• Specific Year
    Any

INCOME TAX ASSESSMENT ACT 1936 - SECT 128NA Special tax payable in respect of certain securities and agreements

INCOME TAX ASSESSMENT ACT 1936 - SECT 128NA

Special tax payable in respect of certain securities and agreements

  (1)   Where, but for subsection   128AA(2):

  (a)   the transferor of a qualifying security who is not liable to pay withholding tax in relation to the transfer of the qualifying security would be liable to pay withholding tax in relation to the transfer; or

  (b)   the transferor of a qualifying security who is liable to pay withholding tax in relation to the transfer of the qualifying security would be liable to pay additional withholding tax in relation to the transfer;

then, for the purposes of this section, there shall be taken to be an avoided withholding tax amount in relation to the person who is the transferee of the qualifying security of an amount equal to the withholding tax or the additional withholding tax, as the case may be, that the person would be so liable to pay.

  (2)   Where:

  (a)   an attributable agreement payment or attributable agreement payments were made by a person under a relevant agreement before the commencement of section   128AC; and

  (b)   the Commissioner is of the opinion that the payment or payments were made before the commencement of that section, or that the payment or payments were of a greater amount than they would otherwise have been, for the sole or dominant purpose of securing the result that the total amount (in this subsection referred to as the actual withholding tax ) of withholding tax payable under that section in relation to all attributable agreement payments made under the relevant agreement after the commencement of that section would be less than the amount (in this subsection referred to as the notional withholding tax ) that would otherwise have been payable;

then, for the purposes of this section, there shall be taken to be an avoided withholding tax amount in relation to the person of an amount equal to the amount by which the notional withholding tax exceeds the actual withholding tax.

  (3)   For the purposes of subsection   (2), expressions used in that subsection that are also used in section   128AC have the same respective meanings in that subsection as in that section.

  (4)   Where there is an avoided withholding tax amount in relation to a person under this section, the person is liable to pay income tax, as imposed by the Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986 , in respect of the avoided withholding tax amount.

Download

No downloadable files available