Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991 - SECT 49

49. Section 160M of the Principal Act is amended:

   (a)  by omitting subsection (11);

   (b)  by omitting from subsection (11A) "or (11)";

   (c)  by omitting from subsection (11A) "or a partnership ceased to be a
        resident partnership, as the case may be,";

   (d)  by omitting from paragraph (11B) (a) "or (11)";

   (e)  by omitting from paragraph (11B) (a) "or a partnership ceased to be a
        resident partnership, as the case may be";

   (f)  by omitting from paragraph (11B) (c) "or (11), as the case may be,";

   (g)  by omitting from paragraph (11B) (d) "or (11)";

   (h)  by omitting subsection (12A) and substituting the following
        subsections:

"(12A) Where, at a particular time (in this section called the
`residence-change time'), a company that is a CFC ceases to be a resident of
an unlisted country or a listed country and becomes a resident within the
meaning of section 6, then:

   (a)  subsection (12) does not apply; and

   (b)  subsections (12AA) and (12AB) apply.

"(12AA) For the purposes of the application of this Part, sections 411 to 417
(inclusive) have, subject to subsection (12AB), the same effect, in relation
to every 30 June 1990 non-taxable Australian asset of the company owned by the
company at the residence-change time, as they would have if the taxable
income, instead of the attributable income, of the company were being
calculated under those sections.

"(12AB) If any capital gain on a 30 June 1990 non-taxable Australian asset in
respect of the period before the residence-change time was subject to tax in a
listed country, then, for the purposes of the application of this Part,
sections 411 to 417 (inclusive) have the same effect in relation to the asset
as they would have if:

   (a)  the taxable income, instead of the attributable income, of the company
        were being calculated under those sections; and

   (b)  any reference in those sections relating to 30 June 1990 or 1 July
        1990 were a reference relating respectively to the residence-change
        time or a time immediately after the residence-change time.";

   (j)  by omitting from subsection (12B) "subsection (12A)" and substituting
        "subsections (12A) to (12AB)";

   (k)  by inserting before the definition of "CFC" in subsection (12B) the
        following definitions: " `30 June 1990 non-taxable Australian asset'
        has the same meaning as in Part X; `attributable income' has the same
        meaning as in Part X;";

   (m)  by adding at the end of subsection (12B) the following definition:

" `subject to tax' has the same meaning as in Part X.";

   (n)  by omitting subsection (15).