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INCOME TAX ASSESSMENT ACT 1936


TABLE OF PROVISIONS

           Long Title

   PART I--PRELIMINARY

   1.      Short title  
   6.      Interpretation  
   6A.     Provisions relating to cessation of superannuation benefits  
   6AB.    Foreign income and foreign tax  
   6B.     Income beneficially derived  
   6BA.    Taxation treatment of certain shares  
   6C.     Source of royalty income derived by a non-resident  
   6CA.    Source of natural resource income derived by a non-resident  
   6D.     Some tax offsets under the 1997 Assessment Act are treated as credits  
   6F.     Dual resident investment company  
   6H.     Recognised small credit unions, recognised medium credit unions and recognised large credit unions  
   7B.     Application of the Criminal Code  

   PART II--ADMINISTRATION

   8.      Commissioner  
   14.     Annual report  

   PART III--LIABILITY TO TAXATION

           Division 1--General

   18.     Accounting period  
   18A.    Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs  
   21.     Where consideration not in cash  
   21A.    Non-cash business benefits  
   23AA.   Income of persons connected with certain projects of United States Government  
   23AB.   Income of certain persons serving with an armed force under the control of the United Nations  
   23AD.   Exemption of pay and allowances of Defence Force members performing certain overseas duty  
   23AF.   Exemption of certain income derived in respect of approved overseas projects  
   23AG.   Exemption of income earned in overseas employment  
   23AH.   Foreign branch income of Australian companies not assessable  
   23AI.   Amounts paid out of attributed income not assessable  
   23AK.   Amounts paid out of attributed foreign investment fund income not assessable  
   23B.    Reduction of disposal consideration if FIF attributed income not distributed  
   23G.    Exemption of interest received by credit unions  
   23K.    Substitution of certain securities  
   23L.    Certain benefits in the nature of income not assessable  

           Division 1AB--Certain State

              Subdivision A--Exemption for certain State

   24AK.   Key principle  
   24AL.   Diagram--guide to work out if body is exempt under this Division  
   24AM.   Certain STBs exempt from tax  
   24AN.   Certain STBs not exempt from tax under this Division  
   24AO.   First way in which a body can be an STB  
   24AP.   Second way in which a body can be an STB  
   24AQ.   Third way in which a body can be an STB  
   24AR.   Fourth way in which a body can be an STB  
   24AS.   Fifth way in which a body can be an STB  
   24AT.   What do excluded STB, government entity and Territory mean?  
   24AU.   Governor, Minister and Department Head taken to be a government entity  
   24AV.   Regulations prescribing excluded STBs  

              Subdivision B--Body ceasing to be an STB

   24AW.   Body ceasing to be an STB  
   24AX.   Special provisions relating to capital gains and losses  
   24AY.   Losses from STB years not carried forward  
   24AYA.  Effect of unfunded superannuation liabilities  
   24AZ.   Meaning of period and prescribed excluded STB  

           Division 2--Income

              Subdivision A--Assessable income generally

   25A.    Assessable income to include certain profits  
   26AB.   Assessable income--premium for lease  
   26AF.   Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds  
   26AFA.  Assessable income to include value of certain benefits received from or in connection with former section 23F funds  
   26AG.   Certain film proceeds included in assessable income  
   26AH.   Bonuses and other amounts received in respect of certain short-term life assurance policies  
   26AJ.   Investment-related lottery winnings to be included in assessable income  
   26BB.   Assessability of gain on disposal or redemption of traditional securities  
   26BC.   Securities lending arrangements  
   26E.    Income from RSAs  
   27.     Interest on loans raised in Australia by governments outside Australia  

              Subdivision AA--Non-superannuation annuities etc

   27H.    Assessable income to include annuities and superannuation pensions  

              Subdivision D--Dividends

   43A.    Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997  
   43B.    Application of Subdivision to non-share dividends  
   44.     Dividends  
   45.     Streaming of bonus shares and unfranked dividends  
   45A.    Streaming of dividends and capital benefits  
   45B.    Schemes to provide certain benefits  
   45BA.   Effect of determinations under section 45B for demerger benefits  
   45C.    Effect of determinations under sections 45A and 45B for capital benefits  
   45D.    Determinations under sections 45A, 45B and 45C  
   46FA.   Deduction for dividends on-paid to non-resident owner  
   46FB.   Unfranked non-portfolio dividend account  
   47.     Distributions by liquidator  
   47A.    Distribution benefits--CFCs  

           Division 3--Deductions

              Subdivision A--General

   51AAA.  Deductions not allowable in certain circumstances  
   51AD.   Deductions not allowable in respect of property used under certain leveraged arrangements  
   51AEA.  Meal entertainment--election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method  
   51AEB.  Meal entertainment--election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method  
   51AEC.  Entertainment facility--election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method  
   51AF.   Car expenses incurred by employee  
   51AGA.  No deduction to employee for certain car parking expenses  
   51AH.   Deductions not allowable where expenses incurred by employee are reimbursed  
   51AJ.   Deductions not allowable for private component of contributions for fringe benefits etc.  
   51AK.   Agreements for the provision of non-deductible non-cash business benefits  
   52.     Loss on property acquired for profit-making  
   52A.    Certain amounts disregarded in ascertaining taxable income  
   63.     Bad debts  
   63D.    Bad debts etc. of money-lenders not allowable deductions where attributable to listed country or unlisted country branches  
   63E.    Debt/equity swaps  
   63F.    Limit on deductions where debt write offs and debt/equity swaps occur  
   63G.    Bad debts etc. of trust not allowable in certain circumstances  
   65.     Payments to associated persons and relatives  
   70B.    Deduction for loss on disposal or redemption of traditional securities  
   73A.    Expenditure on scientific research  
   73AA.   Section 73A roll-over relief in the case of certain CGT roll-overs  
   78A.    Certain gifts not to be allowable deductions  

   PART III--LIABILITY TO TAXATION

           Division 3--Deductions

   79A.    Rebates for residents of isolated areas  
   79B.    Rebates for members of Defence Force serving overseas  
   82.     Double deductions  
   82A.    Deductions for expenses of self-education  

              Subdivision D--Losses and outgoings incurred under certain tax avoidance schemes

   82KH.   Interpretation  
   82KJ.   Deduction not allowable in respect of certain pre-paid outgoings  
   82KK.   Schemes designed to postpone tax liability  
   82KL.   Tax benefit not allowable in respect of certain recouped expenditure  

              Subdivision H--Period of deductibility of certain advance expenditure

   82KZL.  Interpretation  
   82KZLA. Subdivision does not apply to financial arrangements to which Subdivision 250-E applies  
   82KZLB. How this Subdivision applies to deductible R&D expenditure incurred to associates in earlier income years  
   82KZM.  Expenditure by small business entities and individuals incurring non-business expenditure  
   82KZMA. Application of section 82KZMD  
   82KZMD. Business expenditure and non-business expenditure by non-individual  
   82KZME. Expenditure under some agreements  
   82KZMF. Proportional deduction  
   82KZMG. Deductions for certain forestry expenditure  
   82KZMGA.Deductions for certain forestry expenditure  
   82KZMGB.CGT event in relation to interest in 82KZMG agreement  
   82KZN.  Transfer etc. of rights under agreement  
   82KZO.  Partnership changes where entire interest in agreement rights is not transferred  

           Division 3A--Convertible notes

   82LA.   Application of Division  
   82L.    Interpretation  
   82M.    New loans and replacement loans  
   82P.    Bonus share allotments  
   82Q.    Classes of shares  
   82R.    Interest on certain convertible notes not to be an allowable deduction  
   82SA.   Interest on certain convertible notes to be an allowable deduction--where loan made on or after 1 January 1976  
   82T.    Value of shares  

           Division 5--Partnerships

   90.     Interpretation  
   91.     Liability of partnerships  
   92.     Income and deductions of partner  
   92A.    Deductions in respect of outstanding subsection 92(2AA) amounts  
   94.     Partner not having control and disposal of share in partnership income  

           Division 5A--Income of certain limited partnerships

              Subdivision A--Preliminary

   94A.    Object  
   94B.    Interpretation  
   94C.    Continuity of limited partnership not affected by changes in composition  

              Subdivision B--Corporate limited partnerships

   94D.    Corporate limited partnerships  
   94E.    Continuity of business test  
   94F.    Change in composition of limited partnership--election that partnership not be treated as an eligible limited partnership  
   94G.    Continuity of ownership test  

              Subdivision C--Corporate tax modifications applicable to corporate limited partnerships

   94H.    Corporate tax modifications applicable to corporate limited partnerships  
   94J.    Company includes corporate limited partnership  
   94K.    Partnership does not include corporate limited partnership  
   94L.    Dividend includes distribution of corporate limited partnership  
   94M.    Drawings etc. deemed to be dividends paid out of profits  
   94N.    Private company does not include corporate limited partnership  
   94P.    Share includes interest in corporate limited partnership  
   94Q.    Shareholder includes partner in corporate limited partnership  
   94R.    Liquidator may include partner in corporate limited partnership  
   94S.    Continuity of corporate limited partnership not affected by changes in composition  
   94T.    Residence of corporate limited partnership  
   94U.    Incorporation  
   94V.    Obligations and offences  
   94X.    Modification of loss provisions  

           Division 6--Trust income

   95AAA.  Simplified outline of the relationship between this Division, Division 6E and Subdivisions 115-C and 207-B of the Income Tax Assessment Act 1997  
   95AAB.  Adjustments under Subdivision 115-C or 207-B of the Income Tax Assessment Act 1997--references in this Act to assessable income under section 97, 98A or 100  
   95AAC.  Adjustments under Subdivision 115-C or 207-B of the Income Tax Assessment Act 1997--references in this Act to liabilities under section 98, 99 or 99A  
   95AAD.  Division does not apply in relation to AMIT  
   95.     Interpretation  
   95AB.   Modifications for special disability trusts  
   95A.    Special provisions relating to present entitlement  
   95B.    Certain beneficiaries deemed not to be under legal disability  
   96.     Trustees  
   97.     Beneficiary not under any legal disability  
   97A.    Beneficiaries who are owners of farm management deposits  
   98.     Liability of trustee  
   98A.    Non-resident beneficiaries assessable in respect of certain income  
   98B.    Deduction from beneficiary's tax  
   99.     Certain trust income to be taxed as income of an individual  
   99A.    Certain trust income to be taxed at special rate  
   99B.    Receipt of trust income not previously subject to tax  
   99C.    Determining whether property is applied for benefit of beneficiary  
   99D.    Refund of tax to non-resident beneficiary  
   99E.    Later trust not taxed on income already taxed under subsection 98(4)  
   99G.    Amounts covered by withholding requirement  
   99H.    Late payments  
   100.    Beneficiary assessable in respect of certain trust income  
   100AA.  Failure to pay or notify present entitlement of exempt entity  
   100AB.  Adjusted Division 6 percentage exceeding benchmark percentage: present entitlement of exempt entity  
   100A.   Present entitlement arising from reimbursement agreement  
   101.    Discretionary trusts  
   101A.   Income of deceased received after death  
   102.    Revocable trusts  

           Division 6AAA--Special provisions relating to non-resident trust estates etc

              Subdivision A--Preliminary

   102AAA. Object of Division  
   102AAB. Interpretation  
   102AAC. Each listed country and unlisted country to be treated as a separate foreign country  
   102AAD. Subject to tax--application of subsection 324(2)  
   102AAE. Listed country trust estates  
   102AAF. Public unit trusts  
   102AAG. When entity is in a position to control a trust estate  
   102AAH. Non-resident family trusts  
   102AAJ. Transfer of property or services  
   102AAK. Deemed transfers of property or services to trust estate  
   102AAL. Division not to apply to transfers by trustees of deceased estates  

              Subdivision B--Payment of interest by taxpayer on distributions from certain non-resident trust estates

   102AAM. Payment of interest by taxpayer on distributions from certain non-resident trust estates  
   102AAN. Collection etc. of interest  

              Subdivision D--Accruals system of taxation of certain non-resident trust estates

   102AAS. Object of Subdivision  
   102AAT. Accruals system of taxation--attributable taxpayer  
   102AAU. Attributable income of a trust estate  
   102AAV. Double tax agreements to be disregarded  
   102AAW. Certain provisions to be disregarded in calculating attributable income  
   102AAY. Modified application of trading stock provisions  
   102AAZ. Modified application of depreciation provisions  
   102AAZB.General modifications--CGT  
   102AAZBA.Modified application of CGT--effect of certain changes of residence  
   102AAZC.Modified application of loss provisions--pre-1990-91 losses  
   102AAZD.Assessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services  
   102AAZE.Accruals system of taxation does not apply to small amounts  
   102AAZF.Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution  
   102AAZG.Keeping of records  

           Division 6AA--Income of certain children

   102AA.  Interpretation  
   102AB.  Application of Division  
   102AC.  Persons to whom Division applies  
   102AD.  Taxable income to which Division applies  
   102AE.  Eligible assessable income  
   102AF.  Employment income and business income  
   102AG.  Trust income to which Division applies  
   102AGA. Transfer of property as the result of a family breakdown  

           Division 6A--Alienation of income

   102A.   Interpretation  
   102B.   Certain income transferred for short periods to be included in assessable income of transferor  
   102C.   Effect of certain transfers of rights to receive income from property  
   102CA.  Consideration in respect of transfer to be included in assessable income of transferor in certain cases  

           Division 6C--Income of certain public trading trusts

   102M.   Interpretation  
   102MA.  Arrangements not covered  
   102MB.  Investing in land  
   102MC.  When trading business not carried on  
   102MD.  Exempt institution that is eligible for a refund not treated as exempt entity  
   102N.   Trading trusts  
   102NA.  Certain interposed trusts not trading trusts  
   102P.   Public unit trusts  
   102Q.   Resident unit trusts  
   102R.   Public trading trusts  
   102S.   Taxation of net income of public trading trust  
   102T.   Modified application of Act in relation to certain unit trusts  

           Division 6D--Provisions relating to certain closely held trusts

              Subdivision A--Overview

   102UA.  What this Division is about  

              Subdivision B--Interpretation

   102UB.  Definitions--general  
   102UC.  Closely held trust  
   102UD.  Trustee beneficiary  
   102UE.  Meaning of untaxed part  
   102UG.  Correct TB statement  
   102UH.  TB statement period  
   102UI.  Tax-preferred amount  
   102UJ.  Extended concept of present entitlement to capital of a trust  

              Subdivision C--Trustee beneficiary non-disclosure tax on share of net income

   102UK.  Trustee beneficiary non-disclosure tax where no correct TB statement  
   102UL.  Exclusion of directors of closely held trust from liability to pay tax  
   102UM.  Trustee beneficiary non-disclosure tax where share is distributed to trustee of closely held trust  

              Subdivision D--Payment etc

   102UN.  Amount of trustee beneficiary non-disclosure tax reduced by notional tax offset  
   102UO.  Payment of trustee beneficiary non-disclosure tax  
   102UP.  Late payment of trustee beneficiary non-disclosure tax  
   102UR.  Notice of liability  
   102URA. Request for notice of liability  
   102USA. Recovery of trustee beneficiary non-disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee  

              Subdivision E--Making correct TB statement about trustee beneficiaries of tax-preferred amounts

   102UT.  Requirement to make correct TB statement about trustee beneficiaries of tax-preferred amounts  

              Subdivision F--Special provisions about tax file numbers

   102UU.  Trustee beneficiary may quote tax file number to trustee of closely held trust  
   102UV.  Trustee of closely held trust may record etc. tax file number  

           Division 6E--Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits

   102UW.  Application of Division  
   102UX.  Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits  
   102UY.  Interpretation  

           Division 7--Private companies

   102V.   Application of Division to non-share dividends  
   103.    Interpretation  
   103A.   Private companies  
   109.    Excessive payments to shareholders, directors and associates deemed to be dividends  

           Division 7A--Distributions to entities connected with a private company

              Subdivision A--Overview of this Division

   109B.   Simplified outline of this Division  

              Subdivision AA--Application of Division

   109BA.  Application of Division to non-share dividends  
   109BB.  Application of Division to closely-held corporate limited partnerships  
   109BC.  Application of Division to non-resident companies  

              Subdivision B--Private company payments, loans and debt forgiveness are treated as dividends

   109C.   Payments treated as dividends  
   109CA.  Payment includes provision of asset  
   109D.   Loans treated as dividends  
   109E.   Amalgamated loan from a previous year treated as dividend if minimum repayment not made  
   109F.   Forgiven debts treated as dividends  

              Subdivision C--Forgiven debts that are not treated as dividends

   109G.   Debt forgiveness that does not give rise to a dividend  

              Subdivision D--Payments and loans that are not treated as dividends

   109H.   Simplified outline of this Subdivision  
   109J.   Payments discharging pecuniary obligations not treated as dividends  
   109K.   Inter-company payments and loans not treated as dividends  
   109L.   Certain payments and loans not treated as dividends  
   109M.   Loans made in the ordinary course of business on arm's length terms not treated as dividends  
   109N.   Loans meeting criteria for minimum interest rate and maximum term not treated as dividends  
   109NA.  Certain liquidator's distributions and loans not treated as dividends  
   109NB.  Loans to purchase shares under employee share schemes not treated as dividends  
   109P.   Amalgamated loans not treated as dividends in the year they are made  
   109Q.   Commissioner may allow amalgamated loan not to be treated as dividend  
   109R.   Some payments relating to loans not taken into account  

              Subdivision DA--Demerger dividends not treated as dividends

   109RA.  Demerger dividends not treated as dividends  

              Subdivision DB--Other exceptions

   109RB.  Commissioner may disregard operation of Division or allow dividend to be franked  
   109RC.  Dividend may be franked if taken to be paid because of family law obligation  
   109RD.  Commissioner may extend period for repayments of amalgamated loan  

              Subdivision E--Payments and loans through interposed entities

   109S.   Simplified outline of this Subdivision  
   109T.   Payments and loans by a private company to an entity through one or more interposed entities  
   109U.   Payments and loans through interposed entities relying on guarantees  
   109UA.  Certain liabilities under guarantees treated as payments  
   109V.   Amount of private company's payment to target entity through one or more interposed entities  
   109W.   Private company's loan to target entity through one or more interposed entities  
   109X.   Operation of Subdivision D in relation to payment or loan  

              Subdivision EA--Unpaid present entitlements

   109XA.  Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement  
   109XB.  Amounts included in assessable income  
   109XC.  Modifications  
   109XD.  Forgiveness of loan debt does not give rise to assessable income if loan gives rise to assessable income  

              Subdivision EB--Unpaid present entitlements--interposed entities

   109XE.  Simplified outline of this Subdivision  
   109XF.  Payments through interposed entities  
   109XG.  Loans through interposed entities  
   109XH.  Amount and timing of payment or loan through interposed entities  
   109XI.  Entitlements to trust income through interposed trusts  

              Subdivision F--General rules applying to all amounts treated as dividends

   109Y.   Proportional reduction of dividends so they do not exceed distributable surplus  
   109Z.   Characteristics of dividends taken to be paid under this Division  
   109ZA.  No dividend taken to be paid for withholding tax purposes  
   109ZB.  Amount treated as dividend is not a fringe benefit  
   109ZC.  Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend  
   109ZCA. Treatment of dividend that is reduced on account of an amount included in assessable income under Subdivision EA  

              Subdivision G--Defined terms

   109ZD.  Defined terms  
   109ZE.  Interpretation rules about entities  

           Division 9--Co-operative and mutual companies

   117.    Co-operative companies  
   118.    Company not co-operative if less than 90% of business with members  
   119.    Sums received to be taxed  
   120.    Deductions allowable to co-operative company  
   121.    Mutual insurance associations  

           Division 9AA--Demutualisation of insurance companies and affiliates

              Subdivision A--What this Division is about

   121AA.  What this Division is about  

              Subdivision B--Key concepts and related definitions

   121AB.  Insurance company definitions  
   121AC.  Mutual affiliate company  
   121AD.  Demutualisation and demutualisation resolution day  
   121AE.  Demutualisation methods, the policyholder/member group and the listing period  
   121AEA. Replacement of policyholders by persons exercising certain rights  
   121AF.  Demutualisation method 1  
   121AG.  Demutualisation method 2  
   121AH.  Demutualisation method 3  
   121AI.  Demutualisation method 4  
   121AJ.  Demutualisation method 5  
   121AK.  Demutualisation method 6  
   121AL.  Demutualisation method 7  
   121AM.  Embedded value of a mutual life insurance company  
   121AN.  Net tangible asset value of a general insurance company or mutual affiliate company  
   121AO.  Treasury bond rate, capital reserve adequacy level, eligible actuary and security  
   121AP.  Subsidiary and wholly-owned subsidiary  
   121AQ.  Other definitions  
   121AR.  List of definitions  

              Subdivision C--Tax consequences of demutualisation

   121AS.  CGT consequences of demutualisation  
   121AT.  Other tax consequences of demutualisation  
   121AU.  This Subdivision does not apply to demutualisation of friendly society health or life insurers  

           Division 9A--Offshore banking units

              Subdivision A--Object and simplified outline

   121A.   Object  
   121B.   Simplified outline  

              Subdivision B--Interpretation

   121C.   Interpretation  
   121D.   Meaning of OB activity  
   121DA.  Meaning of expressions relevant to investment activity  
   121DB.  Meaning of OB eligible contract activity  
   121DC.  Meaning of OB advisory activity  
   121DD.  Meaning of OB leasing activity  
   121E.   Meaning of offshore person  
   121EA.  OBU requirement  
   121EAA. Activities recorded in domestic books not OB activities  
   121EB.  Internal financial dealings of an OBU  
   121EC.  Meaning of OBU resident-owner money  
   121ED.  Meaning of trade with a person  
   121EDA. Meaning of OB income  
   121EE.  Definitions relating to assessable income of an OBU  
   121EF.  Definitions relating to allowable deductions of an OBU  

              Subdivision C--Operative provisions

   121EG.  Reduction of assessable OB income, allowable OB deductions and foreign income tax paid  
   121EH.  Loss of special treatment where excessive use of non-OB money  
   121EJ.  Source of income derived from OB activities  
   121EK.  Deemed interest on 90% of certain OBU resident-owner money  
   121EL.  Exemption of income etc. of OBU offshore investment trusts  
   121ELA. Exemption of income etc. of overseas charitable institutions  
   121ELB. Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts  

           Division 9C--Assessable income diverted under certain tax avoidance schemes

   121F.   Interpretation  
   121G.   Diverted income and diverted trust income  
   121H.   Assessment of diverted income and diverted trust income  
   121J.   Ascertainment of diverted income or diverted trust income deemed to be an assessment  
   121K.   Application of International Tax Agreements Act  
   121L.   Division applies notwithstanding exemption under other laws  

   PART III--LIABILITY TO TAXATION

           Division 10E--PDFs (pooled development funds)

              Subdivision A--Shares in PDFs

   124ZM.  Treatment distributions to shareholders in PDF  
   124ZN.  Exemption of income from sale of shares in a PDF  
   124ZO.  Shares in a PDF are not trading stock  
   124ZQ.  Effect of company becoming a PDF  
   124ZR.  Effect of company ceasing to be a PDF  

              Subdivision B--The taxable income of PDFs

   124ZS.  Definitions  
   124ZTA. Taxable income in first year as PDF if PDF component is nil  
   124ZT.  SME assessable income  
   124ZU.  SME income component  
   124ZV.  Unregulated investment component  

              Subdivision C--Adjustments of the tax treatment of capital gains and capital losses of PDFs

   124ZW.  Definitions  
   124ZX.  Companies to which this Subdivision applies  
   124ZY.  Classes of assessable income  
   124ZZ.  Treatment of capital gains  
   124ZZA. Allocation of gain amounts and loss amounts to classes of assessable income  
   124ZZB. Assessable income etc. in relation to capital gains  
   124ZZD. No net capital loss  

           Division 11--Interest paid by companies on bearer debentures

   126.    Interest paid by a company on bearer debentures  
   127.    Credit for tax paid by company  
   128.    Assessments of tax  

           Division 11A--Dividends, interest and royalties paid to non-residents and to certain other persons

              Subdivision A--General

   128AAA. Application of Division to non-share dividends  
   128A.   Interpretation  
   128AA.  Deemed interest in respect of transfers of certain securities  
   128AB.  Certificates relating to issue price of certain securities  
   128AC.  Deemed interest in respect of hire-purchase and certain other agreements  
   128AD.  Indemnification etc. agreements in relation to bills of exchange and promissory notes  
   128AE.  Interpretation provisions relating to offshore banking units  
   128AF.  Payments through interposed entities  
   128B.   Liability to withholding tax  
   128C.   Payment of withholding tax  
   128D.   Certain income not assessable  
   128F.   Division does not apply to interest on certain publicly offered company debentures or debt interests  
   128FA.  Division does not apply to interest on certain publicly offered unit trust debentures or debt interests  
   128GB.  Division not to apply to interest payments on offshore borrowings by offshore banking units  
   128NA.  Special tax payable in respect of certain securities and agreements  
   128NB.  Special tax payable in respect of certain dealings by current and former offshore banking units  
   128NBA. Credits in respect of amounts assessed in relation to certain financial arrangements  
   128P.   Objections  
   128R.   Informal arrangements  

           Division 11B--Equity investments in small-medium enterprises

   128TG.  Summary of this Division  
   128TH.  When Division applies  
   128TI.  Consequences of Division applying  
   128TJ.  Acquiring a threshold interest in an SME  
   128TK.  SME or small-medium enterprise  
   128TL.  Subsidiary and direct ownership group  

           Division 11C--Payments in respect of mining operations on Indigenous land

   128U.   Interpretation  
   128V.   Liability to mining withholding tax  
   128W.   Payment of mining withholding tax  

           Division 12--Oversea ships

   129.    Taxable income of ship-owner or charterer  
   130.    Master or agent to make return  
   131.    Determination by Commissioner  
   132.    Assessment of tax  
   133.    Master liable to pay  
   134.    Notice of assessment  
   135.    Clearance of ship  
   135A.   Freights payable under certain agreements  

           Division 15--Insurance with non-residents

   141.    Interpretation  
   142.    Income derived by non-resident insurer  
   143.    Taxable income of non-resident insurer  
   144.    Liability of agents of insurer  
   145.    Deduction of premiums  
   146.    Exporter to furnish information  
   147.    Rate of tax in special circumstances  
   148.    Reinsurance with non-residents  

           Division 16--Averaging of incomes

   149.    Average income  
   149A.   Capital gains, abnormal income and certain death benefits to be disregarded  
   150.    First average year  
   151.    First application of Division in relation to a taxpayer  
   152.    Taxpayer not in receipt of assessable income  
   153.    Taxpayer with no taxable income  
   154.    Excess of allowable deductions  
   155.    Permanent reduction of income  
   156.    Rebate of tax for, or complementary tax payable by, certain primary producers  
   157.    Application of Division to primary producers  
   158.    Application of Division  
   158A.   Election that Division not apply  

           Division 16D--Certain arrangements relating to the use of property

   159GE.  Interpretation  
   159GEA. Division applies to certain State/Territory bodies  
   159GF.  Residual amounts  
   159GG.  Qualifying arrangements  
   159GH.  Application of Division in relation to property  
   159GJ.  Effect of application of Division on certain deductions etc.  
   159GK.  Effect of application of Division on assessability of arrangement payments  
   159GL.  Special provision relating to Division 10C or 10D property  
   159GM.  Special provision where cost of plant etc. is also eligible capital expenditure  
   159GN.  Effect of use of property under qualifying arrangement for producing assessable income  
   159GO.  Special provisions relating to partnerships  

           Division 16E--Accruals assessability etc

   159GP.  Interpretation  
   159GQ.  Tax treatment of holder of qualifying security  
   159GQA. Accrual period  
   159GQB. Accrual amount  
   159GQC. Implicit interest rate for fixed return security  
   159GQD. Implicit interest rate for variable return security  
   159GR.  Consequences of actual payments  
   159GS.  Balancing adjustments on transfer of qualifying security  
   159GT.  Tax treatment of issuer of a qualifying security  
   159GU.  Effect of Division on certain transfer profits and losses  
   159GV.  Consequence of variation of terms of security  
   159GW.  Effect of Division in relation to non-residents  
   159GX.  Effect of Division where certain payments not assessable  
   159GY.  Effect of Division where qualifying security is trading stock  
   159GZ.  Stripped securities  

           Division 16J--Effect of cancellation of subsidiary's shares in holding company

   159GZZZC.Interpretation--general  
   159GZZZD.Meaning of eligible entity, eligible interest and eligible proportion  
   159GZZZE.Share cancellations to which this Division applies  
   159GZZZF.Effect on subsidiary of share cancellations to which this Division applies  
   159GZZZG.Pre-cancellation disposals of eligible interests  
   159GZZZH.Post-cancellation disposals of eligible interests etc.  
   159GZZZI.Additional application of sections 159GZZZG and 159GZZZH to associates  

           Division 16K--Effect of buy-backs of shares

              Subdivision AA--Application of Division to non-share equity interests

   159GZZZIA.Application of Division to non-share dividends  

              Subdivision A--Interpretation

   159GZZZJ.Interpretation  
   159GZZZK.Explanation of terms  
   159GZZZL.Special buy-backs not made in ordinary course of trading on a stock exchange  
   159GZZZM.Purchase price in respect of buy-back  

              Subdivision B--Company buying-back shares

   159GZZZN.Buy-back and cancellation disregarded for certain purposes  

              Subdivision C--Off-market purchases

   159GZZZP.Part of off-market purchase price is a dividend  
   159GZZZQ.Consideration in respect of off-market purchase  

              Subdivision D--On-market purchases

   159GZZZR.No part of on-market purchase price is a dividend  
   159GZZZS.Consideration in respect of on-market purchase  

           Division 16L--Tax-exempt infrastructure borrowings

   159GZZZZD.Interpretation  
   159GZZZZE.Infrastructure borrowings to be non-assessable and non-deductible  
   159GZZZZF.Tax exemption to be disregarded for certain purposes  
   159GZZZZG.Rebate election  
   159GZZZZH.Tax payable where infrastructure borrowing certificate cancelled  

           Division 17--Rebates

              Subdivision A--Concessional rebates

   159H.   Application  
   159HA.  Indexation for the purposes of this Subdivision  
   159N.   Rebate for certain low-income taxpayers  
   159P.   Rebate for medical expenses  
   159Q.   Rebate for medical expenses--phase-in limits  

              Subdivision AB--Lump sum payments in arrears

   159ZR.  Interpretation  
   159ZRA. Eligibility for rebate  
   159ZRB. Calculation of rebate  
   159ZRC. Notional tax amount for recent accrual years  
   159ZRD. Notional tax amount for distant accrual years  

              Subdivision B--Miscellaneous

   160AAAA.Tax rebate for low income aged persons and pensioners  
   160AAAB.Tax rebate for low income aged persons and pensioners--trustees assessed under section 98  
   160AAA. Rebate in respect of certain benefits etc.  
   160AAB. Rebate in respect of amounts assessable under section 26AH  
   160AD.  Maximum amount of rebates  
   160ADA. Most tax offsets under the 1997 Assessment Act are treated as rebates  

   PART IIIB--AUSTRALIAN BRANCHES OF FOREIGN BANKS

           Division 1--Preliminary

   160ZZVA.Object  
   160ZZVB.Application  
   160ZZV. Definitions  
   160ZZW. Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity  

           Division 2--Provisions relating to income tax

   160ZZX. Income of branch to have Australian source  
   160ZZZ. Notional borrowing by branch from bank  
   160ZZZA.Notional payment of interest by branch to bank  
   160ZZZC.Offshore banking units  
   160ZZZE.Notional derivative transactions between branch and bank  
   160ZZZF.Notional foreign exchange transactions between branch and bank  
   160ZZZG.Losses  
   160ZZZH.Net capital losses  
   160ZZZI.Certain transactions to be disregarded  

           Division 3--Provisions relating to withholding tax

   160ZZZJ.Withholding tax on interest paid by branch to bank  

           Division 4--Extension of Part to Australian branches of foreign financial entities

   160ZZZK.Treatment like Australian branches of foreign banks  

   PART IV--RETURNS AND ASSESSMENTS

   161.    Annual returns  
   161A.   Form and content of returns  
   161AA.  Contents of returns of full self-assessment taxpayers  
   161G.   Tax agent to give taxpayer copy of notice of assessment  
   162.    Further returns and information  
   163.    Special returns  
   163A.   Late lodgement penalty--relevant entities, instalment taxpayers and full self-assessment taxpayers  
   163AA.  General interest charge on unpaid penalty  
   163B.   Late lodgment of returns by persons other than relevant entities, instalment taxpayers and full self-assessment taxpayers  
   166.    Assessment  
   166A.   Deemed assessment  
   167.    Default assessment  
   168.    Special assessment  
   169.    Assessments on all persons liable to tax  
   169AA.  Consolidated assessments  
   169A.   Reliance by Commissioner on returns and statements  
   170.    Amendment of assessments  
   170A.   Amendment of assessments--interaction with other Acts  
   170B.   Protection for anticipation of certain discontinued announcements  
   170C.   Power of Commissioner to reduce amount of tax payable in certain cases  
   171.    Where no notice of assessment served  
   171A.   Limited period to make assessments for nil liability returns for the 2003-04 year of income or earlier  
   172.    Refunds of amounts overpaid  
   172A.   Consequences of amendment of assessments of tax offset refunds  
   173.    Amended assessment to be an assessment  
   174.    Notice of assessment  
   175.    Validity of assessment  
   175A.   Objections against assessments  

   PART IVA--SCHEMES TO REDUCE INCOME TAX

   177A.   Interpretation  
   177B.   Operation of Part  
   177C.   Tax benefits  
   177CB.  The bases for identifying tax benefits  
   177D.   Schemes to which this Part applies  
   177DA.  Schemes that limit a taxable presence in Australia  
   177E.   Stripping of company profits  
   177EA.  Creation of franking debit or cancellation of franking credits  
   177EB.  Cancellation of franking credits--consolidated groups  
   177F.   Cancellation of tax benefits etc.  
   177G.   Amendment of assessments  
   177H.   Diverted profits tax--objects  
   177J.   Diverted profits tax--application  
   177K.   Diverted profits tax--$25 million income test  
   177L.   Diverted profits tax--sufficient foreign tax test  
   177M.   Diverted profits tax--sufficient economic substance test  
   177N.   Diverted profits tax--consequences  
   177P.   Diverted profits tax--liability  
   177Q.   Diverted profits tax--general interest charge on unpaid diverted profits tax or shortfall interest charge  
   177R.   Diverted profits tax--when shortfall interest charge is payable  

   PART VA--TAX FILE NUMBERS

           Division 1--Preliminary

   202.    Objects of this Part  
   202A.   Interpretation  
   202AA.  Definition of eligible PAYG payment  

           Division 2--Issuing of tax file numbers

   202B.   Application for tax file number  
   202BA.  Issuing of tax file numbers  
   202BB.  Current tax file number  
   202BC.  Deemed refusal by Commissioner  
   202BD.  Interim notices  
   202BE.  Cancellation of tax file numbers  
   202BF.  Alteration of tax file numbers  

           Division 3--Quotation of tax file numbers by recipients of eligible PAYG payments

   202C.   TFN declarations by recipients of eligible PAYG payments  
   202CA.  Operation of TFN declaration  
   202CB.  Quotation of tax file number in TFN declaration  
   202CC.  Making a replacement TFN declaration in place of an ineffective declaration  
   202CD.  Sending of TFN declaration to Commissioner  
   202CE.  Effect of incorrect quotation of tax file number  
   202CEA. Validation notices  
   202CF.  Payer must notify Commissioner if no TFN declaration by recipient  
   202CG.  Disclosing recipients' tax file numbers to payers  

           Division 4--Quotation of tax file numbers in connection with certain investments

   202D.   Explanation of terms: investment, investor, investment body  
   202DB.  Quotation of tax file numbers in connection with investments  
   202DC.  Method of quoting tax file number  
   202DD.  Investor excused from quoting tax file number in certain circumstances  
   202DDB. Quotation of tax file number in connection with indirectly held investment  
   202DE.  Securities dealer to inform the investment body of tax file number  
   202DF.  Effect of incorrect quotation of tax file number  
   202DG.  Investments held jointly  
   202DH.  Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments  
   202DHA. Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes  
   202DI.  Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits  
   202DJ.  Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes  

           Division 4A--Quotation of tax file numbers in connection with farm management deposits

   202DL.  Quotation of tax file number  
   202DM.  Effect of incorrect quotation of tax file number  

           Division 4B--Quotation of tax file numbers in connection with certain closely held trusts

   202DN.  Application of Division  
   202DO.  Quotation of tax file numbers  
   202DP.  Trustee must report quoted tax file numbers  
   202DR.  Effect of incorrect quotation of tax file number  

           Division 5--Exemptions

   202EA.  Persons receiving certain pensions etc.--employment  
   202EB.  Persons receiving certain pensions etc.--investments  
   202EC.  Entities not required to lodge income tax returns  
   202EE.  Non-residents  
   202EG.  Manner of completing declarations  
   202EH.  Declarations under this Division to be retained in certain circumstances  

           Division 6--Review of decisions

   202F.   Review of decisions  
   202FA.  Statements to accompany notification of decisions  

           Division 7--Manner of providing information

   202G.   Transmission of information in accordance with specifications  

   PART VIIB--MEDICARE LEVY AND MEDICARE LEVY SURCHARGE

   251R.   Interpretation  
   251S.   Medicare levy  
   251T.   Medicare levy (other than Medicare levy surcharge) not payable by prescribed persons or by certain trustees  
   251U.   Prescribed persons  
   251V.   Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to Medicare levy surcharge  
   251VA.  Subsection 251U(3) not to apply for Medicare levy surcharge  
   251W.   Regulations  
   251X.    Notice of assessment to set out Medicare levy and surcharge  
   251Z.   Administration of Medicare levy (fringe benefits) surcharge Act  

   PART VIII--MISCELLANEOUS

   252.    Public officer of company  
   252A.   Public officer of trust estate  
   253.    Notifying and serving companies  
   254.    Agents and trustees  
   255.    Person in receipt or control of money from non-resident  
   257.    Payment of tax by banker  
   260.    Contracts to evade tax void  
   262.    Periodical payments in the nature of income  
   262A.   Keeping of records  
   264A.   Offshore information notices  
   264BB.  Commissioner may require private health insurers to provide information  
   265A.   Release of liability of members of the Defence Force on death  
   265B.   Notices in relation to certain securities  
   266.    Regulations  

   PART X--ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES

           Division 1--Preliminary

   316.    Object of Part  
   317.    Interpretation  
   318.    Associates  
   319.    Statutory accounting period of a company  
   320.    Listed countries and unlisted countries  
   321.    Each listed country and each unlisted country to be treated as a separate foreign country  
   322.    Meaning of entitled to acquire  
   323.    State foreign taxes may be treated as federal foreign taxes  
   324.    When income or profits subject to tax in a listed country  
   325.    When dividends etc. taxed in a country at normal company tax rate  
   326.    AFI subsidiary  
   327.    Eligible finance shares  
   327A.   Widely distributed finance shares  
   327B.   Transitional finance shares  
   328.    Non-resident family trusts  
   329.    Public unit trusts  
   330.    Tax detriment  
   331.    Company deemed to be treated as a resident of a listed country or an unlisted country for the purposes of the tax law of that country  
   332.    Companies that are residents of listed countries  
   333.    Companies that are residents of unlisted countries  
   334A.   Voting interests in companies  
   335.    References extend to pre-commencement matters and things  

           Division 2--Types of entity

              Subdivision A--Australian entities

   336.    Australian entity  
   337.    Australian partnership  
   338.    Australian trust  

              Subdivision B--Controlled foreign entities

   339.    Controlled foreign entity (CFE)  
   340.    Controlled foreign company (CFC)  
   341.    Controlled foreign partnership (CFP)  
   342.    Controlled foreign trust (CFT)  

              Subdivision C--Eligible transferors in relation to trusts

   343.    Interpretation  
   344.    References to transfer of property or services  
   345.    Deemed transfers of property or services  
   346.    Circumstances in which a transfer of property or services is an eligible business transaction  
   347.    Eligible transferor in relation to a discretionary trust  
   348.    Eligible transferor in relation to a non-discretionary trust or a public unit trust  

           Division 3--Control interests, attribution interests, attributable taxpayers and attribution percentages

              Subdivision A--Control interests

   349.    Associate-inclusive control interest in a company or trust  
   350.    Direct control interest in a company  
   351.    Direct control interest in a trust  
   352.    Indirect control interest in a company or trust  
   353.    Control tracing interest in a company  
   354.    Control tracing interest in a CFP  
   355.    Control tracing interest in a CFT  

              Subdivision B--Attribution interests

   356.    Direct attribution interest in a CFC or CFT  
   357.    Indirect attribution interest in a CFC or CFT  
   358.    Attribution tracing interest in a CFC  
   359.    Attribution tracing interest in a CFP  
   360.    Attribution tracing interest in a CFT  

              Subdivision C--Attributable taxpayers and attribution percentages

   361.    Attributable taxpayer in relation to a CFC or a CFT  
   362.    Attribution percentage of an attributable taxpayer  

           Division 4--Attribution accounts

   363.    Attribution account entity  
   364.    Attribution account percentage  
   365.    Attribution account payment  
   366.    Direct attribution account interest in a company  
   367.    Direct attribution account interest in a partnership  
   368.    Direct attribution account interest in a trust  
   369.    Indirect attribution account interest in an entity  
   370.    Attribution surplus  
   371.    Attribution credit  
   372.    Attribution debit  
   373.    Grossed-up amount of an attribution debit  

           Division 7--Calculation of attributable income of CFC

              Subdivision A--Basic principles

   381.    Separate attributable income for each attributable taxpayer  
   382.    Attributable income is taxable income calculated on certain assumptions  
   383.    Basic assumptions  
   384.    Additional assumption for unlisted country CFC  
   385.    Additional assumption for listed country CFC  
   386.    Adjusted tainted income  
   387.    Reduction of attributable income because of interim dividends  

              Subdivision B--General modifications of Australian tax law

   388.    Double tax agreements to be disregarded  
   389.    Certain provisions to be disregarded in calculating attributable income  
   389A.   Other provisions to be disregarded in calculating attributable income  
   390.    Elections to be made by eligible taxpayer  
   392.    Notional assessable amounts are to be pre-tax  
   393.    Notional allowable deduction for taxes paid  
   394.    Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends  
   395.    Expenditure incurred to produce income or profits in later statutory accounting periods  
   396.    Modified application of sections 25A and 52  
   397.    Modified application of trading stock provisions  
   398.    Modified application of depreciation provisions  
   398A.   Application of Division 3A of Part III  
   399.    Modifications of net income of partnerships and trusts  
   399A.   Modified application of bad debt etc. provisions  
   400.    Modified cross-border requirement for transfer pricing  
   401.    Reduction of disposal consideration or capital proceeds if attributed income not distributed  
   402.    Additional notional exempt income--unlisted or listed country CFC  
   403.    Additional notional exempt income--unlisted country CFC  
   404.    Application of Subdivision 768-A of the Income Tax Assessment Act 1997  

              Subdivision C--Modifications relating to Australian capital gains tax

   405.    Interpretation  
   406.    Meaning of commencing day and commencing day asset  
   408.    Certain capital gains and losses disregarded  
   408A.   Certain events before commencing day ignored  
   409.    Losses before 30 June 1990 to be disregarded  
   410.    General modifications--CGT  
   411.    Commencing day assets taken to have been acquired on commencing day  
   412.    Cost base of commencing day asset  
   413.    Adjustment of cost base as at commencing day--return of capital  
   414.    Exercise of rights  
   418.    Options  
   418A.   Effect of change of residence from Australia to listed or unlisted country  
   419.    Modified application of Subdivision 126-B of the Income Tax Assessment Act 1997  
   421.    Elections under CGT roll-over provisions  
   422.    Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country  
   423.    Adjustment of capital proceeds where section 47A applies to rolled-over assets  

              Subdivision D--Modifications relating to losses

   425.    Sometimes-exempt income etc.  
   426.    Creation of loss  
   427.    Certain provisions to be disregarded  
   428.    Subdivision to apply as if there were always a requirement to calculate attributable income  
   429.    Notional allowable deduction for (sometimes-exempt income) loss  
   431.    Deduction etc. for previous period loss  

           Division 8--Active income test

              Subdivision A--Basic conditions for passing the active income test

   432.    Active income test  

              Subdivision B--Tainted income ratio

   433.    Tainted income ratio  
   434.    Gross turnover  
   435.    Gross tainted turnover  
   436.    Amounts excluded from active income test  

              Subdivision C--Treatment of partnership income

   437.    Treatment of partnership income  

              Subdivision D--General interpretive provisions

   438.    Roll-overs--asset disposals  
   439.    When currency exchange gains or losses relate to active income transactions  
   440.    Asset disposals--revaluations and arm's length amounts  
   441.    Hire-purchase and other property financing transactions  
   442.    Assumption of rights of lender under a loan  
   443.    Net tainted commodity gains  
   444.    Net tainted currency exchange gains  
   445.    Net gains--disposal of tainted assets  

              Subdivision E--Passive income, tainted sales income and tainted services income

   446.    Passive income  
   447.    Tainted sales income  
   448.    Tainted services income  

              Subdivision F--Special rules relating to AFI subsidiaries carrying on financial intermediary business

   449.    AFI subsidiaries--interest income  
   450.    AFI subsidiaries--asset disposals and currency transactions  

              Subdivision G--Substantiation requirements

   451.    Active income test--substantiation requirements for company  
   452.    Active income test--substantiation requirements for partnership  
   453.    Active income test--substantiation requirements for attributable taxpayer  
   454.    Assessment on assumption--retention of accounts etc. and compliance with information notices  
   455.    Amendment of assessments  

           Division 9--Attribution of attributable income and other amounts

   456.    Assessability in respect of CFC's attributable income  
   456A.   Reduction of section 456 assessability where item subject to foreign accruals tax  
   457.    Assessability where CFC changes residence from unlisted country to listed country or to Australia  
   459A.   Assessability where CFC or CFT has interest in certain attributable taxpayers  
   460.    Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution  
   460A.   Effect of reducing section CGT event J1 amount  

           Division 10--Post-attribution asset disposals

   461.    Reduction of disposal consideration or capital proceeds if attributed income not distributed  

           Division 11--Keeping of records

   462.    Keeping of records--section 456  
   462A.   Keeping of records--section 457  
   464A.   Keeping of records--section 459A  
   465.    Offence of failing to keep records  
   466.    Manner in which records required to be kept  
   467.    Circumstances where records not required to be kept--reasonable excuse etc.  
   468.    Treatment of partnerships  
           SCHEDULE 2Schedule 2
           SCHEDULE 2D Tax exempt entities that become taxable
           SCHEDULE 2F Trust losses and other deductions
           SCHEDULE 2H Demutualisation of mutual entities other than insurance companies and health insurers


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