Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 1) 2004 NO. 101, 2004 - SCHEDULE 1

Income Tax Assessment Act 1936

Insert:

(1)

A payment is exempt from income tax if:

(a) the payment is received by an individual who is a resident of Australia; and
(b) the payment is received from a source in a foreign country; and
(c) the payment is not received directly or indirectly from an associate (within the meaning of section 318) of the recipient; and
(d) the payment is in connection with:
(i) any wrong or injury; or
(ii) any loss of, or damage to, property; or
(iii) any other detriment;
that is suffered by the recipient or another individual as a result of:
(iv) persecution by the National Socialist regime of Germany during the National Socialist period; or
(v) persecution by any other enemy of the Commonwealth during the Second World War; or
(vi) persecution by an enemy-associated regime during the Second World War; or
(vii) flight from persecution mentioned in subparagraph (iv), (v) or (vi); or
(viii) participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany; or
(ix) participation in a resistance movement during the Second World War against forces of any other enemy of the Commonwealth.

Duration of Second World War

(2)

For the purposes of subsection (1), the duration of the Second World War includes:

(a) the period immediately before the Second World War; and
(b) the period immediately after the Second World War.

Enemy-associated regime

(3)

For the purposes of subsection (1), a regime is an enemy-associated regime if, and only if, it was:

(a) in alliance with; or
(b) occupied by; or
(c) effectively controlled by; or
(d) under duress from; or
(e) surrounded by;

either or both of the following:

(f) the National Socialist regime of Germany;
(g) any other enemy of the Commonwealth.

Legal personal representative etc.

(4)

Subsection (1) applies to a payment received by the legal personal representative of an individual in a corresponding way to the way in which that subsection would have applied if the payment had been received by the individual.

(5)

Subsection (1) applies to a payment received by:

(a) the legal personal representative of a deceased individual; or
(b) the trustee of a trust established by the will of a deceased individual;

in a corresponding way to the way in which that subsection would have applied if:

(c) the individual had not died; and
(d) the payment had been received by the individual.

Income Tax Assessment Act 1997

2 Section 11-15 (table row relating to foreign aspects of income taxation)

Before:

insert:

3 At the end of section 118-37

Add:

(5)

A ^* capital gain or ^* capital loss you make as a result of receiving a payment or property is disregarded if:

(a) you are an individual who is an Australian resident; and
(b) you receive the payment or property from a source in a foreign country; and
(c) you do not receive the payment or property directly or indirectly from an ^* associate of yours; and
(d) the payment or property you receive is in connection with:
(i) any wrong or injury; or
(ii) any loss of, or damage to, property; or
(iii) any other detriment;
that you, or another individual, suffered as a result of:
(iv) persecution by the National Socialist regime of Germany during the National Socialist period; or
(v) persecution by any other enemy of the Commonwealth during the Second World War; or
(vi) persecution by an enemy-associated regime during the Second World War; or
(vii) flight from persecution mentioned in subparagraph (iv), (v) or (vi); or
(viii) participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany; or
(ix) participation in a resistance movement during the Second World War against forces of any other enemy of the Commonwealth.

(6)

For the purposes of subsection (5), the duration of the Second World War includes:

(a) the period immediately before the Second World War; and
(b) the period immediately after the Second World War.

(7)

For the purposes of subsection (5), a regime is an enemy-associated regime if, and only if, it was:

(a) in alliance with; or
(b) occupied by; or
(c) effectively controlled by; or
(d) under duress from; or
(e) surrounded by;

either or both of the following:

(f) the National Socialist regime of Germany;
(g) any other enemy of the Commonwealth.

(8)

Subsection (5) applies to a payment or property received by the ^* legal personal representative of an individual in a corresponding way to the way in which that subsection would have applied if the payment or property had been received by the individual.

(9)

Subsection (5) applies to a payment or property received by:

(a) the ^* legal personal representative of a deceased individual; or
(b) the trustee of a trust established by the will of a deceased individual;

in a corresponding way to the way in which that subsection would have applied if:

(c) the individual had not died; and
(d) the payment or property had been received by the individual.

Part 2—Application of amendments
4 Application of amendments

The amendments made by this Schedule apply to assessments for the 2001-2002 income year and later income years.