Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992 - SECT 4

4. After section 123A of the Principal Act the following section is inserted
in Part X: Substantiation requirements not to apply in special circumstances

"123B.(1) If the Commissioner is satisfied that:

   (a)  a benefit has been provided in, or in respect of, a year of tax in
        respect of the employment of an employee of an employer; and

   (b)  it would be unreasonable for the substantiation requirements under
        this Act in relation to the benefit to apply; the substantiation
        requirements do not so apply.

"(2) In making a decision under subsection (1), the Commissioner is to have
regard to:

   (a)  the nature and quality of evidence that the employer makes available
        to substantiate:

        (i)    if the benefit provided is a fringe benefit - the taxable value
               of the fringe benefit; or

        (ii)   whether the benefit provided is an exempt benefit; and

   (b)  special circumstances affecting the employer, including, but not
        limited to, the following:

        (i)    the extent to which the substantiation requirements were
               complied with;

        (ii)   whether the failure to comply with the substantiation
               requirements was inadvertent or deliberate.

"(3) The Commissioner may only make a decision under subsection (1):

   (a)  in the course of reviewing on the Commissioner's own motion the
        affairs of the employer; or

   (b)  in considering an objection against the assessment of the employer of
        the year of tax; or

   (c)  in considering whether to make an amendment of the assessment of the
        employer of the year of tax in response to a request made by the
        employer before the commencement of this section.

"(4) This section does not apply to a declaration made for the purposes of
this Act.

"(5) If:

   (a)  an employer makes an application under subsection 82(1) or (2), as in
        force immediately before the commencement of section 113 of the
        Taxation Laws  Amendment Act (No. 3) 1991 ; and

   (b)  the period mentioned in the subsection concerned ended before the
        commencement of this section; the following provisions have effect:

   (c)  the Commissioner, the Tribunal or the Federal Court of Australia, as
        the case requires, when making a decision on the application, must
        disregard subsection (1) of this section;

   (d)  if the Commissioner, the Tribunal or the Federal Court of Australia,
        as the case requires, grants the application:

        (i)    the employer's objection has no effect to the extent that it
               relates to grounds based on subsection (1) of this section; and

        (ii)   the Tribunal or the Federal Court of Australia, when making a
               decision under:

                (A)  paragraph 86A(a) of this Act, as in force immediately
                     before the commencement of section 113 of the
                     Taxation Laws  Amendment Act (No. 3) 1991 ; or

                (B)  paragraph 14ZZK(a) or 14ZZO(a) of the Taxation 
                     Administration Act 1953 , as the case requires; must
                     disregard subsection (1) of this section.

"(6) This section applies to a benefit provided before, at or after the
commencement of this section.".