayer, being an ex-partner,

must be made by notice in writing given to the Commissioner on or before the

date of lodgment of the return of income of the taxpayer for the year of

income in which the disposal took place, or within such further period as the

Commissioner allows.

  "(14) A reference in this section to an interest in the eligible asset that

was acquired by an ex-partner at a particular time includes a reference to an

interest in the eligible asset that was acquired by the ex-partner at a time

when the eligible asset was a partnership asset of a partnership that was a

predecessor (whether immediate or not) of the partnership mentioned in

subsection (2).".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 59

Transfer of asset between companies in the same group

 

  59. (1) Section 160ZZO of the Principal Act is amended:

  (a) by omitting paragraphs (1) (aa), (ab) and (ac);

  (b) by inserting in subsection (1) "and Division 19A" after "other than this

section";

  (c) by omitting from paragraph (1) (e) "or" and substituting "and";

  (d) by adding at the end of subsection (1) the following word and

paragraph:

    "; and (g) if, at a particular time (in this paragraph

called the `cessation time') after the time of the disposal:

    (i)  the transferee ceased, or first ceased, to be a group

company in relation to the transferor (otherwise than because of the

dissolution of the transferor); and

    (ii)  the transferee had not disposed of the asset;

the transferee is taken:

    (iii)  to have disposed of the asset at the cessation time

for a consideration equal to the market value of the asset at the cessation

time; and

    (iv)  to have immediately re-acquired the asset for a

consideration equal to the market value of the asset at the cessation time.";

  (e) by omitting subsections (2A), (2B) and (2C);

  (f) by omitting from subsection (3) all the words after paragraph (b) and

substituting "at all times during the year of income when both companies were

in existence.";

  (g) by inserting after subsection (3) the following subsection:

 "(3A) For the purposes of this section, a company is taken to be a group

company in relation to another company at a particular time if, at that time:

  (a)  one of the companies was a subsidiary of the other company; or

  (b)  each of the companies was a subsidiary of the same company.";

  (h) by omitting from subsection (4) "during a period (in this subsection

referred to as the `relevant period'), being the whole or a part of a year of

income" and substituting "at a particular time";

  (j) by omitting from paragraph (4) (a) "at all times during the relevant

period" and substituting "at that time";

  (k) by omitting from paragraph (4) (b) "during any part of the relevant

period" and substituting "at that time";

  (m)  by omitting from paragraph (4) (b) "after the relevant period" and

substituting "after that time";

  (n)  by omitting from subsection (6) "during a year of income, or a part of

a year of income" and substituting "at a particular time";

  (p)  by omitting from subsection (6) "during the year of income, or that

part of the year of income" and substituting "at that time";

  (q)  by omitting subsection (10).

  (2) Section 160zzo of the Principal Act is amended by adding at the end of

subsection (1) the following word and paragraph:

  "; and (h) if:

  (i)  the transferor is dissolved after the time of the disposal; and

  (ii)  at a particular time (in this paragraph called the `trigger time')

after the time of the dissolution the transferee had not disposed of the asset

and:

  (A)  a company that, at the time of the disposal, was a group company in

relation to the transferee disposes of a share in the transferee; or

  (B)  the transferee issues a share to a person who was not, at the time of

the disposal, a group company in relation to the transferee;

the transferee is taken:

  (iii)  to have disposed of the asset at, or at the earlier or earliest,

trigger time for a consideration equal to the market value of the asset at, or

at the earlier or earliest, trigger time; and

  (iv)  to have immediately re-acquired the asset for a consideration equal to

the market value of the asset at, or at the earlier or earliest, trigger

time.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 60

Repeal of section 160ZZOA

 

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

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 61

 

  2222After section 160ZZR of the Principal Act the following Division is

inserted:

    "Division 19A - Transfers of Assets between Companies

                   under Common Ownership

Interpretation

  "160ZZRA. (1) In this Division, unless the contrary intention appears:

`eligible debt interest', in relation to a company, means:

  (a)  a loan to the company; or

  (b)  an underlying interest in a loan to the company;

       `eligible equity interest', in relation to a company, means:

  (a)  a share in the company; or

  (b)  an underlying interest in a share in the company;

`first asset' has the meaning given by section 160ZZRD;

`first asset disposal time' has the meaning given by section 160ZZRD;

`indexed threshold amount' has the meaning given by section 160ZZRD;

`non-finance shares' means shares other than shares where, having regard to:

  (a)  the manner in which the amount of dividends in respect of the share is

to be calculated; and

  (b)  the conditions applicable to the payment of dividends in respect of the

share; and

  (c)  any other relevant matters;

the payment of dividends in respect of the share may reasonably be regarded as

equivalent to the payment of interest on a loan;

`total underlying share interests', in relation to particular shares in a

company, means all of the beneficial interests held by natural persons

(whether directly or through one or more interposed companies or trusts) in

the shares;

`transferee' has the meaning given by section 160ZZRD;

`transferor' has the meaning given by section 160ZZRD;

`under common ownership' has the meaning given by section 160ZZRB;

`underlying interest' has the meaning given by section 160ZZRC.

When companies under common ownership

  "160ZZRB. For the purposes of this Division, a company (in this section

called the `first company') and another company (in this section called the

`second company') are under common ownership at a particular time if, and only

if:

  (a)  the first company was a group company (within the meaning of section

160ZZO) in relation to the second company at that time; or

  (b)  at that time:

  (i)  the total underlying share interests in the non-finance shares in the

first company were held by natural persons who, at that time, held the total

underlying share interests in the non-finance shares in the second company;

and

  (ii)  the proportion of the total underlying share interests in the

non-finance shares in the first company held by each natural person was the

same as the proportion of the total underlying share interests in the

non-finance shares in the second company held by that person.

Underlying interest

  "160ZZRC. For the purposes of this Division, an asset held by a taxpayer is

taken to be an underlying interest in particular property if, because of the

holding of that asset, the taxpayer holds an interest (whether directly or

through one or more interposed companies or trusts) in the property.

Transfers of assets between companies under common ownership

  "160ZZRD. (1) This Division applies where:

  (a)  at a particular time (in this Division called the `first asset disposal

time'), a company (in this Division called the `transferor') disposes of an

asset (in this Division called the `first asset') to another company (in this

Division called the `transferee'); and

  (b)  the first asset was acquired by the transferor on or after 20 September

1985; and

  (c)  at the first asset disposal time, the transferor and the transferee are

under common ownership; and

  (d)  subject to subsection (2), the consideration in respect of the disposal

of the first asset is less than whichever is the lesser of the following

amounts:

  (i)  whichever of the following is applicable:

  (A)  the indexed cost base to the transferor of the first asset;

  (B)  the amount that would have been the indexed cost base to the transferor

of the first asset for the purposes of this Part if this Part had applied in

respect of the disposal of the first asset;

  (ii)  the market value, immediately before the first asset disposal time, of

the first asset;

(which lesser amount is in this Division called the `indexed threshold

amount').

  "(2) Paragraph (1) (d) is to be disregarded in applying section 160ZZRF.

Shares in, and loans to, transferor - deemed disposal and re-acquisition

  "160ZZRE. (1) This section only applies to a share in, or a loan to, the

transferor acquired by a taxpayer if no reduction to the cost base, the

indexed cost base or the reduced cost base of the share or the loan to the

taxpayer is made under section 160ZZRF.

  "(2) This section only applies to a loan to the transferor if:

  (a)  the parties to the loan were not dealing with each other at arm's

length in relation to the loan; or

  (b)  the value of the loan was reduced as a result of the disposal of the

first asset.

  "(3) If, at the first asset disposal time, a taxpayer (in this subsection

called the `second taxpayer') held a share in the transferor that was acquired

by the second taxpayer on or after 20 September 1985, the second taxpayer is

taken:

  (a)  to have disposed of the share at the first asset disposal time for a

consideration equal to the indexed cost base to the second taxpayer of the

share; and

  (b)  for the purpose of ascertaining whether a capital gain accrued to the

second taxpayer in the event of a subsequent disposal of the share by the

second taxpayer - to have immediately re-acquired the share for a

consideration equal to the indexed cost base to the second taxpayer of the

share, reduced by the amount (in this section called the `indexed share

reduction amount') calculated using the formula:

       Share MV               Indexed                 First

    Total post-CGT    X     threshold      -          asset

       share MV               amount              consideration

where:

`Share MV' means the market value of the share immediately before the first

asset disposal time;

`Total post-CGT share MV' means the total market value, immediately before the

first asset disposal time, of all of the shares in the transferor that were

acquired (by the second taxpayer or otherwise) on or after 20 September 1985;

`Indexed threshold amount' means the indexed threshold amount;

`First asset consideration' means the amount of the consideration in respect

of the disposal of the first asset; and

  (c)  for the purpose of ascertaining whether the second taxpayer incurred a

capital loss in the event of a subsequent disposal of the share by the second

taxpayer - to have immediately re-acquired the share for a consideration equal

to:

  (i)  if the consideration in respect of the disposal of the first asset is

less than the lesser of the following amounts:

  (A)  the reduced cost base to the transferor of the first asset;

  (B)  the amount that would have been the reduced cost base to the transferor

of the first asset for the purposes of this Part if this Part had applied in

respect of the disposal of the first asset;

  (C)  the market value, immediately before the first asset (which lesser

amount is in this paragraph called the `reduced disposal time, of the first

asset;

threshold amount') - the reduced cost base to the second taxpayer of the

share, reduced by the amount (in this section called the `reduced share

reduction amount') calculated using the formula:

       Share MV                reduced              First

    Total post-CGT     X      threshold     -       asset

       share MV                 amount           consideration

where:

`Share MV' means the market value of the share immediately before the first

asset disposal time;

`Total post-CGT share MV' means the total market value,

immediately before the first asset disposal time, of all of the shares in the

transferor that were acquired (by the second `Reduced threshold amount' means

the reduced threshold amount;

`First asset consideration' means the amount of the taxpayer or otherwise) on

or after 20 September 1985;

consideration in respect of the disposal of the first asset; or

  (ii)  in any other case - the reduced cost base to the second

taxpayer of the share.

  "(4) If:

  (a)  at the first asset disposal time, a taxpayer (in this subsection called

the `second taxpayer') held a loan to the transferor, being a loan that was

acquired by the second taxpayer on or after 20 September 1985; and

  (b)  either of the following conditions is satisfied:

  (i)  one or more shares in the transferor (in this subsection called the

`excess shares') are taken, because of paragraph (3) (b) or (c), to have been

re-acquired, by the second taxpayer or by another taxpayer, at the first asset

disposal time, for nil consideration;

  (ii)  at the first asset disposal time, there were no shares in the

transferor that were acquired (by the second taxpayer or otherwise) on or

after 20 September 1985;

the second taxpayer is taken:

  (c)  to have disposed of the loan at the first asset disposal time for a

consideration equal to the indexed cost base to the second taxpayer of the

loan; and

  (d)  for the purpose of ascertaining whether a capital gain accrued to the

second taxpayer in the event of a subsequent disposal of the loan by the

second taxpayer - to have immediately re-acquired the loan for a consideration

equal to the indexed cost base to the second taxpayer of the loan, reduced by

the amount calculated using the formula:

          Loan MV

      Total post-CGT      X       Total excess share

          loan MV                  reduction amount

where:

`Loan MV' means the market value of the loan immediately before the first

asset disposal time;

`Total post-CGT loan MV' means the total market value, immediately before the

first asset disposal time, of all the loans to the transferor that were

acquired (by the second taxpayer or otherwise) on or after 20 September 1985;

`Total excess share reduction amount' means:   (i)  if subparagraph (b) (i) of

this subsection applies - so

much of the total indexed share reduction amounts for the excess

shares as was not applied in making reductions to the indexed

cost bases of the excess shares in accordance with paragraph (3)

        (b); or

  (ii)  if subparagraph (b) (ii) of this subsection applies -

the amount calculated using the formula:

                 Indexed                  First

                threshold        -        asset

                 amount               consideration

where:

`Indexed threshold amount' means the indexed threshold amount;

`First asset consideration' means the amount of the

consideration in respect of the disposal of the first asset; and

  (e)  for the purpose of ascertaining whether the second

taxpayer incurred a capital loss in the event of a subsequent

disposal of the loan by the second taxpayer - to have

immediately re-acquired the loan for a consideration equal to

the reduced cost base to the second taxpayer of the loan,

reduced by the amount calculated using the formula:

            Loan MV

        Total post-CGT        X       Total excess share

           loan MV                     reduction amount

where:

`Loan MV' means the market value of the loan immediately before

the first asset disposal time;

`Total post-CGT loan MV' means the total market value,

immediately before the first asset disposal time, of all the

loans to the transferor that were acquired (by the second

taxpayer or otherwise) on or after 20 September 1985;

`Total excess share reduction amount' means:

  (i)  if subparagraph (b) (i) of this subsection applies - so much of the

total reduced share reduction amounts for the excess shares as was not applied

in making reductions to the reduced cost bases of the excess shares in

accordance with paragraph (3) (c); or

  (ii)  if subparagraph (b) (ii) of this subsection applies:

  (A)  if the reduced cost base to the transferor of the first asset, or the

amount that would have been the reduced cost base to the transferor of the

first asset for the purposes of this Part if this Part had applied in respect

of the disposal of the first asset, as the case may be, exceeds the

consideration in respect of the disposal of the first asset - the amount of

the excess; or

  (B)  in any other case - 0.

  "(5) If the second taxpayer or another taxpayer disposed of a share or loan

(otherwise than because of the application of this section) within 12 months

after the taxpayer acquired the share or loan (otherwise than because of the

application of this section), subsections (3) and (4) have effect as if the

references in the subsection concerned to the indexed cost base to the

taxpayer in respect of the share or loan were a reference to the cost base to

the taxpayer in respect of the share or loan.

First asset acquired before transferor and transferee came under common

ownership - shares in, and loans to, transferor - reduction

in cost base etc.

  "160ZZRF. (1) This section applies where the transferor acquired the first

asset before the latest time (in this section called the `common ownership

time'):

  (a)  earlier than the first asset disposal time; and

  (b)  at which the transferor and the transferee came under common

ownership.

  "(2) If:

  (a)  at the first asset disposal time, a taxpayer (in this section called

the `second taxpayer') held an asset, being:

  (i)  a share in the transferor that was acquired by the second taxpayer on

or after 20 September 1985; or

  (ii)  a loan to the transferor that was acquired by the second taxpayer on

or after 20 September 1985; and

  (b)  at the common ownership time, the market value of the assets of the

transferor substantially exceeded the total indexed cost bases to the

transferor of those assets;

the cost base, the indexed cost base or the reduced cost base of the share or

the loan to the second taxpayer is reduced by such amount (if any) as is

reasonable having regard to:

  (c)  the circumstances in which the share or the loan was acquired by the

second taxpayer; and

  (d)  the total market value, as at the first asset disposal time, of:

  (i)  the first asset; and

  (ii)  any other assets that were:

  (A)  held by the transferor at the first asset disposal time; and

  (B)  acquired by the transferor before the common ownership time; and

  (e)  the amount of the consideration in respect of the disposal of the first

asset to the transferee.

Indirect equity or debt interests in transferor - reduction

in cost base etc.

  "160ZZRG. If:

  (a)  at the first asset disposal time, a taxpayer (in this section called

the `second taxpayer') held an asset, being:

  (i)  an eligible equity interest (other than a share) in the transferor that

was acquired by the second taxpayer on or after 20 September 1985; or

  (ii)  an eligible debt interest (other than a loan) in the transferor that

was acquired by the second taxpayer on or after 20 September 1985; and

  (b)  the second taxpayer disposes of that asset;

the cost base, the indexed cost base or the reduced cost base of the asset to

the second taxpayer is reduced by such amount as is reasonable having regard

to the reduction in value of the asset resulting from the disposal of the

first asset.

Equity interests in transferee - compensatory increase in cost

base etc.

  "160ZZRH. If:

  (a)  at the first asset disposal time, a taxpayer (in this section called

the `third taxpayer') (who may be the second taxpayer mentioned in section

160ZZRE, 160ZZRF or 160ZZRG) holds an eligible equity interest in the

transferee that was acquired by the third taxpayer on or after 20 September

1985; and

  (b)  the third taxpayer disposes of the eligible equity interest;

the cost base, the indexed cost base or the reduced cost base of the eligible

equity interest to the third taxpayer is increased by such amount (if any) as

is reasonable having regard to:

  (c)  the increase in the value of the interest resulting from the

acquisition of the first asset; and

  (d)  the amount of any relevant reductions made under paragraph 160ZZRE (3)

        (b) or (c) or (4) (d)  or (e) or subsection 160ZZRF (2); and

  (e)  in the case of the indexed cost base - inflation as measured using the

method in section 160Q.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 62

Transfers of assets between companies under common ownership

 

  62. Section 160ZZRD of the Principal Act is amended:

  (a)  by omitting from subsection (1) "This" and substituting "Subject to

this section, this";

  (b) by omitting paragraphs (1) (b), (c) and (d) and substituting the

following paragraphs:

    "(b)   at the first asset disposal time, the transferor and

the transferee are under common ownership; and

      (c)  the transferee is not a subsidiary of the

transferor.";

  (c) by omitting subsection (2) and substituting the following subsection:

 "(2) Sections 160ZZRE, 160ZZRG and 160ZZRH only apply in relation to the

disposal of the first asset if:

  (a)  in a case where the first asset was acquired by the transferor before

20 September 1985 - the consideration in respect of the disposal of the first

asset is less than the market value of the first asset immediately before the

first asset disposal time; or

  (b)  in a case where the first asset was acquired by the transferor on or

after 20 September 1985 - the consideration in respect of the disposal of the

first asset is less than whichever is the lesser of the following amounts:

  (i)  whichever of the following is applicable:

    (A)  the indexed cost base to the transferor of the first

asset;

    (B)  the amount that would have been the indexed cost base

to the transferor of the first asset for the purposes of this Part if this

Part had applied in respect of the disposal of the first asset;

  (ii)  the market value of the first asset immediately before the first asset

disposal time;

(which lesser amount is in this Division called the `indexed threshold

amount').".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 63

Shares in, and loans to, transferor - deemed disposal and re-acquisition

 

  63. Section 160ZZRE of the Principal Act is amended by inserting after

subsection (1) the following subsection:

  "(1A) This section only applies in relation to the disposal of the first

asset if the first asset was acquired by the transferor on or after 20

September 1985.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 64

First asset acquired before transferor and transferee came under common

ownership - shares in, and loans to, transferor - reduction in cost base etc.

 

  64. Section 160ZZRF of the Principal Act is amended:

  (a) by inserting before paragraph (2) (a) the following paragraph:

  "(aa)   the first asset was acquired by the transferor on or after 20

September 1985 (otherwise than because of section 160ZZS); and";

  (b) by omitting from paragraph (2) (a) "section" and substituting

"subsection";

  (c) by adding at the end the following subsection:

 "(3) If:

  (a)  either of the following conditions is satisfied:

  (i)  the first asset was acquired by the transferor before 20 September

1985;

  (ii)  the first asset was acquired by the transferor on or after 20

September 1985 because of section 160zzs; and

  (b)  at the first asset disposal time, a taxpayer (in this subsection called

the `second taxpayer') held an asset, being:

  (i)  a share in the transferor that was acquired by the second taxpayer on

or after 20 September 1985; or

  (ii)  a loan to the transferor that was acquired by the second taxpayer on

or after 20 September 1985;

the cost base, the indexed cost base or the reduced cost base of the share or

the loan to the second taxpayer is reduced by such amount (if any) as is

reasonable having regard to:

  (c)  the circumstances in which the share or the loan was acquired by the

second taxpayer; and

  (d)  the extent (if any) to which the market value of the share or the loan

was reduced as a result of the disposal of the first asset at the first asset

disposal time; and

  (e)  the extent (if any) to which any consideration paid or given by the

second taxpayer for the acquisition of the share or the loan was attributable

to the first asset.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 65

 

  65. After section 160ZZRF of the Principal Act the following section is

inserted:

First asset acquired when transferor and transferee under common ownership -

shares in, and loans to, transferor - reduction in cost base etc.

  "160ZZRFA. (1) This section applies where the transferor acquired the first

asset at or after the latest time (in this section called the `common

ownership time'):

  (a)  earlier than the first asset disposal time; and

  (b)  at which the transferor and the transferee came under common

ownership.

  "(2) If:

  (a)  the first asset was acquired by the transferor before 20 September

1985; and

  (b)  at the first asset disposal time, a taxpayer (in this subsection called

the `second taxpayer') held an asset, being:

  (i)  a share in the transferor that was acquired by the second taxpayer on

or after 20 September 1985; or

  (ii)  a loan to the transferor that was acquired by the second taxpayer on

or after 20 September 1985;

the cost base, the indexed cost base or the reduced cost base of the share or

the loan to the second taxpayer is reduced by such amount (if any) as is

reasonable having regard to:

  (c)  the circumstances in which the share or the loan was acquired by the

second taxpayer; and

  (d)  the extent (if any) to which the market value of the share or the loan

was reduced as a result of the disposal of the first asset at the first asset

disposal time.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 66

Equity interests in transferee - compensatory increase in cost base etc.

 

  66. Section 160ZZRH of the Principal Act is amended:

  (a) by inserting in paragraph (a) ", 160ZZRFA" after "160ZZRF";

  (b) by inserting in paragraph (d) "or (3) or 160ZZRFA (2)" after "160ZZRF

(2)".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 67

Disposal of shares or of interest in trust

 

  67. Section  160ZZT of the Principal Act is amended:

  (a)  by adding "or" at the end of subparagraph (1) (a) (i);

  (b)  by omitting subparagraph (1) (a) (ii);

  (c)  by omitting from subparagraph (1) (c) (ii) ", partnership" (wherever

occurring);

  (d)  by omitting from subparagraph (1) (c) (ii) ", partnerships";

  (e)  by omitting from paragraph (1) (d)  ", partnership";

  (f)  by omitting from subsection (1)  ", partnership" (last occurring);

  (g)  by omitting from subsection (3)  ", partnership".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 68

Keeping of records

 

  68. (1) Section 160ZZU of the Principal Act is amended:

  (a)  by omitting from subsection (1) "$2,000" and substituting "$3,000";

  (b)  by omitting subsection (3) and substituting the following subsections:

 "(3) A transferee (within the meaning of section 160zzo) who acquires, or

after 6 December 1990 has acquired, an asset (other than an excepted asset) as

a result of a disposal mentioned in paragraph 160ZZO (1) (a) to which section

160ZZO applies, must keep such records in the English language as are

necessary to enable the ready ascertainment of:

  (a)  the acts, transactions and other circumstances (including the identity

of the transferor concerned) that resulted in section 160ZZO applying in

relation to the disposal; and

  (b)  the transferee's status as a group company (within the meaning of

section 160ZZO) in relation to the transferor at a time before the earlier of

the following:

  (i)  the cessation time mentioned in paragraph 160ZZO (1) (g);

  (ii)  the time when the asset was disposed of by the transferee; and

  (c)  the earlier of the times mentioned in paragraph (b) of this

subsection.

    Penalty: $3,000.

 "(4) Paragraphs (3) (b) and (c) do not require a person to keep a record of

information if the person did not know, and made all reasonable efforts to

obtain, the information.

 "(5) For the purpose of the application of subsection (3) in relation to a

person, an asset is an excepted asset if this Part would not, in the event of

the disposal of the asset by the person, apply in respect of the disposal.

 "(6) A person who has possession of any records kept under this section must

retain those records until:

  (a)  if subsection (1) applies - the end of 5 years after the asset to which

the records relate was disposed of by the person; or

  (b)  if subsection (3) applies - the end of 5 years after the earlier of the

times mentioned in paragraph (3) (b).

    Penalty: $3,000.

 "(7) Subsection (6) does not require a person to retain records where:

  (a)  the Commissioner has notified the person that retention of the records

is not required; or

  (b)  the person is a company that has gone into liquidation and been finally

dissolved.

 "(8) Subsections 262A (4) and (5) do not apply in relation to records kept

under this section.".

  (2) Section 160ZZU of the Principal Act is amended:

  (a) by inserting after subsection (3) the following subsection:

     "(3A) A transferee (within the meaning of section 160ZZO)

who acquires, or after 13 February 1991 has acquired, an asset (other than an

excepted asset) as a result of a disposal mentioned in paragraph 160ZZO (1)

        (a) to which section 160ZZO applies, must keep such records in the English

language as are necessary to enable the ascertainment of:

    (a)  the acts, transactions and other circumstances

(including the identity of the transferor concerned) that resulted in section

160ZZO applying in relation to the disposal; and

    (b)  the transferee's status as a group company (within the

meaning of section 160ZZO) in relation to each company (being a company that

was a shareholder in the transferee at the time of the disposal mentioned in

paragraph 160ZZO (1) (a)) at a time before the earlier of the following:

    (i)  the trigger time, or the earlier or earliest trigger

time, mentioned in paragraph 160ZZO (1) (h);

   (ii)  the time when the asset was disposed of by the

transferee; and

    (c)  the earlier of the times mentioned in subparagraph (b)

        (i) or (ii) of this subsection.

Penalty: $3,000.";

  (b) by inserting in subsection (4) "and paragraphs (3A) (b) and (c)" before

"do not";

  (c)  by inserting in subsection (5) "or (3A)" after "(3)";

  (d) by omitting from paragraph (6) (b) "(3) (b)." and substituting "(3) (b);

and";

  (e) by inserting after paragraph (6) (b) the following paragraph:

     "(c) if subsection (3A) applies - the end of 5 years after

the earlier of the times mentioned in subparagraph (3A) (b) (i) or (ii).".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 69

Effect of incorrect quotation of tax file number

 

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

(7).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 70

Interpretation

 

  70. Section 317 of the Principal Act is amended by inserting the following

definition:

"`accruals tax law', in relation to a listed country, means a law of the

listed country that is declared by regulations for the purposes of this

definition to be an accruals tax law;".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 71

When income or profits subject to tax in a listed country

 

  71. Section 324 of the Principal Act is amended:

  (a)  by omitting from subsection (1) "Subject to subsection (2)" and

substituting "Subject to this section";

  (b)  by inserting in paragraph (2) (a) "and subsections (3) and (4)" after

"apart from this subsection";

  (c) by adding at the end the following subsections:

     "(3) Where:

  (a)  an entity becomes a resident of a particular listed country (in this

section called the `current listed country') at a particular time (in this

section called the `residence-change time'); and

  (b)  the entity owns an asset at the residence-change time; and

  (c)  the entity disposes of the asset while a resident of the current listed

country;

then, for the purposes of this Part:

  (d)  if, apart from this paragraph, the only part of a capital gain on the

disposal of the asset that is subject to tax in the listed country is the part

that relates to the period after the residence-change time - the whole of the

capital gain, whether it relates to the period before or after the

residence-change time, is, subject to subsection (4), taken to be subject to

tax in the current listed country; and

  (e)  subsection (4) applies.

 "(4) Where:

  (a)  a capital gain on the disposal of the asset would, apart from this

subsection and whether or not paragraph (3) (d) applies, be subject to tax in

the current listed country; and

  (b)  at a time or times when it owned the asset before the residence-change

time (but disregarding any time or times before a change of residence from an

unlisted country to a listed country), the entity was a resident of one or

more listed countries (each of which is in this subsection called a `previous

listed country'); and

  (c)  if the entity had disposed of the asset when it ceased to be a resident

of a particular previous listed country (in this subsection called the

`non-taxing listed country'), any capital gain on the disposal would not have

been subject to tax in that country; and

  (d)  if the entity had disposed of the asset when it ceased to be a resident

of another previous listed country after the non-taxing listed country, any

capital gain on the disposal would not have been subject to tax in that other

previous listed country to the extent that it relates to the period of

residence by the entity in the non-taxing listed country;

then, for the purposes of this Part, so much of the gain as relates to the

period of residence in the non-taxing listed country is taken not to be

subject to tax in the current listed country.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 72

Exempting receipt of an unlisted country company

 

  72. Section 377 of the Principal Act is amended:

  (a) by adding at the end of paragraph (1) (b) "other than under section 143

(where the proviso to that section does not apply)";

  (b) by adding at the end of subsection (1) the following paragraph:

     "; (h)   a premium paid or credited to the company in the

qualifying period where, because of the application of subsection 148 (1), the

premium is not allowable as a deduction to the person referred to in

subparagraph 148 (1) (a) (i) and is not included in the assessable income of

the company.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 73

Certain provisions to be disregarded in calculating attributable income

 

  73. Section 389 of the Principal Act is amended:

  (a) by omitting from paragraph (a) "and sections 136A," and substituting ",

section 136A, Division 15 of Part III (other than subsection 148 (1)) and

sections";

  (b) by inserting in paragraph (a) ", 459A" after "459".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 74

Notional allowable deduction for taxes paid

 

  74. Section 393 of the Principal Act is amended by adding at the end the

following subsection:

  "(4) Where a person pays an amount of tax that the person is liable to pay

under subsection 148 (3) of this Act, in its application apart from this Part,

in respect of premiums paid or credited to the eligible CFC, then, for the

purposes of subsection (1), the amount is taken to be Australian tax paid by

the eligible CFC in respect of the premiums.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 75

 

  75. After section 398 of the Principal Act the following section is

inserted:

Modified application of Division 3A of Part III

  "398A. (1) For the purposes of applying this Act in calculating the

attributable income of the eligible CFC, section 82R does not apply, subject

to subsection (2), to outgoings during the eligible period under a convertible

note where:

  (a)  the note was issued by the eligible CFC (whether or not the company

concerned was a CFC at the time):

  (i)  before 1 July 1990; or

  (ii)  on or after 1 July 1990 and before 1 July 1992, where:

  (A)  the terms of the issue of the note were publicly announced by the

eligible CFC before 1 July 1990; or

  (B)  the eligible CFC was, under a contract entered into before 1 July 1990,

obliged to issue the note; and

  (b)  at the end of each statutory accounting period of the eligible CFC

preceding the eligible period and ending after 30 June 1990, the eligible

taxpayer was an attributable taxpayer in relation to the eligible CFC; and

  (c)  the eligible period begins before 1 July 2000.

  "(2) Where:

  (a)  the terms of a note to which subsection (1) would, apart from this

subsection, apply are varied (otherwise than because of a compromise or

arrangement approved by a court); and

  (b)  the Commissioner considers that the variation is substantial enough to

represent a new loan;

subsection (1) does not apply to outgoings under the note after the time at

which the variation takes place.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 76

Additional notional exempt income - unlisted or listed country

CFC

 

  76. Section 402 of the Principal Act is amended:

  (a)  by adding at the end of paragraph (2) (a) ", other than amounts that

are so included under section 143 (where the proviso to that section does not

apply)";

  (b)  by adding at the end of subsection (2) the following paragraph:

     "; (e) a premium paid or credited to the eligible CFC in

the eligible period, where, because of the application of subsection 148 (1)

for the purposes of this Act apart from this Part, the premium is not, for

those purposes, allowable as a deduction to the person referred to in

subparagraph 148 (1) (a) (i) and is not included in the assessable income of

the eligible CFC.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 77

Modified application of Part IIIA - general modifications

 

  77. Section 410 of the Principal Act is amended:

  (a)  by omitting paragraph (a) and substituting the following paragraph:

  "(a)   subsections 160M (12) to (12ab) (inclusive);";

  (b)  by inserting after paragraph (c) the following paragraph:

 "(ca) section 160ZFB;".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 78

 

  78. After section 418 of the Principal Act the following section is

inserted:

Effect of change of residence from Australia to listed or unlisted country

  "418A. (1) For the purposes of applying this Act in calculating the

attributable income of the eligible CFC, where:

  (a)  disregarding the residency assumption, at any time (in this section

called the `residence-change time') during the eligible period or an earlier

statutory accounting period beginning on or after 1 July 1990, the eligible

CFC ceased to be a resident within the meaning of section 6 and became a

resident of a listed or an unlisted country; and

  (b)  the eligible CFC owned an asset at the residence-change time; and

  (c)  the eligible CFC disposed of the asset during the eligible period;

then sections 411 to 417 (inclusive) apply, in addition to any application

apart from this section but subject to subsection (2) of this section, to the

asset as if:

  (d)  any reference in those sections to a 30 June 1990 non-taxable

Australian asset were a reference to the asset; and

  (e)  any reference in those sections relating to 30 June 1990 or1 July 1990

were a reference relating respectively to the residence-change time or a time

immediately after the residence-change time; and

  (f)  where subsection 160M (8) applies to the asset in respect of the change

of residence for the purposes of the application of this Act apart from this

Part - the following provisions were omitted:

  (i)  sub-subparagraphs 412 (2) (a) (i) (B) and (ii) (B);

  (ii)  subparagraphs 414 (2) (a) (ii) and (b) (ii);

  (iii)  subparagraphs 415 (2) (a) (ii) and (b) (ii);

  (iv)  subparagraphs 416 (2) (a) (ii) and (b) (ii);

  (v)  subparagraphs 417 (2) (a) (ii) and (b) (ii).

  "(2) Where the asset is a 30 June 1990 non-taxable Australian asset,

sections 411 to 417 (inclusive) do not apply, in spite of anything contained

in those sections, to the asset except in accordance with subsection (1) of

this section.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 79

Repeal of section 420

 

  79. Section 420 of the Principal Act is repealed.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 80

Amounts excluded from active income test

 

  80. Section 436 of the Principal Act is amended:

  (a)  by adding at the end of paragraph (1) (a) "other than under section 143

(where the proviso to that section does not apply)";

  (b)  by adding at the end of subsection (1) the following paragraph:

     "; (g) a premium paid or credited to the company where,

because of the application of subsection 148 (1), the premium is not allowable

as a deduction to the person referred to in subparagraph 148 (1) (a) (i) and

is not included in the assessable income of the company.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 81

 

  81. After section 456 of the Principal Act the following section is

inserted:

Reduction of section 456 assessability where item subject to foreign accruals

tax

  "456A. (1) Where:

  (a)  apart from this section, an amount (in this section called the

`otherwise assessable section 456 amount') is included in the assessable

income of a year of income of an attributable taxpayer in relation to a CFC

under section 456, in relation to the attributable income of the CFC of a

statutory accounting period; and

  (b)  an attribution tracing interest of the attributable taxpayer, or of an

interposed entity, in a CFE was taken into account in calculating the

attributable taxpayer's attribution percentage for the CFC; and

  (c)  foreign tax is payable by the CFE under an accruals tax law of a listed

country in respect of an amount that is calculated by reference to an item of

net income or net profit of the CFC, where the amount is taxed in the listed

country:

  (i)  at or above that country's normal company tax rate; and

  (ii)  in a tax accounting period commencing or ending:

  (A)  in the year of income of the attributable taxpayer; or

  (B)  in the statutory accounting period of the CFC; and

  (d)  the item constitutes the whole or part (which whole or part is in this

section called the `foreign accruals-taxed attributable income') of the

attributable income of the CFC of the statutory accounting period;

then the otherwise assessable section 456 amount is reduced by the amount

calculated using the formula:

         Indirect attribution             Foreign accurals-taxed

         interests via CFE        X       attributable income

where:

`Indirect attribution interests via CFE' means the total of the attributable

taxpayer's indirect attribution interests in the CFC that are held through the

CFE;

`Foreign accruals-taxed attributable income' means the amount of the foreign

accruals-taxed attributable income.

  "(2) Where:

  (a)  apart from this subsection, subsection (1) would reduce the otherwise

assessable section 456 amount of the attributable taxpayer in relation to the

CFC in a case where foreign tax is payable by 2 or more CFEs under accruals

tax laws; and

  (b)  any indirect attribution interest referred to in the formula component

"Indirect attribution interests via CFE" in subsection (1) is held through any

2 or more of the CFEs;

then that indirect attribution interest is only to be taken into account once

in applying the subsection.

  "(3) Where, because of any of subsections 362 (2) to (5), the amount that

would otherwise be the attribution percentage of the attributable taxpayer for

the CFC is reduced, then the Commissioner may, for the purposes of this

section, make such consequential reduction as the Commissioner considers

reasonable in the circumstances to any indirect attribution interest in the

CFC held by the attributable taxpayer.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 82

 

  82. After section 459 of the Principal Act the following section is

inserted:

Assessability where CFC or CFT has interest in certain attributable taxpayers

  "459A. (1) Where:

  (a)  an amount (in this subsection called the `section 456 to 459A amount')

is included in the assessable income of an Australian partnership or of an

Australian trust of a year of income under section 456, 457, 458 or 459 or

under this section (apart from subsection (2)); and

  (b)  a CFC or CFT has an individual interest in the net income of the

Australian partnership, or a present entitlement to a share of the net income

of the Australian trust, being an interest or entitlement held either directly

or indirectly through interposed Australian partnerships, CFPs or Australian

trusts (or any combination thereof); and

  (c)  a taxpayer is an attributable taxpayer in relation to the CFC or CFT:

  (i)  where the section 456 to 459A amount is included in assessable income

under section 456 - at the end of the statutory accounting period referred to

in that section; or

  (ii)  where the amount is included under section 457 - at the

residence-change time referred to in that section; or

  (iii)  where the amount is included under section 458 - when the dividend

referred to in that section is paid; or

  (iv)  where the amount is included under section 459 - at the distribution

time referred to in that section; or

  (v)  where the amount is included under this section - at the time referred

to in whichever subparagraph of this paragraph applied for the purposes of so

including the amount;

then, subject to subsection (2), the assessable income of the attributable

taxpayer of the year of income includes an amount calculated using the

formula:

    AP  X  Interest/Entitlement  X  Section 456 to 459A amount

where:

`AP' (Attribution Percentage) means the taxpayer's attribution percentage, at

the time referred to in paragraph (c), for the CFC or CFT;

`Interest/Entitlement' means the percentage of the net income of the

Australian partnership or Australian trust represented by the sum of the

direct and indirect interests or present entitlements of the CFC or CFT;

`Section 456 to 459A amount' means the section 456 to 459A amount.

  "(2) Where:

  (a)  apart from this subsection, an amount (in this subsection called the

`subsection (1) amount') is included under subsection (1) in the assessable

income of an attributable taxpayer in relation to a CFT; and

  (b)  the following conditions are satisfied in respect of one or more other

amounts (each of which is in this subsection called an `assessed attributable

amount');

  (i)  each is:

  (A)  apart from this subsection, included in the assessable income of a

taxpayer (whether or not the attributable taxpayer), other than a trust or

partnership; or

  (B)  assessed to a trustee under section 98, 99 or 99A;

  (ii)  each is attributable directly through the CFT, or indirectly through

the CFT and any interposed partnerships or trusts (or any combination

thereof), to the section 456 to 459A amount referred to in subsection (1);

then the subsection (1) amount is reduced to the extent that the Commissioner

considers it represents an assessed attributable amount or assessed

attributable amounts.

  "(3) A reference in subsection (1) to an Australian trust or in subsection

(2) to a trust does not include a reference respectively to an Australian

trust or a trust that is, in relation to the year of income concerned:

  (a)  a corporate unit trust within the meaning of Division 6B of Part III;

or

  (b)  a public trading trust within the meaning of Division 6C of that Part;

or

  (c)  an eligible entity within the meaning of Part IX.".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 83

Only resident partners, beneficiaries etc. liable to be assessed

as a result of attribution

 

  83. Section 460 of the Principal Act is amended:

  (a) by omitting from subsection (1) "or 459" and substituting", 459 or

459A";

  (b) by omitting subsection (5).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 84

Application of amendments - general

 

  84. (1) In this section:

"amended Act" means the Principal Act as amended by this Part.

  (2) Subject to this section, the amendments made by section 10 (other than

paragraphs (b) and (j)) apply to payments made in relation to deaths occurring

on or after 1 January 1990.

  (3) The amendments made by paragraph 10 (j) apply to pensions paid during

the year 1988-89 and subsequent years of assessment (within the meaning of the

Income and Corporation Taxes Act 1988 of the United Kingdom).

  (4) Paragraphs 23AD (3) (y) and (z) of the amended Act apply in relation to

deaths occurring on or after 19 December 1989.

  (5) The amendments made by section 11 apply in relation to asset disposals

during the year of income commencing on 1 July 1990 or a subsequent year of

income.

  (6) The amendments made by section 12 apply in relation to dividends paid

after 3 June 1990.

  (7) The amendment made by section 16 applies in relation to the calculation

of attributable income of any year of income, whether commencing before or

after the commencement of that section.

  (8) The amendments made by sections 17 to 30 (inclusive) apply to

expenditure incurred after 7.30 p.m., by standard time in the Australian

Capital Territory, on 21 August 1990.

  (9) The amendments made by section 32 apply to assessments in respect of

income of the year of income commencing on 1 July 1991 and of all subsequent

years of income.

  (10) The amendments made by paragraph 34 (a) and sections 35, 37, 38, 39,

41, 42 and 43 apply in relation to the first franking year of a company that

commences after 6 December 1990 and all subsequent franking years.

  (11) The amendments made by sections 44, 45, 46, 47 and 48, paragraphs 49

        (a) to (g) (inclusive) and (n), section 50, subsection 51 (1), sections 52,

53, 55, 56, 57 and 58, subsection 59 (1) and sections 60, 61, 67 and 79 apply

in relation to disposals of assets after 6 December 1990.

  (12) The amendments made by subsections 51 (2) and 59 (2) and sections 62,

63, 64, 65 and 66 apply in relation to disposals of assets after 13 February

1991.

  (13) The amendments made by paragraphs 49 (h), (j), (k) and (m) and 77 (a)

apply to a company that becomes a resident, within the meaning of section 6 of

the amended Act, after 6 December 1990.

  (14) The amendments made by section 54 and paragraph 77 (b) apply to changes

of residence taking place on or after 1 July 1989.

  (15) The amendment made by section 71 applies to disposals of assets taking

place after 6 December 1990.

  (16) The amendment made by section 72 applies to amounts derived by, or

dividends paid to, a company during accounting periods of the company that end

after 30 June 1990.

  (17) The amendments made by sections 73, 74, 75, 76, 78 and 80 apply in

relation to the calculation of attributable income of any eligible period,

whether beginning before or after the commencement of those sections.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 85

Application of bad debt amendments

 

  85. (1) The amendments made by sections 13 and 14 apply to debts created or

acquired (whichever is the later) after the earlier of:

  (a)  the commencement of the year of income of the taxpayer commencing on 1

July 1990; and

  (b)  7.30 p.m., by standard time in the Australian Capital Territory, on 21

August 1990.

  (2) Where, after the time (in this subsection called the "application time")

that is the earlier of the times referred to in subsection (1):

  (a)  a debt (in this subsection called the "post-application time debt") is

created under a contract entered into before the application time; or

  (b)  a debt (in this subsection also called the "post-application time

debt") is created by rolling-over or extending the term of a debt existing at

the application time, in a case where, at the time at which the latter debt

was created, it would have been reasonable to expect that it would be so

rolled-over or its term would be so extended;

then the amendments referred to in subsection (1) do not apply to the

post-application time debt.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 86

Savings - section 159GZZJ of the Principal Act

 

  86. Even though an amendment of the Principal Act has been made under

section 31, if a particular assessment would be affected by the amendment, the

amendment is to be disregarded in making the assessment.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 87

Transitional - cancellation of franking surplus for mutual life

assurance companies and SGIOs

 

  87. In spite of anything in Part IIIaa of the Principal Act as amended by

this Act, for the purposes of that Part of that Act, where a mutual life

assurance company or an SGIO has a franking surplus at the end of 21 August

1990, there arises at the beginning of the next day a franking debit of the

company or SGIO equal to that franking surplus.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 88

Transitional - application of Part IIIA of the Principal Act to partnerships

 

  88. The amendments made by sections 44, 45, 46, 47 and 48, paragraphs 49 (a)

to (g) (inclusive) and (n) and sections 50, 52, 53, 55, 56, 57, 58 and 67 are

to be disregarded in determining the meaning that an expression in Part IIIA

of the Principal Act had when used in relation to disposals of assets before 7

December 1990.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 89

Transitional - section 160zzu of the amended Act

 

  89. Where the Commissioner has notified a person under paragraph 160ZZU (3)

        (b) of the Principal Act that the person is not required to keep records, the

Commissioner is taken to have notified the person under paragraph 160ZZU (7)

        (a) of the Principal Act as amended by this Act that the person is not

required to retain those records.

 

PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 91

Principal Act

 

  91. In this Part, "Principal Act" means the Income Tax Rates Act 1986.*3*

*3* No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138,

1987; and Nos. 11, 78 and 118, 1988; Nos. 98 and 106, 1989; and No. 87, 1990.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 92

Interpretation

 

  92. Section 3 of the Principal Act is amended:

  (a)  by adding at the end of paragraph (b) of the definition of "prescribed

non-resident" in subsection (1) "or";

  (b)  by omitting "or" from paragraph (c) of the definition of "prescribed

non-resident" in subsection (1);

  (c)  by omitting paragraph (d) of the definition of "prescribed

non-resident" in subsection (1).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 93

Limitation on tax payable by certain trustees

 

  93. (1) Section 14 of the Principal Act is amended by omitting from

paragraph (2) (c) "$717" and substituting "$705".

  (2) Section 14 of the Principal Act is amended by omitting from paragraph

(2) (c) "$705" and substituting "$693".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 94

Interpretation

 

  94. Section 16 of the Principal Act is amended:

  (a)  by adding at the end of paragraph (b) of the definition of "eligible

pensioner" in subsection (1) "or";

  (b)  by omitting "or" from paragraph (c) of the definition of "eligible

pensioner" in subsection (1);

  (c) by omitting paragraph (d) of the definition of "eligible pensioner" in

subsection (1).

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 95

Tax cuts for 1990-91

 

  95. Schedule 7 to the Principal Act is amended by omitting from the table in

Part I "21%", "25%" and "30%" and substituting "20.5%", "24.5%" and "29.5%"

respectively.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 96

Tax cuts for 1991-92 and subsequent years

 

  96. Schedule 7 to the Principal Act is amended by omitting from the table in

Part I "21%" and substituting "20%".

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 97

Application of amendments

 

  97. (1) The amendments made by sections 92 and 94 apply to assessments in

respect of income of the year of income commencing on 1 July 1990 and of all

subsequent years of income.

  (2) The amendments made by subsection 93 (1) and section 95 apply to

assessments in respect of income of the year of income commencing on 1 July

1990.

  (3) The amendments made by subsection 93 (2) and section 96 apply to

assessments in respect of income of the year of income commencing on 1 July

1991 and of all subsequent years of income.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 98

Transitional - provisional tax for 1990-91

 

  98. In ascertaining the provisional tax (including instalments) payable for

the year of income commencing on 1 July 1990, the amendments made by

subsection 93 (1) and section 95 are to be disregarded.

 

PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 100

Principal Act

 

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

1953.*4*

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 101

 

  101. Section 8XA of the Principal Act is repealed and the following section

is substituted:

Unauthorised access to taxation records

  "8XA. A person must not knowingly take action for the purpose of obtaining

information about another person's affairs that:

  (a)  is contained in records in the possession of the Commissioner; and

  (b)  is held or was obtained by the Commissioner under or for the purposes

of a taxation law;

unless the person takes the action:

  (c)  under the Freedom of Information Act 1982; or

  (d)  in accordance with the processes of a court or the Tribunal; or

  (e)  in the course of exercising powers or performing functions under or in

relation to a taxation law. Penalty: $10,000 or imprisonment for 2 years, or

both.".

*4* No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and

52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,

1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,

1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,

1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and

168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended

by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No.

108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); Nos. 95 and 97, 1988; Nos. 97, 105, 107, 124, 163

and 167, 1989; and No. 20, 1990.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 102

Secrecy

 

  102. Section 8XB of the Principal Act is amended:

  (a)  by adding at the end of paragraph (1) (b) "or";

  (b)  by inserting after paragraph (1) (b) the following paragraph:

  "(c)   otherwise make use of any taxation information relating to another

person;".

 

PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (FOREIGN INCOME) ACT

1990

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 103

Principal Act

 

  103. In this Part, "Principal Act" means the Taxation Laws Amendment

(Foreign Income) Act 1990.*5*

*5* No. 5, 1991.

 

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991

- SECT 104

Transitional - section 108 of the amended Act

 

  104. Section 52 of the Principal Act is amended by omitting all the words

after paragraph (2) (b) and substituting the following:

"then:

  (c)  an amount equal to the amount that would have been included if the

dividend had been a non-portfolio dividend is included in the taxpayer's

assessable income of the year of income; and

  (d)  for the purposes of the amended Act, the amount is taken to be included

in the taxpayer's assessable income under section 459 of that Act.".

 

                       NOTE ABOUT SECTION HEADING

On the commencement of the amendments of the Income Tax Assessment Act 1936

made by section 16, the heading to section 102AAZB of that Act is altered by

adding at its end " - general modifications".


Notes to the Taxation Laws Amendment Act 1991

Note 1

The Taxation Laws Amendment Act 1991 as shown in this compilation comprises Act No. 48, 1991 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment Act 1991

48, 1991

24 Apr 1991

See s. 2

 

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 27): 29 June 2010


Table of Amendments

ad. = added or inserted    am. = amended     rep. = repealed   rs. = repealed and substituted

Provision affected

How affected

S. 90.........................................

rep. No. 75, 2010

S. 99.........................................

rep. No. 75, 2010