Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (TAX FILE NUMBERS) ACT 1988 No. 97 of 1988 - SECT 15

15. Section 221YHZC of the Principal Act is amended:

   (a)  by inserting after subsection (1) the following subsections:

"(1A) Subject to subsections (1B) and (1E), where after the end of the
phasing-in period mentioned in section 202DA:

   (a)  the investment body in relation to a Part VA investment is liable to
        pay income, in respect of the investment;

   (b)  the income is unattributed income in respect of the investment; and

   (c)  the amount of the income is not less than:

        (i)    if each investor in relation to the investment (not being an
               investment of a kind mentioned in item 6 in the table in
               subsection 202D (1) was, on the 1 January preceding the
               payment, less than 16 years of age-the amount ascertained in
               accordance with regulations made for the purposes of this
               subparagraph;

        (ii)   if:

                (A)  if subparagraph (i) does not apply;

                (B)  the investment has been in existence at all times since
                     the end of the phasing-in period mentioned in section
                     202DA; and

                (C)  the investment is an investment of the kind mentioned in
                     item 1 or 2 in the table in subsection 202D (1);
the amount ascertained in accordance with the regulations for the purposes of
this subparagraph; or

        (iii)  in any other case-the amount ascertained in accordance with
               regulations made for the purposes of this subparagraph;
the investment body shall:

   (d)  when paying the income, deduct an amount ascertained in accordance
        with subsection (1C) or (1D);

   (e)  at the time of notifying the investor of the payment of the income,
        and in any event within 21 days after the investor requests notice of
        any amount deducted from income so paid, give to the investor written
        notice of the amount deducted from the income so paid; and

   (f)  not later than 31 August (or such later day as the Commissioner
        allows) in each year, give to the Commissioner a statement in a form
        approved by the Commissioner, signed by the investment body,
        reconciling the total of the amounts of all deductions made by the
        investment body during the financial year that ended on 30 June in
        that year from unattributed income in respect of Part VA investments
        with the total of the amounts paid to the Commissioner under
        subsection 221YHZD (1A) in respect of those deductions.
Penalty: $1,000.

"(1B) Subsection (1A) does not apply in relation to income paid in respect of
a share investment if:

   (a)  the income is paid as a dividend that has been franked in accordance
        with section 160AQF; and

   (b)  the percentage specified in the declaration, referred to in that
        section, in relation to the dividend is 100%.

"(1C) Subject to subsection (1D), the amount to be deducted, in accordance
with paragraph (1A) (d), from unattributed income in respect of a Part VA
investment is the amount (being a multiple of 5 cents) that is, or is nearest
to, the amount ascertained by multiplying the number of whole dollars in the
amount of unattributed income by the factor prescribed for the purposes of
this subsection.

"(1D) Where:

   (a)  unattributed income is to be paid, in respect of a share investment,
        as a dividend that has been franked in accordance with section 160AQF;
        and

   (b)  the percentage specified in the declaration, referred to in that
        section, in relation to the dividend is less than 100%;
the amount to be deducted, in accordance with paragraph (1A) (d) of this
section, from the unattributed income is the amount (being a multiple of 5
cents) that is, or is nearest to, the amount ascertained in accordance with
the formula:
(I-FA) X PF
where:
I is the amount of unattributed income;
FA is the franked amount (within the meaning of section 160APA) in relation to
the dividend;
PF is the factor prescribed for the purposes of subsection (1C).

"(1E) Subsection (1A) does not apply in relation to income that is not paid in
money.";

   (b)  by omitting from subsections (2), (3) and (4) "sub-section (1)"
        (wherever occurring) and substituting "subsection (1) or (1A)".