Commonwealth Numbered Acts

TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982 NO. 119 OF 1982 - SECT 9

9. (1) Where-

   (a)  in relation to a sale of shares, or of an interest in shares, under a
        scheme, recoupment tax is or was payable on a vendors taxable amount
        in relation to an amount of ordinary company tax or
        undistributed profits tax payable by a company in relation to a year
        of income; and

   (b)  after the recoupment tax became payable, an amount (in this
        sub-section
referred to as the ''company tax payment'') that is paid to the Commissioner
is applied, or is deemed to have been applied, in reduction of ordinary
company tax or undistributed profits tax, as the case may be, payable by the
company in relation to the year of income, there shall be deemed to be
applied, or to have been applied, in reduction of the recoupment tax that is
or was payable on the vendors taxable amount-

   (c)  if the vendors taxable amount is a primary taxable amount-the amount
        ascertained by multiplying the amount of the company tax payment by
        the apportionment factor in relation to the primary taxable amount;
        and

   (d)  if the vendors taxable amount is a secondary taxable amount-the amount
        ascertained by multiplying the company tax payment by the reduction
        factor in relation to the secondary taxable amount.

(2) For the purposes of sub-section (1), the reduction factor in relation to a
secondary taxable amount is the product of the numbers that are the relevant
numbers in relation to-

   (a)  the secondary taxable amount;

   (b)  the vendors taxable amount by reference to which, or to recoupment tax
        on which, the secondary taxable amount was ascertained; and

   (c)  any other vendors taxable amount by reference to which, or to
        recoupment tax on which, a vendors taxable amount to which paragraph
        (b) or this paragraph applies was ascertained.

(3) For the purposes of sub-section (2), the relevant number in relation to a
primary taxable amount or a secondary taxable amount is-

   (a)  in the case of a primary taxable amount-the apportionment factor in
        relation to the primary taxable amount; and

   (b)  in the case of a secondary taxable amount-the number that bears to 1
        the same proportion as the secondary taxable amount bears to the
        vendors taxable amount, or to the recoupment tax on a
        vendors taxable amount, as the case may be, by reference to which the
        secondary taxable amount was ascertained.

(4) Where-

   (a)  recoupment tax is or was payable on a secondary taxable amount and
        recoupment tax is payable on the vendors taxable amount by reference
        to which, or to recoupment tax on which, the secondary taxable amount
        was ascertained; and

   (b)  an amount of recoupment tax on that vendors taxable amount is paid or
        an amount is deemed, by another application of this sub-section, to
        have been applied in reduction of the recoupment tax payable on that
        vendors taxable amount, there shall be deemed to be applied, or to
        have been applied, in reduction of the recoupment tax that is or was
        payable on the secondary taxable amount, an amount equal to so much of
        the amount paid or deemed to be applied as mentioned in paragraph (b)
        as bears to that amount the same proportion as the
        secondary taxable amount bears to the vendors taxable amount, or to
        the recoupment tax by reference to which the secondary taxable amount
        was ascertained, as the case may be.

(5) Where-

   (a)  recoupment tax is or was payable on a vendors taxable amount and
        recoupment tax is payable on a secondary taxable amount ascertained by
        reference to the vendors taxable amount or to recoupment tax on the
        vendors taxable amount; and

   (b)  an amount of recoupment tax on the secondary taxable amount is paid or
        an amount is deemed, by another application of this sub-section, to
        have been applied in reduction of the recoupment tax payable on the
        secondary taxable amount, an amount equal to the amount paid or deemed
        to be applied as mentioned in paragraph (b) shall be deemed to be
        applied, or to have been applied, in reduction of the recoupment tax
        that is or was payable on the vendors taxable amount.

(6) Where-

   (a)  in relation to a purchase of shares under a scheme, recoupment tax is
        or was payable on a promoters taxable amount in relation to an amount
        of ordinary company tax or undistributed profits tax payable by a
        company in relation to a year of income; and

   (b)  after the recoupment tax became payable, an amount (in this
        sub-section
referred to as the ''company tax payment'') that is paid to the Commissioner
is applied in reduction of ordinary company tax or undistributed profits tax,
as the case may be, payable by the company in relation to the year of income,
there shall be deemed to be applied, or have been applied, in reduction of the
recoupment tax that is or was payable on the promoters taxable amount-

   (c)  if the promoters taxable amount was ascertained under paragraph 7 (1)
        (j) or (2) (j) and paragraph (e) of this sub-section does not apply-an
        amount equal to 20% of the company tax payment;

   (d)  if the promoters taxable amount was ascertained under paragraph 7 (1)
        (k) or (2) (k) and paragraph (e) of this sub-section does not apply-an
        amount equal to the company tax payment; and

   (e)  if, by reason of an application of sub-section 7 (3), the promoters
        taxable amount is less than it would otherwise have been-such amount
        (if any) as the Commissioner determines, not exceeding the amount that
        would otherwise be applicable under paragraph (c) or (d), as the case
        may be.

(7) Where-

   (a)  in relation to a purchase of shares under a scheme, recoupment tax is
        payable on a promoters taxable amount in relation to an amount of
        ordinary company tax or undistributed profits tax payable by a company
        in relation to a year of income; and

   (b)  an amount of recoupment tax on that promoters taxable amount is paid
        to the Commissioner, an amount equal to the amount paid shall, for the
        purposes of this Act (other than section 7) and the Assessment Act
        (other than paragraph (a) of the
definition of ''the distributable income'' in sub-section 103 (1)), be deemed
to have been applied in reduction of the ordinary company tax or undistributed
profits tax, as the case may be, payable by the company in relation to the
year of income and remaining unpaid at the time when the amount referred to in
paragraph (b) is paid.

(8) Where under this section an amount is deemed to be applied, or to have
been applied, in reduction of the recoupment tax that is or was payable on an
eligible taxable amount, being recoupment tax that includes or included late
payment tax, the amount shall, to the extent to which it does not exceed the
amount of that late payment tax, be deemed to be applied, or to have been
applied, in reduction of that late payment tax and the balance (if any) shall
be deemed to be applied, or to have been applied, in reduction of the
remaining recoupment tax.
(9) In this section, ''recoupment tax'' includes late payment tax.