INCOME TAX ASSESSMENT ACT 1936 - SECT 78A Certain gifts not to be allowable deductions

"agreement" includes any agreement, arrangement or understanding, whether formal or informal or express or implied, and whether or not enforceable by legal proceedings (whether or not the agreement, arrangement or understanding was intended to be so enforceable).

(iii) if a partner of the donor is a natural person--the spouse of that partner;

(iv) a trustee of a trust estate where the donor or a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (v) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or

(A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor, of a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (iv) or of a company that is an associate of the donor by virtue of another application of this subparagraph; or

(B) the donor is, the persons who are associates of the donor by virtue of subparagraphs (i), (ii), (iii) and (iv) are, or the donor and the persons who are associates of the donor by virtue of those paragraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or

(ii) if a partner of the donor company is a natural person--the spouse of that partner;

(A) the donor company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, whether those directions, instructions or wishes are communicated directly to the donor company or its directors, or through any interposed companies; or

(B) that person is, or that person and the persons who, if that person were the donor, would be associates of that person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the donor company;

(iv) a trustee of a trust estate where the donor company or a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (v) or (vi) benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts;

(A) the other company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor company, of a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (iv) or (vi) or of a company that is an associate of the donor company by virtue of another application of this subparagraph; or

(B) the donor company is, the persons who are associates of the donor company by virtue of subparagraphs (i), (ii), (iii), (iv) and (vi) are, or the donor company and the persons who are associates of the donor company by virtue of those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other company; or

(vi) another person who, if a third person who is an associate of the donor company by virtue of subparagraph (iii) were the donor, would be an associate of that third person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph.

(2) Subject to this section, a gift of money, or of property other than money, made by a person (in this section referred to as the donor ) to a fund, authority, institution or person is not an allowable deduction under Division 30 of the Income Tax Assessment Act 1997 where:

(a) by reason of any act, transaction or circumstance that has occurred, will occur, or may reasonably be expected to occur, being an act, transaction or circumstance occurring as part of, in connexion with or as a result of:

(ii) any agreement or scheme entered into in association with the making or receipt of the gift;

the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift;

(b) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), any fund, authority, institution or person other than the fund, authority, institution or person to which the gift was made, makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment, or transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property, to any person or incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation;

(c) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), the donor or an associate of the donor has obtained, will obtain or may reasonably be expected to obtain any benefit, advantage, right or privilege other than the benefit of any deduction that, but for this section, would be allowable from the assessable income of the donor under Division 30 of the Income Tax Assessment Act 1997 ; or

(d) by reason of any agreement or scheme entered into as part of or in association with the making of the gift, any property, other than property comprising the gift, has been acquired or will be acquired, whether directly or indirectly, from the donor or an associate of the donor by that fund, authority, institution or person or by another fund, authority, institution or person.

(3) Without limiting the application of subsection (2), where the terms and conditions on which a gift of property other than money is made are such that the fund, authority, institution or person to which the gift is made does not receive immediate custody and control of the property, does not have the unconditional right to retain custody and control of the property in perpetuity to the exclusion of the donor or an associate of the donor or does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property, paragraph (2)(c) shall be deemed to apply in relation to that gift.

(4) Paragraph (2)(a) does not prevent a deduction under Division 30 of the Income Tax Assessment Act 1997 from being allowed from the assessable income of the donor where the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift by reason only that the fund, authority, institution or person has incurred, will incur, or may reasonably be expected to incur, expenses for the purpose of obtaining or soliciting the gift, being expenses that, in the opinion of the Commissioner, are reasonable in relation to the value of the gift.

(5) This section does not prevent a deduction under section 30‑15 of the Income Tax Assessment Act 1997 (because of item 4, 5 or 6 of the table in that section) from being allowed from the assessable income of the donor in respect of a gift of property other than money by reason only that the terms and conditions on which the gift was made are such, or the effect of any arrangement (within the meaning of that Act) entered into in association with the making or receipt of the gift is such, that the value of the gift may be reduced in accordance with section 30‑220 of that Act.

Contents

Part III--Liability to taxation i

Division 3--Deductions i

79A....... Rebates for residents of isolated areas ................................................ 1

79B....... Rebates for members of Defence Force serving overseas ................... 6

82.......... Double deductions ............................................................................ 10

82A....... Deductions for expenses of self‑education ....................................... 10

Subdivision CB--Regional Headquarters (RHQs) 12

82C....... Object ............................................................................................... 12

82CA.... Deduction for setup costs of RHQ companies ................................ 12

82CB..... Interpretation .................................................................................... 12

82CC..... Associated companies ...................................................................... 14

82CD.... Application to become an RHQ company ....................................... 14

82CE..... Determination of RHQ companies ................................................... 14

Subdivision D--Losses and outgoings incurred under certain tax avoidance schemes 15

82KH.... Interpretation .................................................................................... 15

82KJ..... Deduction not allowable in respect of certain pre‑paid outgoings ... 39

82KK.... Schemes designed to postpone tax liability ...................................... 39

82KL..... Tax benefit not allowable in respect of certain recouped expenditure 42

Subdivision H--Period of deductibility of certain advance expenditure 44

82KZL.. Interpretation .................................................................................... 44

82KZLA Subdivision does not apply to financial arrangements to which Subdivision 250‑E applies 46

82KZM Expenditure by small business entities and individuals incurring non‑business expenditure 47

82KZMAApplication of section 82KZMD ................................................... 48

82KZMDBusiness expenditure and non‑business expenditure by non‑individual 49

82KZMEExpenditure under some agreements ................................................ 49

82KZMFProportional deduction .................................................................... 52

82KZMGDeductions for certain forestry expenditure ................................... 53

82KZMGADeductions for certain forestry expenditure ................................ 54

82KZMGBCGT event in relation to interest in 82KZMG agreement ........... 54

82KZN. Transfer etc. of rights under agreement ............................................ 55

82KZO. Partnership changes where entire interest in agreement rights is not transferred 56

Division 3A--Convertible notes 58

82LA..... Application of Division .................................................................... 58

82L........ Interpretation .................................................................................... 58

82M...... New loans and replacement loans ..................................................... 62

82N....... Prescribed stock exchanges ............................................................... 63

82P........ Bonus share allotments ..................................................................... 63

82Q....... Classes of shares ............................................................................... 65

82R....... Interest on certain convertible notes not to be an allowable deduction 65

82SA..... Interest on certain convertible notes to be an allowable deduction--where loan made on or after 1 January 1976 .......................................................................................................... 66

82T....... Value of shares .................................................................................. 70

Division 5--Partnerships 72

90.......... Interpretation .................................................................................... 72

91.......... Liability of partnerships ................................................................... 72

92.......... Income and deductions of partner .................................................... 72

92A....... Deductions in respect of outstanding subsection 92(2AA) amounts 74

94.......... Partner not having control and disposal of share in partnership income 76

Division 5A--Income of certain limited partnerships 86

Subdivision A--Preliminary 86

94A....... Object ............................................................................................... 86

94B....... Interpretation .................................................................................... 86

94C....... Continuity of limited partnership not affected by changes in composition 86

Subdivision B--Corporate limited partnerships 87

94D....... Corporate limited partnerships ........................................................ 87

94E........ Continuity of business test .............................................................. 88

94F........ Change in composition of limited partnership--election that partnership not be treated as an eligible limited partnership ....................................................................................... 89

94G....... Continuity of ownership test ........................................................... 89

Subdivision C--Corporate tax modifications applicable to corporate limited partnerships 90

94H....... Corporate tax modifications applicable to corporate limited partnerships 90

94J........ Company includes corporate limited partnership ............................. 90

94K....... Partnership does not include corporate limited partnership ............ 90

94L........ Dividend includes distribution of corporate limited
partnership ....................................................................................... 90

94M...... Drawings etc. deemed to be dividends paid out of profits ............... 91

94N....... Private company does not include corporate limited partnership .... 91

94P........ Share includes interest in corporate limited partnership .................. 91

94Q....... Shareholder includes partner in corporate limited partnership ........ 91

94R....... Liquidator may include partner in corporate limited partnership .... 91

94S........ Continuity of corporate limited partnership not affected by changes in composition 92

94T....... Residence of corporate limited partnership ...................................... 92

94U....... Incorporation .................................................................................... 92

94V....... Obligations and offences ................................................................... 92

94X....... Modification of loss provisions ....................................................... 93

Division 6--Trust income 94

95.......... Interpretation .................................................................................... 94

95AA.... Division does not apply in relation to FHSA trust .......................... 95

95A....... Special provisions relating to present entitlement ............................ 95

95B....... Certain beneficiaries deemed not to be under legal disability ........... 95

96.......... Trustees ............................................................................................ 95

96A....... Application of Division in respect of interests in non‑resident trust estates to which Part XI applies 95

96B....... Beneficiary of non‑resident trust estate ........................................... 98

96C....... Calculation of beneficiary's share of net income of non‑resident trust estate 99

97.......... Beneficiary not under any legal disability ...................................... 102

97A....... Beneficiaries who are owners of farm management deposits ......... 104

98.......... Liability of trustee .......................................................................... 105

98A....... Non‑resident beneficiaries assessable in respect of certain income 107

98B....... Deduction from beneficiary's tax ................................................... 109

99.......... Certain trust income to be taxed as income of an individual ........... 110

99A....... Certain trust income to be taxed at special rate .............................. 111

99B....... Receipt of trust income not previously subject to tax ................... 114

99C....... Determining whether property is applied for benefit of beneficiary 116

99D....... Refund of tax to non‑resident beneficiary ...................................... 117

99E........ Later trust not taxed on income already taxed under subsection 98(4) 118

99G....... Amounts covered by withholding requirement .............................. 118

99H....... Late payments ................................................................................ 118

100........ Beneficiary assessable in respect of certain trust income ............... 119

100A..... Present entitlement arising from reimbursement agreement ........... 122

101........ Discretionary trusts ........................................................................ 127

101A..... Income of deceased received after death ......................................... 127

102........ Revocable trusts ............................................................................. 128

Division 6AAA--Special provisions relating to non‑resident trust estates etc. 130

Subdivision A--Preliminary 130

102AAAObject of Division .......................................................................... 130

102AABInterpretation .................................................................................. 130

102AACEach listed country and unlisted country to be treated as a
separate foreign country ................................................................. 136

102AAD Subject to tax --application of subsection 324(2) ........................... 136

102AAE Listed country trust estates ............................................................ 136

102AAF Public unit trusts ............................................................................ 139

102AAGWhen entity is in a position to control a trust estate ..................... 140

102AAHNon‑resident family trusts ............................................................. 141

102AAJ Transfer of property or services .................................................... 144

102AAKDeemed transfers of property or services to trust estate ............... 144

102AAL Division not to apply to transfers by trustees of deceased estates 149

Subdivision B--Payment of interest by taxpayer on distributions from certain non‑resident trust estates 149

102AAMPayment of interest by taxpayer on distributions from certain
non‑resident trust estates ............................................................... 149

Subdivision D--Accruals system of taxation of certain non‑resident trust estates 159

102AAS Object of Subdivision ..................................................................... 159

102AAT............................ Accruals system of taxation--attributable taxpayer 159

102AAUAttributable income of a trust estate .............................................. 163

102AAVDouble tax agreements to be disregarded ........................................ 167

102AAWCertain provisions to be disregarded in calculating attributable income 167

102AAYModified application of trading stock provisions .......................... 168

102AAZ................................. Modified application of depreciation provisions 168

102AAZAModified application of Division 13 of Part III .......................... 169

102AAZBGeneral modifications--CGT ...................................................... 169

102AAZBAModified application of CGT--effect of certain changes of residence 170

102AAZCModified application of loss provisions--pre‑1990‑91 losses ... 171

102AAZDAssessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services ..................................................... 171

102AAZEAccruals system of taxation does not apply to small amounts .... 176

102AAZFOnly resident partners, beneficiaries etc. liable to be assessed as a result of attribution 176

102AAZGKeeping of records ....................................................................... 177

Division 6AA--Income of certain children 179

102AA.. Interpretation .................................................................................. 179

102AB.. Application of Division .................................................................. 180

102AC.. Persons to whom Division applies ................................................. 180

102AD.. Taxable income to which Division applies ..................................... 183

102AE... Eligible assessable income ............................................................... 183

102AF... Employment income and business income ..................................... 188

102AG.. Trust income to which Division applies ........................................ 189

102AGATransfer of property as the result of a family breakdown ............. 193

Division 6A--Alienation of income 196

102A..... Interpretation .................................................................................. 196

102B..... Certain income transferred for short periods to be included in assessable income of transferor 197

102C..... Effect of certain transfers of rights to receive income from property 199

102CA.. Consideration in respect of transfer to be included in assessable income of transferor in certain cases 200

Division 6B--Income of certain unit trusts 202

102D..... Interpretation .................................................................................. 202

102E...... Prescribed arrangements ................................................................. 204

102F...... Eligible unit trusts ........................................................................... 205

102G..... Public unit trusts ............................................................................ 206

102H..... Resident unit trusts ........................................................................ 210

102J...... Corporate unit trusts ...................................................................... 210

102K..... Taxation of net income of corporate unit trust ............................... 211

102L...... Modified application of Act in relation to certain unit trusts ........ 211

Division 6C--Income of certain public trading trusts 216

102M.... Interpretation .................................................................................. 216

102MA. Arrangements not covered .............................................................. 219

102MB. Investing in land .............................................................................. 221

102MC. When trading business not carried on ............................................. 222

102N..... Trading trusts ................................................................................. 222

102NA.. Certain interposed trusts not trading trusts ................................... 223

102P...... Public unit trusts ............................................................................ 224

102Q..... Resident unit trusts ........................................................................ 229

102R..... Public trading trusts ........................................................................ 229

102S...... Taxation of net income of public trading trust ............................... 231

102T..... Modified application of Act in relation to certain unit trusts ........ 231

Division 6D--Provisions relating to certain closely held trusts 236

Subdivision A--Overview 236

102UA.. What this Division is about ............................................................ 236

Subdivision B--Interpretation 236

102UB.. Definitions--general ....................................................................... 236

102UC.. Closely held trust ........................................................................... 237

102UD.. Trustee beneficiary ......................................................................... 238

102UE... Meaning of untaxed part ................................................................. 239

102UG.. Correct TB statement ..................................................................... 239

102UH.. TB statement period ....................................................................... 240

102UI.... Tax‑preferred amount ..................................................................... 240

102UJ... Extended concept of present entitlement to capital of a trust ........ 240

Subdivision C--Trustee beneficiary non‑disclosure tax on share of net income 241

102UK.. Trustee beneficiary non‑disclosure tax where no correct TB statement 241

102UL... Exclusion of directors of closely held trust from liability to pay tax 243

102UM. Trustee beneficiary non‑disclosure tax where share is distributed to trustee of closely held trust 244

Subdivision D--Payment etc. of trustee beneficiary non‑disclosure tax 245

102UN.. Amount of trustee beneficiary non‑disclosure tax reduced by notional tax offset 245

102UO.. Payment of trustee beneficiary non‑disclosure tax ......................... 245

102UP... Late payment of trustee beneficiary non‑disclosure tax ................. 246

102UR.. Notice of liability ............................................................................ 247

102URARequest for notice of liability ......................................................... 247

102US... Evidentiary effect of notice of liability ........................................... 248

102USA Recovery of trustee beneficiary non‑disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee ..................................................................................... 248

Subdivision E--Making correct TB statement about trustee beneficiaries of tax‑preferred amounts 250

102UT.. Requirement to make correct TB statement about trustee beneficiaries of tax‑preferred amounts 250

Subdivision F--Special provisions about tax file numbers 251

102UU.. Trustee beneficiary may quote tax file number to trustee of closely held trust 251

102UV.. Trustee of closely held trust may record etc. tax file number ........ 251

Division 7--Private companies 253

102V..... Application of Division to non‑share dividends ............................ 253

103........ Interpretation .................................................................................. 253

103A..... Private companies ........................................................................... 254

109........ Excessive payments to shareholders, directors and associates deemed to be dividends 264

Division 7A--Distributions to entities connected with a private company 266

Subdivision A--Overview of this Division 266

109B..... Simplified outline of this Division .................................................. 266

Subdivision AA--Application of Division to non‑share equity interests 267

109BA.. Application of Division to non‑share dividends ............................ 267

Subdivision B--Private company payments, loans and debt forgiveness are treated as dividends 267

109C..... Payments treated as dividends ....................................................... 267

109D..... Loans treated as dividends .............................................................. 268

109E...... Amalgamated loan from a previous year treated as dividend if minimum repayment not made 271

109F...... Forgiven debts treated as dividends ................................................ 275

Subdivision C--Forgiven debts that are not treated as dividends 277

109G..... Debt forgiveness that does not give rise to a dividend ................... 277

Subdivision D--Payments and loans that are not treated as dividends 278

109H..... Simplified outline of this Subdivision ............................................. 278

109J...... Payments discharging pecuniary obligations not treated as dividends 279

109K..... Inter‑company payments and loans not treated as dividends ........ 280

109L...... Certain payments and loans not treated as dividends .................... 280

109M.... Loans made in the ordinary course of business on arm's length terms not treated as dividends 280

109N..... Loans meeting criteria for minimum interest rate and maximum term not treated as dividends 280

109NA.. Certain liquidator's distributions and loans not treated as dividends 282

109NB.. Loans to purchase shares under employee share schemes not treated as dividends 282

109P...... Amalgamated loans not treated as dividends in the year they are made 283

109Q..... Commissioner may allow amalgamated loan not to be treated as dividend 283

109R..... Some payments relating to loans not taken into account ............... 284

Subdivision DA--Demerger dividends not treated as dividends 286

109RA.. Demerger dividends not treated as dividends ................................. 286

Subdivision DB--Other exceptions 286

109RB... Commissioner may disregard operation of Division or allow dividend to be franked 286

109RC... Dividend may be franked if taken to be paid because of family law obligation 288

109RD.. Commissioner may extend period for repayments of amalgamated loan 288

Subdivision E--Payments and loans through interposed entities 289

109S...... Simplified outline of this Subdivision ............................................. 289

109T..... Payments and loans by a private company to an entity through one or more interposed entities 290

109U..... Payments and loans through interposed entities relying on guarantees .. 291

109UA.. Certain liabilities under guarantees treated as payments ................ 292

109V..... Amount of private company's payment to target entity through one or more interposed entities 293

109W.... Private company's loan to target entity through one or more interposed entities 294

109X..... Operation of Subdivision D in relation to payment or loan ........... 295

Subdivision EA--Unpaid present entitlements 296

109XA.. Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement ......................................................................... 296

109XB.. Amounts included in assessable income ......................................... 299

109XC.. Modifications ................................................................................. 300

Subdivision F--General rules applying to all amounts treated as dividends 301

109Y..... Proportional reduction of dividends so they do not exceed distributable surplus 301

109Z..... Characteristics of dividends taken to be paid under this Division . 303

109ZA.. No dividend taken to be paid for withholding tax purposes .......... 304

109ZB... Amount treated as dividend is not a fringe benefit ......................... 304

109ZC... Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend 305

Subdivision G--Defined terms 306

109ZD.. Defined terms ................................................................................. 306

109ZE... Interpretation rules about entities .................................................. 307

Division 9--Co‑operative and mutual companies 308

117........ Co‑operative companies ................................................................. 308

118........ Company not co‑operative if less than 90% of business with members 309

119........ Sums received to be taxed ............................................................... 309

120........ Deductions allowable to co‑operative company ............................ 309

121........ Mutual insurance associations ........................................................ 311

Division 9AA--Demutualisation of insurance companies and affiliates 312

Subdivision A--What this Division is about 312

121AA.. What this Division is about ............................................................ 312

Subdivision B--Key concepts and related definitions 312

121AB.. Insurance company definitions ....................................................... 312

121AC.. Mutual affiliate company ............................................................... 313

121AD.. Demutualisation and demutualisation resolution day ..................... 313

121AE... Demutualisation methods, the policyholder/member group and the listing period 314

121AEA Replacement of policyholders by persons exercising certain rights 317

121AF... Demutualisation method 1 .............................................................. 317

121AG.. Demutualisation method 2 .............................................................. 318

121AH.. Demutualisation method 3 .............................................................. 321

121AI.... Demutualisation method 4 .............................................................. 323

121AJ... Demutualisation method 5 .............................................................. 325

121AK.. Demutualisation method 6 .............................................................. 327

121AL... Demutualisation method 7 .............................................................. 329

121AM. Embedded value of a mutual life insurance company ..................... 331

121AN.. Net tangible asset value of a general insurance company or mutual affiliate company 333

121AO.. Treasury bond rate, capital reserve adequacy level, eligible actuary and security 335

121AP... Subsidiary and wholly‑owned subsidiary ...................................... 336

121AQ.. Other definitions ............................................................................. 336

121AR.. List of definitions ........................................................................... 337

Subdivision C--Tax consequences of demutualisation 338

121AS... CGT consequences of demutualisation .......................................... 338

121AT.. Other tax consequences of demutualisation .................................... 357

121AU.. This Subdivision does not apply to demutualisation of friendly society health or life insurers 368

Division 9A--Offshore banking units 369

Subdivision A--Object and simplified outline 369

121A..... Object ............................................................................................. 369

121B..... Simplified outline ............................................................................ 369

Subdivision B--Interpretation 370

121C..... Interpretation .................................................................................. 370

121D..... Meaning of OB activity ................................................................... 372

121DA.. Meaning of expressions relevant to investment activity .................. 377

121E...... Meaning of offshore person ............................................................ 378

121EA... OBU requirement ........................................................................... 378

121EB... Internal financial dealings of an OBU ............................................. 378

121EC... Meaning of OBU resident‑owner money ........................................ 379

121ED... Meaning of trade with a person ...................................................... 379

121EE... Definitions relating to assessable income of an OBU ..................... 380

121EF... Definitions relating to allowable deductions of an OBU ................ 381

Subdivision C--Operative provisions 382

121EG... Reduction of assessable OB income, allowable OB deductions and foreign income tax paid 382

121EH... Loss of special treatment where excessive use of non‑OB money . 383

121EJ.... Source of income derived from OB activities ................................. 384

121EK... Deemed interest on 90% of certain OBU resident‑owner money .. 384

121EL... Exemption of income etc. of OBU offshore investment trusts ...... 385

121ELA Exemption of income etc. of overseas charitable institutions ......... 386

121ELB. Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts 387

Division 9C--Assessable income diverted under certain tax avoidance schemes 389

121F...... Interpretation .................................................................................. 389

121G..... Diverted income and diverted trust income .................................... 391

121H..... Assessment of diverted income and diverted trust income ............ 398

121J...... Ascertainment of diverted income or diverted trust income deemed to be an assessment 398

121K..... Application of International Tax Agreements Act ......................... 398

121L...... Division applies notwithstanding exemption under other laws ..... 399

Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 78A