Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1991No. 100, 1991 - SECT 6

6. Before section 65CA of the Principal Act the following section is inserted
in Division 14 of Part III: Reduction of taxable value of fringe benefits in
relation to 1991-92 year of tax - Cocos (Keeling) Islands

"65CAA. (1) Where:

   (a)  a fringe benefit (not being a car fringe benefit) in relation to an
        employer in relation to the year of tax commencing on 1 April 1991
        relates to a particular employee; and

   (b)  on or after 1 July 1991, the employee derived salary or wages from
        Cocos (Keeling) Islands service, being salary or wages paid by the
        employer; and

   (c)  the fringe benefit was provided in respect of that Cocos (Keeling)
        Islands service; and

   (d)  except in the case of a loan fringe benefit, a housing fringe benefit
        or a period residual fringe benefit - the benefit was provided on or
        after 1 July 1991; and

   (e)  in the case of a loan fringe benefit, a housing fringe benefit or a
        period residual fringe benefit - the whole or a part (which whole or
        part is in this subsection called the `reducible portion') of the
        taxable value of the fringe benefit is attributable to the obligation
        to repay the whole or any part of the loan, the subsistence of the
        housing right or the provision of the residual benefit, as the case
        may be, on or after 1 July 1991; the amount that, but for this
        subsection and sections 62, 64 and 65, would be the taxable value or,
        if paragraph (e) applies, the reducible portion of taxable value, of
        that fringe benefit in relation to the year of tax is to be reduced by
        50%.

"(2) Where:

   (a)  one or more car fringe benefits (in this subsection called the
        `eligible car fringe benefits') in relation to an employee, in
        relation to an employer, in relation to the year of tax commencing on
        1 April 1991 relate to a particular car; and

   (b)  on or after 1 July 1991, the employee derived salary or wages from
        Cocos (Keeling) Islands service, being salary or wages paid by the
        employer; and

   (c)  the eligible car fringe benefits were provided on or after 1 July 1991
        in respect of that Cocos (Keeling) Islands service; the amount that,
        but for this subsection and sections 62, 64 and 65, would be the
        taxable value, or the sum of the taxable values, as the case requires,
        of the car fringe benefits in relation to the employer in relation to
        the year of tax that relate to the car is to be reduced by the amount
        calculated using the formula:
Taxable value x 0.5 where: `Taxable value' means so much of the taxable value
or the sum of the taxable values as is attributable to the eligible car fringe
benefits.

"(3) A reference in this section to Cocos (Keeling) Islands service is a
reference to service as an employee where:

   (a)  salary or wages are payable in respect of the service; and

   (b)  if:

        (i)    section 24BB of the Income Tax Assessment Act 1936 had not been
               enacted; and

        (ii)   section 24BA of that Act had applied in relation to the year of
               income in which the salary or wages were derived; the salary or
               wages would have been exempt income under section 24G of that
               Act.".