Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1980 No. 24 of 1980 - SECT 9

9. (1) Section 160ACB of the Principal Act is amended-

   (a)  by omitting sub-section (1) and substituting the following sub-
        section:



"(1) In this section- 'eligible operations', 'eligible payments', 'eligible
petroleum operations', 'mining or prospecting outgoings', 'petroleum
outgoings' and 'prescribed payments' have the same respective meanings as in
section 160ACA;

'prescribed company' means a company that carries on, or that the Commissioner
is satisfied proposes to carry on, all or any of the following business:

   (a)  eligible operations;

   (b)  eligible petroleum operations;

   (c)  investment in shares in a company that carries on, or that the
        Commissioner is satisfied proposes to carry on, either or both of the
        businesses referred to in paragraphs (a) and (b).";

   (b)  by inserting in paragraph (b) of sub-section (3) "sub-section (3) or
        (7)
of" after "relevant company under";

   (c)  by inserting in paragraph (c) of sub-section (3) "sub-section (3) or
        (7)
of" after "relevant company under";

   (d)  by inserting after sub-section (3) the following sub-sections:



"(3A) Sub-section (3) applies for the purpose of determining the amount of any
rebate allowable in an assessment in respect of income of a person under
sub-section (5A) or (15A) of section 160ACA in like manner as sub-section (3)
applies for the purpose of determining the amount of any rebate allowable in
an assessment in respect of income of a person under sub-section (5) or (15)
of section 160ACA and, for the purpose of the application of sub-section (3)
in accordance with this sub-section-

   (a)  a reference in sub-section (3) to sub-section (3) or (7) of section
        160ACA shall be read as a reference to sub-section (3A) or (7A) of
        section 160ACA; and

   (b)  the reference in sub-section (3) to mining or prospecting outgoings
        shall be read as a reference to petroleum outgoings.



"(3B) Where-

   (a)  a company (in this sub-section referred to as the 'interposed
        company') has, whether before or after the commencement of this
        sub-section, duly lodged a declaration or declarations under
        sub-section (7) of section 160ACA that the company had expended or
        proposed to expend, on the making of prescribed payments or partly on
        the making of prescribed payments and partly on mining or prospecting
        outgoings, such of the moneys, being moneys paid on shares, received
        by the company during a year of income (in this sub-section referred
        to as the 'relevant year of income') as were specified in the
        declaration or declarations;

   (b)  during the relevant year of income or after the end of the relevant
        year of income and before the expiration of the third year of income
        next following the relevant year of income, the interposed company
        sold or otherwise disposed of, to a prescibed company, a share or
        shares in a company (in this sub-section referred to as the 'operating
        company') that, whether during or after the end of the relevant year
        of income, received, as prescribed payments, moneys specified in a
        declaration lodged by the interposed company as mentioned in paragraph
        (a); and

   (c)  the Commissioner is not satisfied that the operating company had, on
        or before the date of the sale or other disposal by the interposed
        company of the share, or of any of the shares, referred to in
        paragraph (b), expended on mining or prospecting outgoings-

        (i)    all of the moneys received by the operating company during the
               relevant year of income or a preceding year of income and
               specified in a declaration or declarations duly lodged by the
               operating company under sub-section (3), (7) or (13) of section
               160ACA; and

        (ii)   all of the moneys received by the operating company from the
               interposed company within 2 months after the end of the
               relevant year of income and specified in a declaration or
               declarations duly lodged by the operating company under sub-
               section (3) or (13) of section 160ACA, then the amount of any
               rebate allowable, in an assessment in respect of income of a
               taxpayer, under sub-section (15) of section 160ACA in relation
               to moneys paid on shares by the taxpayer to the interposed
               company during the relevant year of income shall be reduced by
               an amount calculated in accordance with the formula A B, where-
---
C

A is the number of cents in the amount of the rebate that would be allowable
to the taxpayer in respect of those moneys apart from this sub-section;

B is so much of the consideration received by the interposed company in
respect of the sale or other disposal of the share or shares referred to in
paragraph (b) (other than any share or shares referred to in that paragraph
that was or were sold or otherwise disposed of by the interposed company after
the operating company had expended on mining or prospecting outgoings all of
the moneys referred to in the sub-paragraphs of paragraph (c)) as does not
exceed so much of the moneys specified in the declaration or declarations
lodged by the interposed company as mentioned in paragraph (a) as was expended
by the interposed company on the making of prescribed payments tot he
operating company; and

C is the number of cents in the total amount specified in the declaration or
declarations lodged by the interposed company as mentioned in paragraph (a).";

   (e)  by omitting from sub-section (5) "sub-section (3)" and sub- stituting
        "sub-sections (3), (3A) and (3B)"; and

   (f)  by omitting sub-section (6) and substituting the following sub-
        sections:



"(6) Where-

   (a)  a person has sold or otherwise disposed of a share in a company (in
        this sub-section referred to as the 'relevant company') that has, in
        accordance with a declaration lodged by the relevant company under
        sub-section (7) or (7A) of section 160ACA, expended moneys paid on the
        share by the person in making a payment to another company for the
        purpose of enabling the moneys included in the payment to be expended
        by that other company on mining or prospecting outgoings or on
        petroleum outgoings, as the case may be; and

   (b)  the Commissioner is satisfied that an amount included in the payment
        has been expended by that other company on mining or prospecting
        outgoings or on petroleum outgoings, as the case may be, sub-section
        (3) or (3A), as the case may be, of this section has effect as if that
        amount had been expended by the relevant company on mining or
        prospecting outgoings or on petroleum outgoings, as the case may be,
        and had been so expended by the relevant company at the time when the
        amount was expended by the other company.



"(6A) For the purposes of sub-section (3B), where-

   (a)  a company referred to in that sub-section as the operating company
        has, in accordance with a declaration lodged by the company under
        sub-section (7) of section 160ACA, expended moneys received by the
        company in making payments to another company for the purpose of
        enabling the moneys included in the payment to be expended by that
        other company on mining or prospecting outgoings; and

   (b)  the Commissioner is satisfied that the moneys paid to the other
        company have been expended by the other company on mining or
        prospecting outgoings, the moneys paid by the operating company to the
        other company shall be deemed to have been expended by the operating
        company on mining or prospecting outgoings at the time when they were
        expended by the other company on mining or prospecting outgoings.



"(6B) Sub-sections (3B) and (6A) apply for the purpose of determining the
amount of any rebate allowable in an assessment in respect of income of a
person under sub-section (15A) of section 160ACA in like manner as those
sub-sections apply for the purpose of determining the amount of any rebate
allowable in an assessment in respect of income of a person under sub-section
(15) of section 160ACA and, for the purpose of the application of sub-sections
(3B) and (6A) in accordance with this sub-section-

   (a)  a reference in sub-section (3B) to sub-section (3) of section 160ACA
        shall be read as a reference to sub-section (3A) of section 160ACA;

   (b)  a reference in sub-section (3B) or (6A) to sub-section (7) of section
        160ACA shall be read as a reference to sub-section (7A) of section
        160ACA;

   (c)  a reference in sub-section (3B) to sub-section (13) of section 160ACA
        shall be read as a reference to sub-section (13A) of section 160ACA;

   (d)  a reference in sub-section (3B) or (6A) to mining or prospecting
        outgoings shall be read as a reference to petroleum outgoings;

   (e)  a reference in sub-section (3B) to prescribed payments shall be read
        as a reference to eligible payments; and

   (f)  the reference in paragraph (b) of sub-section (3B) to the third year
        of income next following the year of income referred to in that
        sub-section as the relevant year of income shall be read as a
        reference to the fifth year of income next following the year of
        income so referred to.".

(2) In the application of sub-sections (3B) and (6B) inserted in section
160ACB of the Principal Act by paragraphs (1) (d) and (f) of this section, no
regard shall be had to any sale or other disposal of a share or shares in a
company that occurred on or before 20 March 1980.