Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 136AA

             (1)  In this Division, unless the contrary intention appears:

"acquire" includes:

                     (a)  acquire by way of purchase, exchange, lease, hire or hire‑purchase; and

                     (b)  obtain, gain or receive.

"agreement" means any agreement, arrangement, transaction, understanding or scheme, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.

"area covered by an international tax sharing treaty" has the meaning given by subsection (4).

"derive" includes gain or produce.

"expenditure" includes loss or outgoing.

"income" includes any amount that is, or may be, included in assessable income or taken into account in calculating an amount that is, or may be, included in assessable income.

"permanent establishment" , in relation to a taxpayer, means:

                     (a)  a place that is a permanent establishment of the taxpayer by virtue of the definition of permanent establishment in section 6; or

                     (b)  a place at which any property of the taxpayer is manufactured or processed for the taxpayer, whether by the taxpayer or another person.

"property" includes:

                     (a)  a chose in action;

                     (b)  any estate, interest, right or power, whether at law or in equity, in or over property;

                     (c)  any right to receive income; and

                     (d)  services.

"right to receive income" means a right of a person to have income that will or may be derived (whether from property or otherwise) paid to, or applied or accumulated for the benefit of, the person.

"services" includes any rights, benefits, privileges or facilities and, without limiting the generality of the foregoing, includes the rights, benefits, privileges or facilities that are, or are to be, provided, granted or conferred under:

                     (a)  an agreement for or in relation to:

                              (i)  the performance of work (including work of a professional nature);

                             (ii)  the provision of, or the use or enjoyment of facilities for, amusement, entertainment, recreation or instruction;

                            (iii)  the conferring of rights, benefits or privileges for which consideration is payable in the form of a royalty, tribute, levy or similar exaction; or

                            (iv)  the carriage, storage or packaging of any property or the doing of any other act in relation to property;

                     (b)  an agreement of insurance;

                     (c)  an agreement between a banker and a customer of the banker entered into in the course of the carrying on by the banker of the business of banking; or

                     (d)  an agreement for or in relation to the lending of moneys.

"supply" includes:

                     (a)  supply by way of sale, exchange, lease, hire or hire‑purchase; and

                     (b)  provide, grant or confer.

"taxpayer" includes a partnership and a taxpayer in the capacity of a trustee.

             (2)  The definition of taxpayer in subsection (1) shall not be taken to affect in any way the interpretation of that expression where it is used in this Act other than this Division.

             (3)  In this Division, unless the contrary intention appears:

                     (a)  a reference to the supply or acquisition of property includes a reference to agreeing to supply or acquire property;

                     (b)  a reference to consideration includes a reference to property supplied or acquired as consideration and a reference to the amount of any such consideration is a reference to the value of the property;

                     (c)  a reference to the arm's length consideration in respect of the supply of property is a reference to the consideration that might reasonably be expected to have been received or receivable as consideration in respect of the supply if the property had been supplied under an agreement between independent parties dealing at arm's length with each other in relation to the supply;

                     (d)  a reference to the arm's length consideration in respect of the acquisition of property is a reference to the consideration that might reasonably be expected to have been given or agreed to be given in respect of the acquisition if the property had been acquired under an agreement between independent parties dealing at arm's length with each other in relation to the acquisition; and

                     (e)  a reference to the supply or acquisition of property under an agreement includes a reference to the supply or acquisition of property in connection with an agreement.

             (4)  If, under an international tax sharing treaty, Australia and another country share tax revenues from activities undertaken in an area identified by or under the agreement, that area is referred to in this Division as the area covered by the international tax sharing treaty .