2004-2005 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 (Treasury) A Bill for an Act to amend the law relating to taxation, and for related purposes [Page Break] 1 Short title ...........................................................................................2 2 Commencement.................................................................................2 3 Schedule(s) ........................................................................................2 Schedule 1--Assessments 4 Part 1--Amending assessments 4 Income Tax Assessment Act 1936 4 Part 2--Nil assessments 14 Income Tax Assessment Act 1936 14 Part 3--Making assessments for the 2003-04 year of income or earlier 16 Income Tax Assessment Act 1936 16 Part 4--Consequential amendments 19 Division 1--SPOR taxpayer provisions 19 Income Tax Assessment Act 1936 19 Income Tax Assessment Act 1997 19 Taxation Administration Act 1953 20 Division 2--Nil assessment provisions 22 Income Tax Assessment Act 1936 22 Taxation Administration Act 1953 23 Taxation (Interest on Overpayments and Early Payments) Act 1983 25 Division 3--Other provisions 25 Child Support (Assessment) Act 1989 25 Income Tax Assessment Act 1936 25 Income Tax (Transitional Provisions) Act 1997 27 Schedule 2--ATO advice 28 Part 1--Rulings 28 Taxation Administration Act 1953 28 Part 2--Consequential amendments 49 Fringe Benefits Tax Assessment Act 1986 49 Higher Education Support Act 2003 49 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 ii [Page Break] Income Tax Assessment Act 1997 49 Product Grants and Benefits Administration Act 2000 50 Taxation Administration Act 1953 51 Part 3--Transitional 53 Part 4--Application 55 iii Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] 2 taxation, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Tax Laws Amendment (Improvements 6 to Self Assessment) Act (No. 2) 2005. 7 2 Commencement 8 This Act commences on the day on which it receives the Royal 9 Assent. 10 3 Schedule(s) 11 Each Act that is specified in a Schedule to this Act is amended or 12 repealed as set out in the applicable items in the Schedule Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 2 [Page Break] 2 according to its terms. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 3 [Page Break] Part 1 Amending assessments 1 2 Schedule 1--Assessments 3 Part 1--Amending assessments 4 Income Tax Assessment Act 1936 5 1 Subsections 170(1) to (7) 6 Repeal the subsections, substitute: 7 (1) The Commissioner may amend an assessment as follows: 8 Amendment of assessments Time of amendment Qualification 1 The Commissioner may This item does not apply: amend an assessment of an (a) if the individual carries on a business at any individual for a year of time in that year unless the individual is an STS income within 2 years after taxpayer for that year; or the day on which the (b) if the individual is a partner in a partnership Commissioner gives notice that carries on a business at any time in that of the assessment to the year unless the partnership is an STS taxpayer individual. for that year; or (c) to an individual in the capacity of a trustee of a trust estate at any time in that year (see item 3 for this case); or (d) if the individual is a beneficiary of a trust estate at any time in that year unless the trust is an STS taxpayer for that year or the trustee of the trust (in that capacity) is a full self-assessment taxpayer for that year; or (e) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the individual obtaining a scheme benefit in relation to income tax from the scheme for that year; or (f) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. 4 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Amending assessments Part 1 Amendment of assessments Time of amendment Qualification 2 The Commissioner may This item does not apply: amend an assessment of a (a) if the company is a partner in a partnership that company that is an STS carries on a business at any time in that year taxpayer for the year of unless the partnership is an STS taxpayer for income to which the that year; or assessment relates within 2 (b) to a company in the capacity of a trustee of a years after the day on which trust estate at any time in that year (see item 3 the Commissioner gives for this case); or notice of the assessment to (c) if the company is a beneficiary of a trust estate the company. at any time in that year unless the trust is an STS taxpayer for that year or the trustee of the trust (in that capacity) is a full self-assessment taxpayer for that year; or (d) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the company obtaining a scheme benefit in relation to income tax from the scheme for that year; or (e) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 5 [Page Break] Part 1 Amending assessments Amendment of assessments Time of amendment Qualification 3 The Commissioner may This item does not apply: amend an assessment of a (a) if the person (in that capacity) is a partner in a person (in the capacity of a partnership that carries on a business at any trustee of a trust estate) for a time in that year unless the partnership is an year of income if the trust is STS taxpayer for that year; or an STS taxpayer for that (b) if the person (in that capacity) is a beneficiary year. of another trust estate at any time in that year The Commissioner may unless the other trust is an STS taxpayer for amend the assessment that year or the trustee of the other trust (in that within 2 years after the day capacity) is a full self-assessment taxpayer for on which he or she gives that year; or notice of the assessment to (c) if it is reasonable to conclude that any person the person. entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the person (in that capacity) obtaining a scheme benefit in relation to income tax from the scheme for that year; or (d) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. 4 If item 1, 2 or 3 does not This item is subject to items 5 and 6. apply, the Commissioner may amend an assessment within 4 years after the day on which he or she gives notice of the assessment to the taxpayer. 5 The Commissioner may None. amend an assessment at any time if he or she is of the opinion there has been fraud or evasion. 6 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Amending assessments Part 1 Amendment of assessments Time of amendment Qualification 6 The Commissioner may None. amend an assessment at any time: (a) to give effect to a decision on a review or appeal; or (b) as a result of an objection made by the taxpayer or pending a review or appeal. 1 Note 1: This section applies to assessments where no tax is payable: see the 2 definition of assessment in subsection 6(1). 3 Note 2: This section also applies to amended assessments: see section 173. 4 However, there are limits on how amended assessments can be 5 amended: see subsections (2) and (3) of this section. 6 Note 3: The amendment period mentioned in item 1, 2, 3 or 4 may be 7 extended: see subsections (5) to (7). 8 Limit on amending amended assessments under subsection (1) 9 (2) The Commissioner cannot amend an amended assessment under 10 item 1, 2, 3 or 4 of the table in subsection (1) if the limited 11 amendment period for the original assessment concerned has 12 ended. 13 Note: The Commissioner can amend amended assessments at any time 14 under item 5 or 6 of the table in subsection (1). 15 Refreshed amendment period for amending amended assessments 16 (3) If the Commissioner amends an assessment (the earlier 17 assessment) as set out in column 2 of the following table, he or she 18 may, under this subsection, amend the assessment (the later 19 assessment) that results from that amendment in the way set out in 20 column 3 within: 21 (a) if item 1, 2 or 3 of the table in subsection (1) applies to the 22 original assessment concerned (which may or may not be the 23 earlier assessment)--2 years after the day on which he or she 24 gives notice of the later assessment to the taxpayer; or 25 (b) otherwise--4 years after that day. 26 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 7 [Page Break] Part 1 Amending assessments Amendment of later assessment Column 1 Column 2 Column 3 Item In this case: the position is: 1 The Commissioner amends the The Commissioner may amend earlier assessment about a the later assessment about that particular in a way that reduces a particular in a way that increases taxpayer's liability and the the taxpayer's liability. Commissioner accepts a statement made by the taxpayer in making the amendment 2 The Commissioner amends the The Commissioner may amend earlier assessment about a the later assessment about that particular in a way that: particular in a way that reduces (a) increases a taxpayer's liability; the taxpayer's liability. or (b) reduces a taxpayer's liability (other than in a case covered by item 1) 1 Note 1: The earlier assessment may be the original assessment or an amended 2 assessment. 3 Note 2: The Commissioner can amend the later assessment at any time under 4 item 5 or 6 of the table in subsection (1). 5 Note 3: The amendment period mentioned in paragraph (3)(a) or (b) may be 6 extended: see subsections (5) to (7). 7 (4) The Commissioner cannot amend an assessment under item 2 of 8 the table in subsection (3) about a particular if he or she has 9 previously amended an assessment under item 1 of that table about 10 that particular. 11 Extensions--applications by taxpayer 12 (5) The Commissioner may amend an assessment even though the 13 limited amendment period has ended if, before the end of that 14 period, the taxpayer applies for an amendment in the approved 15 form. The Commissioner may amend the assessment to give effect 16 to the decision on the application. 17 Extensions--giving effect to private rulings 18 (6) The Commissioner may amend an assessment even though the 19 limited amendment period has ended if: 8 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Amending assessments Part 1 1 (a) the taxpayer applies for a private ruling under Division 359 2 in Schedule 1 to the Taxation Administration Act 1953 before 3 the end of that period; and 4 (b) the Commissioner makes a private ruling under that Division 5 because of the application. 6 The Commissioner may amend the assessment to give effect to the 7 ruling. 8 Extensions--Federal Court orders or taxpayer consent 9 (7) If: 10 (a) the Commissioner has started to examine the affairs of a 11 taxpayer in relation to an assessment; and 12 (b) the Commissioner has not completed the examination before 13 the end of the limited amendment period or that period as 14 extended; 15 the limited amendment period may be extended as follows: 16 Extensions of limited amendment period In this case: the position is: 1 The Commissioner, before the end of The Court may order an extension of the limited amendment period or that the limited amendment period for a period as extended, applies to the specified period if it is satisfied that it Federal Court of Australia for an order was not reasonably practicable, or it extending the limited amendment was inappropriate, for the period Commissioner to complete the examination within the limited amendment period, or that period as extended, because of: (a) any action taken by the taxpayer; or (b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take. 2 The Commissioner, before the end of The taxpayer may, by notice in writing, the limited amendment period or that consent to extending the limited period as extended, requests the amendment period for a specified taxpayer to consent to extending the period. limited amendment period 17 (8) The limited amendment period for an assessment may be extended 18 more than once under subsection (7). 19 Note: The following heading to subsection 170(9) is inserted "Other amendment periods". Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 9 [Page Break] Part 1 Amending assessments 1 2 Subsections 170(9A), (9E) and (9F) 2 Repeal the subsections. 3 3 Subsection 170(10) 4 Repeal the subsection, substitute: 5 (10) Nothing in this section prevents the amendment, at any time, of an 6 assessment for the purpose of giving effect to any of the provisions 7 of this Act set out in this table. 8 Amendment of assessments Item Provision Brief description 1 Section 23AB Income of certain persons serving with an armed force under the control of the United Nations 2 Section 23H Exemption of certain film income 3 Section 26AG Certain film proceeds included in assessable income 4 Subsection 47(2B) Distributions by liquidator 5 Section 51AD Deductions not allowable in respect of property used under certain leveraged arrangements 6 Section 51AH Deductions not allowable where expenses incurred by employee are reimbursed 7 Subsection 57AM(10), (13), Special depreciation on trading ships (14), (15) or (16) 8 Subsection 59(2D) Disposal, loss or destruction of depreciated property 9 Subsection 77F(5) Money paid before 1 July 1991 on shares in management and investment companies 10 Section 78A Certain gifts not to be allowable deductions 11 Section 78B Promoters recoupment tax 12 Section 82KJ Deduction not allowable in respect of certain pre-paid outgoings 13 Section 82KK Schemes designed to postpone tax liability 14 Section 82KL Tax benefit not allowable in respect of certain recouped expenditure 15 Subsection 82S(3) Interest on certain convertible notes to be an allowable deduction--where loan made before 1 January 1976 10 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Amending assessments Part 1 Amendment of assessments Item Provision Brief description 16 Subsection 82SA(2) Interest on certain convertible notes to be an allowable deduction--where loan made on or after 1 January 1976 17 Section 100A Present entitlement arising from reimbursement agreement 18 Subdivision C of Division 6D Ultimate beneficiary non-disclosure tax on of Part III share of net income 19 Section 105AA Additional period for making sufficient distribution 20 Section 105AB Additional period for distribution by liquidator 21 Section 121AT Other tax consequences of demutualisation 22 Division 9C of Part III Assessable income diverted under certain tax avoidance schemes 23 Division 10BA of Part III Australian films 24 Section 136AF Consequential adjustments to assessable income and allowable deductions 25 Division 16D of Part III Certain arrangements relating to the use of property 26 Subsection 159GZZZH(2) Post-cancellation disposals of eligible interests etc. 27 Section 160ABB Rebate in respect of certain payments by the Commonwealth Savings Bank of Australia 28 Section 271-105 in Amounts subject to family trust distribution Schedule 2F tax not assessable 29 Schedule 2G Farm management deposits 1 4 Subsection 170(10AA) (table item 10) 2 Repeal the item. 3 5 Subsection 170(10AA) (after table item 20) 4 Insert: 22 Section 59-30 Repayment of amounts 5 6 Subsection 170(10AA) (table item 210) 6 Repeal the item. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 11 [Page Break] Part 1 Amending assessments 1 7 Subsection 170(10AB) 2 Repeal the subsection. 3 8 Subsection 170(13) 4 Repeal the subsection. 5 9 Subsection 170(14) 6 Insert: 7 limited amendment period, for an assessment, means the period 8 within which the Commissioner may amend the assessment: 9 (a) under item 1, 2, 3 or 4 of the table in subsection (1); or 10 (b) under paragraph (3)(a) or (b). 11 Note: The following heading to subsection 170(14) is inserted "Definitions". 12 10 Subsection 170(14) 13 Insert: 14 scheme has the meaning given by subsection 995-1(1) of the 15 Income Tax Assessment Act 1997. 16 11 Subsection 170(14) 17 Insert: 18 scheme benefit has the meaning given by section 284-150 in 19 Schedule 1 to the Taxation Administration Act 1953. 20 12 Subsection 170(14) 21 Insert: 22 STS taxpayer has the meaning given by section 328-435 of the 23 Income Tax Assessment Act 1997. 24 13 Subsection 170(14) (definition of tax) 25 Repeal the definition. 26 14 Section 170A 27 Repeal the section. 28 15 Application 12 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Amending assessments Part 1 1 The amendments made by this Part apply in relation to assessments for 2 the 2004-05 year of income and later years of income. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 13 [Page Break] Part 2 Nil assessments 1 2 Part 2--Nil assessments 3 Income Tax Assessment Act 1936 4 16 Subsection 6(1) (definition of assessment) 5 Repeal the definition, substitute: 6 assessment means: 7 (a) the ascertainment of the amount of taxable income (or that 8 there is no taxable income) and of the tax payable on that 9 taxable income (or that no tax is payable); or 10 Note 1: A taxpayer does not have a taxable income if the taxpayer's 11 deductions equal or exceed the taxpayer's assessable income: see 12 subsection 4-15(1) of the Income Tax Assessment Act 1997. 13 Note 2: A taxpayer may have no tax payable on an amount of taxable 14 income if that income is below the tax-free threshold or if the 15 taxpayer's tax offsets reduce the taxpayer's basic income tax 16 liability to nil. 17 (b) for a taxpayer being the trustee of a unit trust that is a 18 corporate unit trust within the meaning of section 102J--the 19 ascertainment of the net income of the trust as defined by 20 section 102D (or that there is no net income) and of the tax 21 payable on that net income (or that no tax is payable); or 22 (c) for a taxpayer being the trustee of a unit trust that is a public 23 trading trust within the meaning of section 102R--the 24 ascertainment of the net income of the trust as defined by 25 section 102M (or that there is no net income) and of the tax 26 payable on that net income (or that no tax is payable); or 27 (d) for any other taxpayer that is the trustee of a trust estate but 28 excluding a taxpayer that is the trustee of a fund or unit trust 29 referred to in paragraph (a), (b) or (c) of the definition of 30 eligible entity in subsection 267(1)--the ascertainment of so 31 much of the net income of the trust estate as is net income in 32 respect of which the trustee is liable to pay tax (or that there 33 is no net income in respect of which the trustee is so liable) 34 and of the tax payable on that net income (or that no tax is 35 payable); or 36 (e) the ascertainment of the amount of interest payable under 37 section 102AAM (about distributions from non-resident trust 38 estates); or 14 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Nil assessments Part 2 1 (f) the ascertainment of an amount of additional tax under 2 section 128TE; or 3 (g) the ascertainment of an amount of tax under 4 section 159GZZZZH. 5 17 Section 175A 6 Before "A", insert "(1)". 7 18 At the end of section 175A 8 Add: 9 (2) A taxpayer cannot object under subsection (1) against an 10 assessment ascertaining that: 11 (a) the taxpayer has no taxable income; or 12 (b) the taxpayer has an amount of taxable income and no tax is 13 payable; 14 unless the taxpayer is seeking an increase in the taxpayer's 15 liability. 16 19 Application 17 The amendments made by this Part apply in relation to the 2004-05 year 18 of income and later years of income. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 15 [Page Break] Part 3 Making assessments for the 2003-04 year of income or earlier 1 2 Part 3--Making assessments for the 2003-04 year of 3 income or earlier 4 Income Tax Assessment Act 1936 5 20 After section 171 6 Insert: 7 171A Limited period to make assessments for nil liability returns for 8 the 2003-04 year of income or earlier 9 (1) If the circumstances set out in column 2 of the following table 10 apply to a taxpayer in relation to the 2003-04 year of income (a nil 11 year) or an earlier year of income (also a nil year), the 12 Commissioner cannot make an original assessment for that 13 taxpayer for that year in the circumstances set out in column 3: 14 Making assessments Column 1 Column 2 Column 3 Item In this case: the position is: 1 The taxpayer's return of income for The Commissioner cannot make a nil year disclosed, or the an original assessment for the Commissioner has given the taxpayer for the nil year after the taxpayer a notice for a nil year that later of the following: stated, either of the following: (a) 31 October 2008; (a) the taxpayer had an amount of (b) the period of 4 years taxable income, and that no tax beginning on the day on was payable; which the taxpayer lodged the (b) the taxpayer had no taxable taxpayer's return of income income because the taxpayer's for the nil year. deductions equalled the taxpayer's assessable income; and the taxpayer did not deduct a tax loss in the nil year 16 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Making assessments for the 2003-04 year of income or earlier Part 3 Making assessments Column 1 Column 2 Column 3 Item In this case: the position is: 2 The taxpayer's return of income for The Commissioner cannot make a nil year disclosed, or the an original assessment for the Commissioner has given the taxpayer for the nil year after the taxpayer a notice for a nil year that period of 6 years beginning on stated, either of the following: the later of the following: (a) the taxpayer had an amount of (a) the day on which the taxpayer taxable income, and that no tax lodged the taxpayer's return was payable; of income for the 2004-05 (b) the taxpayer had no taxable year of income or, if the income because the taxpayer's taxpayer is a member of a deductions equalled the consolidated group at the end taxpayer's assessable income; of that year of income, the day on which head and the taxpayer did deduct a tax company's return of income loss in the nil year for that year of income is lodged; (b) the day on which the taxpayer lodged the taxpayer's return of income for the nil year. 3 The taxpayer had a tax loss in a nil The Commissioner cannot make year, none of which has been an original assessment for the carried forward to the 2004-05 year taxpayer for the nil year after the of income period of 6 years beginning on the later of the following: (a) the day on which the taxpayer lodged the taxpayer's return of income for the 2004-05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company's return of income for that year of income is lodged; (b) the day on which the taxpayer lodged the taxpayer's return of income for the nil year. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 17 [Page Break] Part 3 Making assessments for the 2003-04 year of income or earlier Making assessments Column 1 Column 2 Column 3 Item In this case: the position is: 4 (a) the taxpayer had a tax loss in a The Commissioner cannot make nil year, some or all of which an original assessment for the has been carried forward to the taxpayer for the nil year after the 2004-05 year of income; and period of 6 years beginning on (b) the taxpayer or, if the taxpayer the later of the following: is a member of a consolidated (a) the day on which the group at the end of the 2004-05 Commissioner received the year of income, the head notification; company notifies the (b) the day on which the taxpayer Commissioner, in the approved lodged the taxpayer's return form, that the taxpayer or the of income for the nil year. head company had a tax loss in the nil year 1 (2) Subsection (1) does not apply in relation to a nil year if: 2 (a) the Commissioner is of the opinion there has been fraud or 3 evasion; or 4 (b) had the Commissioner made an assessment, in accordance 5 with the taxpayer's return of income, that the taxpayer had no 6 taxable income or that no tax was payable by the taxpayer 7 (assuming that such an assessment could have been made)-- 8 this Act would not have prevented the Commissioner 9 amending the assessment at any time. 18 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 4 1 2 Part 4--Consequential amendments 3 Division 1--SPOR taxpayer provisions 4 Income Tax Assessment Act 1936 5 21 Subsection 6(1) (definition of shorter period of review 6 taxpayer or SPOR taxpayer) 7 Repeal the definition. 8 22 Section 6AD 9 Repeal the section. 10 23 Subsection 251R(6D) 11 Omit "subsections (6F) and (6FA)", substitute "subsection (6F)". 12 24 Subsections 251R(6F) and (6FA) 13 Repeal the subsections, substitute: 14 (6F) Subsection (6D) does not apply, and is taken never to have applied, 15 if the first person fails to retain the family agreement until the end 16 of: 17 (a) 5 years beginning on the date of lodgment of the first 18 person's return of income for the year of income concerned; 19 or 20 (b) a shorter period determined by the Commissioner in writing 21 for the first person; or 22 (c) a shorter period determined by the Commissioner by 23 legislative instrument for a class of persons that includes the 24 first person. 25 (6FA) A determination under paragraph (6F)(c) may specify different 26 periods for different classes of taxpayers. 27 25 Application 28 The amendments made by items 23 and 24 apply in relation to the 29 2004-05 year of income and later years of income. 30 Income Tax Assessment Act 1997 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 19 [Page Break] Part 4 Consequential amendments 1 26 Subsection 995-1(1) (definition of SPOR taxpayer) 2 Repeal the definition. 3 Taxation Administration Act 1953 4 27 Subsection 2(1) (definition of SPOR taxpayer) 5 Repeal the definition. 6 28 Paragraphs 14ZW(1)(aa) and (aaa) 7 Repeal the paragraphs, substitute: 8 (aa) if the taxation objection is made under section 175A of the 9 Income Tax Assessment Act 1936: 10 (i) if item 1, 2 or 3 of the table in subsection 170(1) of that 11 Act applies to the assessment concerned--2 years after 12 notice of the assessment is given to the person; or 13 (ii) otherwise--4 years after notice of the assessment 14 concerned is given to the person; or 15 (aaa) if the taxation objection is made under section 78A of the 16 Fringe Benefits Tax Assessment Act 1986 or section 160AL 17 of the Income Tax Assessment Act 1936--4 years after notice 18 of the taxation decision to which it relates has been given to 19 the person; or 20 29 Subsections 14ZW(1A) and (1AA) 21 Repeal the subsections, substitute: 22 (1A) The person cannot lodge a taxation objection against a private 23 ruling that relates to a year of income after the end of whichever of 24 the following ends last: 25 (a) 60 days after the ruling was made; 26 (b) whichever of the following is applicable: 27 (i) if item 1, 2 or 3 of the table in subsection 170(1) of the 28 Income Tax Assessment Act 1936 applies to the person's 29 assessment for that income year--2 years after the last 30 day allowed to the person for lodging a return in relation 31 to the person's income for that year of income; 32 (ii) otherwise--4 years after that day. 33 30 Paragraph 14ZW(1B)(b) 20 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 4 1 Omit "paragraph (1)(aa),", substitute "subparagraph (1)(aa)(ii) or 2 paragraph (1)(aaa),". 3 31 Paragraph 14ZW(1BA)(b) 4 Omit "paragraph (1)(aaa)", substitute "subparagraph (1)(aa)(i)". 5 32 Application 6 The amendments made by items 28 to 31 apply in relation to taxation 7 decisions made in: 8 (a) for income tax--the 2004-05 income year or a later income 9 year; or 10 (b) for fringe benefits tax--the year of tax starting on 1 April 11 2004 or a later year of tax. 12 33 Subsection 18-100(1) in Schedule 1 13 Repeal the subsection, substitute: 14 (1) An entity that is given a *payment summary and a copy of it in any 15 financial year under this Part must retain the copy for: 16 (a) 5 years after the end of that financial year; or 17 (b) a shorter period determined by the Commissioner in writing 18 for the entity; or 19 (c) a shorter period determined by the Commissioner by 20 legislative instrument for a class of entities that includes the 21 entity. 22 (1AA) A determination under paragraph (1)(c) may specify different 23 periods for different classes of entities. 24 34 Subsection 18-100(2) in Schedule 1 25 Repeal the subsection. 26 35 Application 27 The amendments made by items 33 and 34 apply in relation to payment 28 summaries, and copies of payment summaries, given to entities in the 29 financial year beginning on 1 July 2004 and later financial years. 30 36 Subsection 388-65(3) in Schedule 1 31 Repeal the subsection, substitute: 32 (3) You must retain the declaration or a copy of it for: Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 21 [Page Break] Part 4 Consequential amendments 1 (a) 5 years after it is made; or 2 (b) a shorter period determined by the Commissioner in writing 3 for you; or 4 (c) a shorter period determined by the Commissioner by 5 legislative instrument for a class of entities that includes you. 6 (3A) A determination under paragraph (1)(c) may specify different 7 periods for different classes of entities. 8 37 Application 9 The amendment made by item 36 applies to declarations made on or 10 after 1 April 2004. 11 Division 2--Nil assessment provisions 12 Income Tax Assessment Act 1936 13 38 Paragraphs 161AA(a) and (b) 14 Repeal the paragraphs, substitute: 15 (a) its taxable income or its net income for that year of income 16 (or that it has no taxable income or net income for that year); 17 and 18 (b) the amount of the tax payable on that taxable income or net 19 income (or that no tax is payable); and 20 39 Section 166 21 After "taxable income", insert "(or that there is no taxable income)". 22 40 Section 166 23 After "tax payable thereon", insert "(or that no tax is payable)". 24 41 Paragraph 166A(3)(c) 25 Repeal the paragraph, substitute: 26 (c) the Commissioner is taken to have made an assessment of the 27 taxable income or net income (or an assessment that there is 28 no taxable income or net income), and the tax payable on that 29 income (or that no tax is payable), in accordance with what 30 the taxpayer specified in the return; 31 42 Subsection 168(1) 22 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 4 1 After "taxable income derived", insert "(or that there is no taxable 2 income)". 3 43 Subsection 168(1) 4 After "tax payable thereon", insert "(or that no tax is payable)". 5 44 Section 169 6 After "pay tax", insert "(including a nil liability)". 7 45 Section 169 8 After "such tax", insert "(or an assessment that no tax is payable)". 9 Taxation Administration Act 1953 10 46 Subsection 18-15(1) in Schedule 1 11 Repeal the subsection, substitute: 12 (1) A person is entitled to a credit equal to the total of the *amounts 13 withheld from *withholding payments made to the person during 14 an income year if an assessment has been made of the income tax 15 payable, or an assessment has been made that no income tax is 16 payable, by the person for the income year. 17 47 Paragraph 18-20(1)(c) in Schedule 1 18 Repeal the paragraph, substitute: 19 (c) an assessment has been made of the income tax payable, or 20 an assessment has been made that no income tax is payable, 21 by the person for the income year. 22 48 Paragraph 18-25(2)(c) in Schedule 1 23 Repeal the paragraph, substitute: 24 (c) an assessment has been made of the income tax payable, or 25 an assessment has been made that no income tax is payable, 26 by the beneficiary for the income year. 27 49 Paragraph 18-25(4)(a) in Schedule 1 28 Before "tax", insert "income". 29 50 Paragraph 18-25(4)(c) in Schedule 1 30 Repeal the paragraph, substitute: Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 23 [Page Break] Part 4 Consequential amendments 1 (c) an assessment has been made of that income tax or an 2 assessment has been made that no income tax is payable. 3 51 Paragraph 18-25(6)(a) in Schedule 1 4 Before "tax", insert "income". 5 52 Paragraph 18-25(6)(c) in Schedule 1 6 Repeal the paragraph, substitute: 7 (c) an assessment has been made of that income tax or an 8 assessment has been made that no income tax is payable. 9 53 Section 18-27 in Schedule 1 10 Repeal the section, substitute: 11 18-27 Tax credit for alienated personal services payments 12 A person is entitled to a credit equal to the total of the amounts 13 paid under Division 13 in respect of amounts included in the 14 person's assessable income for an income year under section 86-15 15 of the Income Tax Assessment Act 1997 if an assessment has been 16 made of the income tax payable, or an assessment has been made 17 that no income tax is payable, by the person for the income year. 18 54 Subsection 45-30(1) in Schedule 1 19 Repeal the subsection, substitute: 20 (1) You are entitled to a credit when the Commissioner makes an 21 assessment of the income tax you are liable to pay for an income 22 year or an assessment that no income tax is payable by you for an 23 income year. 24 55 Subsection 45-30(3) in Schedule 1 25 Omit "or determination". 26 56 Subsection 45-865(1) in Schedule 1 27 Repeal the subsection, substitute: 28 (1) When the Commissioner makes an assessment: 29 (a) of the income tax that the *head company of a *consolidated 30 group is liable to pay for a *consolidation transitional year for 31 the head company; or 24 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 4 1 (b) that no income tax is payable by the head company for that 2 year; 3 the head company is, in addition to any credit to which it is entitled 4 under section 45-30 for that year, entitled to a credit in relation to 5 instalments payable by an entity that is a *subsidiary member of the 6 group at any time during that year. 7 Taxation (Interest on Overpayments and Early Payments) Act 8 1983 9 57 Subsections 8K(1) and (2) 10 Repeal the subsections. 11 58 Subsection 8K(3) 12 Omit "(3)". 13 59 Application 14 The amendments made by this Division apply in relation to the 2004-05 15 year of income and later years of income. 16 Division 3--Other provisions 17 Child Support (Assessment) Act 1989 18 60 Subsection 56(3) 19 Omit "subsection 170(2) (Amendment of assessments because of tax 20 avoidance) of the Income Tax Assessment Act 1936", substitute 21 "subsection 170(1) (amendment of assessments) of the Income Tax 22 Assessment Act 1936 to increase the person's taxable income". 23 61 Application 24 The amendment made by item 60 applies in relation to assessments for 25 the 2004-05 year of income and later years of income. 26 Income Tax Assessment Act 1936 27 62 Subsection 128TE(5) 28 Omit "170,". 29 63 Subsection 159GZZZZH(4) Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 25 [Page Break] Part 4 Consequential amendments 1 Omit "170,". 2 64 Subsection 177G(1) 3 Repeal the subsection. 4 65 Subsection 177G(2) 5 Omit "(2)". 6 66 Paragraph 262A(4)(b) 7 Omit "paragraph 170(2)(b)", substitute "section 170". 8 67 Paragraph 262A(4)(b) 9 Omit "by virtue of an order of the Federal Court of Australia made 10 under subsection 170(4A) or the consent of the person given under 11 subsection 170(4B)", substitute "under subsection 170(7)". 12 68 Application 13 The amendments made by items 66 and 67 apply in relation to 14 assessments for the 2004-05 year of income and later years of income. 15 69 Paragraph 245-265(4)(b) in Schedule 2C 16 Omit "paragraph 170(2)(b)", substitute "section 170". 17 70 Paragraph 245-265(4)(b) in Schedule 2C 18 Omit "by an order of the Federal Court of Australia made under 19 subsection 170(4A) or by the consent of the person given under 20 subsection 170(4B)", substitute "under subsection 170(7)". 21 71 Paragraph 245-265(7)(b) in Schedule 2C 22 Omit "paragraph 170(2)(b)", substitute "section 170". 23 72 Paragraph 245-265(7)(b) in Schedule 2C 24 Omit "by an order of the Federal Court of Australia made under 25 subsection 170(4A) or by the consent of the company given under 26 subsection 170(4B)", substitute "under subsection 170(7)". 27 73 Application 28 The amendments made by items 69 to 72 apply in relation to 29 assessments for the 2004-05 year of income and later years of income. 26 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 4 1 Income Tax (Transitional Provisions) Act 1997 2 74 Paragraph 830-15(2)(d) 3 After "Income Tax Assessment Act 1936", insert "(as in force before the 4 day on which the Tax Laws Amendment (Improvements to Self 5 Assessment) Act (No. 2) 2005 received the Royal Assent)". Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 27 [Page Break] Part 1 Rulings 1 2 Schedule 2--ATO advice 3 Part 1--Rulings 4 Taxation Administration Act 1953 5 1 Division 360 in Schedule 1 6 Repeal the Division, substitute: 7 Division 357--Object and common rules 8 Table of Subdivisions 9 Guide to Division 357 10 357-A Object of this Part 11 357-B Common rules for rulings 12 Guide to Division 357 13 357-1 What this Division is about 14 This Division sets out the object of this Part, and common rules 15 that apply to public, private and oral rulings. (For the rules specific 16 to each of those kinds of ruling, see Divisions 358, 359 and 360.) 17 A ruling is an expression of the Commissioner's opinion of the 18 way in which a relevant provision applies, or would apply, to you. 19 A ruling binds the Commissioner if it applies to you and you act in 20 accordance with it. If you do act in accordance with it and the law 21 turns out to be less favourable to you than the ruling provides, you 22 are protected by the ruling from any adverse consequences. 23 The Division also sets out some other general rules for rulings. 24 Subdivision 357-A--Object of this Part 25 Table of sections 26 357-5 Object of this Part 28 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 357-5 Object of this Part 2 (1) The object of this Part is to provide a way for you to find out the 3 Commissioner's view about how certain laws administered by the 4 Commissioner apply to you so that the risks to you of uncertainty 5 when you are self assessing or working out your tax obligations or 6 entitlements are reduced. 7 (2) This object is achieved by: 8 (a) making advice in the form of rulings by the Commissioner 9 available on a wide range of matters and to many taxpayers; 10 and 11 (b) ensuring that the Commissioner provides rulings in a timely 12 manner; and 13 (c) enabling the Commissioner to obtain, and make rulings based 14 on, relevant information; and 15 (d) protecting you from increases in tax and from penalties and 16 interest where you rely on rulings; and 17 (e) protecting you from decreases in entitlements where you rely 18 on rulings; and 19 (f) limiting the ways the Commissioner can alter rulings to your 20 detriment; and 21 (g) giving you protection from interest charges where you rely 22 on other advice from the Commissioner, or on the 23 Commissioner's general administrative practice. 24 Subdivision 357-B--Common rules for rulings 25 Table of sections 26 Rules for all rulings 27 357-50 Scope of Division 28 357-55 The provisions that are relevant for rulings 29 357-60 When rulings are binding on the Commissioner 30 357-65 Stopping relying on a ruling 31 357-70 Commissioner may apply the law if more favourable than the ruling 32 357-75 Inconsistent rulings 33 357-80 Contracts for schemes 34 357-85 Effect on ruling if relevant provision re-enacted 35 357-90 Validity of ruling not affected by formal defect 36 Common rules for public and private rulings Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 29 [Page Break] Part 1 Rulings 1 357-95 Electronic communications 2 357-100 Evidence 3 Common rules for private and oral rulings 4 357-105 Further information must be sought 5 357-110 Assumptions in making private or oral ruling 6 357-115 Additional information provided by applicant 7 357-120 Commissioner may take into account information from third parties 8 357-125 Applications and objections not to affect obligations and powers 9 Rules for all rulings 10 357-50 Scope of Division 11 This Division applies to *public rulings, *private rulings and *oral 12 rulings. 13 357-55 The provisions that are relevant for rulings 14 Provisions of Acts and regulations of which the Commissioner has 15 the general administration are relevant for rulings if the provisions 16 are about any of the following: 17 (a) *tax; 18 (b) Medicare levy; 19 (c) fringe benefits tax; 20 (d) *franking tax; 21 (e) *withholding tax; 22 (f) *mining withholding tax; 23 (g) the administration or collection of those taxes; 24 (h) a grant or benefit mentioned in section 8 of the Product 25 Grants and Benefits Administration Act 2000, or the 26 administration or payment of such a grant or benefit. 27 357-60 When rulings are binding on the Commissioner 28 (1) A ruling binds the Commissioner in relation to you (whether or not 29 you are aware of the ruling) if: 30 (a) the ruling applies to you; and 31 (b) you rely on the ruling by acting (or omitting to act) in 32 accordance with the ruling. 33 Example 1: A public ruling is expressed to apply to a class of entities in relation to 34 a particular scheme. Tim is a member of that class of entities and he is 30 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 one of a number of taxpayers who enter into that scheme. The ruling 2 applies to Tim. 3 Tim relies on the ruling by lodging an income tax return that is in 4 accordance with the ruling. 5 Under the ruling, Tim's deductions in relation to the scheme are 6 worked out to be a particular amount. Because Tim has relied on the 7 ruling, the Commissioner must use that amount in making Tim's 8 assessment (unless Tim stops relying on the ruling or the law is more 9 favourable to him: see sections 357-65 and 357-70). 10 Example 2: Cecelia applies for, and obtains, a private ruling that, when she makes 11 a payment in specified circumstances, she would not have to withhold 12 an amount under a relevant provision. Cecelia makes the payment in 13 the circumstances specified in the ruling, so the ruling applies to her. 14 Cecelia relies on the ruling by not withholding an amount from the 15 payment. The Commissioner must not apply the provision in relation 16 to Cecelia in a way that is inconsistent with the ruling (unless Cecelia 17 stops relying on the ruling or the law is more favourable to her: see 18 sections 357-65 and 357-70). 19 Note 1: A ruling about the amount of tax payable that binds the Commissioner 20 provides protection in relation to that amount. There is no shortfall 21 interest charge or tax shortfall penalty payable in respect of that 22 amount as there can be no shortfall in tax payable. 23 Note 2: A ruling about the operation of a provision would stop applying to you 24 if the provision is repealed, or is amended to have a different effect. 25 However, if the provision is re-enacted and expresses the same ideas 26 as the old provision, the ruling would still apply: see section 357-85. 27 (2) You may rely on the ruling at any time unless prevented from 28 doing so by a time limit imposed by a *taxation law. It is not 29 necessary to do so at the first opportunity. 30 357-65 Stopping relying on a ruling 31 (1) You can stop relying on a ruling. You do this by acting (or 32 omitting to act) in a way that is not in accordance with the ruling. 33 Note: There is no penalty for a shortfall resulting from failing to follow a 34 ruling. However, there are penalties for shortfalls resulting from 35 failing to take reasonable care, and from taking a position about a 36 large income tax item that is not reasonably arguable: see 37 Division 284. 38 (2) You may stop relying on a ruling at any time unless prevented 39 from doing so by a time limit imposed by a *taxation law. 40 (3) Having stopped relying on a ruling, you may rely on the ruling 41 again unless prevented from doing so by a time limit imposed by a 42 *taxation law. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 31 [Page Break] Part 1 Rulings 1 357-70 Commissioner may apply the law if more favourable than the 2 ruling 3 (1) The Commissioner may apply a relevant provision to you in the 4 way it would apply if you had not relied on a ruling if: 5 (a) doing so would produce a more favourable result for you; 6 and 7 (b) the Commissioner is not prevented from doing so by a time 8 limit imposed by a *taxation law. 9 (2) The Commissioner does not have a duty to consider whether to 10 apply subsection (1) to you, whether he or she is requested to do so 11 by you or by any other entity. 12 357-75 Inconsistent rulings 13 (1) The rules in this table have effect if: 14 (a) a ruling and a later ruling both apply to you; and 15 (b) the 2 rulings are inconsistent. 16 However, the rules in the table only apply to the extent of the 17 inconsistency. 18 Inconsistent rulings Item If the earlier And the later The result is: ruling is: inconsistent ruling is: 1 A *public ruling Any ruling You may rely on either ruling. 2 A *private ruling A private ruling If you informed the Commissioner or an *oral ruling or an oral ruling about the existence of the earlier ruling when you applied for the later ruling, the earlier ruling is taken not to have been made. Otherwise, the later ruling is taken not to have been made. 32 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 Inconsistent rulings Item If the earlier And the later The result is: ruling is: inconsistent ruling is: 3 A *private ruling A *public ruling The earlier ruling is taken not to or an *oral ruling have been made if, when the later ruling is made: (a) the income year or other period to which the rulings relate has not begun; and (b) the *scheme to which the rulings relate has not begun to be carried out. Otherwise, you may rely on either ruling. 1 (2) If 3 or more rulings apply to you and the rulings are inconsistent, 2 apply the rules in the table to each combination of 2 rulings in the 3 order in which they were made. 4 357-80 Contracts for schemes 5 For the purposes of this Part, if a contract requiring a *scheme has 6 been entered into, the scheme is taken to have begun to be carried 7 out. 8 357-85 Effect on ruling if relevant provision re-enacted 9 If: 10 (a) the Commissioner makes a ruling about a relevant provision 11 (the old provision); and 12 (b) that provision is re-enacted or remade (with or without 13 modifications, and whether or not the old provision is 14 repealed); 15 the ruling is taken also to be a ruling about that provision as 16 re-enacted or remade (the new provision), but only so far as the 17 new provision expresses the same ideas as the old provision. 18 Note 1: Section 357-55 specifies the relevant provisions. 19 Note 2: Ideas in taxation provisions are not necessarily different just because 20 different forms of words are used: see section 15AC of the Acts 21 Interpretation Act 1901 and section 1-3 of the Income Tax Assessment 22 Act 1997. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 33 [Page Break] Part 1 Rulings 1 357-90 Validity of ruling not affected by formal defect 2 The validity of a ruling is not affected merely because a provision 3 of this Part relating to the form of the ruling or the procedure for 4 making it has not been complied with. 5 Common rules for public and private rulings 6 357-95 Electronic communications 7 A communication between the Commissioner and another entity 8 made for the purposes of a *public ruling or *private ruling may be 9 made electronically. 10 357-100 Evidence 11 The production of: 12 (a) a *public ruling or *private ruling; or 13 (b) a document signed by the Commissioner, a Second 14 Commissioner or a Deputy Commissioner, purporting to be a 15 copy of the ruling or of a notice of withdrawal of a public 16 ruling; 17 is conclusive evidence of the proper making of the ruling, or of the 18 withdrawal of the public ruling. 19 Common rules for private and oral rulings 20 357-105 Further information must be sought 21 (1) If the Commissioner considers that further information is required 22 to make a *private ruling or an *oral ruling, the Commissioner must 23 request the applicant to give that information to him or her. 24 Note: The Commissioner should make a private ruling within 60 days. 25 However, if the Commissioner requests further information under this 26 section, that period is extended: see subsection 359-50(2). 27 (2) The Commissioner may decline to make the ruling if the applicant 28 does not give the information to the Commissioner within a 29 reasonable time. 30 Note: The Commissioner must give the applicant written reasons for 31 declining to make a private ruling: see section 359-35. 34 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 357-110 Assumptions in making private or oral ruling 2 (1) If the Commissioner considers that the correctness of a *private 3 ruling or an *oral ruling would depend on which assumptions were 4 made about a future event or other matter, the Commissioner may: 5 (a) decline to make the ruling; or 6 (b) make such of the assumptions as the Commissioner considers 7 to be most appropriate. 8 (2) Before making the ruling, the Commissioner must: 9 (a) tell the applicant which assumptions (if any) the 10 Commissioner proposes to make; and 11 (b) give the applicant a reasonable opportunity to respond. 12 Note: The Commissioner should make a private ruling within 60 days. 13 However, if the Commissioner tells the applicant about assumptions 14 the Commissioner proposes to make under this section, that period is 15 extended: see subsection 359-50(2). 16 357-115 Additional information provided by applicant 17 In considering an application for a *private ruling or an *oral 18 ruling, the Commissioner may take into account additional 19 information provided by the applicant after the application was 20 made (whether in response to a request under section 357-105 or 21 otherwise). 22 357-120 Commissioner may take into account information from 23 third parties 24 In making a *private ruling or an *oral ruling, the Commissioner 25 may take into account any relevant information provided by an 26 entity other than the applicant (whenever it was provided) if the 27 Commissioner: 28 (a) tells the applicant what that information is and that the 29 Commissioner intends to take the information into account; 30 and 31 (b) gives the applicant a reasonable opportunity to respond 32 before making the ruling. 33 Note: The Commissioner should make a private ruling within 60 days. 34 However, if the Commissioner tells the applicant about third party 35 information under this section, that period is extended: see subsection 36 359-50(2). Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 35 [Page Break] Part 1 Rulings 1 357-125 Applications and objections not to affect obligations and 2 powers 3 The fact that you have applied for a *private ruling or an *oral 4 ruling, or have made an objection against a private ruling, does not 5 affect: 6 (a) your obligation to lodge a return or do anything else; or 7 (b) the Commissioner's power to make or amend an assessment 8 or do anything else. 9 Division 358--Public rulings 10 Guide to Division 358 11 358-1 What this Division is about 12 A public ruling is an expression of the Commissioner's opinion of 13 the way in which a relevant provision applies, or would apply, to 14 entities generally or a class of entities. 15 The Commissioner must publish the ruling. 16 A public ruling may be withdrawn. 17 Note: Division 357 has some rules that relate to rulings generally. 18 Table of sections 19 Making public rulings 20 358-5 What is a public ruling? 21 358-10 Application of public rulings 22 358-15 When a public ruling ceases to apply 23 Withdrawing public rulings 24 358-20 Withdrawing public rulings 36 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 Making public rulings 2 358-5 What is a public ruling? 3 (1) The Commissioner may make a written ruling on the way in which 4 the Commissioner considers a relevant provision applies or would 5 apply to: 6 (a) entities generally or a class of entities; or 7 (b) entities generally, or a class of entities, in relation to a class 8 of *schemes; or 9 (c) entities generally, or a class of entities, in relation to a 10 particular scheme. 11 Note: Section 357-55 specifies the relevant provisions. 12 (2) Such a ruling may cover any matter involved in the application of 13 the provision. 14 (3) Such a ruling is a public ruling if it: 15 (a) is published; and 16 (b) states that it is a public ruling. 17 (4) The Commissioner must publish notice of the making of a *public 18 ruling in the Gazette. 19 Note: The validity of a ruling is not affected merely because a provision of 20 this Part relating to the form of the ruling or the procedure for making 21 it has not been complied with: see section 357-90. 22 358-10 Application of public rulings 23 (1) A *public ruling applies from the time it is published or from such 24 earlier or later time as is specified in the ruling. 25 (2) A *public ruling that relates to a *scheme does not apply to you if 26 the scheme has begun to be carried out when the ruling is 27 published and: 28 (a) the ruling changes the Commissioner's general 29 administrative practice; and 30 (b) the ruling is less favourable to you than the practice. 31 358-15 When a public ruling ceases to apply 32 (1) A *public ruling may specify the time at which it ceases to apply. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 37 [Page Break] Part 1 Rulings 1 (2) If a *public ruling does not do this, it applies until it is withdrawn. 2 Withdrawing public rulings 3 358-20 Withdrawing public rulings 4 (1) The Commissioner may withdraw a *public ruling, either wholly or 5 to an extent, by publishing notice of the withdrawal. 6 (2) The withdrawal takes effect from the time specified in the notice. 7 That time must not be before the time the notice is published. 8 (3) To the extent that a *public ruling is withdrawn, it continues to 9 apply to *schemes to which it applied that had begun to be carried 10 out before the withdrawal but does not apply to schemes that begin 11 to be carried out after the withdrawal. 12 Note: A scheme is taken to have begun to be carried out if a contract 13 requiring the scheme has been entered into: see section 357-80. 14 (4) The Commissioner must publish notice of the withdrawal of a 15 *public ruling in the Gazette. 16 Division 359--Private rulings 17 Guide to Division 359 18 359-1 What this Division is about 19 A private ruling is an expression of the Commissioner's opinion of 20 the way in which a relevant provision applies, or would apply, to 21 you in relation to a specified scheme. Private rulings are usually 22 made on application by you, your agent or your legal personal 23 representative. 24 The Commissioner must make the ruling applied for, except in 25 certain cases. If you are entitled to receive a ruling, you can object 26 if the Commissioner takes too long to make it. 27 The Commissioner must record the ruling in writing and give a 28 copy of it to you. The ruling must include certain details. 29 If you are dissatisfied with the ruling, you may object to it. 30 Note: Division 357 has some common rules that affect private rulings. 38 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 Table of sections 2 Private rulings 3 359-5 Private rulings 4 359-10 Applying for a private ruling 5 359-15 Private rulings to be given to applicants 6 359-20 Private rulings must contain certain details 7 359-25 Time of application of private rulings 8 359-30 Ruling for trustee of a trust 9 359-35 Dealing with applications 10 359-40 Valuations 11 359-45 Related rulings 12 359-50 Delays in making private rulings 13 359-55 Revised private rulings 14 359-60 Objections, reviews and appeals relating to private rulings 15 359-65 Commissioner may consider new information on objection 16 359-70 Successful objection decision alters ruling 17 Private rulings 18 359-5 Private rulings 19 (1) The Commissioner may, on application, make a written ruling on 20 the way in which the Commissioner considers a relevant provision 21 applies or would apply to you in relation to a specified *scheme. 22 Such a ruling is called a private ruling. 23 Note: Section 357-55 specifies the relevant provisions. 24 (2) A *private ruling may cover any matter involved in the application 25 of the provision. 26 359-10 Applying for a private ruling 27 (1) You, your *agent or your *legal personal representative may apply 28 to the Commissioner for a *private ruling. 29 (2) An application for a *private ruling must be made in the *approved 30 form. 31 (3) You, your *agent or your *legal personal representative may 32 withdraw the application at any time before the ruling is made. The 33 Commissioner must confirm the withdrawal in writing. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 39 [Page Break] Part 1 Rulings 1 359-15 Private rulings to be given to applicants 2 The Commissioner makes a *private ruling by recording the ruling 3 in writing and giving a copy of it to the applicant. The copy may be 4 given electronically. 5 359-20 Private rulings must contain certain details 6 (1) A *private ruling must state that it is a private ruling. 7 (2) A *private ruling must identify the entity to whom it applies and 8 specify the relevant *scheme and the relevant provision to which it 9 relates. 10 Note 1: The Commissioner must tell the applicant which assumptions the 11 Commissioner made in making the ruling: see section 357-110. 12 Note 2: Section 357-55 specifies the relevant provisions. 13 359-25 Time of application of private rulings 14 (1) A *private ruling may specify the time from which it begins to 15 apply and the time at which it ceases to apply. 16 (2) The specified start time, or end time, may be before, when, or after 17 the *private ruling is made and may be determined by reference to 18 a specified event. 19 (3) A *private ruling that does not specify a start time applies from the 20 time when it is made. 21 (4) A *private ruling that does not specify an end time ceases to apply 22 at the end of the income year or other accounting period in which it 23 started to apply. 24 359-30 Ruling for trustee of a trust 25 A *private ruling given to or for the trustee of a trust and relating to 26 the affairs of the trust also applies to: 27 (a) the beneficiaries of the trust; and 28 (b) another trustee who is appointed to replace a trustee. 40 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 359-35 Dealing with applications 2 (1) The Commissioner must comply with an application for a *private 3 ruling and make the ruling. However, this obligation is subject to 4 subsections (2) and (3). 5 (2) The Commissioner may decline to make a *private ruling if: 6 (a) the Commissioner considers that making the ruling would 7 prejudice or unduly restrict the administration of a *taxation 8 law; or 9 (b) the matter sought to be ruled on is already being, or has been, 10 considered by the Commissioner for you. 11 (3) The Commissioner may also decline to make a *private ruling if 12 the matter sought to be ruled on is how the Commissioner would 13 exercise a power under a relevant provision and the Commissioner 14 has decided or decides whether or not to exercise the power. 15 Example: Michael applies for a private ruling on the way in which the 16 Commissioner might exercise the Commissioner's discretion under 17 section 255-10 (deferring the payment time). Rather than make the 18 ruling, the Commissioner decides to defer the time at which an 19 amount would otherwise be payable by Michael. 20 Note: The Commissioner may also decline to make a private ruling if: 21 (a) the Commissioner has requested the applicant to give further 22 information under section 357-105 and the applicant has not 23 given it to the Commissioner within a reasonable time; or 24 (b) the Commissioner considers that the correctness of a private 25 ruling would depend on which assumptions were made about a 26 future event or other matter (see section 357-110). 27 (4) The Commissioner must give the applicant written reasons for 28 declining to make a *private ruling. 29 359-40 Valuations 30 (1) If making a *private ruling would require determining the value of 31 any thing, the Commissioner may: 32 (a) refer the valuation to a valuer; or 33 (b) refer a valuation provided by the applicant to a valuer for 34 review. 35 Note: The Commissioner may request further information: see 36 section 357-105. 37 (2) If the Commissioner refers the valuation to a valuer, the 38 Commissioner must tell the applicant that he or she has done so. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 41 [Page Break] Part 1 Rulings 1 (3) When the valuer has completed its work in relation to the 2 valuation, the Commissioner must tell the applicant that it has done 3 so. 4 Note: The Commissioner should make a private ruling within 60 days. 5 However, if the Commissioner refers a valuation to a valuer under this 6 section, that period is extended: see subsection 359-50(2). 7 (4) The Commissioner may charge the applicant an amount in 8 accordance with the regulations for the valuer making or reviewing 9 the valuation. 10 (5) This section does not apply to a valuation of a gift or contribution 11 for the purposes of Division 30 of the Income Tax Assessment Act 12 1997. 13 359-45 Related rulings 14 If the Commissioner is making a *private ruling (the first ruling) 15 you sought on the way in which, in the Commissioner's opinion, a 16 relevant provision applies or would apply to you, the 17 Commissioner may: 18 (a) make the first ruling a ruling on the way in which another 19 relevant provision applies or would apply to you; or 20 (b) make an additional private ruling on the way in which: 21 (i) another relevant provision applies or would apply; or 22 (ii) a relevant provision applies or would apply to you in 23 relation to a *scheme related to the scheme to which the 24 first ruling applies. 25 Note: Section 357-55 specifies the relevant provisions. 26 359-50 Delays in making private rulings 27 (1) The applicant for a *private ruling may give the Commissioner a 28 written notice requiring him or her to make the ruling if, at the end 29 of 60 days after the application was made, the Commissioner has 30 neither: 31 (a) made the ruling; nor 32 (b) told the applicant that the Commissioner has declined to 33 make the ruling. 34 (2) The 60 day period mentioned in subsection (1) is extended in a 35 circumstance applicable under the table by the extension period 42 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 applicable to that circumstance. If 2 or more circumstances are 2 applicable, ignore any overlap between the periods of extension. 3 Extending the 60 day period Item If the Commissioner, during The 60 day period is extended by the the 60 day period: number of days in this period: 1 requests further information the period starting on the day the under section 357-105 information was requested and ending on the day it is received by the Commissioner 2 tells the applicant about the period starting on the day the assumptions the Commissioner tells the applicant and ending Commissioner proposes to on the day on which the Commissioner make under section 357-110 receives the applicant's response about the assumptions 3 tells the applicant about the period starting on the day the information provided by a Commissioner tells the applicant and ending third party that the on the day on which the Commissioner Commissioner proposes to receives the applicant's response about the take into account under information section 357-120 4 refers a valuation to a valuer the period starting on the day the under section 359-40 Commissioner tells the applicant about the referral and ending on the day on which the Commissioner tells the applicant that the valuer has completed its work in relation to the valuation 4 (3) The applicant may object, in the manner set out in Part IVC, 5 against the Commissioner's failure to make the ruling if the 6 Commissioner: 7 (a) does not make the ruling within 30 days of the notice under 8 subsection (1) being given; and 9 (b) has not otherwise declined to make the ruling by the end of 10 that period. 11 (4) The applicant must lodge with the objection a draft *private ruling. 12 359-55 Revised private rulings 13 (1) The Commissioner may make a revised *private ruling that applies 14 to you if: 15 (a) the Commissioner had previously made a private ruling that 16 applies to you; and Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 43 [Page Break] Part 1 Rulings 1 (b) when the Commissioner makes the revised private ruling: 2 (i) the *scheme to which the earlier ruling relates has not 3 begun to be carried out; and 4 (ii) if the earlier ruling relates to an income year or other 5 accounting period--that year or period has not begun. 6 Note: Your private ruling may be affected by a later inconsistent public 7 ruling: see section 357-75. 8 (2) The Commissioner must give you a copy of the revised *private 9 ruling. The copy may be given electronically. 10 (3) The Commissioner may make the revised *private ruling in the 11 circumstances mentioned in paragraph (1)(b) whether or not there 12 is an application for the revised ruling. 13 (4) When the revised *private ruling is made, the ruling in its initial 14 form stops applying to you. 15 359-60 Objections, reviews and appeals relating to private rulings 16 (1) You may object against a *private ruling that applies to you in the 17 manner set out in Part IVC if you are dissatisfied with it. 18 (2) The ruling is taken to be a taxation decision (within the meaning of 19 that Part). 20 (3) However, you cannot object against a *private ruling if: 21 (a) there is an assessment for you for the income year or other 22 accounting period to which the ruling relates; or 23 (b) the ruling relates to *withholding tax or *mining withholding 24 tax that has become due and payable. 25 359-65 Commissioner may consider new information on objection 26 (1) In deciding whether to allow (wholly or in part), or to disallow, an 27 objection under Part IVC against a *private ruling, the 28 Commissioner may consider any additional information that the 29 Commissioner did not consider when making the ruling. 30 (2) For information you do not have, the Commissioner must tell you 31 what the information is and give you a reasonable opportunity to 32 respond before allowing or disallowing the objection. 33 (3) However, if the Commissioner considers that the additional 34 information is such that the *scheme to which the application 44 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 related is materially different from the scheme to which the ruling 2 relates: 3 (a) the Commissioner must request the applicant to make an 4 application for another *private ruling; and 5 (b) the objection is taken not to have been made. 6 359-70 Successful objection decision alters ruling 7 A *private ruling has effect as altered by an objection decision 8 (within the meaning of Part IVC) made by the Commissioner if: 9 (a) the Commissioner made the decision allowing, wholly or in 10 part, a taxation objection (within the meaning of that Part) 11 against the ruling; and 12 (b) the period in which an appeal against, or an application for 13 the review of, the decision may be made has ended without 14 such an appeal or application being made. 15 Note: See sections 14ZZC and 14ZZN for the time limits. 16 Division 360--Oral rulings 17 Guide to Division 360 18 360-1 What this Division is about 19 An oral ruling is an expression of the Commissioner's opinion of 20 the way in which a relevant provision applies, or would apply, to 21 you. Oral rulings are given on oral application by you or your legal 22 personal representative. 23 Oral rulings can only be given for individuals. 24 The Commissioner must give the ruling unless he or she considers 25 that the advice you are seeking relates to a business matter or a 26 complex matter. 27 The Commissioner must give the ruling orally and must give you a 28 registration identifier for the ruling. 29 Note: Division 357 has some common rules that affect oral rulings. 30 Table of sections Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 45 [Page Break] Part 1 Rulings 1 Oral rulings 2 360-5 Applying for and making of oral rulings 3 360-10 Withdrawing an application for an oral ruling 4 360-15 Commissioner determinations 5 Oral rulings 6 360-5 Applying for and making of oral rulings 7 (1) If you are an individual, you or your *legal personal representative 8 may apply to the Commissioner for advice on the way in which the 9 Commissioner considers a relevant provision applies or would 10 apply to you in relation to a specified *scheme. 11 Note: Section 357-55 specifies the relevant provisions. 12 (2) An application under this section must be made orally and in the 13 manner determined under section 360-15. 14 (3) The Commissioner must give you or your *legal personal 15 representative that advice unless: 16 (a) the Commissioner considers that the advice sought relates to 17 a *business matter or a complex matter; or 18 (b) the matter sought to be ruled on is already being, or has been, 19 considered by the Commissioner for you. 20 That advice is an oral ruling. 21 Note: The Commissioner may also decline to make an oral ruling if: 22 (a) the Commissioner has requested you to give further information 23 under section 357-105 and you have not given it to the 24 Commissioner; or 25 (b) the Commissioner considers that the correctness of an oral ruling 26 would depend on which assumptions were made about a future 27 event or other matter (see section 357-110). 28 (4) The Commissioner must give that advice orally and in the manner 29 determined under section 360-15. That advice must include a 30 registration identifier for the ruling. 31 Note: The Commissioner must tell you which assumptions the 32 Commissioner made in making the ruling: see section 357-110. 33 (5) You are not entitled to receive a written record of that advice. 34 Note: However, you may be able to apply for a private ruling on the matter 35 under Division 359. 46 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Rulings Part 1 1 360-10 Withdrawing an application for an oral ruling 2 (1) You or your *legal personal representative may withdraw an 3 application under section 360-5 before the Commissioner makes 4 the *oral ruling. 5 (2) The withdrawal must be done orally and in the manner determined 6 under section 360-15. 7 360-15 Commissioner determinations 8 The Commissioner must, by writing, determine: 9 (a) the manner in which oral applications are to be made under 10 section 360-5 or are to be withdrawn; and 11 (b) the manner in which the Commissioner is to give oral advice 12 under that section. 13 Division 361--Non-ruling advice and general 14 administrative practice 15 Table of sections 16 361-5 Non-ruling advice and general administrative practice 17 361-5 Non-ruling advice and general administrative practice 18 (1) You are not liable to pay the *general interest charge or the 19 *shortfall interest charge under a relevant provision to the extent 20 that the charge would relate to a *shortfall amount or a *scheme 21 shortfall amount that was caused by: 22 (a) you reasonably relying in good faith on: 23 (i) advice (other than a ruling) given to you or your *agent 24 by the Commissioner; or 25 (ii) a statement in a publication approved in writing by the 26 Commissioner; 27 unless the advice, or the statement or publication, is labelled 28 as non-binding; or 29 (b) you reasonably relying in good faith on the Commissioner's 30 general administrative practice. 31 Note 1: Section 357-55 specifies the relevant provisions. 32 Note 2: Section 284-215 also provides protection from administrative 33 penalties for similar reliance on advice, statements or general 34 administrative practice. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 47 [Page Break] Part 1 Rulings 1 (2) However, subsection (1) does not apply to any *general interest 2 charge accruing more than 21 days after the Commissioner notifies 3 you of the correct position. 4 (3) Ignore the operation of section 284-215 in applying subsection (1). 48 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 2 1 2 Part 2--Consequential amendments 3 Fringe Benefits Tax Assessment Act 1986 4 2 Sections 74A to 74F 5 Repeal the sections. 6 Higher Education Support Act 2003 7 3 Clause 1 of Schedule 1 (definition of income tax law) 8 Omit "section 14ZAAA of the Taxation Administration Act 1953", 9 substitute "subsection 995-1(1) of the Income Tax Assessment Act 10 1997". 11 Income Tax Assessment Act 1936 12 4 Paragraph 169A(2)(b) 13 Omit "Part IVAA of", substitute "Division 359 in Schedule 1 to". 14 5 Sections 170BA to 170BI 15 Repeal the sections. 16 Income Tax Assessment Act 1997 17 6 Subsection 1-3(2) (note) 18 Omit "sections 14ZAAM and 14ZAXA of", substitute "section 357-85 19 in Schedule 1 to". 20 7 Subsection 995-1(1) (definition of Commissioner 21 assessment) 22 Repeal the definition. 23 8 Subsection 995-1(1) (definition of fringe benefits tax law) 24 Repeal the definition, substitute: 25 fringe benefits tax law means a provision of an Act or regulations 26 under which the extent of liability for tax imposed by the Fringe 27 Benefits Tax Act 1986 is worked out. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 49 [Page Break] Part 2 Consequential amendments 1 9 Subsection 995-1(1) (definition of income tax law) 2 Repeal the definition, substitute: 3 income tax law means a provision of an Act or regulations under 4 which is worked out the extent of liability for: 5 (a) *tax; or 6 (b) Medicare levy; or 7 (c) *franking tax; or 8 (d) *withholding tax; or 9 (e) *mining withholding tax. 10 10 Subsection 995-1(1) (definition of oral ruling) 11 Repeal the definition, substitute: 12 oral ruling has the meaning given by section 360-5 in Schedule 1 13 to the Taxation Administration Act 1953. 14 11 Subsection 995-1(1) (definition of oral ruling arrangement) 15 Repeal the definition. 16 12 Subsection 995-1(1) (definition of private ruling) 17 Omit "14ZAA of", substitute "359-5 in Schedule 1 to". 18 13 Subsection 995-1(1) 19 Insert: 20 public ruling has the meaning given by section 358-5 in 21 Schedule 1 to the Taxation Administration Act 1953. 22 14 Subsection 995-1(1) (definition of self assessment) 23 Repeal the definition, substitute: 24 self assessment means an assessment: 25 (a) for the making of which the Commissioner wholly accepts 26 statements of the taxpayer; or 27 (b) that, under section 166A of the Income Tax Assessment Act 28 1936 or a provision of another law, is taken to have been 29 made by the Commissioner. 30 Product Grants and Benefits Administration Act 2000 50 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Consequential amendments Part 2 1 15 Part 4A 2 Repeal the Part. 3 Taxation Administration Act 1953 4 16 Parts IVAAA and IVAA 5 Repeal the Parts. 6 17 Subsection 14ZL(1) 7 After "or decision", insert ", or with a failure to make a private ruling,". 8 18 Section 14ZQ (definition of private ruling) 9 Omit "14ZAA", substitute "Division 359 in Schedule 1". 10 19 At the end of section 14ZU 11 Add: 12 Note: A person who objects against the Commissioner's failure to make a 13 private ruling must lodge a draft private ruling with the objection: see 14 subsection 359-50(4). 15 20 After paragraph 14ZW(1)(b) 16 Insert: 17 (ba) if the taxation objection is an objection under subsection 18 359-50(3) in Schedule 1 against the Commissioner's failure 19 to make a private ruling--60 days after the end of the period 20 of 30 days referred to in that subsection; or 21 21 Subsection 14ZY(1) 22 Omit "If", substitute "Subject to subsection (1A), if". 23 22 After subsection 14ZY(1) 24 Insert: 25 (1A) If the taxation objection is an objection under subsection 359-50(3) 26 in Schedule 1 against the Commissioner's failure to make a private 27 ruling, the Commissioner must: 28 (a) make a private ruling in the same terms as the draft ruling 29 lodged with the objection; or 30 (b) make a different private ruling. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 51 [Page Break] Part 2 Consequential amendments 1 23 Subsection 14ZYA(1) 2 After "taxation objection" (first occurring), insert "(other than one 3 under subsection 359-50(3) in Schedule 1)". 4 24 After section 14ZYA 5 Insert: 6 14ZYB Requiring Commissioner to make a private ruling 7 (1) This section applies if the taxation objection is an objection under 8 subsection 359-50(3) in Schedule 1 against the Commissioner's 9 failure to make a private ruling and the Commissioner has not 10 made an objection decision by the end of 60 days after the later of 11 these days: 12 (a) the day on which the taxation objection was lodged with the 13 Commissioner; 14 (b) if the Commissioner decides under section 14ZX to agree to 15 a request in relation to the taxation objection--the day on 16 which the decision was made. 17 (2) The Commissioner is taken, at the end of that 60 day period, to 18 have disallowed the objection. 19 25 Subsection 14ZZ(1) 20 After "objection decision" (first occurring), insert "(including a decision 21 under paragraph 14ZY(1A)(b) to make a different private ruling)". 22 26 Sections 15AA and 15AB 23 Repeal the sections. 24 27 Paragraph 284-15(3)(d) in Schedule 1 25 Repeal the paragraph, substitute: 26 (d) a *public ruling. 52 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Transitional Part 3 1 2 Part 3--Transitional 3 28 Definition of commencement day 4 In this Part: 5 commencement day means the later of: 6 (a) the day on which this Act receives the Royal Assent; and 7 (b) 1 January 2006. 8 29 Status of existing rulings 9 (1) A public ruling in force immediately before the commencement day 10 under Part IVAAA of the Taxation Administration Act 1953 has effect, 11 on and after that day, as if it were a public ruling made under 12 Division 358 in Schedule 1 to that Act as amended by this Act. 13 (2) A private ruling in force immediately before the commencement day 14 under Part IVAA of the Taxation Administration Act 1953 has effect, on 15 and after that day, as if it were a private ruling made under Division 359 16 in Schedule 1 to that Act as amended by this Act. 17 (3) An oral ruling in force immediately before the commencement day 18 under Division 360 in Schedule 1 to the Taxation Administration Act 19 1953 has effect, on and after that day, as if it were an oral ruling made 20 under Division 360 in Schedule 1 to that Act as amended by this Act. 21 (4) A ruling to which this item applies is taken to have been made on the 22 day on which it was originally made. 23 30 Inconsistent rulings 24 (1) The rules in the table in subsection 357-75(1) in Schedule 1 to the 25 Taxation Administration Act 1953 do not apply to work out the effect of 26 2 inconsistent rulings if both of them were originally made before the 27 commencement day. 28 (2) Instead, the inconsistency rules that existed immediately before the 29 commencement day are to be applied. 30 Note: See former sections 170BC to 170BDC of the Income Tax Assessment 31 Act 1936 for the old inconsistency rules. 32 31 Pending applications Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 53 [Page Break] Part 3 Transitional 1 (1) An application for a private ruling or an oral ruling under the Taxation 2 Administration Act 1953 made before the commencement day and not 3 decided before that day has effect on and after that day as if it were an 4 application for a private ruling under Division 359, or for an oral ruling 5 under Division 360, in Schedule 1 to that Act as amended by this Act. 6 (2) The application is taken to have been made on the day on which it was 7 originally made. 54 Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 [Page Break] Application Part 4 1 2 Part 4--Application 3 32 Application 4 The amendments made by this Schedule apply to things done on or after 5 the later of: 6 (a) the day on which this Act receives the Royal Assent; and 7 (b) 1 January 2006. Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005 No. , 2005 55