{"id":"C1936A00027","name":"Income Tax Assessment Act 1936","slug":"income-tax-assessment-act-1936","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"27 of 1936","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":2407,"registerId":"commonwealth-C1936A00027-1774764594117","compilationNumber":null,"startDate":"2026-03-29","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"1 Short title\n\n","sortOrder":0},{"sectionNumber":"6","sectionType":"section","heading":"Interpretation","content":"6 Interpretation\n\n6AB Foreign income and foreign tax\n\n","sortOrder":1},{"sectionNumber":"6B","sectionType":"section","heading":"Income beneficially derived","content":"6B Income beneficially derived\n\n6BA Taxation treatment of certain shares\n\n","sortOrder":2},{"sectionNumber":"6C","sectionType":"section","heading":"Source of royalty income derived by a non‑resident","content":"6C Source of royalty income derived by a non‑resident\n\n6CA Source of natural resource income derived by a non‑resident\n\n6D Some tax offsets under the 1997 Assessment Act are treated as credits\n\n6F Dual resident investment company\n\n6H Recognised small credit unions, recognised medium credit unions and recognised large credit unions\n\n7B Application of the Criminal Code\n\nPart II—Administration\n\n","sortOrder":3},{"sectionNumber":"8","sectionType":"section","heading":"Commissioner","content":"8 Commissioner\n\n","sortOrder":4},{"sectionNumber":"14","sectionType":"section","heading":"Annual report","content":"14 Annual report\n\nPart III—Liability to taxation\n\nDivision 1—General\n\n18 Accounting period\n\n18A Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs\n\n21 Where consideration not in cash\n\n21A Non‑cash business benefits\n\n23AA Income of persons connected with certain projects of United States Government\n\n23AB Income of certain persons serving with an armed force under the control of the United Nations\n\n23AD Exemption of pay and allowances of Defence Force members performing certain overseas duty\n\n23AF Exemption of certain income derived in respect of approved overseas projects\n\n23AG Exemption of income earned in overseas employment\n\n23AH Foreign branch income of Australian companies not assessable\n\n23AI Amounts paid out of attributed income not assessable\n\n23AK Amounts paid out of attributed foreign investment fund income not assessable\n\n23B Reduction of disposal consideration if FIF attributed income not distributed\n\n23G Exemption of interest received by credit unions\n\n23K Substitution of certain securities\n\n23L Certain benefits in the nature of income not assessable\n\nDivision 1AB—Certain State/Territory bodies exempt from income tax\n\nSubdivision A—Exemption for certain State/Territory bodies\n\n24AK Key principle\n\n24AL Diagram—guide to work out if body is exempt under this Division\n\n24AM Certain STBs exempt from tax\n\n24AN Certain STBs not exempt from tax under this Division\n\n24AO First way in which a body can be an STB\n\n24AP Second way in which a body can be an STB\n\n24AQ Third way in which a body can be an STB\n\n24AR Fourth way in which a body can be an STB\n\n24AS Fifth way in which a body can be an STB\n\n24AT What do excluded STB, government entity and Territory mean?\n\n24AU Governor, Minister and Department Head taken to be a government entity\n\n24AV Regulations prescribing excluded STBs\n\nSubdivision B—Body ceasing to be an STB\n\n24AW Body ceasing to be an STB\n\n24AX Special provisions relating to capital gains and losses\n\n24AY Losses from STB years not carried forward\n\n24AYA Effect of unfunded superannuation liabilities\n\n24AZ Meaning of period and prescribed excluded STB\n\n","sortOrder":5},{"sectionNumber":"Div 2","sectionType":"division","heading":"Income","content":"Division 2—Income\n\nSubdivision A—Assessable income generally\n\n","sortOrder":6},{"sectionNumber":"25A","sectionType":"section","heading":"Assessable income to include certain profits","content":"25A Assessable income to include certain profits\n\n26AB Assessable income—premium for lease\n\n26AF Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds\n\n26AFA Assessable income to include value of certain benefits received from or in connection with former section 23F funds\n\n26AG Certain film proceeds included in assessable income\n\n26AH Bonuses and other amounts received in respect of certain short‑term life assurance policies\n\n26AJ Investment‑related lottery winnings to be included in assessable income\n\n26BB Assessability of gain on disposal or redemption of traditional securities\n\n26BC Securities lending arrangements\n\n","sortOrder":7},{"sectionNumber":"26E","sectionType":"section","heading":"Income from RSAs","content":"26E Income from RSAs\n\nSubdivision AA—Non‑superannuation annuities etc.\n\n","sortOrder":8},{"sectionNumber":"27H","sectionType":"section","heading":"Assessable income to include annuities and superannuation pensions","content":"27H Assessable income to include annuities and superannuation pensions\n\nSubdivision D—Dividends\n\n43A Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997\n\n43B Application of Subdivision to non‑share dividends\n\n44 Dividends\n\n45 Streaming of bonus shares and unfranked dividends\n\n45A Streaming of dividends and capital benefits\n\n45B Schemes to provide certain benefits\n\n45BA Effect of determinations under section 45B for demerger benefits\n\n","sortOrder":9},{"sectionNumber":"45C","sectionType":"section","heading":"Effect of determinations under sections 45A and 45B for capital benefits","content":"45C Effect of determinations under sections 45A and 45B for capital benefits\n\n","sortOrder":10},{"sectionNumber":"45D","sectionType":"section","heading":"Determinations under sections 45A, 45B and 45C","content":"45D Determinations under sections 45A, 45B and 45C\n\n46FA Deduction for dividends on‑paid to non‑resident owner\n\n46FB Unfranked non‑portfolio dividend account\n\n47 Distributions by liquidator\n\n47A Distribution benefits—CFCs\n\nDivision 3—Deductions\n\nSubdivision A—General\n\n51AAA Deductions not allowable in certain circumstances\n\n51AD Deductions not allowable in respect of property used under certain leveraged arrangements\n\n51AEA Meal entertainment—election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n51AEB Meal entertainment—election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method\n\n51AEC Entertainment facility—election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n51AF Car expenses incurred by employee\n\n51AGA No deduction to employee for certain car parking expenses\n\n51AH Deductions not allowable where expenses incurred by employee are reimbursed\n\n51AJ Deductions not allowable for private component of contributions for fringe benefits etc.\n\n51AK Agreements for the provision of non‑deductible non‑cash business benefits\n\n52 Loss on property acquired for profit‑making\n\n52A Certain amounts disregarded in ascertaining taxable income\n\n63 Bad debts\n\n63D Bad debts etc. of money‑lenders not allowable deductions where attributable to listed country or unlisted country branches\n\n63E Debt/equity swaps\n\n63F Limit on deductions where debt write offs and debt/equity swaps occur\n\n63G Bad debts etc. of trust not allowable in certain circumstances\n\n65 Payments to associated persons and relatives\n\n70B Deduction for loss on disposal or redemption of traditional securities\n\n73A Expenditure on scientific research\n\n73AA Section 73A roll‑over relief in the case of certain CGT roll‑overs\n\n","sortOrder":11},{"sectionNumber":"78A","sectionType":"section","heading":"Certain gifts not to be allowable deductions","content":"78A Certain gifts not to be allowable deductions\n\n \n\nAn Act to consolidate and amend the law relating to the imposition assessment and collection of a tax upon incomes\n\n \n\nPart I—Preliminary\n\n \n\n1  Short title\n\n  This Act may be cited as the Income Tax Assessment Act 1936.\n\n6  Interpretation\n\n (1AA) So far as a provision of the Income Tax Assessment Act 1936 gives an expression a particular meaning, the provision does not also have effect for the purposes of the Income Tax Assessment Act 1997 (the 1997 Act), or for the purposes of Schedule 1 to the Taxation Administration Act 1953, except as provided in the 1997 Act or in that Schedule.\n\n (1) In this Act, unless the contrary intention appears:\n\n100% subsidiary has the same meaning as in the Income Tax Assessment Act 1997.\n\nadjusted fringe benefits total, of a taxpayer for a year of income, has the meaning given by clause 4 of Schedule 3 to the A New Tax System (Family Assistance) Act 1999.\n\nadjusted taxable income for rebates means adjusted taxable income (within the meaning of the A New Tax System (Family Assistance) Act 1999, disregarding clauses 3 and 3A of Schedule 3 to that Act).\n\nAFOF means an Australian venture capital fund of funds within the meaning of subsection 118‑410(3) of the Income Tax Assessment Act 1997.\n\nagent: this Act applies to some entities (within the meaning of the Income Tax Assessment Act 1997) that are not agents in the same way as it applies to agents: see section 960‑105 of the Income Tax Assessment Act 1997.\n\nallowable deduction has the same meaning as deduction has in the Income Tax Assessment Act 1997.\n\nAMIT (short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997.\n\namount paid‑up on a share means the amount (if any), including any premium, paid on that share.\n\namount unpaid on a share means the amount (if any) unpaid on that share.\n\napportionable deductions has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\napproved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953.\n\napproved stock exchange has the same meaning as in the Income Tax Assessment Act 1997.\n\nassessable income has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nassessment means:\n\n (a) the ascertainment:\n\n (i) of the amount of taxable income (or that there is no taxable income); and\n\n (ii) of the tax payable on that taxable income (or that no tax is payable); and\n\n (iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\nNote 1: A taxpayer does not have a taxable income if the taxpayer’s deductions equal or exceed the taxpayer’s assessable income: see subsection 4‑15(1) of the Income Tax Assessment Act 1997.\n\nNote 2: A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax‑free threshold or if the taxpayer’s tax offsets reduce the taxpayer’s basic income tax liability to nil.\n\n (c) for a taxpayer that is the trustee of a unit trust that is a public trading trust (within the meaning of section 102R)—the ascertainment:\n\n (i) of the net income of the trust (within the meaning of section 102M) (or that there is no net income); and\n\n (ii) of the tax payable on that net income (or that no tax is payable); and\n\n (iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\n (d) for a taxpayer that is the trustee of a trust estate (other than a trustee to which paragraph (b) or (c) applies or the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust)—the ascertainment:\n\n (i) of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable); and\n\n (ii) of the tax payable on that net income (or that no tax is payable); and\n\n (iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\n (e) the ascertainment of the amount of interest payable under section 102AAM (about distributions from non‑resident trust estates); or\n\n (h) the ascertainment of the amount of income tax payable on the no‑TFN contributions income as defined by section 295‑610 of the Income Tax Assessment Act 1997 (or that no tax is payable); or\n\n (j) the ascertainment of the amount payable (or that no amount is payable) under the following:\n\n (i) subsection 276‑105(2) of the Income Tax Assessment Act 1997 (AMIT trustee taxed on amounts attributed to foreign resident members);\n\n (ii) subsection 276‑340(2) of that Act (AMIT trustee taxed on trust component deficit of character relating to tax offset);\n\n (iii) subsection 276‑405(2) of that Act (AMIT trustee taxed on shortfall in determined member components of character relating to assessable income);\n\n (iv) subsection 276‑410(2) of that Act (AMIT trustee taxed on excess in determined member components of character relating to tax offset);\n\n (v) subsection 276‑415(2) of that Act (AMIT trustee taxed on amounts of determined trust component that are not reflected in member components);\n\n (vi) subsection 276‑420(2) of that Act (AMIT trustee taxed on amounts of under of character relating to assessable income not properly carried forward);\n\n (vii) subsection 276‑425(2) of that Act (AMIT trustee taxed on amounts of over of character relating to tax offset not properly carried forward); or\n\n (k) the ascertainment of the amount payable under subsection 177P(1) (diverted profits tax).\n\nattribution managed investment trust: see AMIT.\n\nAustralia has the same meaning as in the Income Tax Assessment Act 1997.\n\nAustralian superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nbank or banker includes, but is not limited to, a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.\n\nbase interest rate has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nbasic income tax liability has the meaning given by section 4‑10 of the Income Tax Assessment Act 1997.\n\nbusiness has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncapital gain has the same meaning as in the Income Tax Assessment Act 1997.\n\ncapital loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ncapital proceeds has the same meaning as in the Income Tax Assessment Act 1997.\n\nCGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nCGT event has the same meaning as in the Income Tax Assessment Act 1997.\n\nChief Executive Centrelink has the same meaning as in the Human Services (Centrelink) Act 1997.\n\nchild has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nCommissioner means the Commissioner of Taxation.\n\nCommonwealth education or training payment has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncompany has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncomplying approved deposit fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncomplying superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nconsolidated group has the same meaning as in the Income Tax Assessment Act 1997.\n\nconstituent document, in relation to a company, means the memorandum and articles of association of the company, or any rules or other document constituting the company or governing its activities.\n\ncorporate limited partnership has the meaning given by section 94D.\n\ncorporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.\n\ncorporate tax rate has the same meaning as in the Income Tax Assessment Act 1997.\n\ncost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\ncreditable acquisition has the meaning given by section 195‑1 of the GST Act.\n\ndebenture, in relation to a company, includes debenture stock, bonds, notes and any other securities of the company, whether constituting a charge on the assets of the company or not.\n\ndebt interest has the same meaning as in the Income Tax Assessment Act 1997.\n\ndeductible gift recipient has the meaning given by the Income Tax Assessment Act 1997.\n\ndemerged entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndemerger has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndemerger allocation means:\n\n (a) the total market value of the allocation represented by the ownership interests issued by the demerged entity in itself under a demerger to the owners of ownership interests in the head entity of the demerger group; or\n\n (b) the total market value of the allocation represented by the ownership interests disposed of by a member of a demerger group under a demerger to the owners of ownership interests in the head entity; or\n\n (c) the total of both of those market values.\n\ndemerger dividend means that part of a demerger allocation that is assessable as a dividend under subsection 44(1) or that would be so assessable apart from subsections 44(3) and (4).\n\ndemerger group has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.\n\ndemerger subsidiary has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.\n\ndemerging entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndepreciating asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nDeputy Commissioner means a Deputy Commissioner of Taxation.\n\ndistribution, when used in a franking context, has the same meaning as in the Income Tax Assessment Act 1997.\n\ndiverted profits tax has the meaning given by the Income Tax Assessment Act 1997.\n\ndividend includes:\n\n (a) any distribution made by a company to any of its shareholders, whether in money or other property; and\n\n (b) any amount credited by a company to any of its shareholders as shareholders;\n\n (d) moneys paid or credited by a company to a shareholder or any other property distributed by a company to shareholders (not being moneys or other property to which this paragraph, by reason of subsection (4), does not apply or moneys paid or credited, or property distributed for the redemption or cancellation of a redeemable preference share), where the amount of the moneys paid or credited, or the amount of the value of the property, is debited against an amount standing to the credit of the share capital account of the company; or\n\n (e) moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:\n\n (i) the company gives the holder of the share a notice when it redeems or cancels the share; and\n\n (ii) the notice specifies the amount paid‑up on the share immediately before the cancellation or redemption; and\n\n (iii) the amount is debited to the company’s share capital account;\n\n  except to the extent that the amount of those moneys or the value of that property, as the case may be, is greater than the amount specified in the notice as the amount paid‑up on the share; or\n\n (f) a reversionary bonus on a life assurance policy.\n\nNote: Subsection (4) sets out when paragraph (d) of this definition does not apply.\n\n","sortOrder":12},{"sectionNumber":"Div 230","sectionType":"division","heading":"financial arrangement has the same meaning as in the Income Tax Assessment Act 1997.","content":"Division 230 financial arrangement has the same meaning as in the Income Tax Assessment Act 1997.\n\ndual resident investment company has the meaning given by section 6F.\n\ndwelling has the meaning given by the Income Tax Assessment Act 1997.\n\neligible taxable income has the meaning given by section 102AD.\n\nEmployment Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nemployment termination payment has the same meaning as in the Income Tax Assessment Act 1997.\n\nequity holder has the same meaning as in the Income Tax Assessment Act 1997.\n\nequity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nESVCLP means an early stage venture capital limited partnership within the meaning of subsection 118‑407(4) of the Income Tax Assessment Act 1997.\n\nexempt entity has the same meaning as in the Income Tax Assessment Act 1997.\n\nexempt income has the meaning given by section 6‑20 of the Income Tax Assessment Act 1997.\n\nexploration credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nFamilies Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nfarm management deposit has the meaning given by the Income Tax Assessment Act 1997.\n\nFMD provider has the meaning given by the Income Tax Assessment Act 1997.\n\nforeign superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nforeign tax has the meaning given by section 6AB.\n\nfrankable distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking debit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking deficit tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking surplus has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranks with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfriendly society has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfriendly society dispensary has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfringe benefit has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfull self‑assessment taxpayer, for a year of income (the current year), means any of the following:\n\n (a) a company;\n\n (c) the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division 6C of Part III;\n\n (d) the trustee of a complying approved deposit fund or a non‑complying approved deposit fund in relation to the current year;\n\n (e) the trustee of a complying superannuation fund or a non‑complying superannuation fund in relation to the current year;\n\n (f) the trustee of a pooled superannuation trust in relation to the current year.\n\nNote: A corporate limited partnership is taken to be a company under section 94J, so it will fall within paragraph (a) of this definition.\n\nfund payment has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral insurance company has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral insurance policy has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\ngeneral partner has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nGST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\nhead company of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nhead entity of a demerger group has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.\n\nHealth Minister has the meaning given by the Income Tax Assessment Act 1997.\n\nhold, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nholder, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nincome from personal exertion or income derived from personal exertion means income consisting of earnings, salaries, wages, commissions, fees, bonuses, pensions, superannuation allowances, retiring allowances and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business, any amount that is included in the assessable income of the taxpayer by reason of section 393‑10 of the Income Tax Assessment Act 1997, the income from any property where that income forms part of the emoluments of any office or employment of profit held by the taxpayer, and any profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit‑making by sale or from the carrying on or carrying out of any profit‑making undertaking or scheme, but does not include:\n\n (a) interest, unless the taxpayer’s principal business consists of the lending of money, or unless the interest is received in respect of a debt due to the taxpayer for goods supplied or services rendered by the taxpayer in the course of the taxpayer’s business; or\n\n (b) rents, dividends or non‑share dividends.\n\nincome from property or income derived from property means all income not being income from personal exertion.\n\nincome tax means income tax imposed as such by any Act, as assessed under this Act, but, except in section 260, does not include mining withholding tax or withholding tax.\n\nIndigenous land has the same meaning as in the Income Tax Assessment Act 1997.\n\nIndigenous person has the same meaning as in the Income Tax Assessment Act 1997.\n\nindustrial, commercial or scientific equipment means industrial, commercial or scientific equipment to the extent that an amount paid or credited as consideration for the use of the equipment, or for the right to use the equipment, is not rent from land (including rent from an interest in land or rent from fixtures on land).\n\ninsurance business has the same meaning as in the Insurance Act 1973.\n\ninsurance funds, in relation to a company, means all the Australian statutory funds of the company and all other funds maintained by the company in respect of the life assurance business of the company.\n\ninterest income, in relation to a taxpayer, means income consisting of interest, or a payment in the nature of interest, in respect of:\n\n (a) money lent, advanced or deposited; or\n\n (b) credit given; or\n\n (c) any other form of debt or liability;\n\nwhether security is given or not, other than:\n\n (d) an amount to the extent to which it is a return on an equity interest in a company; or\n\n (e) interest derived by the taxpayer from a transaction directly related to the active conduct of a trade or business; or\n\n (f) interest derived by the taxpayer from carrying on a banking business or any other business whose income is principally derived from the lending of money; or\n\n (g) interest received by the taxpayer during a year of income from a foreign company, where:\n\n (i) at any time during the year of income, the taxpayer had (or would have had, if the taxpayer were a company and a resident), a voting interest, within the meaning of section 334A, amounting to at least 10% of the voting power, within the meaning of that section, in that company; and\n\n (ii) during the year of income or the preceding year of income, the company has not derived an amount of interest income exceeding 10% of the total profits derived by the company during the same year.\n\njunior minerals exploration incentive tax offset means a tax offset under Subdivision 418‑B of the Income Tax Assessment Act 1997.\n\nlife assurance company has the meaning given to life insurance company by the Income Tax Assessment Act 1997.\n\nlife assurance policy has the meaning given to life insurance policy by the Income Tax Assessment Act 1997.\n\nlife assurance premium has the meaning given to life insurance premium by the Income Tax Assessment Act 1997.\n\nlimited partner has the same meaning as in the Income Tax Assessment Act 1997.\n\nlimited partnership has the same meaning as in the Income Tax Assessment Act 1997.\n\nliquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding‑up of a company.\n\nlisted public company has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: For the meaning of listed public company in Schedule 2F to this Act, see section 272‑135 in that Schedule.\n\nloss carry back tax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\nloss year has the same meaning as in the Income Tax Assessment Act 1997.\n\nmanaged investment trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nMEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nMedicare levy means Medicare levy imposed as such by any Act as assessed under this Act.\n\nMedicare levy (fringe benefits) surcharge has the meaning given by the Income Tax Assessment Act 1997.\n\nmember of a consolidated group or MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nmember of a family tax benefit (Part B) family without shared care: a taxpayer is a member of a family tax benefit (Part B) family without shared care if:\n\n (a) the taxpayer, or the taxpayer’s spouse while being the taxpayer’s partner (within the meaning of the A New Tax System (Family Assistance) Act 1999), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and\n\n (b) clause 31 of Schedule 1 to that Act does not apply in respect of the Part B rate.\n\nminerals has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nmining withholding tax means income tax payable in accordance with section 128V.\n\nmortgage includes any charge, lien or encumbrance to secure the repayment of money.\n\nmutual life assurance company means a life assurance company the profits of which are divisible only among the policy holders.\n\nnatural resource has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnet capital gain has the same meaning as in the Income Tax Assessment Act 1997.\n\nnet capital loss has the same meaning as in the Income Tax Assessment Act 1997.\n\nnet GST has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nnet input tax credit has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nnon‑assessable non‑exempt income has the meaning given by the Income Tax Assessment Act 1997.\n\nnon‑complying approved deposit fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑complying superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑entity joint venture has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑equity share has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑resident means a person who is not a resident of Australia.\n\nnon‑share capital account has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share capital return has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share dividend has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share equity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nonce‑only deduction: a deduction in a year of income in respect of a percentage of expenditure is a once‑only deduction, in relation to the expenditure, if no deduction is allowable in respect of a percentage of the expenditure in any other year of income.\n\nordinary class has the same meaning as in the Income Tax Assessment Act 1997.\n\nordinary income has the same meaning as in the Income Tax Assessment Act 1997.\n\nover‑franking tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nowner of a farm management deposit has the meaning given by the Income Tax Assessment Act 1997.\n\nownership interest has the meaning given by section 125‑60 of the Income Tax Assessment Act 1997.\n\npaid in relation to dividends or non‑share dividends includes credited or distributed.\n\npaid‑up share capital has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nparent has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\npartnership has the same meaning as in the Income Tax Assessment Act 1997.\n\npart of a distribution that is franked with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.\n\npart of a distribution that is franked with a venture capital credit has the same meaning as in the Income Tax Assessment Act 1997.\n\npassive commodity gain, in relation to a taxpayer, in relation to a year of income, means a gain realised by the taxpayer in a year of income from disposing of a forward contract or a futures contract, or a right or option in respect of a forward contract or a futures contract, in respect of any thing (a commodity):\n\n (a) that is capable of delivery under an agreement for its delivery; and\n\n (b) that is not an instrument creating or evidencing a chose in action;\n\nunless the contract, right or option relates to the carrying on by the taxpayer of a business:\n\n (c) of producing or processing the commodity; or\n\n (d) that involves the use of the commodity as a raw material in a production process.\n\npassive income, in relation to a taxpayer, in relation to a year of income means:\n\n (a) dividends (within the meaning of this section) and non‑share dividends paid to the taxpayer in the year of income; or\n\n (b) unit trust dividends (within the meaning of Division 6C) paid to the taxpayer in the year of income; or\n\n (c) a distribution made to the taxpayer in the year of income that is taken to be a dividend because of section 47; or\n\n (d) an amount that is taken to be a dividend paid to the taxpayer in the year of income because of section 47A or 108 or Division 7A of Part III; or\n\n (e) interest income derived by the taxpayer in the year of income; or\n\n (f) annuities derived by the taxpayer in the year of income; or\n\n (g) income derived by the taxpayer by way of rent (within the meaning of Part X) in the year of income; or\n\n (h) royalties derived by the taxpayer in the year of income; or\n\n (i) an amount derived by the taxpayer in the year of income as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right; or\n\n (j) profits of a capital nature that accrued to the taxpayer in the year of income; or\n\n (k) passive commodity gains that accrued to the taxpayer in the year of income; or\n\n (l) an amount included in the assessable income of the taxpayer of the year of income under section 102AAZD, 456, 457 or 459A;\n\n (m) an amount that arose from an asset necessarily held by the taxpayer in connection with an insurance business actively carried on by the taxpayer; or\n\n (n) an amount included in the taxpayer’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes).\n\nPDF (pooled development fund) means a company that is a PDF within the meaning of the Pooled Development Funds Act 1992, but does not include such a company in the capacity of a trustee.\n\nPDF component, in relation to a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income, means:\n\n (a) in a case where the amount that, if:\n\n (i) the period beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company; and\n\n (ii) the period (the PDF notional year) beginning when the company becomes a PDF and ending at the end of the year of income were a year of income of the company; and\n\n (iii) paragraph (c) of the definition of taxable income were omitted;\n\n  would be the company’s taxable income of the PDF notional year is $1 or more—that amount; or\n\n (b) otherwise—a nil amount.\n\npermanent establishment, in relation to a person (including the Commonwealth, a State or an authority of the Commonwealth or a State), means a place at or through which the person carries on any business and, without limiting the generality of the foregoing, includes:\n\n (a) a place where the person is carrying on business through an agent;\n\n (b) a place where the person has, is using or is installing substantial equipment or substantial machinery;\n\n (c) a place where the person is engaged in a construction project; and\n\n (d) where the person is engaged in selling goods manufactured, assembled, processed, packed or distributed by another person for, or at or to the order of, the first‑mentioned person and either of those persons participates in the management, control or capital of the other person or another person participates in the management, control or capital of both of those persons—the place where the goods are manufactured, assembled, processed, packed or distributed;\n\n (e) a place where the person is engaged in business dealings through a bona fide commission agent or broker who, in relation to those dealings, acts in the ordinary course of his or her business as a commission agent or broker and does not receive remuneration otherwise than at a rate customary in relation to dealings of that kind, not being a place where the person otherwise carries on business;\n\n (f) a place where the person is carrying on business through an agent:\n\n (i) who does not have, or does not habitually exercise, a general authority to negotiate and conclude contracts on behalf of the person; or\n\n (ii) whose authority extends to filling orders on behalf of the person from a stock of goods or merchandise situated in the country where the place is located, but who does not regularly exercise that authority;\n\n  not being a place where the person otherwise carries on business; or\n\n (g) a place of business maintained by the person solely for the purpose of purchasing goods or merchandise.\n\nNote: Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph.\n\nperson has the same meaning as in the Income Tax Assessment Act 1997.\n\npooled superannuation trust has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\npost FIF abolition credit means a post FIF abolition credit arising under:\n\n (a) subsection 23AK(6); and\n\n (b) subsection 717‑220(2) of the Income Tax Assessment Act 1997; and\n\n (c) subsection 717‑255(2) of that Act.\n\npost FIF abolition debit means a post FIF abolition debit arising under:\n\n (a) subsection 23AK(2); and\n\n (b) subsection 23B(1); and\n\n (c) subsection 717‑220(3) of the Income Tax Assessment Act 1997; and\n\n (d) subsection 717‑255(3) of that Act.\n\npost FIF abolition surplus has the meaning given by section 23AK.\n\nprescribed dual resident means a company that satisfies either of the following conditions:\n\n (a) the first condition is that:\n\n (i) the company is a resident of Australia within the meaning of subsection 6(1); and\n\n (ii) there is an agreement (within the meaning of the International Tax Agreements Act 1953) in force in respect of a foreign country; and\n\n (iii) the agreement contains a provision that is expressed to apply where, apart from the provision, the company would, for the purposes of the agreement, be both a resident of Australia and a resident of the foreign country; and\n\n (iv) that provision has the effect that the company is, for the purposes of the agreement, a resident solely of the foreign country;\n\n (b) the alternative condition is that the company:\n\n (i) is a resident of Australia within the meaning of subsection 6(1) for no other reason than that it carries on business in Australia and has its central management and control in Australia; and\n\n (ii) it is also a resident of another country; and\n\n (iii) its central management and control is in another country.\n\nprimary production business has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nprincipal beneficiary of a special disability trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nprivate company, in relation to a year of income, means a company that is a private company in relation to that year of income for the purposes of Division 7 of Part III.\n\nproclaimed superannuation standards day means 1 July 1990.\n\nprovider, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nprudential standards has the same meaning as in the Income Tax Assessment Act 1997.\n\nrebatable benefit has the meaning given by subsection 160AAA(1).\n\nrebate income of an individual for a year of income is the sum of:\n\n (a) the individual’s taxable income for the year of income, disregarding the individual’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the year of income; and\n\n (b) the individual’s reportable superannuation contributions for the year of income; and\n\n (c) the individual’s total net investment loss for the year of income; and\n\n (d) the individual’s adjusted fringe benefits total for the year of income.\n\nrecognised large credit union has the meaning given by section 6H.\n\nrecognised medium credit union has the meaning given by section 6H.\n\nrecognised small credit union has the meaning given by section 6H.\n\nreduced cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nrelative has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nreportable superannuation contributions has the same meaning as in the Income Tax Assessment Act 1997.\n\nresident or resident of Australia means:\n\n (a) a person, other than a company, who resides in Australia and includes a person:\n\n (i) whose domicile is in Australia, unless the Commissioner is satisfied that the person’s permanent place of abode is outside Australia;\n\n (ii) who has actually been in Australia, continuously or intermittently, during more than one‑half of the year of income, unless the Commissioner is satisfied that the person’s usual place of abode is outside Australia and that the person does not intend to take up residence in Australia; or\n\n (iii) who is:\n\n (A) a member of the superannuation scheme established by deed under the Superannuation Act 1990; or\n\n (B) an eligible employee for the purposes of the Superannuation Act 1976; or\n\n (C) the spouse, or a child under 16, of a person covered by sub‑subparagraph (A) or (B); and\n\n (b) a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.\n\nresident trust for CGT purposes has the same meaning as in the Income Tax Assessment Act 1997.\n\nreturn on a debt interest or equity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nreturn of income means a return of income, or of profits or gains of a capital nature, or of both income and such profits or gains.\n\nroyalty or royalties includes any amount paid or credited, however described or computed, and whether the payment or credit is periodical or not, to the extent to which it is paid or credited, as the case may be, as consideration for:\n\n (a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark, or other like property or right;\n\n (b) the use of, or the right to use, any industrial, commercial or scientific equipment;\n\n (c) the supply of scientific, technical, industrial or commercial knowledge or information;\n\n (d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in paragraph (a), any such equipment as is mentioned in paragraph (b) or any such knowledge or information as is mentioned in paragraph (c);\n\n (da) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:\n\n (i) satellite; or\n\n (ii) cable, optic fibre or similar technology;\n\n (db) the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:\n\n (i) satellite; or\n\n (ii) cable, optic fibre or similar technology;\n\n (dc) the use of, or the right to use, some or all of the part of the spectrum (within the meaning of the Radiocommunications Act 1992) specified in a spectrum licence issued under that Act;\n\n (e) the use of, or the right to use:\n\n (i) motion picture films;\n\n (ii) films or video tapes for use in connexion with television; or\n\n (iii) tapes for use in connexion with radio broadcasting; or\n\n (f) a total or partial forbearance in respect of:\n\n (i) the use of, or the granting of the right to use, any such property or right as is mentioned in paragraph (a) or any such equipment as is mentioned in paragraph (b);\n\n (ii) the supply of any such knowledge or information as is mentioned in paragraph (c) or of any such assistance as is mentioned in paragraph (d);\n\n (iia) the reception of, or the granting of the right to receive, any such visual images or sounds as are mentioned in paragraph (da);\n\n (iib) the use of, or the granting of the right to use, any such visual images or sounds as are mentioned in paragraph (db);\n\n (iic) the use of, or the granting of the right to use, some or all of such part of the spectrum specified in a spectrum licence as is mentioned in paragraph (dc); or\n\n (iii) the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e).\n\nRSA has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997.\n\nRSA provider has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997.\n\nSecond Commissioner means a Second Commissioner of Taxation.\n\nshare in a company has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nshare capital account has the same meaning as in the Income Tax Assessment Act 1997.\n\nshareholder includes member or stockholder.\n\nshareholders’ funds has the same meaning as in the Life Insurance Act 1995.\n\nshortfall interest charge means the charge worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.\n\nsmall business entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nsocial security law has the meaning given by the Social Security Act 1991.\n\nspecial disability trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nspouse has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nstatutory income has the meaning given by the Income Tax Assessment Act 1997.\n\nStudent Assistance Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nsubsidiary member of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nsuperannuation benefits means individual personal benefits, pensions or retiring allowances.\n\nsuperannuation fund means:\n\n (a) a scheme for the payment of superannuation benefits upon retirement or death; or\n\n (b) a superannuation fund within the definition of superannuation fund in section 10 of the Superannuation Industry (Supervision) Act 1993.\n\nsuperannuation fund for foreign residents has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nsuperannuation lump sum has the same meaning as in the Income Tax Assessment Act 1997.\n\ntainted, in relation to a company’s share capital account, has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax means income tax imposed as such by any Act, as assessed under this Act, but does not include mining withholding tax or withholding tax.\n\ntaxable Australian property has the same meaning as in the Income Tax Assessment Act 1997.\n\ntaxable income has the same meaning as in  the Income Tax Assessment Act 1997.\n\ntaxable supply has the meaning given by section 195‑1 of the GST Act.\n\ntax cost is set has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax offset refund has the meaning given by the Income Tax Assessment Act 1997.\n\ntaxpayer means a person deriving income or deriving profits or gains of a capital nature.\n\nthis Act includes:\n\n (a) the Income Tax Assessment Act 1997; and\n\n (b) Part IVC of the Taxation Administration Act 1953, so far as that Part relates to:\n\n (i) this Act or the Income Tax Assessment Act 1997; or\n\n (ii) Schedule 1 to the Taxation Administration Act 1953; and\n\n (c) Schedule 1 to the Taxation Administration Act 1953.\n\nNote: Subsection (1AA) of this section prevents definitions in the Income Tax Assessment Act 1936 from affecting the interpretation of the Income Tax Assessment Act 1997.\n\ntotal net investment loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ntrading stock has the meaning given by section 70‑10 of the Income Tax Assessment Act 1997.\n\nTribunal means the Administrative Review Tribunal.\n\ntrustee in addition to every person appointed or constituted trustee by act of parties, by order, or declaration of a court, or by operation of law, includes:\n\n (a) an executor or administrator, guardian, committee, receiver, or liquidator; and\n\n (b) every person having or taking upon himself the administration or control of income affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of the income of a person under any legal or other disability;\n\nunfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nVCLP means a venture capital limited partnership within the meaning of subsection 118‑405(2) of the Income Tax Assessment Act 1997.\n\nVCMP means a venture capital management partnership.\n\nventure capital deficit tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nventure capital management partnership has the meaning given by subsection 94D(3).\n\nVeterans’ Affairs Secretary means the Secretary of the Department administered by the Minister administering the Veterans’ Entitlements Act 1986.\n\nwithholding tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nwork and income support related withholding payments and benefits means:\n\n (a) payments from which an amount:\n\n (i) must be withheld under a provision of Subdivision 12‑B (other than section 12‑55), 12‑C or 12‑D or Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or\n\n (ii) would be required to be withheld under a provision mentioned in subparagraph (i) (other than section 12‑55) apart from subsection 12‑1(1A) in Schedule 1 to that Act; and\n\n (b) amounts included in a person’s assessable income under section 86‑15 of the Income Tax Assessment Act 1997 in respect of which an amount must be paid under Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid); and\n\n (c) non‑cash benefits in relation to which the provider of the benefit must pay an amount to the Commissioner under Division 14 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid).\n\nNote: The payments covered by paragraph (a) are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of annuities, superannuation benefits, payments for termination of employment, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.\n\nyear of income means an income year as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nyear of tax means the financial year for which income tax is levied.\n\n (1A) Unless the contrary intention appears, a reference in this Act to a failure to do an act or thing includes a reference to a refusal to do the act or thing.\n\n (2AA) A reference in this Act to an accounting period adopted in lieu of a year of income includes a reference to an accounting period:\n\n (a) that commences or ends under section 18A; and\n\n (b) that would, but for that section, form part of an accounting period so adopted.\n\n (2AB) The Commissioner may, by legislative instrument, make a determination modifying the operation of one or more provisions of this Act in relation to limited partnerships whose accounting periods commence or end under section 18A of the Income Tax Assessment Act 1936.\n\n (2AC) A determination can only be made under subsection (2AB) in order to take account of the fact that such accounting periods are of less than 12 months’ duration.\n\n (3) The express references in this Act to companies do not imply that references to persons do not include references to companies.\n\n (4) Paragraph (d) of the definition of dividend in subsection (1) does not apply if, under an arrangement:\n\n (a) a person pays or credits any money or gives property to the company and the company credits its share capital account with the amount of the money or the value of the property; and\n\n (b) the company pays or credits any money, or distributes property to another person, and debits its share capital account with the amount of the money or the value of the property so paid, credited or distributed.\n\n (6) Where a place is, by virtue of paragraph (d) of the definition of permanent establishment in subsection (1), a permanent establishment of a person, the person shall, for the purposes of this Act, be deemed to be carrying on at or through that permanent establishment the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person at the place that is that permanent establishment.\n\n6AB  Foreign income and foreign tax\n\n (1) A reference in this Act to foreign income is a reference to income (including superannuation lump sums and employment termination payments) derived from sources in a foreign country or foreign countries, and includes a reference to an amount included in assessable income under section 102AAZD, 456, 457 or 459A of this Act, or section 305‑70 of the Income Tax Assessment Act 1997.\n\n (1C) A reference in this Act to foreign income includes a reference to an amount included in assessable income under:\n\n (a) Division 301 of the Income Tax Assessment Act 1997 in its application under section 301‑5 of the Income Tax (Transitional Provisions) Act 1997; or\n\n (b) Division 302 of the Income Tax Assessment Act 1997 in its application under section 302‑5 of the Income Tax (Transitional Provisions) Act 1997.\n\n (2) A reference in this Act to foreign tax is a reference to tax imposed by a law of a foreign country, being:\n\n (a) tax upon income; or\n\n (b) tax upon profits or gains, whether of an income or capital nature; or\n\n (c) any other tax, being a tax that is subject to an agreement having the force of law under the International Tax Agreements Act 1953;\n\nbut does not include a unitary tax or a credit absorption tax.\n\n (5B) This section applies to a non‑share dividend in the same way as it applies to a dividend.\n\ncredit absorption tax means a tax imposed by a law of a foreign country to the extent that the tax would not have been payable if the taxpayer concerned or another taxpayer had not been entitled to an offset in respect of the tax under Division 770 of the Income Tax Assessment Act 1997.\n\nlaw, in relation to a foreign country, means a law of that country, or of any part of, or place in, that country.\n\nunitary tax means tax imposed by a law of a foreign country, being a law which, for the purposes of taxing income, profits or gains of a company derived from sources within that country, takes into account, or is entitled to take into account, income, losses, outgoings or assets of the company (or of a company that for the purposes of that law is treated as being associated with the company) derived, incurred or situated outside that country, but does not include tax imposed by that law if that law only takes those matters into account:\n\n (a) if such an associated company is a resident for the purposes of that law; or\n\n (b) for the purposes of granting any form of relief in relation to tax imposed on dividends received by one company from another company.\n\n6B  Income beneficially derived\n\n (1) For the purposes of this Act, an amount of income derived by a person, not being a dividend paid by a company to the person as a shareholder in the company, shall be deemed to be attributable to a dividend:\n\n (a) if the person derived the amount of income by reason of being the beneficial owner of the share in respect of which the dividend was paid; or\n\n (b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the dividend or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the dividend.\n\n (1A) For the purposes of this Act, an amount of income derived by a person, being income other than passive income, is to be taken to be income attributable to passive income:\n\n (a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing passive income; or\n\n (b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to passive income or to an amount that is taken, by any application or successive applications of this subsection, to be an amount of income attributable to passive income.\n\n (2) For the purposes of this Act, an amount of income derived by a person, being income other than interest income, shall be deemed to be income attributable to interest income:\n\n (a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing interest income; or\n\n (b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to interest income or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to interest income.\n\n (2A) For the purposes of this Act, an amount of income derived by a person shall be deemed to be income derived from a particular source:\n\n (a) except where paragraph (b) applies:\n\n (i) if the person derived the amount of income by reason of being beneficially entitled to an amount that is derived from that source; or\n\n (ii) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to income derived from that source or to an amount that is deemed, by any other application or applications of this subsection, to be an amount that is income derived from that source; or\n\n (b) if the income so derived is, by virtue of subsection (1), (1A) or (2), attributable to a dividend, passive income or interest income derived from that source.\n\n (3) Where a beneficiary in a trust estate is presently entitled to income of the trust estate, that income shall, for the purposes of this section, be deemed to be an amount of income derived by the person.\n\n (4) This section:\n\n6BA  Taxation treatment of certain shares\n\n (1) This section applies if a shareholder holds shares in a company (the original shares) and the company issues other shares (the bonus shares) in respect of the original shares.\n\n (2) If the bonus shares are a dividend, or taken to be a dividend (including as a result of section 45C), the consideration for the acquisition of the shares for the purposes of this Act is so much of the dividend as is:\n\n (a) included in the taxpayer’s assessable income; and\n\n (b) is not rebatable under section 46A.\n\n (3) If the bonus shares are issued for no consideration and are not a dividend or taken to be a dividend, then for the purposes of this Act, in determining:\n\n (a) the value of such of the original shares and bonus shares as the taxpayer elects under section 70‑45 of the Income Tax Assessment Act 1997 to value at cost; and\n\n (b) where any of the original shares or any of the bonus shares are not articles of trading stock of the taxpayer:\n\n (i) the amount or value of the consideration paid in respect of the acquisition of any of those shares for the purposes of Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997; or\n\n (ii) the amount of any profit or loss arising on the sale or disposal of any of those shares;\n\nany amounts paid or payable by the taxpayer in respect of the original shares (whether on purchase of the shares, on application for or allotment of the shares, to meet calls or otherwise) shall be deemed to have been paid or to be payable by the taxpayer in respect of the original shares and the bonus shares in such proportions as the Commissioner considers appropriate in the circumstances.\n\n (4) A company issues shares for no consideration if:\n\n (a) it credits its capital account with profits in connection with the issue of the shares; or\n\n (b) it credits its capital account with the amount of any dividend to a shareholder and the shareholder does not have a choice whether to be paid the dividend or to be issued with the shares.\n\nThis subsection does not limit the generality of subsection (3).\n\nNote: A company that makes a credit covered by paragraph (a) or (b) will have a tainted share capital account.\n\n (5) Subject to subsection (6), if a shareholder has a choice whether to be paid a dividend or to be issued shares and the shareholder chooses to be issued with shares:\n\n (a) the dividend is taken to be credited to the shareholder; and\n\n (b) the dividend is taken to have been paid out of profits; and\n\n (c) subsections (2) and (3) apply in working out the consideration for the acquisition of the shares for the purposes of this Act.\n\nHowever, the share capital account of the company does not become a tainted share capital account as a result of the crediting of the dividend to the share capital account.\n\n (6) Subsection (5) does not apply if:\n\n (a) a shareholder in a listed public company has a choice whether to be paid a dividend (other than a minimally franked dividend within the meaning of subsection 45(3)) or to be issued shares and the shareholder chooses to be issued with shares; and\n\n (b) the company does not credit the share capital account in connection with the issue of those shares.\n\nNote: If subsection (5) does not apply because of this subsection, subsection (3) will apply.\n\n (7) This section (other than subsection (6)):\n\n6C  Source of royalty income derived by a non‑resident\n\n (1) This section applies to income that is derived on or after 1 July 1968 by a non‑resident and consists of royalty that:\n\n (a) is paid or credited to the non‑resident by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident and is not an outgoing wholly incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country; or\n\n (b) is paid or credited to the non‑resident by a person who is, or by persons each of whom is, a non‑resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.\n\n (1A) For the purposes of Division 5 and Division 6 of Part III, but subject to subsections (3) and (4), income to which this section applies shall be deemed to be attributable to sources in Australia.\n\n (2) For the purposes of sections 6‑5 and 6‑10 of the Income Tax Assessment Act 1997, but subject to subsections (3) and (4), income to which this section applies shall be deemed to have been derived from a source in Australia.\n\n (a) income to which this section applies is paid or credited to the non‑resident by whom it is derived by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident; and\n\n (b) the royalty of which the income consists is, in part, an outgoing incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country;\n\nsubsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is not an outgoing so incurred.\n\n (a) income to which this section applies is paid or credited to the non‑resident by whom it is derived by a person who, or by persons each of whom, is a non‑resident; and\n\n (b) the royalty of which the income consists is, in part only, an outgoing incurred by the person or persons by whom it is paid or credited in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;\n\nsubsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is an outgoing so incurred.\n\n (5) In subsection (6), a reference to a relevant person is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.\n\n (6) For the purposes of paragraphs (1)(a) and (3)(b), where:\n\n (a) royalty is paid or credited, after the commencement of this subsection, to a non‑resident by a relevant person carrying on business in a country outside Australia; and\n\n (b) the royalty or a part of the royalty:\n\n (i) is incurred by the relevant person in gaining or producing income that is derived by the relevant person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country or is incurred by the relevant person for the purpose of gaining or producing income to be so derived; or\n\n (ii) is incurred by the relevant person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the relevant person otherwise than in so carrying on business at or through a permanent establishment of the relevant person in a country outside Australia;\n\nthe royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the relevant person in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country.\n\n (7) For the purposes of paragraphs (1)(b) and (4)(b), where:\n\n (a) royalty is paid or credited, after the commencement of this subsection, to a non‑resident by another person or other persons (in this subsection referred to as the payer), being:\n\n (i) another person who is carrying on business in Australia and is a non‑resident; or\n\n (ii) other persons who are carrying on business in Australia and each of whom is a non‑resident; and\n\n (b) the royalty or a part of the royalty:\n\n (i) is incurred by the payer in gaining or producing income that is derived by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia or is incurred by the payer for the purpose of gaining or producing income to be so derived; or\n\n (ii) is incurred by the payer in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the payer in so carrying on business at or through a permanent establishment of the payer in Australia;\n\nthe royalty or the part of the royalty, as the case may be, is an outgoing incurred by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia.\n\n6CA  Source of natural resource income derived by a non‑resident\n\ndouble tax agreement means an agreement within the meaning of the International Tax Agreements Act 1953.\n\nnatural resource income means income that:\n\n (a) is derived by a non‑resident; and\n\n (b) is calculated, in whole or in part, by reference to the value or quantity of natural resources produced, recovered or produced and recovered, in Australia after 7 April 1986;\n\n (c) income that consists of royalty; or\n\n (d) income where:\n\n (i) on 7 April 1986, the non‑resident had a continuing entitlement to receive the income;\n\n (ii) the income was derived by the non‑resident pursuant to that continuing entitlement;\n\n (iii) the non‑resident was, at 5 o’clock in the afternoon, by standard time in the Australian Capital Territory on 7 April 1986, a resident, within the meaning of a double tax agreement, of a foreign country in respect of which the double tax agreement was in force;\n\n (iv) before 8 April 1986, the Commissioner had given a statement in writing to the effect that income tax would be levied on 50% of income included in a specified class of income; and\n\n (v) the income is included in that class of income.\n\n (2) For the purposes of Divisions 5 and 6 of Part III, natural resource income shall be deemed to be attributable to sources in Australia.\n\n (3) For the purposes of section 255 of this Act and sections 6‑5 and 6‑10 of the Income Tax Assessment Act 1997, natural resource income shall be deemed to have been derived from a source in Australia.\n\n","sortOrder":13},{"sectionNumber":"6D","sectionType":"section","heading":"Some tax offsets under the 1997 Assessment Act are treated as credits","content":"6D  Some tax offsets under the 1997 Assessment Act are treated as credits\n\n  A tax offset under a provision of the Income Tax Assessment Act 1997 that corresponds to a provision of this Act that provides for a credit is taken to be a credit for the purposes of this Act.\n\nNote: All other tax offsets under the Income Tax Assessment Act 1997 are treated as rebates: see section 160ADA.\n\n","sortOrder":14},{"sectionNumber":"6F","sectionType":"section","heading":"Dual resident investment company","content":"6F  Dual resident investment company\n\n (1) For the purposes of this Act, a company (other than a company in the capacity of trustee) is a dual resident investment company in relation to a year of income if:\n\n (a) at any time during the year of income the company is a resident of Australia; and\n\n (b) the company is liable to tax in a foreign country in respect of some or all of the income or profits of the company of the year of income (or would be so liable if the company derived income or profits) because:\n\n (i) the company is treated as a resident of that country for the purposes of the relevant law of that country; or\n\n (ii) the company is treated as domiciled in that country for the purposes of the relevant law of that country; or\n\n (iii) the company’s management and control is treated as being located in that country for the purposes of the relevant law of that country; and\n\n (c) at any time during the year of income when the company was in existence:\n\n (i) the company was not carrying on business with a reasonable view to profit; or\n\n (ii) a substantial purpose of the company (whether or not stated in its constituent document) was to acquire or hold shares, securities or other investments in related companies (whether directly or indirectly through one or more companies, partnerships or trusts).\n\n (2) For the purposes of this section, companies are related to each other if they are controlled (as defined by subsection (3)) by the same person, either alone or together with associates (whether or not the same associates are involved in relation to each company).\n\n (3) For the purposes of this section, a person, either alone or together with associates, controls a company if:\n\n (a) the person, either alone or together with associates:\n\n (i) controls or is capable of controlling, either directly or through one or more interposed companies, partnerships or trusts, at least 50% of the maximum number of votes that might be cast at a general meeting of the company; or\n\n (ii) is beneficially entitled to receive, directly or indirectly, at least 50% of any dividends that are or might be paid, or of any distribution of capital that is or may be made, by the company; or\n\n (iii) is capable, under a scheme, of gaining such control or such an entitlement; or\n\n (b) the company or its directors are accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the person, either alone or together with associates.\n\n (4) Section 159GZH applies for the purposes of this section in determining the beneficial entitlement of a person to receive indirectly the whole or a particular fraction of a dividend that is, or might be, paid by a company or of a distribution of capital of a company.\n\nassociate has the same meaning as in section 318.\n\nscheme means:\n\n (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n (b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.\n\n","sortOrder":15},{"sectionNumber":"6H","sectionType":"section","heading":"Recognised small credit unions, recognised medium credit unions and recognised large credit unions","content":"6H  Recognised small credit unions, recognised medium credit unions and recognised large credit unions\n\nRecognised small credit union in relation to a year of income\n\n (1) For the purposes of this Act, a credit union is a recognised small credit union in relation to a year of income if:\n\n (a) both:\n\n (i) the year of income is the 1994‑95 year of income; and\n\n (ii) either:\n\n (A) the credit union is not a designated credit union; or\n\n (B) the credit union’s notional taxable income of the year of income is less than $50,000; or\n\n (b) both:\n\n (i) the year of income is the 1995‑96 year of income or a later year of income; and\n\n (ii) the credit union’s notional taxable income of the year of income is less than $50,000.\n\nRecognised medium credit union in relation to a year of income\n\n (2) For the purposes of this Act, a credit union is a recognised medium credit union in relation to a year of income if:\n\n (a) the year of income is the 1994‑95 year of income or a later year of income; and\n\n (b) the credit union is not a recognised small credit union in relation to the year of income; and\n\n (c) the credit union’s notional taxable income of the year of income is less than $150,000.\n\nRecognised large credit union in relation to a year of income\n\n (3) For the purposes of this Act, a credit union is a recognised large credit union in relation to a year of income if:\n\n (a) the year of income is the 1994‑95 year of income or a later year of income; and\n\n (b) the credit union is neither:\n\n (i) a recognised small credit union in relation to the year of income; nor\n\n (ii) a recognised medium credit union in relation to the year of income.\n\nDesignated credit union\n\n (4) For the purposes of this section, a credit union is a designated credit union if:\n\n (a) it was in existence on 1 July 1993; and\n\n (b) assuming that its accounts for the last accounting period that ended before 1 July 1993 had been prepared in accordance with generally accepted accounting principles—the amount that would have been shown in those accounts as the gross value of its assets as at the end of that accounting period is more than $30 million.\n\nNotional taxable income\n\n (5) For the purposes of this section, the notional taxable income of a credit union of a year of income is the amount that would be its taxable income of the year of income if:\n\n (a) section 23G did not apply to income derived by it in the 1994‑95 year of income or any later year of income; and\n\n (b) Division 9 of Part III had not been enacted.\n\naccounting period, in relation to a credit union, means a period at the end of which the balance of its accounts is struck.\n\naccounts, in relation to a credit union, means accounts prepared for the purposes of reporting annually to the shareholders in the credit union.\n\ncredit union means a credit union as defined in section 23G, except a life assurance company.\n\n","sortOrder":16},{"sectionNumber":"7B","sectionType":"section","heading":"Application of the Criminal Code","content":"7B  Application of the Criminal Code\n\n","sortOrder":17},{"sectionNumber":"Part 2","sectionType":"part","heading":"of the Criminal Code applies to all offences against this Act.","content":"  Chapter 2 of the Criminal Code applies to all offences against this Act.\n\nNote: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.\n\nPart II—Administration\n\n \n\n8  Commissioner\n\n  The Commissioner shall have the general administration of this Act.\n\nNote: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.\n\n14  Annual report\n\n (1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act, including any breaches or evasions of this Act of which the Commissioner has notice.\n\n (2) The Minister shall cause a copy of a report furnished to him or her under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which he or she receives the report.\n\n (3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.\n\nPart III—Liability to taxation\n\n","sortOrder":18},{"sectionNumber":"Div 1","sectionType":"division","heading":"General","content":"Division 1—General\n\n","sortOrder":19},{"sectionNumber":"18","sectionType":"section","heading":"Accounting period","content":"18  Accounting period\n\n  Any person may, with the leave of the Commissioner, adopt an accounting period being the 12 months ending on some date other than 30 June. For the purposes of this Act, the person’s accounting period in each succeeding year shall end on the corresponding date of that year, unless:\n\n (a) with the leave of the Commissioner some other date is adopted; or\n\n (b) the accounting period ends earlier under section 18A.\n\n","sortOrder":20},{"sectionNumber":"18A","sectionType":"section","heading":"Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs","content":"18A  Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs\n\n (1) If a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP on a particular day:\n\n (a) the accounting period during which that day occurs (the first accounting period) is taken to have ended immediately before that day; and\n\n (b) another accounting period is taken to have commenced at the beginning of that day.\n\nThe other accounting period ends on the day on which the first accounting period would have ended if this section did not apply.\n\nExample: A partnership whose accounting periods ended on 30 June becomes a VCLP, an ESVCLP on 1 October 2002, and ceases to be a VCLP, an ESVCLP on 1 April 2003.\n\n The effect of becoming a VCLP, an ESVCLP: the accounting period that commenced on 1 July 2002 is taken under this section to end on 30 September 2002, and a second accounting period commences on 1 October 2002. The second accounting period is scheduled to end on 30 June 2003.\n\n The effect of ceasing to be a VCLP, an ESVCLP: the second accounting period is now taken under this section to end on 31 March 2003, and a third accounting period commences on 1 April 2003. The third accounting period is to end on 30 June 2003.\n\n (2) This section does not apply in relation to a partnership becoming, or ceasing to be, a VCLP, an ESVCLP, an AFOF or a VCMP on the day on which an accounting period commences.\n\n","sortOrder":21},{"sectionNumber":"21","sectionType":"section","heading":"Where consideration not in cash","content":"21  Where consideration not in cash\n\n (1) Where, upon any transaction, any consideration is paid or given otherwise than in cash, the money value of that consideration shall, for the purposes of this Act, be deemed to have been paid or given.\n\n (2) This section has effect subject to section 21A.\n\n","sortOrder":22},{"sectionNumber":"21A","sectionType":"section","heading":"Non‑cash business benefits","content":"21A  Non‑cash business benefits\n\n (1) For the purposes of this Act, in determining the income derived by a taxpayer, a non‑cash business benefit that is not convertible to cash shall be treated as if it were convertible to cash.\n\n (2) For the purposes of this Act, if a non‑cash business benefit (whether or not convertible to cash) is income derived by a taxpayer:\n\n (a) the benefit shall be brought into account at its arm’s length value reduced by the recipient’s contribution (if any); and\n\n (b) if the benefit is not convertible to cash—in determining the arm’s length value of the benefit, any conditions that would prevent or restrict the conversion of the benefit to cash shall be disregarded.\n\n (a) a non‑cash business benefit is income derived by a taxpayer in a year of income; and\n\n (b) if the taxpayer had, at the time the benefit was provided, incurred and paid unreimbursed expenditure in respect of the provision of the benefit equal to the amount of the arm’s length value of the benefit—a once‑only deduction would, or would but for Subdivisions F, GA and G of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the taxpayer in respect of a percentage (in this subsection called the deductible percentage) of the expenditure;\n\nthe amount that, apart from this subsection, would be applicable under subsection (2) of this section in respect of the benefit shall be reduced by the deductible percentage.\n\n (a) a non‑cash business benefit is income derived by a taxpayer in a year of income; and\n\n (b) a percentage (in this subsection called the non‑deductible entertainment percentage) of any expenditure incurred by the provider in respect of the provision of the benefit is non‑deductible entertainment expenditure;\n\nthe amount that, apart from this subsection, would be applicable under subsection (2) in respect of the benefit shall be reduced by the non‑deductible entertainment percentage.\n\narm’s length value, in relation to a non‑cash business benefit, means:\n\n (a) the amount that the recipient could reasonably be expected to have been required to pay to obtain the benefit from the provider under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction; or\n\n (b) if such an amount cannot be practically determined—such amount as the Commissioner considers reasonable.\n\nincome derived by a taxpayer means income derived by a taxpayer in carrying on a business for the purpose of gaining or producing assessable income.\n\nnon‑cash business benefit means property or services provided after 31 August 1988:\n\n (a) wholly or partly in respect of a business relationship; or\n\n (b) wholly or partly for or in relation directly or indirectly to a business relationship.\n\nnon‑deductible entertainment expenditure means expenditure to the extent to which:\n\n (a) section 32‑5 of the Income Tax Assessment Act 1997 applies to the expenditure; and\n\n (b) but for that section, the expenditure would be deductible under section 8‑1 of the Income Tax Assessment Act 1997.\n\nprovide:\n\n (a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise); and\n\n (b) in relation to services—includes allow, confer, give, grant or perform.\n\nrecipient’s contribution, in relation to a non‑cash business benefit, means the amount of any consideration paid to the provider by the recipient in respect of the provision of the benefit, reduced by the amount of any reimbursement paid to the recipient in respect of that consideration.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a right, benefit, privilege, service or facility that is, or is to be, provided under:\n\n (a) an arrangement for or in relation to:\n\n (i) the performance of work (including work of a professional nature), whether with or without the provision of property;\n\n (ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or\n\n (iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction;\n\n (b) a contract of insurance; or\n\n (c) an arrangement for or in relation to the lending of money.\n\n (6) Notwithstanding section 21, the consideration referred to in the definition of recipient’s contribution in subsection (5) of this section is consideration in money.\n\n (7) This section does not apply to an ESS interest (within the meaning of the Income Tax Assessment Act 1997) to which Subdivision 83A‑B or 83A‑C of that Act (about employee share schemes) applies.\n\n23AA  Income of persons connected with certain projects of United States Government\n\n (1) In this section, unless the contrary intention appears:\n\napproved project means the establishment, maintenance or operation of the North West Cape naval communication station, of the Joint Defence Space Research Facility, of the Sparta project, of the Joint Defence Space Communications Station or of a Force Posture Initiative.\n\ncivilian accompanying the United States Forces means a person (not being a member of the United States Forces, an Australian citizen or a person ordinarily resident in Australia) who:\n\n (a) is an employee:\n\n (i) of the United States Forces; or\n\n (ii) of, or of a body conducting, a club or other facility established for the benefit or welfare of members of the United States Forces or of persons accompanying those Forces and which is recognized by the Government of the United States of America as a non‑appropriated fund activity; or\n\n (b) is serving with an organization that, with the approval of the Government of the Commonwealth, accompanies the United States Forces in Australia.\n\ndependant, in relation to a person, means:\n\n (a) the spouse of that person; or\n\n (b) a relative, other than the spouse, of that person who is wholly or mainly dependent for support on that person;\n\nbut, in the case of a person who, immediately before becoming such a spouse or relative, was ordinarily resident in Australia, does not include that person so long as that person continues to be ordinarily resident in Australia.\n\nForce Posture Agreement means the Force Posture Agreement between the Government of Australia and the Government of the United States of America done at Sydney on 12 August 2014, as amended and in force for Australia from time to time.\n\nNote: The Treaty could in 2014 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\nForce Posture Initiative has the same meaning as in the Force Posture Agreement.\n\nNote: As well as some announced initiatives, this includes future initiatives that Australia and the United States mutually decide to be Force Posture Initiatives for the purposes of that Agreement.\n\nforeign contractor means a person who is a party to a prescribed contract and is not:\n\n (a) a company incorporated in Australia;\n\n (b) an Australian citizen; or\n\n (c) a person, other than a company, who is ordinarily resident in Australia.\n\nforeign employee means a person who:\n\n (a) is an employee of a foreign contractor; or\n\n (b) is a director of a company that is a foreign contractor;\n\nand is not an Australian citizen or ordinarily resident in Australia.\n\nprescribed contract means:\n\n (a) a contract to which the Government of the United States of America is a party in connexion with an approved project; or\n\n (b) a contract made for purposes connected with the performance of a contract referred to in paragraph (a).\n\nprescribed purposes means:\n\n (a) in relation to a foreign contractor or foreign employee—purposes relating to the performance of a prescribed contract;\n\n (aa) in relation to a United States employee—purposes relating to an approved project; and\n\n (b) in relation to a member of the United States Forces or a civilian accompanying the United States Forces—purposes relating to the carrying on of activities agreed upon between the Government of the Commonwealth and the Government of the United States of America.\n\nthe Joint Defence Space Communications Station means the undertaking the establishment of which is provided for by an agreement dated 10 November 1969 between the Government of the Commonwealth and the Government of the United States of America.\n\nthe Joint Defence Space Research Facility means the undertaking the establishment of which is provided for by an agreement dated 9 December 1966 between the Government of the Commonwealth and the Government of the United States of America.\n\nthe North West Cape naval communication station means the naval communication station the establishment of which is provided for by the agreement approved by the United States Naval Communication Station Agreement Act 1963.\n\nthe Sparta project means the undertaking the establishment of which is provided for by a memorandum of arrangement dated 30 March 1966 between the Government of the Commonwealth, the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America.\n\nthe United States Forces means the armed forces of the Government of the United States of America.\n\nUnited States employee means a person who is employed by the Government of the United States of America and is not:\n\n (a) a member of the United States Forces;\n\n (b) a civilian accompanying the United States Forces;\n\n (c) an Australian citizen; or\n\n (d) a person ordinarily resident in Australia.\n\n (2) For the purposes of this section, a foreign contractor, foreign employee or United States employee who is in Australia, or is carrying on business in Australia, solely for prescribed purposes does not cease to be in Australia solely for those purposes, or to be carrying on business in Australia solely for those purposes, by reason of anything undertaken or done by him or her in connexion with an undertaking in Australia of the Government of the United States of America, other than an approved project, agreed upon between the Government of the Commonwealth and the Government of the United States of America.\n\n (3) Where a person:\n\n (a) has been in Australia, or has carried on business in Australia, solely for prescribed purposes during a period when the person was a foreign contractor or foreign employee;\n\n (b) has been in Australia solely for prescribed purposes during a period when the person was a member of the United States Forces, a civilian accompanying the United States Forces or a United States employee; or\n\n (c) has been in Australia during a period when the person was a dependant of such a contractor, employee, member or civilian who was in Australia solely for prescribed purposes;\n\nthat person shall, for the purposes of the provisions of this Act other than Subdivision A of Division 17, be deemed not to have been a resident of Australia during that period, and the presence of that person in Australia during that period shall be disregarded in determining, for the purposes of those provisions, whether the person was a resident of Australia at any other time.\n\n (4) Subsection (3) does not apply in respect of, or of a part of, a period when a person was, or was a dependant of, a foreign contractor, a foreign employee, a civilian accompanying the United States Forces or a United States employee if the person:\n\n (a) being a company—was not a domestic corporation for the purposes of the law of the United States of America relating to income tax; or\n\n (b) not being a company—was not a resident of the United States of America for the purposes of that law or a citizen of the United States of America;\n\nduring that period or that part of that period, as the case may be.\n\n (5) Where:\n\n (a) a foreign contractor or a foreign employee has derived income wholly and exclusively from, or from employment in connexion with, the performance in Australia of a prescribed contract;\n\n (b) the income is not exempt from income tax imposed by Chapter One of Subtitle A of the Internal Revenue Code of 1986 of the United States of America; and\n\n (c) the foreign contractor or foreign employee was, at the time the income was derived, in Australia, or carrying on business in Australia, solely for prescribed purposes;\n\nthe income shall, for the purposes of this Act, be deemed to have been derived from sources out of Australia.\n\n (a) a person has derived income in respect of service as a civilian accompanying the United States Forces or as a United States employee during a period when the person was in Australia solely for prescribed purposes; and\n\n (b) the income is not exempt from income tax imposed by Chapter One of Subtitle A of the Internal Revenue Code of 1986 of the United States of America;\n\nthe income shall, for the purposes of this Act, be deemed to have been derived from sources out of Australia.\n\n23AB  Income of certain persons serving with an armed force under the control of the United Nations\n\nprescribed taxpayer means a taxpayer who, being a resident of Australia, is, or is included in a class of persons that is, prescribed by the regulations for the purposes of this section.\n\ntax deductions unapplied, in relation to a deceased person, means any amounts withheld under Part 2‑5 in Schedule 1 to the Taxation Administration Act 1953 from work and income support related withholding payments and benefits derived by the deceased person in respect of United Nations service:\n\n (a) that have not been credited in payment of income tax; and\n\n (b) in respect of which a payment has not been made by the Commissioner.\n\nthe prescribed area has the same meaning as in section 79A.\n\nUnited Nations service means service, other than service as a member of the Defence Force, performed, at the direction or with the approval of the Commonwealth, outside Australia with an armed force under the control of the United Nations, at a time when the person performing the service was a prescribed taxpayer.\n\n (2) The regulations may prescribe a person or a class of persons for the purposes of this section but shall not so prescribe a person or class of persons unless the salary, wages and allowances received by the person or by all the persons in that class, as the case may be, in respect of his, her or their United Nations service are paid, given or granted by the Commonwealth or by the United Nations for and on behalf of the Commonwealth.\n\n (3) A succeeding provision of this section does not apply in relation to a person if the regulations provide that that provision does not apply in relation to that person or in relation to a class of persons in which that person is included.\n\n (4) Subsection 12(2) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to regulations made for the purposes of subsection (2) or (3) of this section.\n\n (5) Where:\n\n (a) a payment of compensation under the Safety, Rehabilitation and Compensation Act 1988 is made in respect of the incapacity, impairment or death of a taxpayer; and\n\n (b) the incapacity, impairment or death of the taxpayer resulted from an occurrence that happened during the performance by the taxpayer of United Nations service; and\n\n (c) if the taxpayer had, at the time of the happening of the occurrence, been a member of the Defence Force rendering continuous full‑time service outside Australia while the taxpayer was allotted for duty in an operational area described in item 4, 5, 6, 7 8, 9, 10, 11, 12, 13 or 14 of Column 1 of Schedule 2 to the Veterans’ Entitlements Act 1986, the Commonwealth would be liable to pay a pension under that Act in respect of the incapacity, impairment or death of the taxpayer;\n\nthe payment of compensation is exempt from income tax.\n\n (6) For the purposes of section 15‑2 of the Income Tax Assessment Act 1997, the total value of all allowances, gratuities, compensations, benefits, bonuses and premiums (in this subsection referred to as living allowances) allowed, given or granted in meals, sustenance or the use of premises or quarters (including payment in lieu of one or more of those living allowances) to a taxpayer in respect of, or for or in relation directly or indirectly to, United Nations service shall be deemed to be an amount calculated at the rate of $2 for each week of that service in which any of those living allowances were so allowed, given or granted, or in which payment in lieu of any of those living allowances was made, to the taxpayer.\n\n (7) Subject to subsections (8), (8A) and (9A) and subsection 79B(4), a taxpayer is entitled to a rebate of tax in his or her assessment in respect of income of a year of income in which he or she has performed United Nations service and derived income by way of salary, wages or other allowances in respect of that service. The amount of the rebate is:\n\n (a) where the total period of that service performed by the taxpayer during the year of income is more than one‑half of the year of income or where the taxpayer dies while performing that service during the year of income—an amount equal to the sum of:\n\n (i) $338; and\n\n (ii) the amount worked out using subsection (7A); or\n\n (b) in any other case—such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this subsection if paragraph (a) had applied to him or her in respect of the year of income.\n\n (7A) For the purposes of subparagraph (7)(a)(ii), the amount is equal to 50% of the sum of the following rebates (if any) in respect of the year of income:\n\n (a) any tax offset to which the taxpayer is entitled under Subdivision 61‑A of the Income Tax Assessment Act 1997;\n\n (b) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑A of the Income Tax Assessment Act 1997.\n\n (8) For the purposes of subsection (7), but subject to subsection (8A), the total period of United Nations service of a taxpayer in any year of income shall be deemed to include any period in that year of income during which the taxpayer has resided, or has actually been, in the prescribed area.\n\n (8A) For the purposes of subsection (7), United Nations service does not include any period of service of the taxpayer in respect of which an exemption from income tax applies under section 23AG.\n\n (9) Where a rebate is allowable under subsection (7) in the assessment of a taxpayer in respect of income of a year of income and, but for this subsection, a rebate of a lesser amount would be allowable in that assessment under section 79A, a rebate under section 79A is not allowable in that assessment.\n\n (9A) Where a rebate is allowable under section 79A in the assessment of a taxpayer in respect of income of a year of income and, but for this subsection, a rebate of the same or a lesser amount would be allowable in that assessment under subsection (7), a rebate under subsection (7) is not allowable in that assessment.\n\n (9B) Subsection 79B(4) shall be disregarded in determining for the purposes of subsections (9) and (9A) of this section the amount of a rebate allowable to a taxpayer under subsection (7) of this section or under section 79A.\n\n (a) the trustee of the estate of a deceased person who has performed United Nations service is liable to pay income tax, in respect of a year of income, upon income that consists of or includes salary, wages or allowances derived by the deceased person in respect of that service; or\n\n (b) the death of the person resulted from an occurrence that happened during that service; and\n\n (c) if the person had, at the time of the happening of the occurrence, been a member of the Defence Force rendering continuous full‑time service outside Australia while the taxpayer was allotted for duty in an operational area described in item 4, 5, 6, 7 or 8 of Column 1 of Schedule 2 to the Veterans’ Entitlements Act 1986, the Commonwealth would be liable to pay a pension under that Act in respect of the death of the person;\n\nthe trustee is, by force of this subsection, released from the payment of so much of that tax as remains after deducting any tax deductions unapplied:\n\n (d) if the assessable income of the deceased person of the year of income consists solely of the salary, wages or allowances derived in respect of that service—from the amount of income tax so payable by the trustee; or\n\n (e) if the assessable income of the deceased person of the year of income includes income other than the salary, wages or allowances derived in respect of that service:\n\n (i) from the amount of income tax so payable by the trustee; or\n\n (ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of the salary, wages or allowances so derived in the assessable income of the deceased person of the year of income;\n\n  whichever is the less.\n\n (11) Nothing in subsection (10) shall be construed as authorizing or requiring the Commissioner to refund any amount paid as or for income tax by or on behalf of the deceased person or the trustee of his or her estate.\n\n23AD  Exemption of pay and allowances of Defence Force members performing certain overseas duty\n\nRequirements for exemption\n\n (1) The pay and allowances earned by a person serving as a member of the Defence Force are exempt from tax if:\n\n (a) they are earned while there is in force a certificate in writing issued by the Chief of the Defence Force to the effect that the person is on eligible duty with a specified organisation in a specified area outside Australia; and\n\n (b) the eligible duty is not as, or under, an attaché at an Australian embassy or legation.\n\nEligible duty\n\n (2) The regulations may declare that duty with a specified organisation, in a specified area outside Australia and after a specified day, is eligible duty for the purposes of this section.\n\nWhere paragraph (1)(a) certificate in force\n\n (3) A certificate under paragraph (1)(a):\n\n (a) comes into force at the later of:\n\n (i) the time specified in the certificate (which may be before the time when it is issued, but not before the end of the specified day under the regulations); and\n\n (ii) the time when the person arrives for duty in the specified area concerned; and\n\n (b) subject to paragraph (c), continues in force until the earliest of:\n\n (i) the time of the person’s departure from the specified area; and\n\n (ii) the time when, in accordance with a certificate of revocation signed by the Chief of the Defence Force, it ceases to be in force; and\n\n (iii) any time prescribed by the regulations in relation to the eligible duty for the purposes of this subparagraph; and\n\n (c) is in force during any period of hospital treatment resulting from an illness contracted, or injuries sustained, during the person’s eligible duty.\n\nReview of paragraph (1)(a) certificate\n\n (4) An application may be made to the Tribunal for review of a decision of the Chief of the Defence Force under paragraph (1)(a).\n\nDelegation of paragraph (1)(a) power\n\n (5) The Chief of the Defence Force may, by signed instrument, delegate to an officer of the Defence Force the power conferred by paragraph (1)(a).\n\nRevocation certificate is legislative instrument\n\n (6) A certificate of revocation referred to in subparagraph (3)(b)(ii) is a legislative instrument.\n\n23AF  Exemption of certain income derived in respect of approved overseas projects\n\n (1) Where a taxpayer, being a natural person, has been engaged on qualifying service on a particular approved project for a continuous period of not less than 91 days, any eligible foreign remuneration derived by the person that is attributable to that qualifying service is exempt from tax.\n\n (3) Subject to subsections (4) and (5), a person shall be taken for the purposes of this section to be engaged on qualifying service on an approved project during any period during which:\n\n (a) the person is outside Australia and is engaged in the performance of personal services in connection with the approved project;\n\n (b) the person is travelling between Australia and the site of the approved project;\n\n (c) by reason of an incapacity for work due to accident or illness occurring while the person was, by virtue of paragraph (a) or (b), to be taken to be engaged on qualifying service on the approved project, the person is absent from work; or\n\n (d) the person is on eligible leave, being leave that accrued in respect of a period during which the person was, by virtue of any of the preceding paragraphs, to be taken to be engaged on qualifying service on the approved project.\n\n (4) A person shall not be taken to have been engaged on qualifying service on a particular approved project while the person was travelling between Australia and the site of the approved project unless the Commissioner is satisfied that the time taken for the journey is reasonable.\n\n (5) A person shall not be taken to have been engaged on qualifying service on a particular approved project by virtue of paragraph (3)(c) during a period of incapacity for work unless the person is taken to have been engaged on qualifying service on that approved project by virtue of paragraph (3)(a), (b) or (d) during a period that commenced immediately after the incapacity ceased.\n\n (a) a person was engaged on qualifying service on a particular approved project; and\n\n (b) due to unforeseen circumstances, the person ceased to be engaged on qualifying service on that approved project;\n\nthe period during which the person is to be taken to have been engaged on qualifying service on that approved project shall, except for the purpose of determining whether income derived by the person is eligible foreign remuneration, be taken to include the additional period after the person ceased to be engaged on qualifying service on that approved project during which the person would, in the opinion of the Commissioner, have continued to be engaged on qualifying service on that approved project but for those unforeseen circumstances.\n\n (7) Where:\n\n (a) a person (in this subsection referred to as the original person) was engaged on qualifying service on a particular approved project;\n\n (b) due to unforeseen circumstances, the original person ceased to be engaged on qualifying service on that approved project; and\n\n (c) as soon as practicable after the time when the original person ceased to be engaged on qualifying service on that approved project, another person (in this subsection referred to as the substituted person) commenced to be engaged on qualifying service on that approved project in lieu of the original person;\n\nthe period during which the substituted person is to be taken to have been engaged on qualifying service on that approved project shall, except for the purpose of determining whether income derived by the substituted person is eligible foreign remuneration, be taken to include a period that ended immediately before the substituted person commenced to be engaged on qualifying service on that approved project in lieu of the original person and was of the same duration as the continuous period during which the original person was, immediately before the original person ceased to be engaged on qualifying service on that approved project, taken to have been engaged on qualifying service on that approved project.\n\n (a) during the period (in this subsection referred to as the total project period) commencing at the time when a person was first engaged on qualifying service on an approved project and ending at the time when the person was last engaged on qualifying service on that approved project, the person was in Australia during a period or periods (in this subsection referred to as the intervening period or intervening periods) during which the person was not engaged on qualifying service on that approved project;\n\n (b) the total number of days in the intervening period or intervening periods does not exceed one‑sixth of the total number of days during the total project period during which the person was engaged on qualifying service on the approved project; and\n\n (c) at all times during the total project period, the person was engaged on qualifying service on the approved project or was in Australia;\n\nthe periods during the total project period during which the person was engaged on qualifying service on the approved project shall together be taken to constitute a continuous period during which the person was engaged on qualifying service on the approved project.\n\n (9) Where, immediately before a person commences to take eligible leave, leave of the same kind as the eligible leave has accrued in relation to the person but has not been used and that unused leave consists of:\n\n (a) leave that accrued in respect of a period or periods when the person was engaged on qualifying service on an approved project and leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project;\n\n (b) leave that accrued in respect of 2 or more periods when the person was engaged on qualifying service on 2 or more different approved projects; or\n\n (c) leave that accrued in respect of 2 or more periods when the person was engaged on qualifying service on 2 or more different approved projects and leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project;\n\nthe following provisions apply for the purposes of determining the extent to which the eligible leave taken by the person was eligible leave that accrued in respect of a period when the person was engaged on qualifying service on a particular approved project:\n\n (d) in a case to which paragraph (a) applies—the person shall be deemed first to have taken leave that accrued in respect of the period when the person was engaged on qualifying service on the approved project referred to in that paragraph;\n\n (e) in a case to which paragraph (b) applies—the leave shall be deemed to have been taken in the order that is reverse to the order in which it accrued;\n\n (f) in a case to which paragraph (c) applies:\n\n (i) the person shall be deemed not to have taken any of the leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project until the person had taken leave for a number of days equal to the number of days of leave referred to in that paragraph that had accrued in respect of periods when the person was engaged on qualifying service on approved projects; and\n\n (ii) the leave that had accrued in respect of periods when the person was engaged in qualifying service on approved projects shall be deemed to have been taken by the person in the order that is reverse to the order in which that leave accrued.\n\n (10) Where the amount of income derived by a person that:\n\n (a) is attributable to qualifying service on an approved project; and\n\n (b) would, apart from this subsection, be eligible foreign remuneration;\n\nexceeds the amount of income that the Commissioner considers would be reasonable remuneration in respect of that qualifying service, the amount of the excess is not eligible foreign remuneration for the purposes of this section.\n\n (11) Where the Trade Minister is satisfied that the undertaking of an eligible project that was commenced, or is proposed to be commenced, after 19 August 1980 is, or will be, in the national interest, that Minister may, by writing signed by that Minister, approve that eligible project for the purposes of this section.\n\n (12) The Trade Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by that Minister, delegate to a person that Minister’s power under subsection (11).\n\n (13) The power so delegated, when exercised by the delegate shall, for the purposes of this section, be deemed to have been exercised by the Trade Minister.\n\n (14) A delegation under subsection (12) does not prevent the exercise of a power by the Trade Minister.\n\n (15) Where:\n\n (a) a person has derived eligible foreign remuneration during a year of income; and\n\n (b) at the time of making an assessment in respect of income of the person of the year of income, the Commissioner is of the opinion that, at a later time, circumstances will exist by reason of which that eligible foreign remuneration will be exempt from tax by virtue of this section;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\n (16) Where, in the making of an assessment, this section has been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time and the Commissioner, after making the assessment, becomes satisfied that that circumstance will not exist, then, notwithstanding anything contained in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that this section shall be taken always to have applied on the basis that that circumstance did not exist.\n\n (17) For the purposes of this section, income is excluded income if:\n\n (a) the income is income to which section 23AG applies; or\n\n (aa) the income is a payment, consideration or amount that:\n\n (i) is included in assessable income under Division 82, section 83‑295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or\n\n (ii) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or\n\n (iii) is mentioned in paragraph 82‑135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or\n\n (iv) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295‑200 of the Income Tax Assessment Act 1997; or\n\n (b) the income is derived from sources in a country other than Australia and:\n\n (i) is exempt from income tax in that country; and\n\n (ii) would not be exempt from income tax in that country apart from the operation of an agreement applying to Australia and that other country relating to the avoidance of double taxation or of a law of that other country giving effect to such an agreement; or\n\n (c) the income consists of:\n\n (i) payments in lieu of long service leave; or\n\n (ii) payments by way of superannuation or pension.\n\n (17A) If the income of a taxpayer of a year of income consists of an amount that is exempt from tax under this section (in this section called the exempt amount) and other income, the amount of tax (if any) payable in respect of the other income is calculated using the formula:\n\n  ![Start formula start fraction Notional gross tax over Notional gross taxable income end fraction times Other taxable income end formula](image.002.png)\n\nNotional gross tax means the number of whole dollars in the amount of income tax that would be assessed under this Act in respect of the taxpayer’s taxable income of the year of income if:\n\n (a) the exempt amount were not exempt income; and\n\n (aa) if the exempt amount is a payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997—the exempt amount (excluding any part of that amount that represented contributions made by the taxpayer) were assessable income of the taxpayer; and\n\n (b) the taxpayer were not entitled to any rebate of tax.\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\nOther taxable income means the amount (if any) remaining after deducting from so much of the other income as is assessable income:\n\n (d) any deductions allowable to the taxpayer in relation to the year of income that relate exclusively to that assessable income; and\n\n (e) so much of any other deductions (other than apportionable deductions) allowable to the taxpayer in relation to the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income; and\n\n (f) the amount calculated using the formula in subsection (17B).\n\n (17B) The formula referred to in paragraph (17A)(f) is:\n\n  ![Start formula Apportionable deductions times open bracket start fraction Other taxable income over Apportionable deductions plus Notional gross taxable income end fraction close bracket end formula](image.003.png)\n\nApportionable deductions means the number of whole dollars in the apportionable deductions allowable to the taxpayer in relation to the year of income.\n\nOther taxable income means the amount that, apart from paragraph (17A)(f), would be represented by the component Other taxable income in subsection (17A).\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\n (17C) Subsection (17A) applies to a taxpayer in respect of income of a year of income as if any payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997 in relation to qualifying service that was made in respect of the taxpayer during that year of income were income of the taxpayer of that year of income that is exempt from tax under this section.\n\n (18) In this section, unless the contrary intention appears:\n\napproved project means a project in respect of which there is in force an approval granted under subsection (11).\n\neligible contractor means:\n\n (a) a resident of Australia;\n\n (b) the Commonwealth, a State, a Territory, the government of a country other than Australia or an authority of the Commonwealth, of a State, of a Territory or of the government of a country other than Australia;\n\n (c) an organization:\n\n (i) of which Australia and a country or countries other than Australia are members; or\n\n (ii) that is constituted by a person or persons representing Australia and a person or persons representing a country or countries other than Australia; or\n\n (d) an agency of an organization to which paragraph (c) applies.\n\neligible foreign remuneration, in relation to a person, means income (not being excluded income) that is derived by the person at a time when the person is a resident, being:\n\n (a) income consisting of salary, wages, commission, bonuses or allowances, or of amounts included in a person’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes), derived by the person in his or her capacity as an employee of an eligible contractor; or\n\n (b) income, or amounts included in a person’s assessable income under that Division, derived by the person under a contract with an eligible contractor, being a contract that is wholly or substantially for the personal services of the person;\n\nthat is directly attributable to qualifying service by the person on an approved project and includes any payments received in lieu of eligible leave that accrued in respect of a period during which the person was a resident and was engaged on qualifying service on an approved project.\n\neligible leave means leave other than long service leave.\n\neligible project means:\n\n (a) a project for the design, supply or installation of any equipment or facilities; or\n\n (b) a project for the construction of works; or\n\n (c) a project for the development of an urban area or a regional area; or\n\n (d) a project for the development of agriculture; or\n\n (e) a project consisting of giving advice or assistance relating to the management or administration of a government department or of a public utility; or\n\n (f) a project included in a class of projects approved in writing for the purposes of this section by the Trade Minister.\n\nemployee includes:\n\n (a) a person employed by the Commonwealth, by a State, by a Territory, by the government of a country other than Australia or by an authority of the Commonwealth, of a State, of a Territory or of the government of a country other than Australia; and\n\n (b) a member of the Defence Force.\n\nlong service leave means long leave, furlough, extended leave or leave of a similar kind (however described).\n\n23AG  Exemption of income earned in overseas employment\n\n (1) Where a resident, being a natural person, has been engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived by the person from that foreign service are exempt from tax.\n\n (1AA) However, those foreign earnings are not exempt from tax under this section unless the continuous period of foreign service is directly attributable to any of the following:\n\n (a) the delivery of Australian official development assistance by the person’s employer (except if that employer is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997));\n\n (b) the activities of the person’s employer in operating a public fund that:\n\n (i) is covered by item 9.1.1 or 9.1.2 of the table in subsection 30‑80(1) of the Income Tax Assessment Act 1997 (international affairs deductible gift recipients); and\n\n (ii) meets the special conditions mentioned in that item;\n\n (c) the activities of the person’s employer, if the employer is exempt from income tax because of paragraph 50‑50(1)(c) or (d) of the Income Tax Assessment Act 1997 (prescribed institutions located or pursuing objectives outside Australia);\n\n (d) the person’s deployment outside Australia as a member of a disciplined force by:\n\n (i) the Commonwealth, a State or a Territory; or\n\n (ii) an authority of the Commonwealth, a State or a Territory;\n\n (e) an activity of a kind specified in the regulations.\n\n (1A) A person is taken, for the purposes of subsection (1), to have been engaged in foreign service for a continuous period of 91 days if:\n\n (a) the person died at a time when he or she was engaged in foreign service for a continuous period of less than 91 days; and\n\n (b) he or she would have otherwise continued to be engaged in the foreign service; and\n\n (c) his or her continuous period of engagement in the foreign service would have otherwise been a period of at least 91 days.\n\n (2) An amount of foreign earnings derived in a foreign country is not exempt from tax under this section if the amount is exempt from income tax in the foreign country only because of any of the following:\n\n (a) a law of the foreign country giving effect to a double tax agreement within the meaning of Part X;\n\n (b) a double tax agreement within the meaning of Part X;\n\n (c) provisions of a law of the foreign country under which income covered by any of the following categories is generally exempt from income tax:\n\n (i) income derived in the capacity of an employee;\n\n (ii) income from personal services;\n\n (iii) similar income;\n\n (d) the law of the foreign country does not provide for the imposition of income tax on one or more of the categories of income mentioned in paragraph (c);\n\n (e) a law of the foreign country corresponding to the International Organisations (Privileges and Immunities) Act 1963 or to the regulations under that Act;\n\n (f) an international agreement to which Australia is a party and that deals with:\n\n (i) diplomatic or consular privileges and immunities; or\n\n (ii) privileges and immunities in relation to persons connected with international organisations;\n\n (g) a law of the foreign country giving effect to an agreement covered by paragraph (f).\n\n (2A) Subsection (2) does not apply in relation to foreign earnings to the extent that the person derived them from foreign service in Iraq after 31 December 2002 but before 1 May 2004.\n\n (3) If the income of a taxpayer of a year of income consists of an amount that is exempt from tax under this section (in this section called the exempt amount) and other income, the amount of tax (if any) payable in respect of the other income is calculated using the formula:\n\n  ![Start formula start fraction Notional gross tax over Notional gross taxable income end fraction times Other taxable income end formula](image.004.png)\n\nNotional gross tax means the number of whole dollars in the amount of income tax that would be assessed under this Act in respect of the taxpayer’s taxable income of the year of income if:\n\n (a) the exempt amount were not exempt income; and\n\n (aa) if the exempt amount is a payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997—the exempt amount (excluding any part of that amount that represented contributions made by the taxpayer) were assessable income of the taxpayer; and\n\n (b) the taxpayer were not entitled to any rebate of tax.\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\nOther taxable income means the amount (if any) remaining after deducting from so much of the other income as is assessable income:\n\n (d) any deductions allowable to the taxpayer in relation to the year of income that relate exclusively to that assessable income; and\n\n (e) so much of any other deductions (other than apportionable deductions) allowable to the taxpayer in relation to the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income; and\n\n (f) the amount calculated using the formula in subsection (4).\n\n (4) The formula referred to in paragraph (3)(f) is:\n\n  ![Start formula Apportionable deductions times open bracket start fraction Other taxable income over Apportionable deductions plus Notional gross taxable income close bracket end fraction end formula](image.005.png)\n\nApportionable deductions means the number of whole dollars in the apportionable deductions allowable to the taxpayer in relation to the year of income.\n\nOther taxable income means the amount that, apart from paragraph (3)(f), would be represented by the component Other taxable income in subsection (3).\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\n (5) Subsection (3) applies to a taxpayer in respect of income of a year of income as if any payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997 that related to the termination of employment that was made in respect of the taxpayer during that year of income were income of the taxpayer of that year of income that is exempt from tax under this section.\n\n (6) For the purposes of this section, a period during which a person is engaged in foreign service includes any period during which the person is, in accordance with the terms and conditions of that service:\n\n (a) absent on recreation leave, other than:\n\n (i) leave wholly or partly attributable to a period of service or employment other than that foreign service;\n\n (ii) long service leave, furlough, extended leave or leave of a similar kind (however described); or\n\n (iii) leave without pay or on reduced pay; or\n\n (b) absent from work because of accident or illness.\n\n (6A) 2 or more periods in which a person has been engaged in foreign service are together taken to constitute a continuous period of foreign service until:\n\n (a) the end of the last of the 2 or more periods; or\n\n (b) a time (if any), since the start of the first of the 2 or more periods, when the person’s total period of absence exceeds 1/6 of the person’s total period of foreign service;\n\nwhichever happens sooner.\n\nExample: Kate is engaged in foreign service for 20 days, is absent for 2 days and is then engaged in foreign service for 10 days. These 2 periods of foreign service constitute a continuous period of foreign service, because the total period of absence is never more than 1/10 of the total period of foreign service.\n\n Kate is then absent for 5 days before commencing a further period of foreign service. No matter how long the further period lasts, it can never constitute a continuous period of foreign service with the first 2 periods of foreign service, because on the fourth day of the second absence the total period of absence is 1/5 of the total period of foreign service.\n\n (6B) In subsection (6A):\n\ntotal period of absence, in relation to a particular time, means the number of days, in the period starting at the start of the first of the 2 or more periods and ending at that time, for which the person was not engaged in foreign service.\n\ntotal period of foreign service, in relation to a particular time, means the number of days, in the period starting at the start of the first of the 2 or more periods and ending at that time, for which the person was engaged in foreign service.\n\n (6F) Where:\n\n (a) a person has derived foreign earnings during a year of income; and\n\n (b) at the time of making an assessment in respect of income of the person of the year of income, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which those foreign earnings will be exempted from tax by this section;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\nemployee includes:\n\n (a) a person employed by a government or an authority of a government or by an international organisation; or\n\n (b) a member of a disciplined force.\n\nforeign earnings means income consisting of earnings, salary, wages, commission, bonuses or allowances, or of amounts included in a person’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes), but does not include any payment, consideration or amount that:\n\n (a) is included in assessable income under Division 82 or Subdivision 83‑295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or\n\n (b) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or\n\n (c) is mentioned in paragraph 82‑135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or\n\n (d) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295‑200 of the Income Tax Assessment Act 1997.\n\nforeign service means service in a foreign country as the holder of an office or in the capacity of an employee.\n\nincome tax, in relation to a foreign country:\n\n (a) in all cases—does not include a municipal income tax; and\n\n (b) in the case of a federal foreign country—does not include a State income tax.\n\n23AH  Foreign branch income of Australian companies not assessable\n\nObjects\n\n (1) The objects of this section are:\n\n (a) to ensure that active foreign branch income derived by a resident company, and capital gains made by a resident company in disposing of non‑tainted assets used in deriving foreign branch income, (except income and capital gains from the operation of ships or aircraft in international traffic) are not assessable income or exempt income of the company; and\n\n (b) to include in the assessable income of a resident company that part of its income and capital gains derived through a branch in a foreign country that is comparable to the amounts that would be included in an attributable taxpayer’s assessable income for income and capital gains derived by a CFC resident in the same foreign country; and\n\n (c) to get the same outcomes where one or more partnerships or trusts are interposed between a resident company and a foreign branch; and\n\n (d) to limit the effect mentioned in paragraph (a) where there is a branch hybrid mismatch for the purposes of Division 832 of the Income Tax Assessment Act 1997.\n\nForeign branch income not assessable\n\n (2) Subject to this section, foreign income derived by a company, at a time when the company is a resident, in carrying on a business at or through a PE of the company in a listed country or unlisted country is not assessable income, and is not exempt income, of the company.\n\nForeign capital gains and losses disregarded\n\n (3) Subject to this section, a capital gain from a CGT event happening to a CGT asset is disregarded for the purposes of Part 3‑1 of the Income Tax Assessment Act 1997 if:\n\n (a) the gain is made by a company that is a resident; and\n\n (b) the company used the asset wholly or mainly for the purpose of producing foreign income in carrying on a business at or through a PE of the company in a listed country or unlisted country; and\n\n (c) the asset is not taxable Australian property.\n\n (4) Subject to this section, a capital loss from a CGT event happening to a CGT asset is disregarded for the purposes of Part 3‑1 of the Income Tax Assessment Act 1997 if:\n\n (a) the loss is made by a company that is a resident; and\n\n (b) the company used the asset wholly or mainly for the purpose of producing foreign income in carrying on a business at or through a PE of the company in a listed country or unlisted country; and\n\n (c) had the loss been a gain, it would be disregarded under subsection (3).\n\nException relating to hybrid mismatch rules\n\n (4A) Subsection (2) does not apply to foreign income derived by the company if the foreign income is branch hybrid mismatch income (see subsection (14C)).\n\nExceptions: listed country PE\n\n (5) Subsection (2) does not apply to foreign income derived by the company if:\n\n (a) the PE is in a listed country; and\n\n (b) the PE does not pass the active income test (see subsection (12)); and\n\n (c) the foreign income is both:\n\n (i) adjusted tainted income (see subsection (13)); and\n\n (ii) eligible designated concession income in relation to a listed country.\n\n (6) Subsection (3) or (4) does not apply to a capital gain or capital loss if:\n\n (a) the PE is in a listed country; and\n\n (b) for a capital gain—the gain is from a tainted asset and is eligible designated concession income in relation to a listed country; and\n\n (c) for a capital loss—the loss is from a tainted asset and would be eligible designated concession income in relation to a listed country if it were a capital gain.\n\nExceptions: unlisted country PE\n\n (7) Subsection (2) does not apply to foreign income derived by the company if:\n\n (a) the PE is in an unlisted country; and\n\n (b) the PE does not pass the active income test (see subsection (12)); and\n\n (c) the foreign income is adjusted tainted income (see subsection (13)).\n\n (8) Subsection (3) or (4) does not apply to a capital gain or capital loss if:\n\n (a) the PE is in an unlisted country; and\n\n (b) the gain or loss is from a tainted asset.\n\nIncome derived in disposing of a business\n\n (9) This section applies to foreign income derived by an entity in the course of disposing, in whole or in part, of a business carried on in a listed country or unlisted country at or through a PE of the entity in the listed country or unlisted country as if the foreign income had been derived in carrying on that business.\n\nInterposed partnerships or trusts\n\n (10) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in foreign income derived by a partnership or trustee through a PE of the partnership or trustee in a listed country or unlisted country as if that indirect interest were foreign income derived by the company through a PE of the company in that country.\n\n (11) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in a capital gain or capital loss made in relation to an asset of a partnership, or made by a trustee, in carrying on a business at or through a PE of the partnership or trustee in a listed country or unlisted country as if that indirect interest were a capital gain or capital loss made by the company through a PE of the company in that country.\n\nActive income test\n\n (12) A PE of an entity passes the active income test for a year of income if the entity would have passed the active income test in section 432 if:\n\n (a) the assumptions in subsection (14) were made; and\n\n (b) subsection 432(3) and 446(2) and paragraphs 432(1)(b) and (e) and 447(1)(b), (d) and (f) had not been enacted.\n\nAdjusted tainted income\n\n (13) For the purposes of this section, the adjusted tainted income of a PE of an entity is income or other amounts that would be adjusted tainted income of the entity for the purposes of Part X if:\n\n (a) the assumptions in subsection (14) were made; and\n\n (b) subsection 446(2) and paragraphs 447(1)(b), (d) and (f) had not been enacted.\n\nAssumptions for subsections (12) and (13)\n\n (14) The assumptions referred to in paragraphs (12)(a) and (13)(a) are:\n\n (a) except in applying paragraphs 447(1)(a), (c) and (e) and 450(6)(c), (7)(d) and (8)(b), the only income or other amounts derived by the entity were the income derived in carrying on business at or through the PE; and\n\n (b) the entity’s statutory accounting periods were the same as the entity’s years of income; and\n\n (c) in applying paragraphs 447(1)(a), (c) and (e) and 450(6)(c), (7)(d) and (8)(b):\n\n (i) the part of the entity’s operations that consists of the business carried on at or through the PE were a company (the PE company); and\n\n (ii) the remaining part of the entity’s operations were a separate company (the HQ company); and\n\n (iii) the PE company and the HQ company had carried out the transactions that they would have carried out if the PE company were engaged in the same or similar activities as the PE under the same or similar conditions as the PE and were dealing wholly independently with the HQ company; and\n\n (iv) any income derived by the HQ company were disregarded; and\n\n (d) if the entity is an AFI entity (within the meaning of subsection 326(2))—the entity were an AFI subsidiary; and\n\n (e) in applying paragraphs 447(1)(a), (c) and (e), the HQ company were an associate of the PE company.\n\n (14A) This section does not apply to foreign income, or to a capital gain or capital loss, of a company to the extent that the income, gain or loss is from:\n\n (a) the operation of ships or aircraft in international traffic at or through a PE of the company in a listed country or unlisted country; or\n\n (b) things that are ancillary to that operation.\n\n (14B) A company operates a ship or aircraft in international traffic if the company operates it for transporting passengers or goods between a place in one country and a place in another country.\n\nBranch hybrid mismatch income\n\n (14C) For the purposes of this section, if foreign income derived by the company is an amount that, for the purposes of Division 832 of the Income Tax Assessment Act 1997, is a payment:\n\n (a) received by the company; and\n\n (b) that, apart from subsection (4A) of this section, would give rise to a branch hybrid mismatch;\n\nthen so much of the foreign income as does not exceed the amount of the branch hybrid mismatch is branch hybrid mismatch income.\n\n (14D) For the purposes of this section, PE, when it is used in Division 832 of the Income Tax Assessment Act 1997, does not have the meaning it has in that Act but instead has the same meaning as in this section.\n\n (15) In this section:\n\ncompany does not include a company in the capacity of a trustee.\n\ndouble tax agreement has the same meaning as in Part X.\n\neligible designated concession income has the same meaning as in Part X.\n\nforeign income includes an amount that:\n\n (a) apart from this section, would be included in assessable income under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (CGT); and\n\n (b) is derived from sources in a listed country or unlisted country.\n\nlisted country has the same meaning as in Part X.\n\npermanent establishment, or PE, in relation to a listed country or unlisted country:\n\n (a) if there is a double tax agreement in relation to that country—has the same meaning as in the double tax agreement; or\n\n (b) in any other case—has the meaning given by subsection 6(1).\n\nstatutory accounting period has the same meaning as in Part X.\n\ntainted asset has the same meaning as in Part X.\n\nunlisted country has the same meaning as in Part X.\n\n23AI  Amounts paid out of attributed income not assessable\n\n (i) an attribution account payment of a kind referred to in paragraph 365(1)(a), (b), (c) or (e) is made to a taxpayer (other than a partnership or taxpayer in the capacity of trustee of a trust); or\n\n (ii) an attribution account payment of a kind referred to in paragraph 365(1)(d) is made to a taxpayer; and\n\n (b) on the making of the payment, an attribution debit arises, for the entity making the payment, in relation to the taxpayer;\n\n (c) if the payment is of a kind referred to in paragraph 365(1)(a)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n (d) if the payment is of a kind referred to in paragraph 365(1)(b) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 92 in respect of an individual interest in the net income of the partnership of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n (e) if the payment is of a kind referred to in paragraph 365(1)(c) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 97, 98A or 100 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not assessable income and is not exempt income, to the extent of the debit;\n\n (ea) if the payment is of a kind referred to in paragraph 365(1)(c) and, apart from this section, an amount would be assessable to the trustee of the trust referred to in that paragraph under section 98 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not so assessable to the extent of the debit;\n\n (f) if the payment is of a kind referred to in paragraph 365(1)(d)—the payment is not, to the extent of the debit, assessable to the taxpayer as mentioned in that paragraph;\n\n (g) if the payment is of a kind referred to in paragraph 365(1)(e) and, apart from this section, an amount would be included in the taxpayer’s assessable income, of the year of income referred to in that paragraph, under section 99B in respect of the trust property referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit.\n\n (2) This section is to be disregarded for the purposes of applying any other provision of this Act to determine allowable deductions.\n\nattribution account payment has the same meaning as in Part X.\n\nattribution debit has the same meaning as in Part X.\n\ncompany has the same meaning as in Part X.\n\ntrust has the same meaning as in Part X, but does not include a trust covered by subsection 371(7).\n\n23AK  Amounts paid out of attributed foreign investment fund income not assessable\n\nWhen this section applies\n\n (1) This section applies if:\n\n (i) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(a), (b), (c), (d), (f), (g) or (h) is made to a taxpayer (other than a partnership or taxpayer in the capacity of trustee of a trust); or\n\n (ii) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(e) is made to a taxpayer; and\n\n (b) on the making of the payment, a post FIF abolition debit arises, for the FIF attribution account entity making the payment, in relation to the taxpayer.\n\nPost FIF abolition debit arises\n\n (2) A post FIF abolition debit arises for a FIF attribution account entity (the eligible entity) in relation to a taxpayer if:\n\n (a) the eligible entity makes a FIF attribution account payment to the taxpayer or to a FIF attribution account entity; and\n\n (b) immediately before the eligible entity makes the FIF attribution account payment, there is a post FIF abolition surplus for the eligible entity in relation to the taxpayer.\n\nAmount of post FIF abolition debit\n\n (3) The amount of the post FIF abolition debit is the lesser of:\n\n (a) the post FIF abolition surplus; and\n\n (b) whichever of the following is applicable:\n\n (i) if the attribution account payment is made to the taxpayer—the FIF attribution account payment;\n\n (ii) in any other case—the taxpayer’s FIF attribution account percentage (for the FIF attribution account entity to which the payment is made) of the FIF attribution account payment;\n\n  reduced by any attribution debit that arises under section 372 for the entity in relation to the taxpayer as a result of the making of the payment.\n\nWhen the post FIF abolition debit arises\n\n (4) The post FIF abolition debit arises when the FIF attribution account payment is made.\n\nWhen a post FIF abolition surplus exists\n\n (5) A post FIF abolition surplus for a FIF attribution account entity in relation to a taxpayer exists at a particular time (the relevant time) if the sum of:\n\n (a) the entity’s total FIF attribution credits (within the meaning of former section 605) that arose before the commencement of Schedule 1 to the Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010; and\n\n (b) the entity’s total post FIF abolition credits arising before the relevant time in relation to the taxpayer;\n\nexceeds the sum of:\n\n (c) the entity’s total FIF attribution debits (within the meaning of former section 606) that arose before that commencement in relation to the taxpayer; and\n\n (d) the entity’s total post FIF abolition debits arising before the relevant time in relation to the taxpayer.\n\nPost FIF abolition credit arises\n\n (6) A post FIF abolition credit arises for a FIF attribution account entity (the eligible entity) in relation to a taxpayer if a FIF attribution account payment that requires a post FIF abolition debit for another entity in relation to the taxpayer is made to the eligible entity.\n\nAmount of post FIF abolition credit\n\n (7) The amount of the post FIF abolition credit is equal to the amount of the post FIF abolition debit for the other entity.\n\nWhen the post FIF abolition credit arises\n\n (8) The post FIF abolition credit arises when the FIF attribution account payment referred to in subsection (6) is made.\n\nEffect of this section applying\n\n (9) If this section applies, the following provisions have effect:\n\n (a) if the payment is of a kind referred to in former paragraph 603(1)(a) or (b)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n (b) if the payment is of a kind referred to in former paragraph 603(1)(c) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 92 in respect of an individual interest in the net income of the partnership of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n (c) if the payment is of a kind referred to in former paragraph 603(1)(d) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 97, 98A or 100 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n (d) if the payment is of a kind referred to in former paragraph 603(1)(d) and, apart from this section, an amount would be assessable to the trustee of the trust referred to in that paragraph under section 98 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not so assessable to the extent of the debit;\n\n (e) if the payment is of a kind referred to in former paragraph 603(1)(e)—the payment is not, to the extent of the debit, assessable to the taxpayer as mentioned in that paragraph;\n\n (f) if the payment is of a kind referred to in former paragraph 603(1)(f) and, apart from this section, an amount would be included in the taxpayer’s assessable income, of the year of income referred to in that paragraph, under section 99B in respect of the trust property referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n (g) if the payment is of a kind referred to in former paragraph 603(1)(g)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n (h) if the payment is of a kind referred to in former paragraph 603(1)(h)—the payment is not assessable income, and is not exempt income, to the extent of the debit.\n\n (10) This section is to be disregarded for the purposes of applying any other provision of this Act to determine allowable deductions.\n\nFIF attribution account entity has the same meaning as in former Part XI.\n\nFIF attribution account payment has the same meaning as in former Part XI.\n\nFIF attribution account percentage has the same meaning as in former Part XI.\n\ntrust has the same meaning as in former Part XI, but does not include a trust covered by former subsection 605(11).\n\n","sortOrder":23},{"sectionNumber":"23B","sectionType":"section","heading":"Reduction of disposal consideration if FIF attributed income not distributed","content":"23B  Reduction of disposal consideration if FIF attributed income not distributed\n\n (a) it is necessary, for the purposes of applying a provision of this Act in the assessment of a taxpayer for a year of income, to take into account:\n\n (i) the amount of consideration received, entitled to be received or taken to have been received, by the taxpayer in respect of the disposal of an asset; or\n\n (ii) the capital proceeds from a CGT event happening in relation to a CGT asset;\n\n  being an asset that is an interest in a FIF attribution account entity; and\n\n (b) immediately before the disposal or CGT event takes place there is a post FIF abolition surplus for the FIF attribution account entity in relation to the taxpayer;\n\nthen, for the purposes of this Act:\n\n (c) the consideration or capital proceeds that, apart from this section, would be taken into account under the provision referred to in paragraph (a) in respect of the disposal or CGT event is taken to be reduced by so much of the amount of the post FIF abolition surplus as does not exceed the consideration or capital proceeds; and\n\n (d) a post FIF abolition debit arises at the time of the disposal or the CGT event under this paragraph, in relation to the taxpayer, for the FIF attribution account entity; and\n\n (e) the amount of the post FIF abolition debit is equal to so much of the surplus as is taken into account under paragraph (c).\n\n (2) For the purposes of paragraph (1)(c), if the disposal of the asset or the CGT event causes the taxpayer’s FIF attribution account percentage for the FIF attribution account entity to be reduced by a proportion, then only that proportion of the post FIF abolition surplus for the entity is to be taken into account under that paragraph.\n\nFIF attribution account entity has the same meaning as in former Part XI.\n\nFIF attribution account percentage has the same meaning as in former Part XI.\n\n","sortOrder":24},{"sectionNumber":"23G","sectionType":"section","heading":"Exemption of interest received by credit unions","content":"23G  Exemption of interest received by credit unions\n\ncredit union means a company in relation to which the following conditions are satisfied:\n\n (a) the company is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959;\n\n (b) the company has a consent under section 66 of that Act that allows it to assume or use the expression “credit union” or “credit society”, or another expression (whether or not in English) that is of like import to either of those expressions.\n\n (2) Income derived during a year of income by a credit union that is an approved credit union in relation to that year of income, being interest paid to the credit union by members of the credit union not being companies in respect of loans made to those members, is exempt from income tax.\n\n (2A) Subsection (2) does not apply to a credit union in relation to a year of income if:\n\n (a) the credit union is a recognised medium credit union in relation to the year of income; or\n\n (b) the credit union is a recognised large credit union in relation to the year of income.\n\n (3) For the purposes of this section, a credit union is an approved credit union in relation to a year of income if, and only if, the Commissioner is satisfied that:\n\n (a) during that year of income the credit union did not enter into any transactions of a kind not ordinarily entered into by a company of a kind referred to in paragraph (a) of the definition of credit union in subsection (1); and\n\n (b) by comparison with the profits of other credit unions for that year of income and the amounts transferred by those credit unions out of those profits to reserves, and after making due allowance for differences in the numbers of transactions entered into by other credit unions and the first‑mentioned credit union and the amounts to which the respective transactions related, the profit of the first‑mentioned credit union for that year of income was not excessive and the first‑mentioned credit union did not transfer an unreasonable part of that profit to a reserve.\n\n (4) In determining for the purposes of paragraph (3)(a) whether any transactions entered into by a credit union during a year of income were transactions of a kind referred to in that paragraph, the Commissioner may have regard to:\n\n (a) the circumstances in which, and the terms and conditions upon which, during that year of income:\n\n (i) moneys were lent to, invested with, or otherwise obtained by, the credit union;\n\n (ii) moneys were lent or otherwise made available by the credit union to its members or to other persons; and\n\n (iii) moneys were invested by the credit union;\n\n (b) the nature of the connexion (if any) between:\n\n (i) the credit union or any of its members and any of the persons by whom moneys were lent to, invested with, or otherwise made available to, the credit union during that year of income;\n\n (ii) the credit union or any of its members and any of the persons who owed moneys to the credit union at any time during that year of income; or\n\n (iii) any of the persons by whom moneys were lent to, invested with, or otherwise made available to, the credit union during that year of income and any of the persons who owed moneys to the credit union at any time during that year of income; and\n\n (c) any other relevant matters.\n\n","sortOrder":25},{"sectionNumber":"23K","sectionType":"section","heading":"Substitution of certain securities","content":"23K  Substitution of certain securities\n\ncentral borrowing authority means:\n\n (a) the New South Wales Treasury Corporation;\n\n (b) the Victorian Public Authorities Finance Agency;\n\n (c) the Victoria Transport Borrowing Agency;\n\n (d) the Queensland Government Development Authority;\n\n (e) the Treasurer of the State of Western Australia;\n\n (f) the South Australian Government Financing Authority;\n\n (g) the Local Government Finance Authority of South Australia;\n\n (h) any other public authority of a State, being a public authority that is empowered to issue securities in the manner referred to in paragraph (2)(a).\n\npublic authority includes a Minister of the Crown in right of a State, a municipal corporation and any other local government body.\n\nsecurity means stock, a bond or debenture, or any other document evidencing the indebtedness of a person, whether or not the debt is secured.\n\n (2) For the purposes of this section, a person shall be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer if and only if:\n\n (a) the substituted security was issued by the person to the taxpayer in exchange for the surrender or transfer of, or otherwise in replacement or substitution for, the original security; and\n\n (b) the terms and conditions provided for by the substituted security were identical in all material respects to those provided for by the original security.\n\n (a) but for this subsection, a person would be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer; and\n\n (b) either or both of the following conditions is or are satisfied:\n\n (i) an amount was payable by the taxpayer by way of consideration for the issue of the substituted security; or\n\n (ii) an amount was payable to the taxpayer by way of consideration for the surrender, transfer, replacement or substitution of the original security;\n\nthe person shall not be taken for the purposes of this section to have issued the substituted security in substitution for the original security.\n\n (a) under terms and conditions provided for by a security, the day on which interest is payable in respect of a period is different from that on which interest is payable in respect of the same period under another security; and\n\n (b) the terms and conditions provided for by the securities are otherwise identical in all material respects;\n\n (c) if the days on which the interest is payable are separated by an interval not exceeding 31 days—the terms and conditions provided for by the 2 securities shall, for the purposes of paragraph (2)(b), be taken to be identical in all material respects; and\n\n (d) in any other case—the terms and conditions provided for by the 2 securities shall, for the purposes of paragraph (2)(b), be taken not to be identical in all material respects.\n\n (5) Where, on or after 8 August 1984, a central borrowing authority issued or issues a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer that was issued by a public authority other than the central borrowing authority:\n\n (a) the substituted security shall, for the purposes of this Act, be deemed to be a continuation of the original security on the terms and conditions provided for by the substituted security; and\n\n (b) no amount shall, in respect of the issue of the substituted security or the surrender, transfer, replacement or substitution of the original security, be included in, allowable as a deduction from or taken into account in ascertaining any amount included in or allowable as a deduction from, the assessable income of any taxpayer in respect of any year of income.\n\n","sortOrder":26},{"sectionNumber":"23L","sectionType":"section","heading":"Certain benefits in the nature of income not assessable","content":"23L  Certain benefits in the nature of income not assessable\n\n (1) Income derived by a taxpayer by way of the provision of a fringe benefit is not assessable income and is not exempt income of the taxpayer.\n\n (1A) Income derived by a taxpayer by way of the provision of a benefit (other than a benefit to which section 15‑70 of the Income Tax Assessment Act 1997 applies) that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit is exempt income of the taxpayer.\n\n (a) in a year of income, a taxpayer derives income consisting of one or more non‑cash business benefits (within the meaning of section 21A); and\n\n (b) the total amount that is applicable under section 21A in respect of those benefits does not exceed $300;\n\nthe income is exempt income.\n\nDivision 1AB—Certain State/Territory bodies exempt from income tax\n\nSubdivision A—Exemption for certain State/Territory bodies\n\n24AK  Key principle\n\nA body that is a State/Territory body (an STB) is exempt from income tax under this Division unless it is an excluded STB. There are 5 different ways in which a body can be an STB.\n\n24AL  Diagram—guide to work out if body is exempt under this Division\n\n  The following diagram is a guide to help work out whether a body is exempt from income tax under this Division:\n\n \n\n![Diagram showing how to work out if a State/Territory body is exempt from income tax under this Division](image.006.png)\n\n24AM  Certain STBs exempt from tax\n\n  The income of a State/Territory body (an STB) is exempt from income tax unless section 24AN applies to the STB.\n\n24AN  Certain STBs not exempt from tax under this Division\n\n  Income derived by an STB is not exempt from income tax under this Division if, at the time that it is derived, the STB is an excluded STB.\n\nNotes: 1. For the definition of excluded STB see section 24AT.\n\n2. Even though an excluded STB is not exempt from income tax under this Division, it may still be exempt under another provision of this Act.\n\n24AO  First way in which a body can be an STB\n\n (a) it is a company limited solely by shares; and\n\n (b) all the shares in it are beneficially owned by one or more government entities.\n\nNote: For the definition of government entity see section 24AT. Note that an excluded STB is not a government entity.\n\n24AP  Second way in which a body can be an STB\n\n (c) the legislation provides that it must distribute all of its profits (if any) only to one or more government entities; and\n\n (d) if the legislation makes provision as to the way its net assets may be distributed if it is dissolved or wound up—the provision is that, if it is dissolved, all of its net assets (if any) must be distributed only to one or more government entities.\n\n24AQ  Third way in which a body can be an STB\n\n (c) the legislation gives the power to appoint or dismiss its governing person or body only to one or more government entities.\n\n24AR  Fourth way in which a body can be an STB\n\n (c) the legislation gives the power to direct its governing person or body as to the conduct of its affairs only to one or more government entities.\n\n24AS  Fifth way in which a body can be an STB\n\n (a) it is not a company limited solely by shares; and\n\n (b) it is not established by State or Territory legislation; and\n\n (c) all the legal and beneficial interests (including, but not limited to, interests as to income, profits, dividends, capital and distributions of capital) in it are held only by one or more government entities; and\n\n (d) all the rights or powers (if any) to vote, appoint or dismiss its governing person or body and direct its governing person or body as to the conduct of its affairs are held only by one or more government entities.\n\n24AT  What do excluded STB, government entity and Territory mean?\n\n  In this Division:\n\nexcluded STB means an STB that:\n\n (a) at a particular time, is prescribed as an excluded STB in relation to that time; or\n\n (b) is a municipal corporation or other local governing body (within the meaning of section 50‑25 of the Income Tax Assessment Act 1997); or\n\n (c) is a public educational institution to which any of paragraphs 50‑55(1)(a) to (c) of the Income Tax Assessment Act 1997 applies; or\n\n (d) is a public hospital to which any of paragraphs 50‑55(1)(a) to (c) of the Income Tax Assessment Act 1997 applies; or\n\n (e) is a superannuation fund.\n\ngovernment entity means:\n\n (a) a State; or\n\n (b) a Territory; or\n\n (ba) a municipal corporation or other local governing body (within the meaning of section 50‑25 of the Income Tax Assessment Act 1997); or\n\nNote: The effect of this paragraph is that some bodies owned or controlled by a municipal corporation or other local governing body may be an STB even though the municipal corporation or other local governing body is an excluded STB.\n\n (c) another STB that is not an excluded STB.\n\nTerritory means the Northern Territory or the Australian Capital Territory.\n\n24AU  Governor, Minister and Department Head taken to be a government entity\n\n  For the purposes of sections 24AQ, 24AR and 24AS, if the power to appoint, dismiss or direct the governing body is given to, or is held by:\n\n (a) a Governor of a State; or\n\n (b) a Minister of the Crown of a State; or\n\n (c) a Minister of a Territory; or\n\n (d) the head of a Department of a State or a Territory; or\n\n (e) any combination of paragraphs (a) to (d);\n\nthe power is taken to be given to, or held by, a government entity.\n\n24AV  Regulations prescribing excluded STBs\n\nStates and Territories to consent to STBs being excluded STBs\n\n (1) The regulations may prescribe that an STB is an excluded STB only if all States and Territories consent to the STB being so prescribed.\n\nRetrospective application of regulations prescribing excluded STBs\n\n (2) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation prescribing an STB as an excluded STB.\n\nSubdivision B—Body ceasing to be an STB\n\n24AW  Body ceasing to be an STB\n\n  If a body ceases to be an STB in a year of income (the cessation year), this Act applies to the body as if:\n\n (a) the cessation were a change which requires a company to calculate its taxable income and tax loss under Subdivision 165‑B of the Income Tax Assessment Act 1997; and\n\n (b) the references in that Subdivision to “company” were references to “body”; and\n\n (c) if the body is not a company—there were no further requirement for the body to calculate its taxable income for the year of income under that Subdivision; and\n\n (d) the amount of any notional loss of the body calculated under section 165‑50 of that Act for the period before the cessation were nil; and\n\n (e) the body’s deductions for tax losses were attributed under section 165‑55 of that Act to the period before the cessation and not to any other period; and\n\n (f) those deductions were taken not to be full year deductions under section 165‑55 of that Act; and\n\n (g) the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 were modified, for the purposes of that Subdivision, in accordance with section 24AX of this Act.\n\n24AX  Special provisions relating to capital gains and losses\n\nPeriod after cessation date—prior net capital losses to be disregarded\n\n (1) In determining if an amount is to be included in the assessable income of the body under Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 for a period that occurred after the cessation, any net capital losses incurred before the cessation are to be disregarded.\n\nSpecial cases where net capital gain before cessation and net capital loss after cessation\n\n (2) Subsections (3) and (4) apply if:\n\n (a) a net capital gain accrued in the period before the cessation; and\n\n (b) if the period from the cessation until the end of the year of income were treated as a year of income—a net capital loss would have accrued in that period.\n\nSpecial case 1—gain exceeds loss\n\n (3) If this subsection applies and the net capital gain exceeds the net capital loss:\n\n (a) the amount that is to be included in the assessable income of the body for the period that occurred before the cessation as a result of the net capital gain accruing to the body is taken to be the amount by which the net capital gain exceeds the net capital loss; and\n\n (b) no net capital gain is taken to have accrued, and no net capital loss is taken to have been incurred, in any period in the cessation year after the cessation; and\n\n (c) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, no net capital loss is taken to have been incurred by the body in the cessation year.\n\nSpecial case 2—loss equal to or exceeds gain\n\n (4) If this subsection applies and the net capital gain does not exceed the net capital loss:\n\n (a) no amount is to be included in the assessable income of the body for any period in the cessation year as a result of a net capital gain accruing to the body; and\n\n (b) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, the net capital loss that the body incurred in the cessation year is taken to be the amount (if any) by which the net capital loss exceeds the net capital gain.\n\n24AY  Losses from STB years not carried forward\n\n (1) If a body is an STB on the last day of a year of income in which it incurs a tax loss, the tax loss is not allowable as a deduction from the body’s assessable income of a later year of income unless the body is an STB on the first day of that later year of income.\n\nNote: This section prevents losses from years prior to the cessation year from being carried forward to years after the cessation year.\n\n (2) This section only applies to a tax loss incurred in the 1995‑96 year of income or a later year of income.\n\n24AYA  Effect of unfunded superannuation liabilities\n\n (1) This section applies to a deduction under section 290‑60 of the Income Tax Assessment Act 1997 in respect of a contribution made in relation to a person who was an employee of a prescribed excluded STB when it ceased to be an STB.\n\n (2) A deduction to which this section applies is not allowable to the body for any year of income unless the requirements of subsections (3) and (4) are complied with.\n\n (3) For the deduction to be allowable, the body must obtain a certificate by an authorised actuary stating the actuarial value, as at the time the body ceases to be an STB, of liabilities of the STB to provide superannuation benefits for, or for SIS dependants of, employees of the body, where the liabilities:\n\n (a) accrued after 30 June 1995 and before the time when the body ceased to be an STB; and\n\n (b) were, according to actuarial principles, unfunded at that time.\n\n (4) The certificate must be in a form approved in writing by the Commissioner. The body must obtain the certificate:\n\n (a) before the date of lodgment of its return of income of the year of income in which the body ceased to be an STB; or\n\n (b) within such further time as the Commissioner allows.\n\n (5) If the body obtains the certificate, a deduction to which this section applies is nevertheless not allowable for a year of income if the sum of all deductions to which this section applies for the year of income is less than or equal to the unfunded liability limit (see subsection (6)) for the year of income.\n\n (6) If the sum is greater than that limit, so much of the deduction as is worked out using the following formula is not allowable:\n\n  ![Start formula start fraction Amount of deduction over Sum of all deductions to which this section applies for the year of income end fraction times Unfunded liability limit for the year of income end formula](image.007.png)\n\nUnfunded liability limit for a year of income is:\n\n (a) if the year of income is the one in which the body ceases to be an STB—the actuarial value of the liabilities set out in the actuary’s certificate; or\n\n (b) in any other case—that actuarial value as reduced by the total amount of deductions to which this section applies that, because of subsection (5), have not been allowable to the body for all previous years of income.\n\n (7) Expressions used in this section that are also used in section 290‑60 of the Income Tax Assessment Act 1997 have the same respective meanings as in that section.\n\n24AZ  Meaning of period and prescribed excluded STB\n\n  In this Subdivision:\n\nperiod means any of the periods into which the cessation year is divided under section 165‑45 of the Income Tax Assessment Act 1997.\n\nprescribed excluded STB means an STB that is an excluded STB as a result of regulations made for the purposes of paragraph (a) of the definition of excluded STB in section 24AT.\n\nDivision 2—Income\n\nSubdivision A—Assessable income generally\n\n25A  Assessable income to include certain profits\n\n (1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.\n\n (1B) This section does not apply to a profit arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.\n\nNote: Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 deals with such a profit.\n\n (1) The assessable income of a taxpayer shall include profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit‑making by sale, or from the carrying on or carrying out of any profit‑making undertaking or scheme.\n\n (2) Subject to subsection (3), where:\n\n (a) after 23 August 1983, a taxpayer sold or sells property (in this subsection referred to as the relevant property) being:\n\n (i) shares in a private company;\n\n (ii) an interest in a partnership; or\n\n (iii) an interest in a private trust estate; and\n\n (b) at the time of sale of the relevant property:\n\n (i) the company, partnership or trustee of the trust estate, as the case may be, held property that:\n\n (A) was acquired for the purpose of profit‑making by sale by the company, partnership or trustee, as the case may be; and\n\n (B) was not excepted property of the company, partnership or trust estate, as the case may be; or\n\n (ii) the company, partnership or trustee of the trust estate, as the case may be, held an interest, through one or more interposed companies, partnerships or trusts, in property that:\n\n (A) was acquired for the purpose of profit‑making by sale by another private company, partnership or trustee of a private trust estate; and\n\n (B) was not excepted property of that other company, partnership or trust estate, as the case may be;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any application of any other provision of this section), be deemed to have acquired the relevant property for the purpose of profit‑making by sale.\n\n (3) Subsection (2) does not apply in relation to the sale by a taxpayer of property where the Commissioner, having regard to:\n\n (a) the extent to which the assets of the company, partnership or trust estate, as the case may be, referred to in paragraph (2)(a), immediately before the time of sale, consisted of the property referred to in subparagraph (2)(b)(i) or the interest referred to in subparagraph (2)(b)(ii), as the case may be;\n\n (b) the nature and extent, immediately before the time of sale, of the taxpayer’s control of the company, partnership or trust estate, as the case may be, referred to in paragraph (2)(a) including, in the case of a company, the nature and extent of the taxpayer’s shareholding in the company;\n\n (c) the circumstances surrounding any other sale, whether or not by the taxpayer, of shares in the company, or an interest in the partnership or trust estate, as the case may be, referred to in paragraph (2)(a), being a sale at a time when the property of that company, partnership or trust estate included the property referred to in subparagraph (2)(b)(i) or the interest referred to in subparagraph (2)(b)(ii), as the case may be; and\n\n (d) such other matters as the Commissioner considers relevant;\n\nconsiders that it is not appropriate that that subsection should apply in relation to the sale of the property by the taxpayer.\n\n (a) a taxpayer acquired or acquires property, being shares in a company, for the purpose of profit‑making by sale; and\n\n (b) after 23 August 1983:\n\n (i) the company issued or issues other shares (in this subsection referred to as the bonus shares) to the taxpayer in satisfaction of a dividend (including an amount debited against an amount standing to the credit of a share premium account) payable to the taxpayer in respect of the shares referred to in paragraph (a); or\n\n (ii) by reason that the taxpayer was the owner of the shares referred to in paragraph (a), the company issued or issues to the taxpayer rights to acquire other shares in the company;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the bonus shares or the rights, as the case may be, for the purpose of profit‑making by sale.\n\n (5) Where, after 23 August 1983, property was or is acquired by a taxpayer as a result of a transfer in the prescribed manner by a person who acquired the property for the purpose of profit‑making by sale, the taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the property for the purpose of profit‑making by sale.\n\n (a) after 23 August 1983, a taxpayer sold or sells property; and\n\n (b) the property sold was:\n\n (i) an interest in property, being property acquired by the taxpayer for the purpose of profit‑making by sale; or\n\n (ii) property, or an interest in property, in which was merged an interest in property, being an interest acquired by the taxpayer for the purpose of profit‑making by sale;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any application of any other provision of this section), be deemed to have acquired the property sold for the purpose of profit‑making by sale.\n\n (7) For the purposes of subsection (2), where a company, partnership or trustee of a trust estate holds or held property (in this subsection referred to as the underlying property) consisting of:\n\n (a) an interest in property, being property acquired by the company, partnership or trustee for the purpose of profit‑making by sale; or\n\n (b) property, or an interest in property, in which was merged an interest in property, being an interest acquired by the company, partnership or trustee for the purpose of profit‑making by sale;\n\nthe company, partnership or trustee, as the case may be, shall be deemed to have acquired the underlying property for the purpose of profit‑making by sale.\n\n (a) property (in this subsection referred to as the acquired property) was or is acquired for the purpose of profit‑making by sale; and\n\n (b) after 23 August 1983, property (in this subsection referred to as the transferred property) being:\n\n (i) an interest in the acquired property; or\n\n (ii) property, or an interest in property, in which was merged an interest in the acquired property;\n\n  was or is transferred to a taxpayer in the prescribed manner;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the transferred property for the purpose of profit‑making by sale.\n\n (9) Where a taxpayer sold or sells property that, by virtue of any of the preceding provisions of this section, is deemed to have been acquired by the taxpayer for the purpose of profit‑making by sale, so much (if any) of the proceeds of sale as, in the opinion of the Commissioner, is appropriate shall, for the purposes of this Act, be deemed to be profit arising from the sale by the taxpayer of the property.\n\n (10) For the purposes of the application of subsection (9) in relation to the sale of property (in this subsection referred to as the relevant property) by a taxpayer:\n\n (a) if:\n\n (i) the relevant property is deemed by subsection (2) to have been acquired by the taxpayer for the purpose of profit‑making by sale;\n\n (ii) the property (in this paragraph referred to as the underlying property) to which sub‑subparagraph (2)(b)(i)(A) or (2)(b)(ii)(A), as the case may be, applies was actually acquired for the purpose of profit‑making by sale by the company, partnership or trustee referred to in that sub‑subparagraph (which company, partnership or trustee is in this paragraph referred to as the underlying owner); and\n\n (iii) the relevant property was not transferred to the taxpayer in the prescribed manner;\n\n  the Commissioner shall have regard to the extent to which, in the Commissioner’s opinion, the proceeds of sale of the relevant property are attributable to the amount of any increase in the value of the underlying property during the period (in this paragraph referred to as the relevant period) when the underlying property was held by the underlying owner and the relevant property was held by the taxpayer reduced by the amount of any capital expenditure incurred by the underlying owner in respect of the underlying property during the relevant period (not including expenditure in respect of which a deduction has been allowed, or is allowable, to the underlying owner);\n\n (b) if the relevant property is deemed by subsection (5) to have been acquired by the taxpayer for the purpose of profit‑making by sale and the relevant property was actually acquired for the purpose of profit‑making by sale by the person (in this paragraph referred to as the transferor) who transferred the relevant property to the taxpayer in the prescribed manner—the Commissioner shall have regard to the extent to which the amount (if any) that would have been included in the assessable income of the transferor if the transferor had sold the relevant property at the time when it was sold by the taxpayer for an amount of consideration equal to the amount of the consideration received or receivable by the taxpayer in respect of the sale of the relevant property by the taxpayer exceeds the sum of:\n\n (i) any expenditure incurred by the taxpayer in respect of the relevant property, not including:\n\n (A) any consideration given by the taxpayer in respect of the transfer of the relevant property to the taxpayer; or\n\n (B) expenditure to which subparagraph (ii) applies;\n\n (ii) where the taxpayer incurred expenditure of a capital nature in respect of the relevant property otherwise than:\n\n (A) in acquiring property for the purpose of profit‑making by sale; or\n\n (B) as part of a profit‑making undertaking or scheme;\n\n  an amount equal to so much of the consideration received or receivable by the taxpayer in respect of the sale of the relevant property by the taxpayer as exceeds the amount that, in the opinion of the Commissioner, would have been the consideration received or receivable by the taxpayer if the taxpayer had not incurred that capital expenditure; and\n\n (iii) the amount of any profit included in the assessable income of the transferor in respect of the transfer of the relevant property to the taxpayer;\n\n (c) if the relevant property is deemed to have been acquired by the taxpayer by virtue of the application of this section (either directly or indirectly) in relation to property (in this paragraph referred to as the related property) that was actually acquired by the taxpayer or by another person or other persons for the purpose of profit‑making by sale—the Commissioner shall have regard to the extent to which the relevant property consists of, or is attributable to, the related property;\n\n (d) if the relevant property consists of rights to acquire shares in a company, being rights that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the relevant property shall be deemed to have been acquired by the taxpayer at no cost; and\n\n (e) if the relevant property consists of bonus shares that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the cost to the taxpayer of the relevant property shall be ascertained in accordance with section 6BA.\n\n (11) For the purposes of this section, property shall be taken to have been transferred to a person (in this subsection referred to as the transferee) in the prescribed manner if:\n\n (a) the following conditions are satisfied:\n\n (i) the property is transferred by way of gift or for consideration the amount or value of which is less than the amount that, in the opinion of the Commissioner, is the value of the property immediately before the time of transfer;\n\n (ii) the property is transferred otherwise than as a result of:\n\n (A) a will, a codicil or an order of a court that varied or modified the provisions of a will or a codicil; or\n\n (B) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate; and\n\n (iii) the Commissioner is satisfied that the transferee and the person who transferred the property were not dealing with each other at arm’s length in relation to the transfer of the property; or\n\n (b) the property:\n\n (i) is transferred by way of a distribution of property of a private company or private trust estate made (whether in the course of the winding up of the company or trust estate or otherwise) to the transferee in the transferee’s capacity as a shareholder in the company or a beneficiary of the trust estate, as the case may be; and\n\n (ii) is not excepted property of the company or trust estate, as the case may be.\n\n (12) In this section:\n\n (a) a reference to excepted property of a company, partnership or trust estate is a reference to:\n\n (i) trading stock of the company, partnership or trustee; or\n\n (ii) property being plant within the meaning of section 45‑40 of the Income Tax Assessment Act 1997 purchased for use by the company, partnership or trustee of the trust estate for the purpose of producing assessable income;\n\n (b) a reference to a private company is a reference to a company other than a company the shares in which are listed for quotation in the official list of a stock exchange in Australia or elsewhere;\n\n (c) a reference to a private trust estate is a reference to a trust estate other than a unit trust the units in which are listed for quotation in the official list of a stock exchange in Australia or elsewhere or are ordinarily available for subscription or purchase by the public; and\n\n (d) a reference to property generally or to a particular kind of property includes a reference to an estate or interest in property or in that kind of property, as the case may be.\n\n26AB  Assessable income—premium for lease\n\n (1A) For the purposes of assessments for the 1997‑98 year of income and later years of income, this section applies only in relation to assignments of leases granted before 20 September 1985.\n\nNote: The Income Tax Assessment Act 1997 does not contain a rewritten version of this section.\n\n For the 1998‑99 year of income and later years of income, Parts 3‑1 and 3‑3 (about CGT) deal with the income tax treatment of premiums for:\n\n- granting leases; and\n- assigning leases granted on or after 20 September 1985.\n\n For the 1997‑98 year of income, former Part IIIA of this Act (about CGT) dealt with the income tax treatment of such premiums.\n\n (1) In this section, premium means a consideration payable in one amount, or each amount of a consideration payable in more than one amount, where the consideration is:\n\n (a) in the nature of a premium, fine or foregift payable for or in connexion with the grant or assignment of a lease; or\n\n (b) for or in connexion with an assent to the grant or assignment of a lease;\n\nbut does not include an amount in respect of goodwill or a licence.\n\n (2) Where, in the year of income, a taxpayer receives a premium that relates to the grant or assignment of a lease of property that was not, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, intended by the grantee or assignee to be used by the grantee or the assignee or some other person wholly or partly for the purpose of gaining or producing assessable income, the assessable income of the taxpayer shall include the premium.\n\n (3) Where, in the year of income, a taxpayer receives a premium that relates to the grant or assignment of a lease of property that was, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, intended by the grantee or assignee to be used by the grantee or assignee or some other person partly for the purpose of gaining or producing assessable income and partly for other purposes, the assessable income of the taxpayer shall include such part of the premium as the Commissioner considers may reasonably be attributed to the intended use of the property for purposes other than gaining or producing assessable income.\n\n (4) Where, in a case referred to in subsection (2) or (3), the taxpayer satisfies the Commissioner that, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, the taxpayer believed on reasonable grounds that the grantee or assignee intended a particular use of the property by the grantee or assignee or some other person for the purpose of gaining or producing assessable income, the Commissioner may apply this section on the basis that that intention existed.\n\n (5) This section does not apply in relation to:\n\n (b) a premium received in connexion with the assignment of a lease of land granted under a law of a State or Territory relating to mining;\n\n (c) a premium received in connexion with the grant or assignment of a lease that was, for the purposes of former section 88B, a grant or assignment for mining purposes; or\n\n (d) a premium received in connexion with the assignment from the Commonwealth or a State of a lease:\n\n (i) granted in perpetuity or for a term not less than 99 years; or\n\n (ii) with a right of purchase; or\n\n (iii) effecting improvements to be used for residential purposes only.\n\n26AF  Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds\n\n (a) in a year of income and after 19 August 1980, a taxpayer receives or obtains a benefit of any kind out of, or attributable to assets of, a paragraph 23(ja) fund or a section 23FB fund;\n\n (aa) if the fund is an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)—the benefit was received or obtained by the taxpayer before the proclaimed superannuation standards day;\n\n (b) the benefit is received or obtained otherwise than in accordance with approved terms and conditions applicable to the fund at the time when the benefit is received or obtained; and\n\n (c) the Commissioner is satisfied that the taxpayer received or obtained the benefit:\n\n (i) by reason that the taxpayer was, or had been, a member of the fund;\n\n (ii) by reason that the taxpayer was, or had been, a dependant of a person who was, or had been, a member of the fund; or\n\n (iii) by reason that the taxpayer was, or had been, associated with a person who was, or had been, a member of the fund;\n\nthe assessable income of the taxpayer of the year of income shall include the amount or value of that benefit.\n\n (2) Where, in a year of income and after 19 August 1980, a taxpayer receives valuable consideration in respect of the transfer by the taxpayer to another person (whether by assignment, by declaration of trust or by any other means) of a right (whether vested or contingent) to receive a benefit from a fund, being a paragraph 23(ja) fund or a section 23FB fund and not being an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007), the assessable income of the taxpayer of the year of income shall include the amount or value of that consideration.\n\napproved terms and conditions, in relation to a fund, means:\n\n (a) in the case of a paragraph 23(ja) fund—terms and conditions approved by the Commissioner under subparagraph 23(ja)(ii) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987; or\n\n (b) in the case of a section 23FB fund—terms and conditions approved by the Commissioner under subsection 23FB(2) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987.\n\nparagraph 23(ja) fund means a fund the income of which of any year of income is or has been exempt from tax by virtue of paragraph 23(ja) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 or would, but for the provisions of section 121C as in force at any time before the commencement of section 21 of the Taxation Laws Amendment Act 1985 and Division 9C, be, or have been, exempt from tax by virtue of that paragraph;\n\nsection 23FB fund means:\n\n (a) a fund the income of which of any year of income is or has been exempt from tax by virtue of section 23FB as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 or would, but for the provisions of Division 9C, be, or have been, exempt from tax by virtue of that section; and\n\n (b) a fund that was a section 79 fund for the purposes of this section as in force at any time before the commencement of the Income Tax Assessment Amendment Act (No. 3) 1984.\n\n (4) For the purposes of this section, where either of the following paragraphs applies in relation to an exempt fund within the meaning of section 26AFB of this Act (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007) in relation to the year of income of the fund commencing on 1 July 1986 or a subsequent year of income:\n\n (a) the year of income ended before the proclaimed superannuation standards day and the income of the fund of the year of income would, but for the amendments made by the  Taxation Laws Amendment Act (No. 4) 1987, have been exempt from tax under paragraph 23(ja) or section 23FB of this Act, as in force at any time before the commencement of section 1 of that Act;\n\n (b) the proclaimed superannuation standards day occurred during the year of income and, if the year of income had ended on the proclaimed superannuation standards day, the income of the fund of the year of income would have been exempt from tax under paragraph 23(ja) or section 23FB of this Act, as in force at any time before the commencement of section 1 of that Act;\n\nparagraph 23(ja) or section 23FB of this Act, as in force immediately before the commencement of section 1 of that Act, shall be taken to have continued to apply in relation to the fund in relation to the year of income of the fund.\n\n26AFA  Assessable income to include value of certain benefits received from or in connection with former section 23F funds\n\n (a) in a year of income and on or after 7 December 1983, a taxpayer receives or obtains a benefit of any kind out of, or attributable to assets of, a section 23F fund;\n\n (aa) if the fund is an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)—the benefit was received or obtained by the taxpayer before the proclaimed superannuation standards day;\n\n (b) the benefit:\n\n (i) is not a benefit that the taxpayer has a right to receive from the fund; or\n\n (ii) is an excessive benefit; and\n\n (c) the Commissioner is satisfied that the taxpayer received or obtained the benefit:\n\n (i) by reason that the taxpayer was, or had been, a member of the fund;\n\n (ii) by reason that the taxpayer was, or had been, a dependant of a person who was, or had been, a member of the fund;\n\n (iii) by reason that the taxpayer was, or had been, associated with a person who was, or had been, a member of the fund; or\n\n (iv) by reason that the taxpayer was, or had been, associated with a person who had made contributions to the fund, being contributions to which Subdivision AA of Division 3 applied;\n\nthe assessable income of the taxpayer of the year of income shall include the amount or value of that benefit.\n\n (a) subsection (1) would, but for this subsection, apply to the amount or value of an excessive benefit received or obtained by a taxpayer out of, or attributable to assets of, a section 23F fund; and\n\n (b) the Commissioner, having regard to:\n\n (i) the nature of the fund;\n\n (ii) the circumstances by reason of which the benefit is an excessive benefit; and\n\n (iii) such other matters relating to the receiving or obtaining of the benefit by the taxpayer as the Commissioner considers relevant;\n\n  is satisfied that it would be unreasonable for subsection (1) to apply to the whole or part of the benefit;\n\nthat subsection does not apply to the benefit, or to that part of the benefit, as the case may be.\n\n (3) Where, in a year of income and on or after 7 December 1983, a taxpayer receives valuable consideration in respect of the transfer by the taxpayer to another person (whether by assignment, by declaration of trust or by any other means) of a right (whether vested or contingent) to receive a benefit from a fund, being a section 23F fund and not being an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007), the assessable income of the taxpayer of the year of income shall include the amount or value of that consideration.\n\n (4) In this section:\n\ndependant, in relation to a taxpayer, includes the spouse and any child of the taxpayer.\n\nexcessive benefit means a benefit of any kind that is excessive in amount or value having regard to the matters mentioned in subparagraphs 23F(2)(h)(i), (ii), (iii) and (iv) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987.\n\nsection 23F fund means a fund to which section 23F (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987) applies, or has applied, in relation to any year of income.\n\n (5) For the purposes of this section, where either of the following paragraphs applies in relation to an exempt fund within the meaning of section 26AFB of this Act (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007) in relation to the year of income of the fund commencing on 1 July 1986 or a subsequent year of income:\n\n (a) the year of income ended before the proclaimed superannuation standards day and section 23F of this Act, as in force immediately before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987, would, but for the amendments made by that Act, have applied in relation to the fund in relation to the year of income;\n\n (b) the proclaimed superannuation standards day occurred during the year of income and, if the year of income had ended on the proclaimed superannuation standards day, section 23F of this Act, as in force immediately before the commencement of section 1 of that Act, would, but for the amendments made by that Act, have applied in relation to the fund in relation to the year of income;\n\nsection 23F of this Act, as in force immediately before the commencement of section 1 of that Act, shall be taken to have continued to apply in relation to the fund in relation to the year of income of the fund.\n\n26AG  Certain film proceeds included in assessable income\n\n (a) under a contract entered into on or after 1 October 1980, a taxpayer has expended, or is deemed by former section 124ZAP to have expended, capital moneys in producing, or by way of contribution to the cost of producing, a film;\n\n (b) by reason of the moneys having been expended, the taxpayer became the owner of an interest in the copyright in the film; and\n\n (c) a deduction has been allowed, or is allowable, to the taxpayer under former section 124ZAF or 124ZAFA in respect of some or all of those moneys;\n\nthis section applies, and shall be deemed always to have applied, in relation to the taxpayer in relation to a year of income (whether commencing before or after the commencement of this section), to:\n\n (d) any amount derived by the taxpayer in the year of income from sources in or out of Australia as consideration for the use of, or the right to use, the copyright or the film, to the extent to which the amount derived is attributable to the interest referred to in paragraph (b); and\n\n (e) any amount (other than an amount to which paragraph (d) applies) receivable by the taxpayer from sources in or out of Australia as consideration in respect of the disposal, in the year of income, of the whole or a part of the interest referred to in paragraph (b).\n\n (2) The assessable income of a taxpayer of a year of income shall include amounts to which this section applies in relation to the taxpayer in relation to the year of income.\n\n (a) for any reason, including:\n\n (i) the formation or dissolution of a partnership; or\n\n (ii) a variation in the constitution of a partnership or in the interests of the partners;\n\n  a change has occurred in the ownership of, or in the interests of persons in, a copyright in a film;\n\n (b) the person, or one or more of the persons, who owned the copyright before the change has or have an interest in the copyright after the change; and\n\n (c) any person (in this subsection referred to as the relevant person) who had an interest in the copyright before the change:\n\n (i) did not have an interest in the copyright after the change; or\n\n (ii) had a lesser interest in the copyright after the change;\n\n (d) if the relevant person did not have an interest in the copyright after the change, the relevant person shall be deemed, for the purposes of subsection (1), to have disposed of the whole of his or her interest in the copyright at the time when the change occurred for an amount of consideration equal to:\n\n (i) if the change occurred in pursuance of an agreement and the agreement specified, as the value of the copyright for the purposes of the agreement, an amount greater than the value of the copyright at the time when the change occurred—so much of the amount specified in the agreement as bears to that amount the same proportion as the value, at the time when the change occurred, of the interest deemed to have been disposed of bears to the value of the copyright at the time when the change occurred; and\n\n (ii) in any other case—the value, at the time when the change occurred, of the interest disposed of;\n\n (e) if the relevant person had a lesser interest in the copyright after the change, the relevant person shall be deemed, for the purposes of subsection (1), to have disposed of a part of his or her interest in the copyright at the time when the change occurred for an amount of consideration equal to:\n\n (i) if the change occurred in pursuance of an agreement and the agreement specified, as the value of the copyright for the purposes of the agreement, an amount greater than the value of the copyright at the time when the change occurred—so much of the amount specified in the agreement as bears to that amount the same proportion as the value, at the time when the change occurred, of the part of the interest deemed to have been disposed of bears to the value of the copyright at the time when the change occurred; and\n\n (ii) in any other case—the value, at the time when the change occurred, of the part of the interest disposed of.\n\n (4) For the purposes of this section, where, in pursuance of a judgment of a court or otherwise, an amount is paid to a taxpayer in respect of an infringement, or an alleged infringement, of a copyright in a film, the taxpayer shall be deemed to have disposed of a part of his or her interest in the copyright, at the time of payment, in consideration of the payment of that amount.\n\n (5) Subject to subsections (3) and (6), a reference in this section to the consideration receivable by a taxpayer in respect of the disposal of the whole or a part of the taxpayer’s interest in a copyright (which whole or part is in this subsection referred to as the unit) is a reference to:\n\n (a) where the unit is disposed of for a specified price—that price less:\n\n (i) the expenses of the disposal; and\n\n (ii) if the disposal is a taxable supply—an amount equal to the GST payable on the supply; or\n\n (b) where the unit is disposed of together with other property and no separate price is allocated to the unit—such amount as the Commissioner determines.\n\n (a) a taxpayer disposes of the whole or a part of the taxpayer’s interest in a copyright (which whole or part is in this subsection referred to as the unit) to another person;\n\n (b) the Commissioner is satisfied, having regard to any connection between the taxpayer and that other person or to any other relevant circumstances, that the taxpayer and that other person were not dealing with each other at arm’s length in relation to the disposal; and\n\n (c) there was no amount receivable by the taxpayer in respect of the disposal or the amount receivable by the taxpayer in respect of the disposal was less than the value of the unit at the time of the disposal;\n\nthe amount of the consideration receivable by the taxpayer in respect of the disposal shall be taken, for the purposes of this section, to be the amount that was the value of the unit at the time of the disposal.\n\n (8) If:\n\n (a) a non‑resident taxpayer derives, from sources outside Australia, income in respect of a film; and\n\n (b) but for this subsection, subsection (2) would include the amount in the taxpayer’s assessable income of a year of income;\n\nthat subsection does not include in the taxpayer’s assessable income so much of the amount as:\n\n (c) is attributable to the exhibition of the film in the country from sources in which the income was derived; and\n\n (d) is not exempt from income tax in the country from sources in which the income was derived.\n\n (a) an amount (in this subsection referred to as the relevant amount) is derived by a partnership in a year of income; and\n\n (b) if the relevant amount were derived by a partner in the partnership, the relevant amount, or a part of the relevant amount, would, by virtue of paragraph (1)(d), be an amount to which this section applies in relation to that partner in relation to the year of income;\n\n (c) the relevant amount shall not be taken into account, for the purposes of any provision of this Act, in calculating the net income of the partnership, or the partnership loss, of any year of income in accordance with section 90; and\n\n (d) for the purposes of the application of this Act in relation to a taxpayer being a partner in the partnership, an amount equal to:\n\n (i) so much of the relevant amount as the partners have agreed is derived for the benefit of the taxpayer; or\n\n (ii) if the partners have not agreed as mentioned in subparagraph (i)—so much of the relevant amount as bears to the relevant amount the same proportion as the individual interest of the taxpayer in the net income of the partnership of the year of income in which the relevant amount was derived by the partnership bears to that net income or, as the case requires, the individual interest of the taxpayer in the partnership loss for that year of income bears to that partnership loss;\n\n  shall be taken to have been derived by the taxpayer.\n\n (a) a partnership has disposed of the whole or a part of the copyright or of an interest in the copyright in a film;\n\n (b) an amount (in this subsection referred to as the relevant amount) is receivable by the partnership as consideration in respect of that disposal; and\n\n (c) if the relevant amount were receivable by a partner in the partnership, the relevant amount or a part of the relevant amount would, by virtue of paragraph (1)(e), be an amount to which this section applies in relation to that partner in relation to the year of income;\n\n (d) the relevant amount shall not be taken into account, for the purposes of any provision of this Act, in calculating the net income of the partnership, or the partnership loss, of any year of income in accordance with section 90;\n\n (e) for the purposes of the application of this Act in relation to a taxpayer being a partner in the partnership, an amount equal to:\n\n (i) so much of the relevant amount as the partners have agreed is receivable for the benefit of the taxpayer; or\n\n (ii) if the partners have not agreed as mentioned in subparagraph (i)—so much of the relevant amount as bears to the relevant amount the same proportion as the individual interest of the taxpayer in the net income of the partnership of the year of income in which the disposal mentioned in paragraph (a) occurred bears to that net income, or, as the case requires, the individual interest of the taxpayer in the partnership loss for that year of income bears to that partnership loss;\n\n  shall be taken to be receivable by the taxpayer;\n\n (f) where the taxpayer had an interest in the copyright before the disposal and did not have an interest in the copyright after the disposal or had a lesser interest in the copyright after the disposal, the amount deemed to be receivable by the taxpayer shall be deemed to be receivable in respect of the disposal by the taxpayer of his or her interest in the copyright or of a part of his or her interest in the copyright, as the case may be;\n\n (g) where the disposal is deemed to have occurred by virtue of subsection (4) or is a disposal to which paragraph (13)(a) applies, the amount deemed to be receivable by the taxpayer shall be deemed to be receivable, in respect of the disposal by the taxpayer of a part of his or her interest in the copyright.\n\n (11) In determining for the purposes of subsection (10) whether a partnership has disposed of the whole or part of a copyright or of an interest in a copyright and in determining the amount of consideration receivable by the partnership in respect of the disposal, subsections (4), (5), (6) and (13) apply as if the partnership were a taxpayer.\n\n (12) Where:\n\n (a) a taxpayer has disposed of the whole or a part of the taxpayer’s interest in a copyright;\n\n (b) by reason of that disposal, an amount would, but for former subsection 124T(3), be included in the assessable income of the taxpayer of a year of income under former section 124P or would be applied, under former section 124N or 124S, in reducing the residual value, for the purposes of former Division 10B, of a unit of industrial property owned by the taxpayer; and\n\n (c) but for this subsection, this section would apply, in relation to a year of income, to the amount of the consideration receivable by the taxpayer in respect of the disposal;\n\nthe amount to which this section applies by virtue of the disposal is the amount of the consideration referred to in paragraph (c) reduced by the amount that would be included in the assessable income of the taxpayer, or would be applied under former section 124N or 124S, as mentioned in paragraph (b).\n\n (13) In this section:\n\n (a) a reference to a disposal by a taxpayer of the whole or a part of the taxpayer’s interest in a copyright in a film includes a reference to the assignment by the taxpayer of a right to receive amounts as consideration for the use of, or the right to use, the copyright or the film;\n\n (b) a reference to an amount derived by a taxpayer as consideration for the use of, or the right to use, a copyright in a film includes a reference to an amount derived as consideration for the granting of a licence in respect of copyright in the film that is to come into existence at a future time or upon the happening of a future event;\n\n (c) a reference to the value of property at a particular time shall, if there is insufficient evidence of the value of the property at that time, be read as a reference to such amount as, in the opinion of the Commissioner, is fair and reasonable;\n\n (d) a reference to the expenditure of capital moneys is a reference to the expenditure of moneys that is expenditure of a capital nature;\n\n (e) a reference to a taxpayer becoming the owner of an interest in copyright includes a reference to the taxpayer becoming the owner of the copyright; and\n\n (f) a reference to copyright, in relation to a film, is a reference to the copyright subsisting in the film by virtue of Part IV of the Copyright Act 1968 and includes a reference to copyright subsisting in, or in relation to, the film or in any work comprised in the film, under the law of a country other than Australia.\n\n26AH  Bonuses and other amounts received in respect of certain short‑term life assurance policies\n\n (1) In this section, unless the contrary intention appears:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nassurance year, in relation to an eligible policy, means the period of 12 months commencing on, or on any anniversary of, the date of commencement of risk of the policy.\n\ndate of commencement of risk, in relation to an eligible policy, means the date of commencement of the period in respect of which the first or only premium paid under the policy was paid or, if the first or only premium was not paid in respect of a period, the date on which that premium was paid.\n\neligible period, in relation to an eligible policy, means the period of 10 years commencing on the date of commencement of risk of the policy.\n\neligible policy means a life assurance policy in relation to which the date of commencement of risk is after 27 August 1982, other than a funeral policy (as defined in the Income Tax Assessment Act 1997) issued on or after 1 January 2003.\n\neligible reckoning date, in relation to an eligible policy, means the date of commencement of an assurance year that, for the purposes of an application of subsection (13), is the premium increase year referred to in that subsection.\n\n (2) Where a paid‑up life assurance policy is issued to a taxpayer in lieu of an eligible policy:\n\n (a) the paid‑up policy shall, for the purposes of this section, be deemed to be a continuation of the eligible policy; and\n\n (b) no amount shall be taken for the purposes of subsection (4) to have been re‑invested or otherwise dealt with on behalf of the taxpayer or as he or she directs in connection with the issue of the paid‑up policy to the taxpayer in lieu of the eligible policy.\n\n (3) This section applies to any amount received after 27 August 1982 under an eligible policy.\n\n (4) For the purposes of this section, but subject to subsection (5), a taxpayer shall be taken to have received an amount under or in relation to an eligible policy although the amount is not actually paid to the taxpayer but is re‑invested or otherwise dealt with on his or her behalf or as he or she directs.\n\n (5) Subsection (4) does not apply in relation to an amount in relation to an eligible policy if the amount is re‑invested or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs so as to increase the amount that might reasonably be expected to be received under the eligible policy on a surrender or maturity of the eligible policy.\n\n (6) Where, during the eligible period in relation to an eligible policy, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under the policy as or by way of a bonus, being an amount that, but for this section, would not be included in the assessable income of the taxpayer of any year of income, the assessable income of the taxpayer of the year of income in which the relevant amount is received shall include:\n\n (a) if the relevant amount is received during the first 8 years of the eligible period—an amount equal to the relevant amount;\n\n (b) if the relevant amount is received during the ninth year of the eligible period—an amount equal to two‑thirds of the relevant amount; or\n\n (c) if the relevant amount is received during the tenth year of the eligible period—an amount equal to one‑third of the relevant amount.\n\n (6A) If, during the year of income, an amount referred to in subsection (6) is received during the eligible period in relation to an eligible policy held by the trustee of a non‑complying superannuation fund:\n\n (a) subsection (6) does not apply to the amount; and\n\n (b) the amount is included in the assessable income of the fund of the year of income.\n\n (7) Subsection (6) does not apply to any amount received by a taxpayer in a year of income under an eligible policy where:\n\n (a) the amount is received in consequence of:\n\n (i) the death of the person on whose life the policy was effected; or\n\n (ii) an accident, illness or other disability suffered by the person on whose life the policy was effected; or\n\n (aa) the eligible policy is an RSA; or\n\n (b) the eligible policy is held by the trustee of:\n\n (i) a complying superannuation fund; or\n\n (ii) a complying approved deposit fund; or\n\n (iii) a pooled superannuation trust; or\n\n (ba) the eligible policy is issued by a life assurance company and the company’s liabilities under the policy are to be discharged out of:\n\n (i) complying superannuation assets within the meaning of the Income Tax Assessment Act 1997; or\n\n (ii) segregated exempt assets within the meaning of that Act; or\n\n (c) except where the policy was effected, purchased or taken on assignment with a view to it being forfeited, surrendered or otherwise terminated, or to it maturing, within 10 years—the amount was received by the taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of the policy in circumstances arising out of serious financial difficulties of the taxpayer.\n\n (a) subsection (6) would, but for this subsection, apply to an amount (in this subsection referred to as the relevant amount) received by a taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of an eligible policy; and\n\n (b) the Commissioner, having regard to:\n\n (i) the total amount of premiums paid under the eligible policy;\n\n (ii) the total amounts received by the taxpayer or by any other person under the eligible policy and the total amounts of bonuses included in the amounts so received;\n\n (iii) the amount of the surrender value of the eligible policy at the time when the forfeiture, surrender or other termination occurred; and\n\n (iv) such other matters as the Commissioner considers relevant, is of the opinion that it would be unreasonable for subsection (6) to apply to the relevant amount or to a part of the relevant amount;\n\nsubsection (6) does not apply to the relevant amount, or to that part of the relevant amount, as the case may be.\n\n (a) otherwise than as or by way of a bonus, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under an eligible policy; and\n\n (b) the Commissioner is of the opinion that the relevant amount or a part of the relevant amount represents the whole or part of:\n\n (i) a bonus that has accrued or has been declared in respect of the policy; or\n\n (ii) a bonus that can reasonably be expected to accrue in respect of the policy;\n\nthe relevant amount or the part of the relevant amount, as the case may be, shall, for the purposes of subsection (6), be deemed to have been received by the taxpayer under the policy as or by way of a bonus.\n\n (a) subsection (9) applies by reason that the Commissioner has formed an opinion under paragraph (9)(b) that the whole or a part of an amount received by a taxpayer represents the whole or a part of a bonus; and\n\n (b) the taxpayer subsequently receives an amount (in this subsection referred to as the actual bonus), being the whole or a part of the bonus, or of the part of the bonus, as the case may be, referred to in paragraph (a) of this subsection;\n\n (c) the operation of subsection (9) is not affected by the receipt of the actual bonus; and\n\n (d) no part of the actual bonus shall be included in the assessable income of the taxpayer.\n\n (11) Where, in relation to an eligible policy, a taxpayer receives an amount from the assurer, or from another person at the request of, or under an agreement with, the assurer, by way of an advance or loan in respect of which interest is not payable or in respect of which interest is payable at a rate less than the rate of interest that could reasonably be expected to be payable in respect of a loan of the same amount made on similar terms and conditions by the assurer or the other person, as the case may be, to a person with whom the assurer or that other person was dealing at arm’s length, the amount shall, for the purposes of subsection (9), be deemed to be an amount to which paragraph (9)(a) applies.\n\n (12) Where an eligible policy, or any right to receive any benefits that have accrued, or will or may reasonably be expected to accrue, under an eligible policy, is sold or assigned in whole or in part by a taxpayer during the eligible period in relation to the policy:\n\n (a) the amount of any consideration received by the taxpayer in respect of that sale or assignment shall be deemed to be an amount to which paragraph (9)(a) applies; and\n\n (b) subsections (9) and (10) apply in relation to that consideration as if “represents” were omitted from paragraphs (9)(b) and (10)(a) and “is attributable” to  were substituted.\n\n (13) Where the amount of the premiums payable under an eligible policy in relation to an assurance year (in this subsection referred to as the premium increase year) exceeds by more than 25% the amount of the premiums payable under the policy in relation to the immediately preceding assurance year, the eligible period in relation to the policy shall, for the purposes of:\n\n (a) the application of subsection (6) in relation to any amount received under the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy; and\n\n (b) the application of subsection (12) in relation to any sale or assignment of the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy;\n\nbe reckoned from the date of commencement of the premium increase year.\n\n (14) This section has effect in relation to an eligible policy in relation to which the date of commencement of risk is on or before 7 December 1983 as if:\n\n (a) “10 years” were omitted from the definition of eligible period in subsection (1) and “4 years” were substituted;\n\n (b) “8 years”, “ninth year” and “tenth year” were omitted from subsection (6) and “2 years”, “third year” and “fourth year” respectively were substituted; and\n\n (c) “10 years” were omitted from paragraph (7)(c) and “4 years” were substituted.\n\n26AJ  Investment‑related lottery winnings to be included in assessable income\n\n (i) a loan benefit is provided to a taxpayer, or to another person, in respect of a year of income (in this subsection called the current year of income); or\n\n (ii) an amount (other than loan principal) is paid or credited to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); or\n\n (iii) other property or services are provided to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); and\n\n (b) the making of a loan, the payment or crediting of the amount, or the provision of the property or services, as the case may be, is by way of winnings from:\n\n (i) betting (including pool betting); or\n\n (ii) a lottery or other form of gambling; or\n\n (iii) a game with prizes; and\n\n (c) the chance to participate in the betting, lottery, gambling or game (in this subsection called the betting chance) was provided:\n\n (i) wholly or partly in respect of an investment held by the taxpayer in or with a third person (who may be an associate of the taxpayer) (in this subsection called the investment body); or\n\n (ii) wholly or partly in relation directly or indirectly to such an investment; and\n\n (d) the betting, lottery, gambling or game was organised by, or on behalf of:\n\n (i) the investment body (either acting alone or together with one or more other persons); or\n\n (ii) an associate of the investment body (either acting alone or together with one or more other persons); and\n\n (e) if the recipient of the loan benefit, amount or property or services, as the case may be, is a person other than the taxpayer—either:\n\n (i) the other person is an associate of the taxpayer; or\n\n (ii) the loan benefit, amount or property or services, as the case may be, is provided under an arrangement to which the taxpayer, or an associate of the taxpayer, is a party; and\n\n (f) no part of the value of the betting chance is included in the assessable income of the taxpayer of any year of income; and\n\n (g) the provision of the betting chance is neither:\n\n (i) a fringe benefit; nor\n\n (ii) a benefit that, apart from paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit;\n\nthen:\n\n (h) if subparagraph (a)(i) applies—the taxpayer’s assessable income of the current year of income includes the amount (if any) by which the benchmark amount of interest in relation to the loan in respect of the current year of income exceeds the amount of interest that has accrued on the loan in respect of the current year of income; or\n\n (i) if subparagraph (a)(ii) applies—the taxpayer’s assessable income of the current year of income includes the amount paid or credited; or\n\n (j) if subparagraph (a)(iii) applies—the taxpayer’s assessable income of the current year of income includes the arm’s length value of the property or services, reduced by the recipient’s contribution (if any).\n\n (2) If:\n\n (a) apart from this subsection, an amount (in this subsection called the gross assessable amount) is included in a taxpayer’s assessable income of a year of income under paragraph (1) (h) in respect of a loan benefit; and\n\n (b) assuming that:\n\n (i) the recipient of the loan benefit had, on the last day of the period (in this subsection called the loan period) during the year of income when the recipient was under an obligation to repay the whole or any part of the loan, incurred and paid unreimbursed interest (in this subsection called the gross interest), in respect of the loan, in respect of the loan period; and\n\n (ii) the amount of the gross interest was equal to the benchmark amount of interest in relation to the loan in respect of the year of income;\n\n  a once‑only deduction (in this subsection called the gross deduction) would, or would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient in respect of the gross interest;\n\nthe gross assessable amount is reduced by:\n\n (c) if no interest accrued on the loan in respect of the loan period—the amount of the gross deduction; or\n\n (d) in any other case—the amount worked out using the formula:\n\n  ![Start formula Gross deduction minus Reducing amount end formula](image.008.png)\n\n  Gross deduction means the amount of the gross deduction.\n\n  Reducing amount means the amount (if any) that would, or that would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once‑only deduction to the recipient in respect of the interest that accrued on the loan in respect of the loan period if that interest had been incurred and paid by the recipient on the last day of the loan period.\n\n (3) If:\n\n (a) apart from this subsection, an amount (in this subsection called the gross assessable amount) is included in a taxpayer’s assessable income of a year of income under paragraph (1)(j) in respect of the provision of property or services; and\n\n (b) assuming that:\n\n (i) the recipient of the property or services had, at the time the property or services were provided, incurred and paid unreimbursed expenditure in respect of the provision of the property or services; and\n\n (ii) the expenditure was equal to the amount of the arm’s length value of the property or services;\n\n  a once‑only deduction would, or would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient in respect of a percentage (in this subsection called the deductible percentage) of the expenditure;\n\nthe gross assessable amount is reduced by the deductible percentage.\n\n (4) For the purposes of the application of this section to a taxpayer, if a person (in this subsection called the provider) makes a loan to another person (who may be the taxpayer) (in this subsection called the recipient):\n\n (a) the making of the loan is taken to constitute a loan benefit provided by the provider to the recipient; and\n\n (b) that loan benefit is taken to be provided in respect of each year of income of the taxpayer during the whole or part of which the recipient is under an obligation to repay the whole or any part of the loan.\n\n (5) For the purposes of this section, if a person (in this subsection called the provider) makes a deferred interest loan (in this subsection called the principal loan) to another person (in this subsection called the recipient):\n\n (a) the provider is taken, at the end of:\n\n (i) the period of 6 months commencing on the day on which the principal loan was made; and\n\n (ii) each subsequent period of 6 months;\n\n  (being in either case a period during the whole of which the recipient is under an obligation to repay the whole or any part of the principal loan) to have made a loan (in this subsection called the deemed loan) to the recipient; and\n\n (b) the amount of the deemed loan is equal to the amount by which the interest (in this subsection called the accrued interest) that has accrued on the principal loan in respect of that period exceeds the amount (if any) paid in respect of the accrued interest before the end of that period; and\n\n (c) if any part of the accrued interest becomes payable or is paid after the time when the deemed loan is taken to have been made, the deemed loan is to be reduced accordingly; and\n\n (d) the deemed loan is taken to have been made at a nil rate of interest.\n\n (6) For the purposes of this section, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.\n\n (7) For the purposes of this section, a person is taken to be under an obligation to pay or repay an amount even though the amount is not due for payment or repayment.\n\n (8) For the purposes of this section, if a person does anything that results in the creation of property in another person, the first‑mentioned person is taken to have provided that property to the other person at the time when the property comes into existence.\n\n (9) For the purposes of this section, if:\n\n (a) a particular mode of application of money by a taxpayer in relation to another person (in this subsection called the investment body) would not, apart from this subsection, be an investment; and\n\n (b) a chance to participate in:\n\n (i) betting (including pool betting); or\n\n (ii) a lottery or other form of gambling; or\n\n (iii) a game with prizes;\n\n  is provided to the taxpayer or a third person:\n\n (iv) wholly or partly in respect of the mode of application of money by the taxpayer; or\n\n (v) wholly or partly in relation directly or indirectly to the mode of application of money by the taxpayer; and\n\n (c) if a cash payment had been provided by the investment body to the taxpayer instead of that chance, the payment would constitute, to any extent, a return on an investment held by the taxpayer in or with the investment body;\n\nthe mode of application of money is taken to be an investment held by the taxpayer with the investment body.\n\n (10) If a ballot is held to determine the order in which loans are to be made by a Starr‑Bowkett building society to its members, then the making of a loan in accordance with the ballot is not covered by paragraph (1)(b).\n\narm’s length value, in relation to property or services, means:\n\n (a) the amount that the recipient could reasonably have been expected to have been required to pay to obtain the property or services from the provider under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction; or\n\n (b) if such an amount cannot be practically determined—such amount as represents a reasonable valuation of the property or services.\n\narrangement means:\n\n (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.\n\nassociate has the same meaning in relation to a person as that expression has in relation to a person in section 318.\n\nbenchmark amount of interest, in relation to a loan, in relation to a year of income, means the amount of interest that would have accrued on the loan in respect of the year of income if the interest was calculated on the daily balance of the loan at the benchmark interest rate in relation to the year of income.\n\nbenchmark interest rate, in relation to a year of income, means the predominant per cent per annum interest rate on new, variable interest rate housing loans to individuals for owner‑occupation that is specified, for the June immediately preceding the financial year to which the year of income relates, in the “Interest Rates and Yields: Banks” table in the Statistical Directory of the Reserve Bank of Australia Bulletin dated July in that financial year.\n\ndeferred interest loan means a loan in respect of which interest is payable at a rate exceeding nil, other than:\n\n (a) a loan where the whole of the interest is due for payment within 6 months after the loan is made; or\n\n (b) a loan where:\n\n (i) the interest is payable by instalments; and\n\n (ii) the intervals between instalments do not exceed 6 months; and\n\n (iii) the first instalment is due for payment within 6 months after the loan is made.\n\ninvestment means any mode of application of money for the purpose of gaining a return.\n\nloan includes:\n\n (a) an advance of money; and\n\n (b) the provision of credit or any other form of financial accommodation; and\n\n (c) the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation (whether express or implied) to repay the amount; and\n\n (d) a transaction (whatever its terms or form) which in substance effects a loan of money.\n\nloan benefit has the meaning given by subsection (4).\n\nperson means any of the following:\n\n (a) a company;\n\n (b) a partnership;\n\n (c) a person in the capacity of trustee;\n\n (d) any other person.\n\nprovide:\n\n (a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise); and\n\n (b) in relation to services—includes allow, confer, give, grant or perform.\n\nrecipient’s contribution, in relation to property or services, means the amount of any consideration paid to the provider by the recipient in respect of the provision of the property or services, reduced by the amount of any reimbursement paid to the recipient in respect of that consideration.\n\nreturn, in relation to an investment, includes interest, income or profit.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a right, benefit, privilege, service or facility that is, or is to be, provided under:\n\n (a) an arrangement for or in relation to:\n\n (i) the performance of work (including work of a professional nature), whether with or without the provision of property; or\n\n (ii) the provision of, or the use of facilities for, entertainment, recreation or instruction; or\n\n (iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or\n\n (b) a contract of insurance; or\n\n (c) an arrangement for or in relation to the lending of money.\n\nunreimbursed expenditure means expenditure no part of which has been reimbursed.\n\nunreimbursed interest means interest no part of which has been reimbursed.\n\n26BB  Assessability of gain on disposal or redemption of traditional securities\n\nacquire, in relation to a security, means acquire, on issue, purchase, transfer, assignment or otherwise, the security or the right to receive payment of the amount or amounts payable under the security.\n\nconnected entity has the same meaning as in the Income Tax Assessment Act 1997.\n\ndispose, in relation to a security, means sell, transfer, assign or dispose of in any way the security or the right to receive payment of the amount or amounts payable under the security.\n\neligible return has the same meaning as in Division 16E.\n\nperiodic interest has the same meaning as in Division 16E.\n\nsecurity has the same meaning as in Division 16E.\n\ntraditional security, in relation to a taxpayer, means a security held by the taxpayer that:\n\n (a) is or was acquired by the taxpayer after 10 May 1989;\n\n (b) either:\n\n (i) does not have an eligible return; or\n\n (ii) has an eligible return, where:\n\n (A) the precise amount of the eligible return is able to be ascertained at the time of issue of the security; and\n\n (B) that amount is not greater than 11/2 % of the amount calculated in accordance with the formula:\n\n  ![Start formula Payments times Term end formula](image.009.png)\n\n  Payments is the amount of the payment or of the sum of the payments (excluding any periodic interest) liable to be made under the security when held by any person; and\n\n  Term is the number (including any fraction) of years in the term of the security; and\n\n (d) is not trading stock of the taxpayer.\n\n (2) Where a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed, the amount of any gain on the disposal or redemption shall be included in the assessable income of the taxpayer of the year of income in which the disposal or redemption takes place.\n\n (3) Where the Commissioner, having regard to any connection between the parties to the transaction by which the taxpayer disposed of the traditional security or by which it was redeemed, or by which the taxpayer acquired the traditional security, is satisfied that the parties were not dealing with each other at arm’s length in relation to the transaction, then, for the purposes of determining under subsection (2) the amount of any gain on the disposal or redemption, the consideration for the transaction shall be taken to be:\n\n (a) the amount that might reasonably be expected for the transaction if the parties were independent parties dealing at arm’s length with each other; or\n\n (b) where, for any reason it is not possible or practicable for the Commissioner to ascertain that amount—such amount as the Commissioner determines.\n\n (4) Subsection (2) does not apply to a gain on the disposal or redemption of a traditional security if:\n\n (a) the disposal or redemption occurs because the traditional security is converted into ordinary shares in a company that is:\n\n (b) the traditional security was issued on the basis that it will or may convert into ordinary shares in:\n\n (ii) the connected entity.\n\n (5) Subsection (2) does not apply to a gain on the disposal or redemption of a traditional security if:\n\n (a) the disposal or redemption is in exchange for ordinary shares in a company that is neither:\n\n (i) the issuer of the traditional security; nor\n\n (b) in the case of a disposal—the disposal is to:\n\n (c) the traditional security was issued on the basis that it will or may be:\n\n (i) disposed of to the issuer of the traditional security or to the connected entity; or\n\n (ii) redeemed;\n\n  in exchange for ordinary shares in the company.\n\n26BC  Securities lending arrangements\n\nconvertible note:\n\n (a) in relation to a company—has the same meaning as in Division 3A; or\n\n (b) in relation to a unit trust—means a note issued by the trustee of the unit trust, being a note that, if the unit trust were a company, would be a convertible note issued by the company, and includes a note that would be a convertible note within the meaning of Division 3A if:\n\n (i) references in that Division to a company were references to a unit trust, or to the trustee of the unit trust, as the context requires; and\n\n (ii) references in that Division to shares were references to units.\n\ndebenture, in relation to a unit trust, means an instrument issued by the trustee of the unit trust, being an instrument that, if the unit trust were a company, would be a debenture issued by the company.\n\ndistribution includes:\n\n (a) interest; or\n\n (b) a dividend; or\n\n (c) a share issued by a company to a shareholder in the company where the share is issued:\n\n (i) as a bonus share; or\n\n (ii) in the circumstances mentioned in subsection 6BA(1); or\n\n (d) an amount credited by the trustee of a unit trust to a unit holder as a unit holder; or\n\n (e) a unit issued by the trustee of a unit trust to which section 130‑20 of the Income Tax Assessment Act 1997 applies (apart from subsection (4) of that section).\n\neligible security means:\n\n (a) a share, bond, debenture, convertible note, right, option or similar financial instrument issued by a public company; or\n\n (b) a unit, bond, debenture, convertible note, right, option or similar financial instrument issued by the trustee of:\n\n (i) a listed unit trust; or\n\n (ii) a unit trust any of the units of which were offered to the public; or\n\n (c) a bond, debenture, right, option or similar financial instrument issued by a government or by an authority of a government.\n\ngovernment means:\n\n (a) the Commonwealth, a State or a Territory; or\n\n (b) the government of, or of a part of, a foreign country.\n\nlisted company means a company any of the shares of which are listed for quotation in the official list of a stock exchange in Australia or elsewhere.\n\nlisted unit trust means a unit trust any of the units of which are listed for official quotation in the official list of a stock exchange in Australia or elsewhere.\n\noption:\n\n (a) in relation to a company—means an option to acquire shares in the company; or\n\n (b) in relation to a unit trust—means an option to acquire units in the unit trust; or\n\n (c) in relation to a government or an authority of a government—means an option to acquire a bond, debenture or similar financial instrument issued by the government or by the authority.\n\npublic company means:\n\n (a) a listed company; or\n\n (b) a mutual life assurance company; or\n\n (c) a company in which a government or an authority of a government has a controlling interest; or\n\n (d) a company that is a 100% subsidiary of a company covered by paragraph (a), (b) or (c).\n\nright:\n\n (a) in relation to a company—means a right to acquire shares in the company or to acquire an option; or\n\n (b) in relation to a unit trust—means a right to acquire units in the unit trust or to acquire an option; or\n\n (c) in relation to a government or an authority of a government—means a right to acquire a bond, debenture or similar financial instrument issued by the government or by the authority or to acquire an option.\n\n (2) If an eligible security is held by a person as trustee for another person who is absolutely entitled to the eligible security as against the trustee, this section applies as if the eligible security were vested in the other person and any acts of the trustee were the acts of that other person.\n\n (3) This section applies where:\n\n (a) under a written agreement of the kind known as a securities lending arrangement, being an agreement that was entered into after 9 May 1990:\n\n (i) at a particular time (in this section called the original disposal time), a taxpayer (in this section called the lender) disposed of an eligible security (in this section called the borrowed security) to another taxpayer (in this section called the borrower); and\n\n (ii) at a later time (in this section called the re‑acquisition time), being less than 12 months after the original disposal time, the lender:\n\n (A) re‑acquired the borrowed security (which re‑acquired security is in this section called the  replacement security) from the borrower; or\n\n (B) acquired an identical security (which acquired security is in this section also called the replacement security) from the borrower; and\n\n (b) both the borrower and the lender were dealing with each other at arm’s length in relation to each of the transactions mentioned in paragraph (a); and\n\n (c) if any of the following events occurred during the period (in this section called the borrowing period) commencing at the original disposal time and ending at the re‑acquisition time:\n\n (i) the making or payment of a distribution (whether in property or money) in respect of the borrowed security;\n\n (ii) the issue, by the company, trustee, government or government authority concerned, of a right or option in respect of the borrowed security;\n\n (iii) if the borrowed security is a right or option:\n\n (A) the giving of a direction by the lender to the borrower to exercise the right or option; or\n\n (B) the giving of a direction by the lender to the borrower to exercise an identical right or option;\n\n  then (even if the event occurred after the borrowed security was disposed of by the borrower to a third party), the lender receives from the borrower, under the agreement:\n\n (iv) if subparagraph (i) applies:\n\n (A) the distribution; or\n\n (B) if the distribution is in property—identical property; or\n\n (C) a payment (in this section called the compensatory payment) equal to the value to the lender of the distribution; or\n\n (v) if subparagraph (ii) applies:\n\n (A) the right or option; or\n\n (B) an identical right or option; or\n\n (C) a payment (in this section also called the compensatory payment) equal to the value to the lender of the right or option; or\n\n (vi) if subparagraph (iii) applies:\n\n (A) the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option; or\n\n (B) shares, units, bonds, debentures or financial instruments that are identical to those that resulted from, or that would have resulted from, exercising the right or option; or\n\n (C) a payment (in this section also called the compensatory payment) equal to the value to the lender of the shares, units, bonds, debentures or financial instruments that resulted from, or would have resulted from, exercising the right or option; and\n\n (d) if the total consideration payable or to be given by the borrower under the agreement consists of:\n\n (i) the transfer of, or the promise to transfer, the replacement security or replacement securities concerned; and\n\n (ii) other consideration (in this paragraph called the notifiable consideration);\n\n  the agreement contains:\n\n (iii) if the notifiable consideration is wholly covered by one of the following categories:\n\n (A) a fee;\n\n (B) an adjustment for variations in the market value of eligible securities;\n\n (C) other consideration;\n\n  a statement specifying the category concerned and setting out such information as will enable the amount or value of the notifiable consideration to be readily ascertained; or\n\n (iv) if the notifiable consideration is covered by 2 or more of the following categories:\n\n (A) a fee;\n\n (B) an adjustment for variations in the market value of eligible securities;\n\n (C) other consideration;\n\n  a statement dissecting the notifiable consideration into those categories in such a manner as will enable the amount or value of each category to be readily ascertained; and\n\n (e) the lender does not dispose of (by transfer, declaration of trust or otherwise) the right to receive any part of the total consideration payable or to be given by the borrower under the agreement.\n\n (3A) For the purposes of paragraph (3)(c), if, apart from this subsection, either of the following events occurred after the commencement of the borrowing period:\n\n (a) the making or payment of a distribution (whether in property or money) in respect of the borrowed security;\n\n (b) the issue, by the company, trustee, government or government authority concerned, of a right or option in respect of the borrowed security;\n\n(even if the event occurred after the borrowed security was disposed of by the borrower to a third party), the event is taken to have occurred during the borrowing period if, and only if, (assuming that the borrower had held the borrowed security at all times during the borrowing period) the entitlement to the distribution or issue would have been attributable to the borrower’s holding of the borrowed security at a particular time during the borrowing period.\n\n (4) In determining:\n\n (a) whether an amount (other than a fee payable under the securities lending arrangement) is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (about CGT); or\n\n (b) whether an amount is allowable as a deduction to the lender;\n\nin respect of either or both of the transactions covered by paragraph (3)(a), the lender is to be treated as if:\n\n (c) neither of those transactions had been entered into; and\n\n (d) the lender had held the borrowed security at all times during the borrowing period; and\n\n (e) if the replacement security is not the borrowed security—the replacement security were the borrowed security.\n\n (4A) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(v)(C), then, in determining whether an amount is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997, the lender is to be treated as if:\n\n (a) the lender had held the borrowed security at all relevant times during the borrowing period; and\n\n (b) the right or option had been issued directly to the lender in respect of the borrowed security; and\n\n (c) the lender had disposed of the right or option immediately after its issue for a consideration equal to the compensatory payment.\n\n (4B) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(vi)(C), then, in determining whether an amount is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997, the lender is to be treated as if:\n\n (a) the lender had held the right or option at all relevant times during the borrowing period; and\n\n (b) the lender had exercised the right or option; and\n\n (c) the lender had immediately disposed of the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option for a consideration equal to the compensatory payment.\n\n (5) In determining:\n\n (a) whether an amount is included in the assessable income of the borrower under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997; or\n\n (b) an amount (other than a fee payable under the securities lending arrangement) is allowable as a deduction to the borrower;\n\nin respect of either or both of the transactions covered by paragraph (3)(a):\n\n (c) if the borrowed security was disposed of by the borrower to a third party:\n\n (i) the borrower is to be treated as if the borrower had acquired the borrowed security from the lender for a consideration equal to the market value of the borrowed security at the time of its acquisition; and\n\n (ii) the borrower is to be treated as if the borrower had disposed of the replacement security to the lender for a consideration equal to the market value of the borrowed security at the time of its acquisition from the lender; or\n\n (d) in any other case—the borrower is to be treated as if neither of the transactions referred to in paragraph (3)(a) had been entered into.\n\n (6) Any capital gain or capital loss from the disposal of the borrowed security by the lender is disregarded.\n\n (6A) If the lender acquired the borrowed security before 20 September 1985, the lender is taken (for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997) to have acquired the replacement security before that day.\n\n (6B) If the lender acquired the borrowed security on or after 20 September 1985, the first element of the cost base of the replacement security is the cost base of the borrowed security just before the acquisition of the replacement security. The reduced cost base of the replacement security is worked out similarly.\n\n (7) If:\n\n (a) the borrowed security was acquired on or after 20 September 1985; and\n\n (b) a CGT event (other than one involving a transaction covered by subsection (3)) happens in relation to the replacement security at least 12 months after the lender acquired a paired security in relation to the replacement security (otherwise than under a transaction covered by subsection (3));\n\nsection 114‑10 of the Income Tax Assessment Act 1997 (about the requirement for 12 months ownership) does not apply to the CGT event.\n\n (8) For the purposes of subsection (7):\n\n (a) if CGT event A1 happens (involving a transaction covered by subsection (3)) by the lender disposing of an eligible security to the borrower, that security is a paired security in relation to the replacement security subsequently acquired or re‑acquired by the lender; and\n\n (b) a security is a paired security in relation to a second security if the first security is a paired security in relation to a third security that is a paired security in relation to the second security (including a pairing with the second security by another application or other applications of this paragraph).\n\n (9) For the purpose of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the borrower:\n\n (a) if the borrower disposes of the borrowed security to a third party:\n\n (i) the first element of the cost base and reduced cost base of the borrowed security (in the hands of the borrower) is taken to be its market value when the borrower acquired it; and\n\n (ii) when the borrower disposes of a replacement security to the lender, the capital proceeds from that CGT event are taken to be that market value; and\n\n (b) if no third party is involved—the transactions referred to in paragraph (3)(a) are ignored.\n\n (9A) For the purpose of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the borrower, the incidental costs to the borrower of the acquisition of an eligible security covered by sub‑subparagraph (3)(a)(ii)(B) include a compensatory payment incurred by the borrower (to the extent that the borrower has not deducted and cannot deduct it).\n\n (9B) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a right or option received by the lender as mentioned in subparagraph (3)(c)(v), the borrower and lender are to be treated as if the eligible security in respect of which the right or option was issued had been held by the lender at the time of the acquisition of the right or option.\n\n (9C) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share, unit, bond, debenture or financial instrument received by the lender as mentioned in subparagraph (3)(c)(vi), the borrower and the lender are to be treated as if:\n\n (a) the share, unit, bond, debenture or financial instrument had been received as the result of the exercise of the borrowed security; and\n\n (b) the borrowed security had been held by the lender at the time of the exercise; and\n\n (c) the lender had exercised the borrowed security; and\n\n (d) the lender had exercised the borrowed security at the time the direction concerned was given; and\n\n (e) the amount of the contribution (if any) made by the lender to the borrower in respect of the carrying out of the direction were an amount paid as consideration by the lender in respect of the exercise.\n\n (9D) If a distribution covered by subparagraph (3)(c)(i) consists of one or more shares issued by a company to the borrower or to a third party in the circumstances mentioned in subsection 6BA(1), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share (in this subsection called the notional bonus share) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:\n\n (a) the company had issued the notional bonus share to the lender instead of the borrower or the third party, as the case requires; and\n\n (b) the notional bonus share had been issued in the circumstances mentioned in subsection 6BA(1); and\n\n (c) the notional bonus share had been issued in respect of the borrowed security; and\n\n (d) the lender had held the borrowed security at the time the notional bonus share was issued.\n\n (9E) If a distribution covered by subparagraph (3)(c)(i) consists of one or more units issued by the trustee of a unit trust to the borrower or to a third party in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997, then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a unit (in this subsection called the notional bonus unit) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:\n\n (a) the trustee had issued the notional bonus unit to the lender instead of the borrower or the third party, as the case requires; and\n\n (b) the notional bonus unit had been issued in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997; and\n\n (c) the notional bonus unit had been issued in respect of the borrowed security; and\n\n (d) the lender had held the borrowed security at the time the notional bonus unit was issued.\n\n (9F) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(v)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:\n\n (a) the lender had held the borrowed security at all relevant times during the borrowing period; and\n\n (b) the right or option had been issued directly to the lender in respect of the borrowed security; and\n\n (c) the lender had disposed of the right or option immediately after its issue and had received capital proceeds of an amount equal to the compensatory payment.\n\n (9G) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(vi)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:\n\n (a) the lender had held the right or option at all relevant times during the borrowing period; and\n\n (b) the lender had exercised the right or option; and\n\n (c) the lender had immediately disposed of the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option and had received capital proceeds of an amount equal to the compensatory payment.\n\n (11A) If:\n\n (a) the lender receives from the borrower a distribution or identical property covered by subparagraph (3)(c)(iv); and\n\n (b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender’s assessable income of a year of income in respect of the distribution concerned;\n\nthe lender’s assessable income of the year of income includes an amount equal to the otherwise assessable amount.\n\n (11B) If:\n\n (a) the lender receives from the borrower a compensatory payment covered by sub‑subparagraph (3)(c)(iv)(C); and\n\n (b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender’s assessable income of a year of income in respect of the distribution concerned;\n\nthe lender’s assessable income of the year of income includes an amount equal to the otherwise assessable amount.\n\n (12) Where:\n\n (a) a taxpayer has entered into a transaction of a kind referred to in subparagraph (3)(a)(i); and\n\n (b) at the time of making an assessment in respect of income of the taxpayer of the year of income in which the transaction occurred, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which this section will apply in connection with that transaction;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\n (13) Where:\n\n (a) in the making of an assessment, this section has been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time; and\n\n (b) after the making of the assessment, the Commissioner becomes satisfied that the circumstance will not exist;\n\nthen, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purpose of ensuring that this section is to be taken always to have applied on the basis that the circumstance did not exist.\n\n26E  Income from RSAs\n\n (1) All benefits provided in respect of, and amounts that are paid from, an RSA (including amounts taken to be paid from an RSA under subsection (2)) are taken to have an Australian source.\n\n (2) If the premiums of an insurance policy are paid from an RSA, any amounts paid by the insurer under the policy are taken to be paid by the RSA provider as a benefit of the RSA.\n\nSubdivision AA—Non‑superannuation annuities etc.\n\n27H  Assessable income to include annuities and superannuation pensions\n\n (1) Subject to Division 54 of the Income Tax Assessment Act 1997, the assessable income of a taxpayer of a year of income shall include:\n\n (a) the amount of any annuity derived by the taxpayer during the year of income excluding, in the case of an annuity that has been purchased, any amount that, in accordance with the succeeding provisions of this section, is the deductible amount in relation to the annuity in relation to the year of income; and\n\n (b) the amount of any payment made to the taxpayer during the year of income as a supplement to an annuity, whether the payment is made voluntarily, by agreement or by compulsion of law and whether or not the payment is one of a series of recurrent payments.\n\nNote: Division 54 of the Income Tax Assessment Act 1997 provides a tax exemption for certain payments under structured settlements and structured orders.\n\n (2) Subject to subsections (3) and (3A), the deductible amount in relation to an annuity derived by a taxpayer during a year of income is the amount (if any) ascertained in accordance with the\n\n  formula ![Start formula start fraction A open bracket B minus C close bracket over D end fraction end formula](image.010.png), where:\n\nA  is the relevant share in relation to the annuity in relation to the taxpayer in relation to the year of income.\n\nB  is the amount of the undeducted purchase price of the annuity.\n\nC  is:\n\n (a) if there is a residual capital value in relation to the annuity and that residual capital value is specified in the agreement by virtue of which the annuity is payable or is capable of being ascertained from the terms of that agreement at the time when the annuity is first derived—that residual capital value; or\n\n (b) in any other case—nil; and\n\nD  is the relevant number in relation to the annuity.\n\n (3) Subject to subsection (3A), where the Commissioner is of the opinion that the deductible amount ascertained in accordance with subsection (2) is inappropriate having regard to:\n\n (a) the terms and conditions applying to the annuity; and\n\n (b) such other matters as the Commissioner considers relevant;\n\nthe deductible amount in relation to the annuity derived by the taxpayer during the year of income is so much of the annuity as, in the opinion of the Commissioner, represents the undeducted purchase price having regard to:\n\n (c) the terms and conditions applying to the annuity;\n\n (d) any certificate or certificates of an actuary or actuaries stating the extent to which, in the opinion of the actuary or actuaries, the amount of the annuity derived by the taxpayer during the year of income represents the undeducted purchase price; and\n\n (e) such other matters as the Commissioner considers relevant.\n\n (3A) For the purposes of this section, where the annuity derived by a taxpayer during a year of income is part of an annuity of which a part has been commuted in the year of income or a preceding year of income, the deductible amount ascertained under subsection (2) or (3) shall be reduced by such amount as, in the opinion of the Commissioner, is appropriate having regard to:\n\n (c) any deductible amount ascertained under this section in relation to the annuity in relation to a preceding year of income; and\n\n (d) such other matters as the Commissioner considers relevant.\n\n (4) In this section:\n\nactuary means a Fellow or Accredited Member of the Institute of Actuaries of Australia.\n\nagreement means any agreement, arrangement or understanding whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nannuity means an annuity, a pension paid from a foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997) or a pension paid from a scheme mentioned in paragraph 290‑5(c) of that Act, but does not include:\n\n (a) an annuity that is a qualifying security for the purposes of Division 16E; or\n\n (b) a superannuation income stream (within the meaning of the Income Tax Assessment Act 1997).\n\nlife expectation factor, in relation to a person in relation to an annuity, means the number of years in the complete expectation of life of the person as ascertained by reference to the prescribed Life Tables at the time at the beginning of the period to which the first payment of the annuity relates.\n\npurchase price means:\n\n (a) in relation to a pension—the sum of:\n\n (i) contributions made by any person to a foreign superannuation fund to obtain the pension; and\n\n (ii) so much as the Commissioner considers reasonable of contributions made by any person to a foreign superannuation fund to obtain superannuation benefits including the pension; and\n\n (b) in relation to an annuity other than a pension—the sum of:\n\n (i) payments made solely to purchase the annuity; and\n\n (ii) so much as the Commissioner considers reasonable of payments made to purchase the annuity and to obtain other benefits.\n\nrelevant number, in relation to an annuity in relation to a year of income, means:\n\n (a) where the annuity is payable for a term of years certain—the number of years in the term;\n\n (b) where the annuity is payable during the lifetime of a person and not thereafter—the life expectation factor of the person; and\n\n (c) in any other case—the number that the Commissioner considers appropriate having regard to the number of years in the total period during which the annuity will be, or may reasonably be expected to be, payable.\n\nrelevant share, in relation to an annuity derived by a taxpayer during a year of income, means:\n\n (a) in a case where the annuity derived by the taxpayer is a share of an annuity (which annuity is in this paragraph referred to as the total annuity) payable to the taxpayer and another person or other persons—the fraction ascertained by dividing the number of whole dollars in the amount of the annuity derived by the taxpayer during the year of income by the number of whole dollars in the amount of the total annuity derived during the year of income by the taxpayer and the other person or persons; or\n\n (b) in any other case—the number 1.\n\nresidual capital value, in relation to an annuity, means the capital amount payable on the termination of the annuity.\n\nundeducted purchase price, in relation to an annuity, has the meaning given by section 27A immediately before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007.\n\n (5) In the definition of purchase price in subsection (4):\n\n (a) a reference to contributions made by any person to a foreign superannuation fund to obtain a pension does not include a reference to contributions made to a foreign superannuation fund by an employer, or by another person under an agreement to which the employer is a party, for the purpose of providing superannuation benefits for, or for dependants of, an employee of the employer; and\n\n (b) a reference to payments made to purchase, or solely to purchase, an annuity (other than a pension) does not include a reference to payments made by an employer, or by another person under an agreement to which the employer is a party, to purchase, or solely to purchase, the annuity for, or for dependants of, an employee of the employer.\n\n (6) For the purposes of subsection (5), in determining whether a person is an employer of another person, treat the holding of an office by the other person as employment of that person.\n\nSubdivision D—Dividends\n\n","sortOrder":27},{"sectionNumber":"43A","sectionType":"section","heading":"Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997","content":"43A  Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997\n\n  This Subdivision has effect subject to the provisions of Division 216 of the Income Tax Assessment Act 1997 (which describes cum dividend sales in which a distribution to a member of a corporate tax entity is treated as having been made to someone else).\n\n","sortOrder":28},{"sectionNumber":"43B","sectionType":"section","heading":"Application of Subdivision to non‑share dividends","content":"43B  Application of Subdivision to non‑share dividends\n\n (1) This Subdivision:\n\n (2) Subsection (1) does not apply to section 47A.\n\n (3) Paragraph (1)(c) does not apply to subsection 44(1).\n\n (4) Subsection (1) has effect subject to the special provision that is made for non‑share dividends in subsection 44(1).\n\n","sortOrder":29},{"sectionNumber":"44","sectionType":"section","heading":"Dividends","content":"44  Dividends\n\n (1) The assessable income of a shareholder in a company (whether the company is a resident or a non‑resident) includes:\n\n (a) if the shareholder is a resident:\n\n (i) dividends (other than non‑share dividends) that are paid to the shareholder by the company out of profits derived by it from any source; and\n\n (ii) all non‑share dividends paid to the shareholder by the company; and\n\n (b) if the shareholder is a non‑resident:\n\n (i) dividends (other than non‑share dividends) paid to the shareholder by the company to the extent to which they are paid out of profits derived by it from sources in Australia; and\n\n (ii) non‑share dividends paid to the shareholder by the company to the extent to which they are derived from sources in Australia; and\n\n (c) if the shareholder is a non‑resident carrying on business in Australia at or through a permanent establishment of the shareholder in Australia, and the company is a resident:\n\n (i) dividends (other than non‑share dividends) that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are paid out of profits derived by the company from sources outside Australia; and\n\n (ii) non‑share dividends that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are derived from sources outside Australia.\n\nThis subsection does not apply to a dividend (or non‑share dividend) to the extent to which another provision of this Act that expressly deals with dividends includes some or all of the dividend (or non‑share dividend) in, or excludes some or all of the dividend (or non‑share dividend) from, the shareholder’s assessable income.\n\nNote 1: Some other provisions that expressly deal with dividends are sections 23AI, 23AK and 128D of this Act and section 768‑5 of the Income Tax Assessment Act 1997.\n\nNote 2: An amount declared to be conduit foreign income is not included in assessable income under paragraph (1)(b) or (c): see section 802‑15 of the Income Tax Assessment Act 1997.\n\n (1A) For the purposes of this Act, a dividend paid out of an amount other than profits is taken to be a dividend paid out of profits.\n\n (1B) Where:\n\n (a) the amount of the moneys or of the value of other property of which a dividend paid by a company consists is debited against an amount standing to the credit of a share capital account of the company; or\n\n (b) a dividend paid by a company is a repayment by the company of an amount paid‑up on a share;\n\nthe dividend shall, for the purposes of this section, be deemed to have been paid by the company out of profits derived by it.\n\n (2) Subsections (3) and (4) apply to a demerger dividend unless the head entity elects in writing, within one month after it decides which of its shareholders will receive ownership interests in the demerged entity under the demerger, that those subsections do not apply to the total demerger dividend for all shareholders.\n\n (3) This section applies to the demerger dividend as if it had not been paid out of profits.\n\n (4) A demerger dividend is not assessable income or exempt income.\n\n (5) However, subsections (3) and (4) do not apply to a demerger dividend unless, just after the demerger, CGT assets owned by the demerged entity or a demerger subsidiary representing at least 50% by market value of all the CGT assets (or a reasonable approximation of market value) owned by the demerged entity and its demerger subsidiaries are used, directly or indirectly, in one or more businesses carried on by one or more of those entities.\n\n (6) In applying subsection (5), disregard any assets that are ownership interests in a demerger subsidiary unless they are used in a business referred to in that subsection.\n\npermanent establishment of a person:\n\n (a) has the same meaning as in a double tax agreement (as defined in Part X) that relates to a foreign country and affects the person; or\n\n (b) has the meaning given by subsection 6(1), if there is no such agreement.\n\n","sortOrder":30},{"sectionNumber":"45","sectionType":"section","heading":"Streaming of bonus shares and unfranked dividends","content":"45  Streaming of bonus shares and unfranked dividends\n\n (1) This section applies in respect of a company that, whether in the same year of income or in different years of income, streams the provision of shares (other than shares to which subsection 6BA(5) applies) and the payment of minimally franked dividends to its shareholders in such a way that:\n\n (a) the shares are received by some shareholders but not all shareholders; and\n\n (b) some or all of the shareholders who do not receive the shares receive or will receive minimally franked dividends.\n\n (2) The value of the share at the time that the shareholder is provided with the share is taken, for the purposes of this Act, to be a dividend that is unfrankable (within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997) and that is paid by the company, out of profits of the company, to the shareholder at that time.\n\n (3) A dividend is minimally franked if it is not franked, or is franked to less than 10%, in accordance with section 202‑5 or 208‑60 of the Income Tax Assessment Act 1997.\n\n","sortOrder":31},{"sectionNumber":"45A","sectionType":"section","heading":"Streaming of dividends and capital benefits","content":"45A  Streaming of dividends and capital benefits\n\n (1) This section applies in respect of a company that, whether in the same year of income or in different years of income, streams the provision of capital benefits and the payment of dividends to its shareholders in such a way that:\n\n (a) the capital benefits are, or apart from this section would be, received by shareholders (the advantaged shareholders) who would, in the year of income in which the capital benefits are provided, derive a greater benefit from the capital benefits than other shareholders; and\n\n (b) it is reasonable to assume that the other shareholders (the disadvantaged shareholders) have received, or will receive, dividends.\n\nHowever, it does not apply if section 45 applies in relation to the streaming or in the circumstances set out in subsection (5).\n\nCommissioner to determine that section 45C applies\n\n (2) The Commissioner may make, in writing, a determination that section 45C applies in relation to the whole, or a part, of the capital benefits. A determination does not form part of an assessment.\n\nNote: Subsection (6) limits the determination to a part of the capital benefit in certain cases.\n\nMeaning of provision of capital benefit\n\n (3) A reference to the provision of a capital benefit to a shareholder in a company is a reference to any of the following:\n\n (a) the provision to the shareholder of shares in the company;\n\n (b) the distribution to the shareholder of share capital or share premium;\n\n (c) something that is done in relation to a share that has the effect of increasing the value of a share (which may or may not be the same share) held by the shareholder.\n\n (3A) For the purposes of this section, a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return.\n\nMeaning of greater benefit from capital benefits\n\n (4) The circumstances in which a shareholder would, in a year of income, derive a greater benefit from capital benefits than another shareholder include, but are not limited to, any of the following circumstances existing in relation to the first shareholder and not in relation to the other shareholder:\n\n (a) some or all of the shares in the company held by the shareholder were acquired, or are taken to have been acquired, before 20 September 1985;\n\n (b) the shareholder is a non‑resident;\n\n (c) the cost base (for the purposes of Part IIIA) of the relevant share is not substantially less than the value of the applicable capital benefit;\n\n (d) the shareholder has a net capital loss for the year of income in which this capital benefit is provided;\n\n (e) the shareholder is a private company who would not have been entitled to a rebate under former section 46F if the shareholder had received the dividend that was paid to the disadvantaged shareholder;\n\n (f) the shareholder has income tax losses.\n\nCertain capital benefits not covered\n\n (5) This section does not apply where the capital benefit provided to the advantaged shareholders is the provision of shares and it is reasonable to assume that the disadvantaged shareholders have received, or will receive, fully franked dividends.\n\nDetermination limited in certain cases\n\n (6) If the capital benefit provided to the advantaged shareholders is the provision of shares and it is reasonable to assume that the disadvantaged shareholders have received, or will receive, partly franked dividends, the Commissioner may only make a determination under subsection (2) in relation to so much of the capital benefit as the Commissioner considers relates to the unfranked part of the dividend.\n\n","sortOrder":32},{"sectionNumber":"45B","sectionType":"section","heading":"Schemes to provide certain benefits","content":"45B  Schemes to provide certain benefits\n\nPurpose of section\n\n (1) The purpose of this section is to ensure that relevant amounts are treated as dividends for taxation purposes if:\n\n (a) components of a demerger allocation as between capital and profit do not reflect the circumstances of a demerger; or\n\n (b) certain payments, allocations and distributions are made in substitution for dividends.\n\n (2) This section applies if:\n\n (a) there is a scheme under which a person is provided with a demerger benefit or a capital benefit by a company; and\n\n (b) under the scheme, a taxpayer (the relevant taxpayer), who may or may not be the person provided with the demerger benefit or the capital benefit, obtains a tax benefit; and\n\n (c) having regard to the relevant circumstances of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling a taxpayer (the relevant taxpayer) to obtain a tax benefit.\n\nCommissioner to determine that section 45BA or 45C applies\n\n (3) The Commissioner may make, in writing, a determination that:\n\n (a) section 45BA applies in relation to the whole, or a part, of the demerger benefit; or\n\n (b) section 45C applies in relation to the whole, or a part, of the capital benefit.\n\nA determination does not form part of an assessment.\n\nNote: If section 45BA applies in relation to the whole, or a part, of a demerger benefit, this benefit may be a capital benefit.\n\nMeaning of provided with a demerger benefit\n\n (4) A person is provided with a demerger benefit if in relation to a demerger:\n\n (a) a company provides the person with ownership interests in that or another company; or\n\n (b) something is done in relation to an ownership interest owned by the person that has the effect of increasing the value of an ownership interest (which may or may not be the same ownership interest) owned by the person.\n\nMeaning of provided with a capital benefit\n\n (5) A reference to a person being provided with a capital benefit is a reference to any of the following:\n\n (a) the provision of ownership interests in a company to the person;\n\n (b) the distribution to the person of share capital or share premium;\n\n (c) something that is done in relation to an ownership interest that has the effect of increasing the value of an ownership interest (which may or may not be the same interest) that is held by the person.\n\n (6) However, a person is not provided with a capital benefit to the extent that the provision of interests, the distribution or the thing done referred to in subsection (5) involves the person receiving a demerger dividend.\n\n (7) For the purposes of this section, a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return.\n\nMeaning of relevant circumstances of scheme\n\n (8) The relevant circumstances of a scheme include the following:\n\n (a) the extent to which the demerger benefit or capital benefit is attributable to capital or the extent to which the demerger benefit or capital benefit is attributable to profits (realised and unrealised) of the company or of an associate (within the meaning in section 318) of the company;\n\n (b) the pattern of distributions of dividends, bonus shares and returns of capital or share premium by the company or by an associate (within the meaning in section 318) of the company;\n\n (c) whether the relevant taxpayer has capital losses that, apart from the scheme, would be unutilised (within the meaning of the Income Tax Assessment Act 1997) at the end of the relevant year of income;\n\n (d) whether some or all of the ownership interests in the company or in an associate (within the meaning in section 318) of the company held by the relevant taxpayer were acquired, or are taken to have been acquired, by the relevant taxpayer before 20 September 1985;\n\n (e) whether the relevant taxpayer is a non‑resident;\n\n (f) whether the cost base (for the purposes of the Income Tax Assessment Act 1997) of the relevant ownership interest is not substantially less than the value of the applicable demerger benefit or capital benefit;\n\n (h) if the scheme involves the distribution of share capital or share premium—whether the interest held by the relevant taxpayer after the distribution is the same as the interest would have been if an equivalent dividend had been paid instead of the distribution of share capital or share premium;\n\n (i) if the scheme involves the provision of ownership interests and the later disposal of those interests, or an increase in the value of ownership interests and the later disposal of those interests:\n\n (i) the period for which the ownership interests are held by the holder of the interests; and\n\n (ii) when the arrangement for the disposal of the ownership interests was entered into;\n\n (j) for a demerger only:\n\n (i) whether the profits of the demerging entity and demerged entity are attributable to transactions between the entity and an associate (within the meaning in section 318) of the entity; and\n\n (ii) whether the assets of the demerging entity and demerged entity were acquired under transactions between the entity and an associate (within the meaning in section 318) of the entity;\n\n (k) any of the matters referred to in subsection 177D(2).\n\nMeaning of obtaining a tax benefit\n\n (9) A relevant taxpayer obtains a tax benefit if an amount of tax payable, or any other amount payable under this Act, by the relevant taxpayer would, apart from this section, be less than the amount that would have been payable, or would be payable at a later time than it would have been payable, if the demerger benefit had been an assessable dividend or the capital benefit had been an assessable dividend.\n\n (10) In this section:\n\nscheme has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n45BA  Effect of determinations under section 45B for demerger benefits\n\n (1) If the Commissioner makes a determination under subsection 45B(3), the amount of the demerger benefit, or the part of the benefit, is taken not to be a demerger dividend for the purposes of this Act for the owner of the ownership interest or the relevant taxpayer at the time when the owner or relevant taxpayer is provided with the demerger benefit.\n\n (2) The amount of the demerger benefit is:\n\n (a) if the benefit is the provision of an ownership interest—the market value of the interest at the time that it is provided; or\n\n (b) if the benefit is an increase in the value of an ownership interest—the increase in the market value of the interest as a result of the change; or\n\n (c) if the benefit is a distribution to the shareholder of share capital or share premium—the amount debited to the share capital account or share premium account of the company in connection with the provision of the benefit.\n\n45C  Effect of determinations under sections 45A and 45B for capital benefits\n\n (1) If the Commissioner makes a determination under subsection 45A(2) or 45B(3), the amount of the capital benefit, or the part of the benefit, is taken, for the purposes of this Act, to be an unfranked dividend that is paid by the company to the shareholder or relevant taxpayer at the time that the shareholder or relevant taxpayer is provided with the capital benefit.\n\n (2) The dividend is taken to have been paid out of profits of the company.\n\n (3) If the Commissioner has made a determination under section 45B in respect of the whole or a part of a capital benefit and the Commissioner makes a further written determination that the capital benefit, or the part of the capital benefit, was paid under a scheme for which a purpose, other than an incidental purpose, was to avoid franking debits arising in relation to the distribution from the company:\n\n (a) on the day on which notice of the determination is served in writing on the company, a franking debit of the company arises in respect of the capital benefit; and\n\n (b) the amount of the franking debit is the amount that, if the company had:\n\n (i) paid a dividend of an amount equal to the amount of the capital benefit, or the part of the capital benefit, at the time when it was provided; and\n\n (ii) fully franked the dividend;\n\n  would have been the amount of the franking credit of the company that would have arisen as a result of the dividend.\n\n (4) The amount of the capital benefit is:\n\n (a) if the benefit is the provision of an ownership interest—the market value of the interest at the time that it is provided; or\n\n (b) if the benefit is an increase in the market value of an ownership interest—the increase in the market value of the interest as a result of the change; or\n\n (c) if the benefit is a distribution to the shareholder of share capital or share premium—the amount debited to the share capital account or share premium account of the company in connection with the provision of the benefit.\n\n (4A) For the purposes of this section:\n\n (a) a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return; and\n\n (b) the debit to the company’s non‑share capital account, in respect of the non‑share distribution, is taken to be a debit to the company’s share capital account.\n\n45D  Determinations under sections 45A, 45B and 45C\n\nNotice by Commissioner of determination\n\n (1) If the Commissioner makes a determination under section 45A, 45B or 45C, the Commissioner must give a copy of the determination to the company concerned (which, in the case of a demerger benefit referred to in section 45B, is the head entity of the demerger group).\n\nNotice by company of determination\n\n (1A) That company must, in the case of a determination under section 45A or 45B, give a copy of the notice to:\n\n (a) the advantaged shareholder referred to in section 45A; or\n\n (b) the relevant taxpayer referred to in section 45B.\n\nPublication of determination in relation to listed public company\n\n (2) If the Commissioner makes a determination under section 45A, in respect of a dividend paid by a listed public company, the Commissioner is taken to have served notice in writing of the determination on the advantaged shareholder if the Commissioner causes the notice to be published in a manner that results in the notice being accessible to the public and reasonably prominent. The notice is taken to have been served on the day on which the publication takes place.\n\nEvidence of determination\n\n (3) The production of:\n\n (a) a notice of a determination; or\n\n (b) a document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of a determination;\n\nis conclusive evidence of:\n\n (c) the due making of the determination; and\n\n (d) except in proceedings under Part IVC of the Taxation Administration Act 1953 on an appeal or review relating to the determination, that the determination is correct.\n\nObjections\n\n (4) If a taxpayer to whom a determination relates is dissatisfied with the determination, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n46FA  Deduction for dividends on‑paid to non‑resident owner\n\nAllowable deduction\n\n (1) An amount is allowable as a deduction from the assessable income of a company (the resident company) if:\n\n (a) the resident company is paid a dividend (the original dividend) that:\n\n (i) is paid by a company that is a resident; and\n\n (ii) is a non‑portfolio dividend; and\n\n (iii) is not a fully‑franked dividend; and\n\n (b) the resident company is not a group company in relation to the company that paid the original dividend in relation to the year of income in which the dividend is paid; and\n\n (ba) neither the resident company, nor the company that pays the dividend, is a prescribed dual resident; and\n\n (c) ignoring the amendments made by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006, but for subsection 46AB(1) or 46AC(2) or subparagraph 46F(2)(a)(i) of this Act as in force just before the commencement of those amendments, the resident company would have been entitled to a rebate under section 46 of this Act as so in force in respect of the unfranked amount of the original dividend; and\n\n (d) the resident company pays a dividend (the flow‑on dividend) to a company that is not a resident (the non‑resident company); and\n\n (e) the flow‑on dividend is not a fully‑franked dividend; and\n\n (f) the resident company declares that the unfranked amount of the flow‑on dividend is an on‑payment of the unfranked amount of the original dividend to the extent of a specified percentage (not exceeding 100%); and\n\n (g) when the original dividend is paid, when the declaration is made and when the flow‑on dividend is paid, the resident company is:\n\n (i) a resident; and\n\n (ii) wholly owned by the non‑resident company.\n\nThe deduction is from assessable income of the year of income in which the flow‑on dividend is paid. The amount of the deduction is equal to the flow‑on amount worked out using subsection (2).\n\n (2) The flow‑on amount is:\n\n  ![Start formula Percentage specified under paragraph (1)(f) times Unfranked amount of the flow-on dividend end formula](image.011.png)\n\nFlow‑on declarations\n\n (3) The declaration under paragraph (1)(f) (the flow‑on declaration) must be made:\n\n (a) in writing; and\n\n (b) before the flow‑on dividend is paid.\n\nThe declaration cannot be revoked or varied.\n\n (4) The flow‑on declaration is effective only to the extent to which the flow‑on amount does not exceed the surplus in the resident company’s unfranked non‑portfolio dividend account immediately before the declaration is made.\n\nNote: See section 46FB for the unfranked non‑portfolio dividend account.\n\nUnfranked amount of flow‑on dividend unfrankable\n\n (5) Part 3‑6 of the Income Tax Assessment Act 1997 (the imputation system) applies to the unfranked amount of the flow‑on dividend as if it were an unfrankable distribution within the meaning of section 202‑45 of that Act if a deduction is allowed to the resident company in relation to the flow‑on dividend.\n\nWholly owned by non‑resident company\n\n (6) The resident company is wholly owned by the non‑resident company if all the shares in the resident company are held by and beneficially owned by the non‑resident company.\n\n (7) However, the company is not wholly owned by the non‑resident company if a person is in a position to affect rights, in relation to the resident company, of the non‑resident company.\n\n (8) The resident company is also not wholly owned by the non‑resident company if at some future time a person will be in a position to affect rights as described in subsection (7).\n\nA person in a position to affect rights\n\n (9) A person is in a position to affect rights of a company in relation to another company if the person has a right, power or option:\n\n (a) to acquire those rights from one or other of those companies; or\n\n (b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.\n\n (10) It does not matter whether the person has the right, power or option because of the constitution of one or other of those companies, any agreement or otherwise.\n\nfully‑franked dividend means a dividend whose franking percentage (within the meaning of section 203‑35 of the Income Tax Assessment Act 1997) is 100%.\n\ngroup company has the same meaning as in former section 160AFE as in force immediately before 1 July 2002.\n\nnon‑portfolio dividend has the same meaning as in section 317.\n\nnon‑resident company means a company that is not a resident.\n\nunfranked amount of a dividend (including an unfrankable distribution within the meaning of section 202‑45 of the Income Tax Assessment Act 1997) means the amount of the dividend less the franked part.\n\n46FB  Unfranked non‑portfolio dividend account\n\nCompany may establish account\n\n (1) A company may establish an unfranked non‑portfolio dividend account.\n\nAccount surplus\n\n (2) An unfranked non‑portfolio dividend account surplus exists for a company at a particular time if the company’s total unfranked non‑portfolio dividend credits arising before that time exceed its total unfranked non‑portfolio dividend debits arising before that time.\n\n (3) The amount of the surplus is equal to the amount of the excess.\n\nCredits\n\n (4) An unfranked non‑portfolio dividend credit arises for a company if:\n\n (a) the company is paid an unfranked non‑portfolio dividend; and\n\n (b) the company is not a group company in relation to the company that paid the dividend in relation to the year of income in which the dividend is paid; and\n\n (c) ignoring the amendments made by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006, but for subsection 46AB(1) or 46AC(2) or subparagraph 46F(2)(a)(i) of this Act as in force just before the commencement of those amendments, the company would have been entitled to a rebate under section 46 of this Act as so in force in respect of the unfranked amount of the dividend.\n\nThe amount of the credit is the unfranked amount of the dividend. The credit arises when the dividend is paid to the company.\n\nDebits\n\n (5) An unfranked non‑portfolio dividend debit arises for a company if the company makes a declaration under paragraph 46FA(1)(f) in relation to a dividend paid on a particular day. The amount of the debit is the flow‑on amount under subsection 46FA(2). The debit arises when the declaration is made.\n\ngroup company has the same meaning as in former section 160AFE as in force immediately before 1 July 2002.\n\nnon‑portfolio dividend has the same meaning as in section 317.\n\nunfranked amount of a dividend (including an unfrankable distribution within the meaning of section 202‑45 of the Income Tax Assessment Act 1997) means the amount of the dividend less the franked part.\n\n","sortOrder":33},{"sectionNumber":"47","sectionType":"section","heading":"Distributions by liquidator","content":"47  Distributions by liquidator\n\n (1) Distributions to shareholders of a company by a liquidator in the course of winding‑up the company, to the extent to which they represent income derived by the company (whether before or during liquidation) other than income which has been properly applied to replace a loss of paid‑up share capital, shall, for the purposes of this Act, be deemed to be dividends paid to the shareholders by the company out of profits derived by it.\n\n (1A) A reference in subsection (1) to income derived by a company includes a reference to:\n\n (a) an amount (except a net capital gain) included in the company’s assessable income for a year of income; or\n\n (b) a net capital gain that would be included in the company’s assessable income for a year of income if the Income Tax Assessment Act 1997 required a net capital gain to be worked out as follows:\n\nMethod statement\n\nStep 1. Work out each capital gain (except a capital gain that is disregarded) that the company made during that year of income. Do so without indexing any amount used to work out the cost base of a CGT asset.\n\nStep 2. Total the capital gain or gains worked out under Step 1. The result is the net capital gain for that year of income.\n\n (2) Those distributions shall, to the extent to which they are made out of any profits or income, be deemed to have been paid wholly and exclusively out of those profits or that income.\n\n (2A) Where:\n\n (a) the business of a company has been, or is in the course of being, discontinued otherwise than in the course of a winding up of the company under any law relating to companies;\n\n (b) in connexion with the discontinuance, any moneys of the company have been or other property of the company has been, on or after 19 October 1967, distributed, otherwise than by the company, to shareholders of the company; and\n\n (c) the moneys or other property so distributed are not, for the purposes of this Act, dividends;\n\nthe distribution shall, subject to subsection (2B), be deemed to be, for the purposes of this section, a distribution to the shareholders by a liquidator in the course of winding up the company.\n\n (2B) Where:\n\n (a) subsection (2A) would, but for this subsection, apply in relation to any moneys or other property of a company distributed to shareholders of the company; and\n\n (b) the company does not cease to exist within a period of 3 years after the distribution, or within such further period as the Commissioner allows;\n\nsubsection (2A) shall not apply, and shall be deemed never to have applied, in relation to those moneys or that other property, and those moneys or that other property so distributed shall, for the purposes of this Act, be deemed to be dividends paid by the company to the shareholders out of profits derived by it.\n\n (3) For the purposes of this section, paid‑up share capital includes capital which has been paid up in money or by other valuable consideration and which has been cancelled and has not been repaid by the company to the shareholders.\n\n","sortOrder":34},{"sectionNumber":"47A","sectionType":"section","heading":"Distribution benefits—CFCs","content":"47A  Distribution benefits—CFCs\n\n (1) Subject to subsection (2), if:\n\n (a) a company (in this section called the first company) has profits immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n (b) the distribution time occurred after 3 June 1990; and\n\n (c) the first company is a CFC at the distribution time; and\n\n (d) the first company is a resident of an unlisted country at the distribution time;\n\nso much of the distribution payment in relation to the distribution time as would not otherwise be a dividend and does not exceed the amount of those profits is taken, for the purposes of this Act, to be a dividend paid by the first company:\n\n (e) to the recipient of the benefit as a shareholder in the first company; and\n\n (f) out of profits derived by the first company; and\n\n (g) at the distribution time.\n\n (2) If:\n\n (a) any of the following subparagraphs applies:\n\n (i) by virtue of subsection (1), the whole or a part of the distribution payment is included in the assessable income of a taxpayer of the year of income in which the distribution time occurred under section 44;\n\n (ii) by virtue of subsection (1), the whole or a part of the distribution payment would, apart from section 23AI or section 768‑5 of the Income Tax Assessment Act 1997, be included in the assessable income of a taxpayer of the year of income in which the distribution time occurred under section 44; and\n\n (b) both of the following subparagraphs apply:\n\n (i) the taxpayer’s return of income for the year of income was not prepared on the basis that the distribution payment had the consequence specified in subsection (1);\n\n (ii) the taxpayer has not notified the Commissioner, in writing, within 12 months after the end of the year of income, that the distribution payment had the consequence specified in subsection (1);\n\nthat subsection has effect in relation to the taxpayer and in relation to that distribution payment as if the reference in that subsection to the purposes of this Act were a reference to the purposes of this Act (other than section 365 of this Act and Division 770 of the Income Tax Assessment Act 1997).\n\n (3) Subject to subsections (9) and (12), a reference in this section to a distribution benefit in relation to the first company is a reference to an eligible benefit where the following conditions are satisfied:\n\n (a) the eligible benefit was provided to:\n\n (i) an associated entity in relation to the first company; or\n\n (ii) another entity that, immediately after the time of the provision of the eligible benefit, was an associated entity in relation to the first company;\n\n (b) the eligible benefit was provided by:\n\n (i) the first company; or\n\n (ii) an entity (in this subsection called the arranger) other than the first company under an arrangement between:\n\n (A) the first company; and\n\n (B) the arranger or another entity;\n\n (c) if subparagraph (b)(ii) applies—the first company made, or entered into an undertaking to make, one or more transfers of property or services to the arranger or to another entity (which transfers are in this section called the arrangement transfers) that are attributable, in whole or in part, to the provision of the eligible benefit.\n\n (4) Where the first company entered into an undertaking to make one or more arrangement transfers, the time of the arrangement transfers is the time the undertaking was entered into.\n\n (5) Where, at a particular time, an entity (in this subsection called the provider) waives or releases the obligation of another entity (in this subsection called the recipient) to pay or repay to the provider an amount:\n\n (a) the waiver or release is taken to constitute an eligible benefit provided at that time by the provider to the recipient; and\n\n (b) if the eligible benefit is a distribution benefit in relation to the first company—each of the following times is a distribution time for the eligible benefit:\n\n (i) if the eligible benefit was provided by the first company—the time of the provision of the eligible benefit; or\n\n (c) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n (i) if the benefit was provided by the first company—the amount the payment or repayment of which is waived or released; or\n\n (ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n (6) For the purposes of subsection (5), an entity is taken to be under an obligation to pay or repay an amount even if the amount is not due for payment or repayment.\n\n (7) Where, at a particular time, an entity (in this subsection called the provider) makes a loan to another entity (in this subsection called the recipient), where:\n\n (a) the parties to the loan are not at arm’s length with each other in relation to the loan; or\n\n (b) the purpose, or one of the purposes, of the making of the loan was to facilitate, directly or indirectly (through one or more interposed companies, partnerships or trusts), the payment of a dividend that is, or would be, non‑assessable non‑exempt income under section 768‑5 of the Income Tax Assessment Act 1997 (in whole or in part); or\n\n (c) the purpose, or one of the purposes, of the making of the loan was to facilitate, directly or indirectly, the provision of an eligible benefit by the recipient, being an eligible benefit that is a distribution benefit in relation to any company;\n\n (d) the making of the loan is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n (e) if the eligible benefit is a distribution benefit in relation to the first company—each of the following times is a distribution time for the eligible benefit:\n\n (f) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n (i) if the benefit was provided by the first company—the amount of the loan; or\n\n (ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n (8) Where, at a particular time:\n\n (a) an entity (in this subsection called the provider) acquires from a company (in this subsection called the recipient):\n\n (i) a share in the recipient;\n\n (ii) a right to acquire a share in the recipient;\n\n (iii) an option to acquire a share in the recipient; or\n\n (b) an entity (in this subsection also called the provider) acquires from the trustee of a unit trust (in this subsection also called the recipient):\n\n (i) a unit in the recipient;\n\n (ii) a right to acquire a unit in the recipient;\n\n (iii) an option to acquire a unit in the recipient;\n\n (c) the acquisition is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n (d) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n (e) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n (i) if the benefit was provided by the first company—the amount or market value of the consideration paid or given by the first company in respect of the acquisition; or\n\n (ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit;\n\n (f) if:\n\n (i) the eligible benefit is a distribution benefit in relation to the first company; and\n\n (ii) the provider transferred property or services to the recipient in respect of the acquisition;\n\n  in determining the profits of the company immediately before the distribution time, or the first distribution time, as the case requires, for the distribution benefit, the following assumptions are to be made:\n\n (iii) if the benefit was provided by the first company—the assumption that, immediately before the distribution time, the company had:\n\n (A) disposed of the property or services to an entity other than the recipient; and\n\n (iv) if subparagraph (iii) does not apply—the assumption that, immediately before the distribution time, the company had:\n\n (A) disposed of equivalent property or services to an entity other than the recipient or the entity who provided the eligible benefit; and\n\n (B) received, in respect of that disposal, consideration equal to the market value of the property or services.\n\n (9) An eligible benefit that is covered by subsection (8) and provided at a particular time is not a distribution benefit in relation to the first company if, at that time, there is no entity (other than the provider referred to in that subsection) who is:\n\n (i) the holder of an eligible equity interest in the first company; or\n\n (ii) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n (b) the holder of an eligible equity interest in the recipient referred to in that subsection.\n\n (a) an entity (in this subsection called the provider) transfers property or services to another entity (in this subsection called the recipient); and\n\n (b) the property or services are transferred:\n\n (i) for no consideration; or\n\n (ii) for a consideration less than the market value of the property or services; and\n\n (c) in the case of a transfer of services—the services do not consist of the making of a loan; and\n\n (d) in any case—the property or services are not transferred by way of consideration for the acquisition from a company of:\n\n (i) a share in the company; or\n\n (ii) a right to acquire a share in the company; or\n\n (iii) an option to acquire a share in the company; and\n\n (e) in any case—the property or services are not transferred in respect of the acquisition from the trustee of a unit trust of:\n\n (i) a unit in the unit trust; or\n\n (ii) a right to acquire a unit in the unit trust; or\n\n (iii) an option to acquire a unit in the unit trust; and\n\n (f) in the case of a transfer of property—the property does not consist of a payment in respect of a call on a share in a company;\n\n (g) the transfer is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n (h) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n (j) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n (i) if the benefit was provided by the first company—the amount by which the amount or market value of the property or services exceeds the consideration (including nil consideration) mentioned in paragraph (b); or\n\n (ii) if subparagraph (i) does not apply and there is only one arrangement transfer—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit; or\n\n (iii) if subparagraph (i) does not apply and there are 2 or more arrangement transfers—the amount worked out in relation to the arrangement transfer using the following formula:\n\n  ![Start formula Total Excess times start fraction Arrangement transfer over Total arrangement transfers end fraction end formula](image.012.png)\n\n  Total Excess  means so much of the total amount or market value of all the arrangement transfers as is attributable to the provision of the eligible benefit.\n\n  Arrangement transfer  means the amount or market value of the arrangement transfer concerned.\n\n  Total arrangement transfers  means the total amount or market value of all of the arrangement transfers.\n\n (k) if the eligible benefit is a distribution benefit in relation to the first company—in determining the profits of the company immediately before a distribution time for the distribution benefit, the following assumptions are to be made:\n\n (i) if the benefit was provided by the first company—the assumption that, immediately before the distribution time, the company had:\n\n (A) disposed of the property or services to an entity other than the recipient; and\n\n (ii) if subparagraph (i) does not apply and there is only one arrangement transfer—the assumption that, immediately before the distribution time, the company had:\n\n (A) disposed of the property or services covered by the arrangement transfer to an entity other than the entity who provided the eligible benefit; and\n\n (iii) if subparagraph (i) does not apply and there are 2 or more arrangement transfers—the assumption that, immediately before each distribution time, the company had:\n\n (A) disposed of the property or services covered by the arrangement transfer concerned to an entity other than the entity who provided the eligible benefit; and\n\n (B) received, in respect of that disposal, consideration equal to the market value of the property or services.\n\n (10A) Subsection (10) does not apply to a transfer that is taken by section 70‑30 or 70‑110 of the Income Tax Assessment Act 1997 to have occurred.\n\n (11) Where, at a particular time, an entity (in this subsection called the provider) makes a payment to another entity, being a company (in this subsection called the recipient), in respect of a call on a share in the recipient:\n\n (a) the making of the payment is taken to constitute an eligible benefit provided by the provider to the recipient at that time; and\n\n (b) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n (c) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n (i) if the benefit was provided by the first company—the amount of the payment; or\n\n (ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n (12) An eligible benefit that is covered by subsection (11) and provided at a particular time is not a distribution benefit in relation to the first company if, at that time, there is no entity (other than the provider referred to in that subsection) who is:\n\n (i) the holder of an eligible equity interest in the first company; or\n\n (ii) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n (b) the holder of an eligible equity interest in the recipient referred to in that subsection.\n\n (13) If:\n\n (a) apart from this subsection, a particular eligible benefit that is covered by subsection (8) or (11) and provided at a particular time is not a distribution benefit in relation to the first company only because of subsection (9) or (12); and\n\n (b) at a later time, there is an entity (other than the provider referred to in subsection (8) or (11), as the case may be) who is:\n\n (i) either:\n\n (A) the holder of an eligible equity interest in the first company; or\n\n (B) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n (ii) the holder of an eligible equity interest in the recipient referred to in whichever of subsections (8) and (11) is applicable; and\n\n (ba) if the eligible benefit consists of the acquisition of a share or unit—at that later time, the share or unit has not been redeemed or bought back by the recipient mentioned in subsection (8) for a consideration equal to or greater than the arm’s length value of the share or unit;\n\n (c) this section has effect as if subsection (9) or (12), as the case requires, had never applied in relation to that eligible benefit;\n\n (d) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n (14) If:\n\n (a) apart from this subsection, a particular eligible benefit (in this subsection called the first eligible benefit) that is covered by subsection (8) or (11) and provided at a particular time is not a distribution benefit in relation to the first company only because of subsection (9) or (12); and\n\n (b) the recipient referred to in whichever of subsections (8) and (11) is applicable provides an eligible benefit (in this subsection called the second eligible benefit) to:\n\n (i) the first company; or\n\n (ii) the provider referred to in whichever of those subsections is applicable; or\n\n (iii) an associated entity in relation to:\n\n (A) the first company; or\n\n (B) that provider; and\n\n (c) the provision of the first eligible benefit facilitated, directly or indirectly, the provision of the second eligible benefit; and\n\n (ca) if the second eligible benefit is covered by subsection (8) or (11):\n\n (i) the second eligible benefit is provided on or after 13 September 1990; or\n\n (ii) both:\n\n (A) the second eligible benefit was provided before 13 September 1990; and\n\n (B) the Commissioner is of the opinion that the provision of the second eligible benefit had, or would be likely to have, the effect of enabling any taxpayer to avoid tax;\n\n (d) this section has effect as if subsection (9) or (12), as the case requires, had never applied in relation to the first eligible benefit;\n\n (e) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n (15) In determining whether a company has profits at a particular time, it is to be assumed that the accounts of the company had been drawn up immediately before that time.\n\n (16) For the purposes of this section, where:\n\n (a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n (b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n (c) any of the following subparagraphs applies:\n\n (i) the original taxpayer is:\n\n (A) a resident at any time during the original year of income; and\n\n (B) a company or a natural person (other than a company or a natural person in the capacity of a trustee);\n\n (iii) the original taxpayer is the trustee of a public trading trust in relation to the original year of income;\n\n (iv) the original taxpayer is the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the original year of income;\n\n (v) the original taxpayer is the trustee of a resident trust estate (within the meaning of Division 6) in relation to the year of income who is liable to be assessed and pay tax under section 99 or 99A in respect of a part of the net income of the trust estate;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the original assessable amount.\n\n (17) For the purposes of this section, where:\n\n (a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n (b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n (c) all of the following conditions are satisfied:\n\n (i) the original taxpayer is the trustee of a trust estate who is liable to be assessed and pay tax under section 98 in respect of a share in the net income of the trust estate of the original year of income;\n\n (ii) the beneficiary who was entitled to that share was a resident at any time during the original year of income;\n\n (iii) the whole or a part (which whole or part is in this subsection called the beneficiary’s portion of the original assessable amount) of the share of the net income is attributable to the original assessable amount;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the beneficiary’s portion of the original assessable amount.\n\n (18) For the purposes of this section, where:\n\n (a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n (b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n (c) the original taxpayer is the trustee of a trust estate or a partnership; and\n\n (d) the following conditions are satisfied in relation to another taxpayer (in this subsection called the actual taxpayer):\n\n (i) an amount is included in the assessable income of the actual taxpayer of a year of income (in this subsection called the assessment year of income) under subsection 92(1) or section 97 or 100;\n\n (ii) the actual taxpayer is:\n\n (A) a resident at any time during the assessment year of income, being a company or a natural person (other than a company or a natural person in the capacity of a trustee); or\n\n (C) the trustee of a public trading trust in relation to the assessment year of income; or\n\n (D) the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the assessment year of income; or\n\n (E) the trustee of a trust estate who is liable to be assessed and pay tax under section 98 in respect of a share in the net income of a trust estate; or\n\n (F) the trustee of a trust estate who is liable to be assessed and pay tax under section 99 or 99A in respect of a part of the net income of a trust estate; or\n\n (G) the trustee of a trust estate where trustee beneficiary non‑disclosure tax is payable under Division 6D on the whole or part of the net income of the trust estate;\n\n (iii) if sub‑subparagraph (ii)(A), (B), (C) or (D) applies—the whole or a part of the amount so included in the actual taxpayer’s assessable income (which whole or part is in this subsection called the actual taxpayer’s portion of the original assessable amount) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n (iv) if sub‑subparagraph (ii)(E) applies:\n\n (A) the beneficiary who was entitled to the share concerned was a resident at any time during the assessment year of income; and\n\n (B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n (v) if sub‑subparagraph (ii)(F) applies:\n\n (A) the trust estate was a resident trust estate (within the meaning of Division 6) in relation to the assessment year of income; and\n\n (B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the part of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n (vi) if sub‑subparagraph (ii)(G) applies:\n\n (A) the trust estate was a resident trust estate (within the meaning of Division 6) in relation to the assessment year of income; and\n\n (B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the whole or the part of the share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the actual taxpayer’s portion of the original assessable amount.\n\n (18A) An assessment may be made of a taxpayer on the assumption that subsection (2) will not be applicable in relation to a particular distribution payment made during a year of income of the taxpayer.\n\n (18B) Where:\n\n (a) the assessment mentioned in subsection (18A) is made; and\n\n (b) after the making of the assessment, the Commissioner becomes aware that subsection (2) was applicable in relation to the distribution payment concerned;\n\nthen, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that the assessment is made as if subsection (18A) of this section were disregarded.\n\n (19) The provisions of section 102AAJ apply for the purposes of this section in like manner as they apply for the purposes of Division 6AAA.\n\n (20) For the purposes of this section, the question whether a company is a resident of an unlisted country is to be determined in the same manner in which that question is determined for the purposes of Part X.\n\n (21) In this section:\n\narm’s length value, in relation to the redemption or buy‑back of a share in a company or a unit in a unit trust, means the amount that the company or trustee could reasonably be expected to have been required to pay to obtain the redemption or buy‑back of the share or unit under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction.\n\narrangement means:\n\n (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n (b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.\n\nassociate has the same meaning as in Part X.\n\nassociated entity, in relation to a company, means either of the following entities:\n\n (a) a shareholder in the company;\n\n (b) an entity who is an associate of a shareholder in the company.\n\nCFC has the same meaning as in Part X.\n\ndistribution benefit has the meaning given by subsection (3) of this section.\n\neligible equity interest:\n\n (a) in relation to a company, means any of the following:\n\n (i) a share, or an interest in a share, in the company;\n\n (ii) a right to acquire a share, or an interest in a share, in the company;\n\n (iii) an option to acquire a share, or an interest in a share, in the company; or\n\n (b) in relation to a unit trust, means any of the following:\n\n (i) a unit, or an interest in a unit, in the unit trust;\n\n (ii) a right to acquire a unit, or an interest in a unit, in the unit trust;\n\n (iii) an option to acquire a unit, or an interest in a unit, in the unit trust; or\n\nentity has the same meaning as in Part X.\n\nloan includes:\n\n (a) an advance of money; and\n\n (b) the provision of credit or any other form of financial accommodation; and\n\n (c) the payment of an amount for, on account of, on behalf or at the request of an entity where there is an obligation (whether expressed or implied) to repay the amount; and\n\n (d) a transaction (whatever its terms or form) which in substance effects a loan of money.\n\nproperty has the same meaning as in Division 6AAA.\n\nservices has the same meaning as in Division 6AAA.\n\nstatutory accounting period has the same meaning as in Part X.\n\ntransfer has the same meaning as in Division 6AAA.\n\n","sortOrder":35},{"sectionNumber":"Div 3","sectionType":"division","heading":"Deductions","content":"Division 3—Deductions\n\nSubdivision A—General\n\n51AAA  Deductions not allowable in certain circumstances\n\n (a) an amount is included in the assessable income of a taxpayer of a year of income by section 102‑5 of the Income Tax Assessment Act 1997 (about net capital gains) or subsection 124ZZB(1) of this Act (about notional capital gains of PDFs);\n\n (b) a deduction would, but for this section, be allowable under a provision listed in the table in subsection (2) to the taxpayer; and\n\n (c) if the amount had not been included in the assessable income the deduction would not be allowable;\n\nthe deduction is not allowable.\n\n (2) The table lists provisions allowing deductions that are affected by subsection (1). Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.\n\n \n\n- Deduction provisions affected by net capital gains limit\n- Item Provision Description\n- 1 Subdivision A of Division 3 of Part III General\n- 2 section 8‑1 General deductions\n- 3 Division 25 Some expenses you can deduct\n- 4 Division 30 Gifts or contributions\n- 5 Division 34 Non‑compulsory uniforms\n- 6 Division 36 Tax losses of earlier income years\n- 7 Subdivision 40‑F Facilities to conserve or convey water\n- 8 Subdivision 40‑F Establishing grapevines\n- 9 Subdivision 40‑G Landcare operations\n- 10 Subdivision 40‑G Mains electricity supply\n- 11 Subdivision 40‑G Telephone lines\n- 12 Division 165 Income tax consequences of changing ownership or control of a company\n- 13 Subdivision 170‑A Transfer of tax losses within wholly‑owned groups of companies\n- 14 Division 230 Financial arrangements\n\n51AD  Deductions not allowable in respect of property used under certain leveraged arrangements\n\narrangement includes:\n\n (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.\n\nassociate has the same meaning in relation to a person as that expression has in relation to a person in section 318.\n\nconstruction includes manufacture.\n\ncontrol means effectively control.\n\ngoods includes whatever is capable of being owned or used.\n\nhire‑purchase agreement means a hire purchase agreement to which Division 240 of the Income Tax Assessment Act 1997 applies.\n\nlease, in relation to property, includes:\n\n (a) any arrangement under which a right to use the property is granted by the owner to another person; and\n\n (b) any arrangement under which a right to use the property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person;\n\nbut does not include a hire‑purchase agreement.\n\nowner, in relation to property, includes a person who has taken, and holds, the property on hire under a hire‑purchase agreement.\n\nperson includes a person in the capacity of a trustee.\n\nprescribed time means one o’clock in the afternoon, by standard time in the Australian Capital Territory, on 24 June 1982.\n\nNote: This section applies to deductions under Division 40 (Capital allowances) and Division 43 (Capital works) of the Income Tax Assessment Act 1997 as if you were the owner of an asset you hold (under that Division) instead of any other person: see section 40‑135 of that Act.\n\n (1A) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if the tax preferred use:\n\n (a) starts on or after 1 July 2007; and\n\n (b) does not occur under a legally enforceable arrangement entered into before 1 July 2007.\n\n (1B) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if:\n\n (a) the tax preferred use starts on or after 1 July 2007; and\n\n (b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and\n\n (c) an election is made under item 71 of Schedule 1 to the Tax Laws Amendment (2007 Measures No. 5) Act 2007 to have subitem 71(2) of that Schedule apply to the property.\n\n (1C) This section does not apply to property on or after 1 July 2007 if:\n\n (a) Division 16D applied to the property immediately before 1 July 2007; or\n\n (b) this section did not apply to the property immediately before 1 July 2007 and Division 16D would apply to the property on or after 1 July 2007 but for subsection 159GH(2).\n\nFor the purposes of applying paragraph (b), disregard the operation of section 159GL.\n\n (1D) Subparagraph (4)(a)(iii) and sub‑subparagraph (4)(b)(ii)(D) do not apply to property acquired by a taxpayer if:\n\n (a) the property is acquired by the taxpayer on or after 1 July 2007; and\n\n (b) the property is not acquired under a legally enforceable arrangement entered into before 1 July 2007.\n\n (2) In this section, a reference to the acquisition of property by a person is a reference to:\n\n (a) the person becoming the owner of the property; or\n\n (b) the construction of the property for the person by another person or other persons on premises of the first‑mentioned person.\n\n (3) In this section, a reference to property being held for use includes a reference to property that is installed ready for use and held in reserve.\n\n (3B) For the purpose of this section, disregard an acquisition or disposal of property by way of the transfer of the property for the provision or redemption of a security. Consequently this section applies as if the person who was the owner of the property before the transfer continues to be the owner after the transfer.\n\n (4) Subject to subsections (1A), (1B), (1C), (1D) and (8), this section applies, in relation to a taxpayer, to property acquired or constructed by the taxpayer, being property acquired by the taxpayer under a contract entered into after the prescribed time or property constructed by the taxpayer, construction having commenced after that time, if:\n\n (a) at a time when the property is owned by the taxpayer, a person (which person is in this section referred to as the end‑user) holds rights as lessee under a lease of the property, and:\n\n (i) in a case where the end‑user is not a resident of Australia—while the lease is in force, the property is, or is to be, used by a person other than the taxpayer wholly or principally outside Australia;\n\n (ii) while the lease is in force, the property is, or is to be, used by a person other than the taxpayer otherwise than wholly and exclusively for the purpose of producing assessable income; or\n\n (iii) in a case where the property was acquired by the taxpayer—the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end‑user; or\n\n (b) in a case to which paragraph (a) does not apply:\n\n (i) at a time when the property is owned by the taxpayer, the property is, or is to be, used (whether or not by the taxpayer) wholly or partly in or in connection with the production, supply, carriage, transmission or delivery of goods or the provision of services; and\n\n (ii) a person other than the taxpayer (which person is in this section also referred to as the end‑user) controls, will control, or is or will be able to control, directly or indirectly, that use of the property, and:\n\n (A) in a case where the end‑user is not a resident of Australia—that use of the property takes place, or is to take place, wholly or principally outside Australia;\n\n (B) in a case where some or all of the goods are, or are to be, produced for the end‑user or supplied, carried, transmitted or delivered to or for the end‑user, or some or all of the services are, or are to be, provided to or for the end‑user—any of those goods or services are, or are to be, used by the end‑user otherwise than wholly and exclusively for the purpose of producing assessable income;\n\n (C) in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (i), the end‑user derives, or is to derive, no income or income that is wholly or partly exempt from income tax; or\n\n (D) in a case where the property was acquired by the taxpayer—the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end‑user.\n\n (5) In subparagraph (4)(a)(iii) and sub‑subparagraph (4)(b)(ii)(D), a reference to the end‑user is a reference to the end‑user, any of the end‑users (where there are 2 or more end‑users), any associate of the end‑user or of any of those end‑users, or any 2 or more such persons.\n\n (6) For the purposes of subsection (4), property shall be taken not to have been, prior to its acquisition by the taxpayer, owned, and used or held for use, by a person if:\n\n (a) the property was first used or held for use by the person at a time within 6 months before the acquisition of the property by the taxpayer; and\n\n (b) at that time there was in existence an arrangement that the property would be sold to another person and leased by that person to the first‑mentioned person.\n\n (7) Where:\n\n (a) the end‑user consists of all or any of the partners in a partnership; and\n\n (b) a condition of paragraph (4)(a) or (b), as the case may be, is satisfied in relation to any of the partners in the partnership;\n\nthat condition shall be taken to be satisfied in relation to all the partners in the partnership.\n\n (8) This section does not apply to property, in relation to a taxpayer, unless the whole or a predominant part of the cost of the acquisition or construction, as the case may be, of the property by the taxpayer is financed directly or indirectly by a debt or debts (which debt is, or debts are, referred to in this subsection as the non‑recourse debt) and the rights of the creditor or creditors as against the taxpayer in the event of default in the repayment of principal or payment of interest:\n\n (a) are limited wholly or predominantly to any or all of the following:\n\n (i) rights (including the right to moneys payable) in relation to any or all of the following:\n\n (A) the property or the use of the property;\n\n (B) goods produced, supplied, carried, transmitted or delivered, or services provided, by means of the property;\n\n (C) the loss or disposal of the whole or a part of the property or of the taxpayer’s interest in the property;\n\n (ii) rights in respect of a mortgage or other security over the property;\n\n (iii) rights arising out of any arrangement relating to the financial obligations of the end‑user of the property towards the taxpayer, being financial obligations in relation to the property;\n\n (b) are in the opinion of the Commissioner capable of being so limited, having regard to either or both of the following:\n\n (i) the assets of the taxpayer;\n\n (ii) any arrangement to which the taxpayer is a party; or\n\n (c) where paragraphs (a) and (b) do not apply—are limited by reason that not all of the assets of the taxpayer (not being assets that are security for debts of the taxpayer other than the non‑recourse debt) would be available for the purpose of the discharge of the whole of the non‑recourse debt (including the payment of interest) in the event of any action or actions by the creditor or creditors against the taxpayer arising out of that debt.\n\n (a) property has been financed by a debt or debts as mentioned in subsection (8); and\n\n (b) the rights of the creditor or creditors as against the taxpayer are, or are capable of being, limited as mentioned in that subsection;\n\nthe Commissioner may treat those rights as not being, or capable of being, so limited if the Commissioner is of the opinion, having regard to the circumstances in which the debt was, or debts were, incurred and any other matters that the Commissioner thinks relevant, that it would be reasonable to do so.\n\n (10) Subject to subsections (11), (12), (13) and (15), where this section has applied to property, in relation to a taxpayer, at any time, the taxpayer shall be deemed not to have occupied or used the property, or held the property for use, at that time, for the purpose of producing assessable income or in carrying on a business for that purpose.\n\n (11) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of subparagraph (4)(a)(ii) or sub‑subparagraph (4)(b)(ii)(B), and for any part of that time the end‑user held, occupied or used the property referred to in that subparagraph, or held it for use, or used any goods or services referred to in that sub‑subparagraph, as the case may be, partly for the purpose of producing assessable income, the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n (12) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of sub‑subparagraph (4)(b)(ii)(C), and for any part of that time the end‑user derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (4)(b)(i), the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n (13) Where:\n\n (a) this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of subparagraph (4)(a)(ii) or sub‑subparagraph (4)(b)(ii)(B) or (C);\n\n (b) the end‑user referred to in that subparagraph or sub‑subparagraph, as the case may be, consisted of all or any of the partners in a partnership; and\n\n (c) for any part of that time one or more of the partners in the partnership was a person in respect of whom, but for the operation of subsection (7), that subparagraph or sub‑subparagraph, as the case may be, would not have applied;\n\nthe taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n (14) In considering, for the purposes of subsection (13), the extent to which the taxpayer shall be deemed to have held, occupied or used property, or held if for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, the Commissioner shall have regard:\n\n (a) to the interest or interests of the partner or partners referred to in paragraph (13)(c) in the net income, or the partnership loss, of the partnership of the year of income corresponding to the year of income referred to in paragraph (13)(a);\n\n (b) the extent to which, for any part of the time referred to in paragraph (13)(a), a partner or partners other than the partner or partners referred to in paragraph (13)(c) held, occupied or used the property, or held it for use, or used the goods or services referred to in sub‑subparagraph (4)(b)(ii)(B), as the case may be, for the purpose of producing assessable income; and\n\n (c) the extent to which, for any part of the time referred to in paragraph (13)(a), a partner or partners other than the partner or partners referred to in paragraph (13)(c) derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (4)(b)(i).\n\n (15) Notwithstanding anything contained in subsections (10), (11) and (13), at any time when this section applies to property by reason of subparagraph (4)(a)(ii), the property shall be deemed not to be held, occupied or used, or held for use, by the taxpayer for the purpose of producing assessable income, or in carrying on a business for that purpose, if, at that time:\n\n (a) 2 or more end‑users hold rights as lessees under the lease of the property;\n\n (b) one or more of the end‑users (which end‑user is, or end‑users are, referred to in this subsection as the exempt end‑user) is a company, or are companies, the income of which is ordinarily exempt from income tax;\n\n (c) the property is, or is to be, used wholly or principally in or in connection with the conduct of operations or transactions of a kind that the exempt end‑user ordinarily engages in;\n\n (d) the exempt end‑user controls, will control, or is or will be able to control, directly or indirectly, that use of the property; and\n\n (e) in relation to those operations or transactions, the exempt end‑user derives, or is to derive, no income or income that is exempt from income tax.\n\n (16) Where a taxpayer has incurred expenditure for repairs to property to which this section applies or has applied in relation to the taxpayer and, but for this section, a deduction would be allowable under section 25‑10 (Repairs) of the Income Tax Assessment Act 1997 in respect of that expenditure, so much of the expenditure as the Commissioner considers appropriate shall be deemed not to be allowable, having regard to:\n\n (a) the period for which the taxpayer owned the property before the repairs were commenced and any part of that period during which this section applies or applied to the property in relation to the taxpayer; and\n\n (b) in a case to which subsection (11), (12) or (13) of this section applies or applied—the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer was deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n (17) Where a taxpayer has incurred expenditure in borrowing money to finance the acquisition or construction of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997 in relation to that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to:\n\n (a) the period for which the money was borrowed or, by the operation of subsection 25‑25(6) of that Act, is deemed to have been borrowed and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and\n\n (b) in a case to which subsection (11), (12), or (13) of this section applies or applied—the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n (18) Where a taxpayer has incurred expenditure for the preparation, registration and stamping of a lease, or of an assignment or surrender of a lease, of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 25‑20 (Lease document expenses) of the Income Tax Assessment Act 1997 in respect of that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to:\n\n (a) the period of the lease and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and\n\n (b) in a case to which subsection (11), (12) or (13) of this section applies or applied—the extent to which, for the time during the part of the period mentioned in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n (19) Where:\n\n (a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n (b) a deduction was taken into account in calculating that net income or partnership loss;\n\n (c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction) would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership;\n\n (d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time; and\n\n (e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer after the prescribed time;\n\nthere shall be included in the assessable income of the taxpayer of the relevant year of income an amount that bears to the amount of the relevant deduction the same proportion as the individual interest of the taxpayer in that net income bears to that net income or, as the case requires, as the individual interest of the taxpayer in that partnership loss bears to that partnership loss.\n\n (20) Where:\n\n (a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n (b) a deduction was taken into account in calculating that net income or partnership loss;\n\n (c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction) would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership;\n\n (d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time;\n\n (e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer before the prescribed time; and\n\n (f) after the prescribed time, the taxpayer made or agreed to make a contribution or contributions (which contribution is or contributions are in this subsection referred to as the additional contribution) to the capital of the partnership in addition to any contribution or contributions to the capital of the partnership that, under a contract or contracts entered into at or before that time, the taxpayer had made or agreed to make; and\n\n (g) by reason of making or agreeing to make the additional contribution, the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss, is greater than it would otherwise have been;\n\nthere shall be included in the assessable income of the taxpayer of the relevant year of income an amount ascertained in accordance with the formula A (B – C), where:\n\nA  is the amount of the relevant deduction.\n\nB  is the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss; and\n\nC  is the fraction that would be B if another partner, and not the taxpayer, had made or agreed to make the additional contribution.\n\n (21) For the purposes of determining if this section applies to property, the income of a prescribed excluded STB (within the meaning of Division 1AB) is taken to be exempt.\n\n51AEA  Meal entertainment—election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n (1) If a meal entertainment fringe benefit arises for a taxpayer for an FBT year and the taxpayer elects that Division 9A of Part III of the Fringe Benefits Tax Assessment Act 1986 applies to the taxpayer for the FBT year, and has not elected that Subdivision C of that Division applies:\n\n (a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and\n\n (b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.\n\n (2) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AEB  Meal entertainment—election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method\n\n (1) If a taxpayer has made an election under section 37CA of the Fringe Benefits Tax Assessment Act 1986:\n\n (a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to the amount worked out using the following formula is allowable to the taxpayer for the year of income in which it is incurred:\n\n  ![Start formula Amount of expense times Register percentage end formula](image.013.png)\n\n (b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.\n\n (2) The register percentage is the percentage worked out using the formula:\n\n  ![Start formula start fraction Total deductions for register meal entertainment over Total register meal entertainment expenses end fraction times 100% end formula](image.014.png)\n\nTotal deductions for register meal entertainment means the total of deductions that would (but for this section and section 51AEA) be allowable to the taxpayer for expenses incurred by the taxpayer in providing meal entertainment in the 12 week period covered by the register kept by the employer under Subdivision C of Division 9A of the Fringe Benefits Tax Assessment Act 1986.\n\nTotal register meal entertainment expenses means the total of expenses incurred by the taxpayer in providing meal entertainment during that 12 week period.\n\n (3) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AEC  Entertainment facility—election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n (1) If a taxpayer has made an election under section 152B of the Fringe Benefits Tax Assessment Act 1986:\n\n (a) for each entertainment facility leasing expense incurred in the FBT year by the taxpayer, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and\n\n (b) no other deduction under any provision of this Act is allowable to the taxpayer for entertainment facility leasing expenses incurred in the FBT year.\n\n (2) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AF  Car expenses incurred by employee\n\n (a) during a particular period, an employer provides a car for the exclusive use of a person who is, or of persons any of whom is, an employee of the employer or a relative of such an employee; and\n\n (b) at any time during that period, the employee or a relative of the employee is entitled to use the car for private purposes;\n\na deduction is not allowable under this Act in respect of a car expense that relates to the car and:\n\n (c) is incurred by the employee during that period; or\n\n (d) is incurred by the employee and is wholly or partly attributable to that period.\n\n (2) In this section:\n\ncar has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997, but does not include a car covered by section 28‑165 of that Act.\n\ncar expense has the meaning given by section 28‑13 of the Income Tax Assessment Act 1997, but does not include a car expense covered by section 28‑165 of that Act.\n\nemployee means a person who receives, or is entitled to receive, work and income support related withholding payments and benefits.\n\nemployer means a person who pays or is liable to pay work and income support related withholding payments and benefits, and includes:\n\n (a) in the case of an unincorporate body of persons other than a partnership—the manager or other principal officer of that body; and\n\n (b) in the case of a partnership—each partner; and\n\n (c) an Australian government agency as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n51AGA  No deduction to employee for certain car parking expenses\n\nNo deduction\n\n (1) A deduction is not allowable to an employee under this Act in respect of expenditure to the extent to which it is incurred in respect of the provision of car parking facilities for a car on a day if:\n\n (a) on that day, the employee has a primary place of employment; and\n\n (b) on that day, the car is parked for one or more daylight periods exceeding 4 hours in total at, or in the vicinity of, that primary place of employment; and\n\n (c) the expenditure is in respect of the provision of the parking facilities to which that parking relates; and\n\n (d) on that day, the car was used in connection with travel by the employee between:\n\n (i) the place of residence of the employee; and\n\n (ii) that primary place of employment; and\n\n (e) the provision of parking facilities for the car during the period or periods is not taken, under the regulations, to be excluded from this section; and\n\n (f) the day is on or after 1 July 1993.\n\n (2) In this section:\n\ncar has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\ndaylight period has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\nemployee has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n place of residence has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\nprimary place of employment has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AH  Deductions not allowable where expenses incurred by employee are reimbursed\n\n (a) either of the following subparagraphs applies:\n\n (i) a person makes a payment in discharge, in whole or in part, of an obligation of the taxpayer to pay an amount to a third person in respect of an amount of a loss or outgoing incurred by the taxpayer;\n\n (ii) a person reimburses the taxpayer, in whole or in part, in respect of an amount of a loss or outgoing incurred by the taxpayer;\n\n (b) the payment or reimbursement, as the case may be, constitutes:\n\n (i) a fringe benefit; or\n\n (ii) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit; and\n\n (c) in the case of a reimbursement—the amount of the reimbursement is not included in the taxpayer’s assessable income under section 15‑70 of the Income Tax Assessment Act 1997;\n\nthe amount of the deduction that, but for this section, has been allowed or would be allowable in respect of the loss or outgoing shall be:\n\n (d) if it would be concluded that the amount of the payment or reimbursement would have been the same even if the loss or outgoing were not incurred in producing assessable income of the taxpayer—calculated as if the loss or outgoing were reduced by the amount of the payment or reimbursement; or\n\n (e) in any other case—reduced by the amount of the payment or reimbursement.\n\n (2) Expressions (other than “fringe benefit”) used in this section and in the Fringe Benefits Tax Assessment Act 1986 have the same respective meanings in this section as they have in that Act.\n\n (3) This section does not apply to deductions under Division 40 of the Income Tax Assessment Act 1997 (about capital allowances).\n\n51AJ  Deductions not allowable for private component of contributions for fringe benefits etc.\n\n (a) any of the following benefits is provided in respect of the employment of an employee of an employer:\n\n (i) an airline transport benefit;\n\n (ii) a board benefit;\n\n (iii) a loan benefit;\n\n (iv) a property benefit;\n\n (v) a residual benefit;\n\n (b) the benefit is:\n\n (i) a fringe benefit; or\n\n (ii) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit;\n\n (c) in the case of a loan benefit—the taxpayer, being the recipient or the employee, incurs interest (in this section called the recipients interest) in respect of the loan;\n\n (d) in the case of a benefit other than a loan benefit—the taxpayer, being the recipient or the employee, incurs consideration (in this section called the recipients contribution) to the provider or to the employer in respect of the provision of the recipients transport, the recipients meal, the recipients property or the recipients benefit, as the case may be;\n\n (e) it would be concluded that, in calculating the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, the provider or the employer made an allowance for a particular level of application or use of the benefit in producing assessable income of the taxpayer; and\n\n (f) it would be concluded that the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, would have been greater if it had been calculated without making that allowance;\n\n (g) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer is equal to, or less than, that level—a deduction is not allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution;\n\n (h) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer exceeds that level—the amount of the deduction that, but for this section, has been allowed or would be allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution shall not exceed the amount calculated in accordance with the formula:\n\n  ![Start formula D minus A end formula](image.015.png)\n\n  D  is the amount of the deduction that, but for this section, would have been allowable to the taxpayer under this Act in respect of the amount of the recipients interest or the amount of the recipients contribution if it had been calculated without making that allowance; and\n\n  A  is the amount of that allowance.\n\n (2) Expressions (other than “recipients contribution” and “fringe benefit”) used in this section and in the  Fringe Benefits Tax Assessment Act 1986 have the same respective meanings in this section as they have in that Act.\n\n51AK  Agreements for the provision of non‑deductible non‑cash business benefits\n\n (1) Subject to this section, where:\n\n (a) under an agreement:\n\n (i) a taxpayer incurs expenditure; and\n\n (ii) a non‑cash business benefit is provided to the taxpayer or another person; and\n\n (b) that benefit is not exclusively for use or application for the purpose of producing assessable income of the taxpayer;\n\nthe taxpayer shall be treated, for the purposes of this Act, as if so much of the expenditure as does not exceed the arm’s length value of the benefit had been incurred by the taxpayer exclusively in respect of that benefit.\n\n (2) This section does not apply so as to treat particular expenditure, or the cost of particular property, to be a particular amount for a particular purpose if there is another provision of this Act that deems that expenditure, or the cost of that property, to be a lesser amount for that purpose.\n\n (3) A reference in this section to producing assessable income includes a reference to:\n\n (a) gaining assessable income; or\n\n (b) carrying on a business for the purpose of gaining or producing assessable income.\n\n (4) Expressions used in this section and in section 21A have the same respective meanings in this section as they have in that section.\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nexpenditure includes a loss or outgoing.\n\n","sortOrder":36},{"sectionNumber":"52","sectionType":"section","heading":"Loss on property acquired for profit‑making","content":"52  Loss on property acquired for profit‑making\n\n (1AA) This section does not apply to a loss arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.\n\nNote: Section 25‑40 (Loss from profit‑making scheme) of the Income Tax Assessment Act 1997 deals with such a loss.\n\n (1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.\n\n (1) Any loss incurred by the taxpayer in the year of income upon the sale of any property or from the carrying on or carrying out of any undertaking or scheme, the profit (if any) from which sale, undertaking or scheme would have been included in the taxpayer’s assessable income, shall be an allowable deduction:\n\nProvided that, in respect of property acquired by the taxpayer after the date of the commencement of this proviso, no deduction shall be allowable under this section (except where the Commissioner, being satisfied that the property was acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme, otherwise directs) unless the taxpayer, not later than the date upon which he or she lodges his or her first return under this Act after having acquired the property, notifies the Commissioner that the property has been acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme.\n\n (a) a taxpayer sells property (in this subsection referred to as the relevant property) that is deemed by subsection 25A(5) or (8) to have been acquired by the taxpayer for the purpose of profit‑making by sale;\n\n (b) the Commissioner is satisfied that the relevant property has not been held or used by the taxpayer in a manner inconsistent with such a purpose; and\n\n (c) the Commissioner, having regard to:\n\n (i) the amount of the consideration paid by the person who transferred the relevant property or, in a case to which subsection 25A(8) applies, the property referred to in paragraph 25A(8)(b), to the taxpayer in respect of the purchase of the property so transferred; and\n\n (ii) such other matters as the Commissioner considers relevant;\n\n  considers that it is appropriate that a loss be deemed to be incurred by the taxpayer upon the sale of the relevant property;\n\nthe taxpayer shall be deemed, for the purposes of this section, to have incurred a loss upon the sale of the relevant property of such amount as the Commissioner considers appropriate.\n\n (3) Except as provided by subsection (2), a deduction is not allowable to a taxpayer under this section in respect of a loss incurred upon a sale of property to which paragraph (2)(a) applies.\n\n (a) a loss is incurred by a taxpayer upon the sale of property (in this subsection referred to as the relevant property); and\n\n (b) the taxpayer is deemed to have acquired the relevant property for the purpose of profit‑making by sale by virtue of the application of subsection 25A(6) in accordance with subparagraph (b)(ii) of that subsection;\n\nthe deduction that would, but for this subsection, be allowable to the taxpayer under subsection (1) in respect of the loss shall be reduced by such amount (if any) as the Commissioner considers reasonable having regard to the extent to which the relevant property is attributable to the interest in property that was acquired by the taxpayer for the purpose of profit‑making by sale as mentioned in that subparagraph.\n\n (5) A deduction is not allowable to a taxpayer under subsection (1) in respect of a loss incurred by the taxpayer upon the sale of property if:\n\n (a) the sale is a transfer in the prescribed manner by the taxpayer for the purposes of section 25A; or\n\n (b) the property is deemed by subsection 25A(2) to have been acquired by the taxpayer for the purposes of profit‑making by sale and was not actually acquired by the taxpayer for that purpose.\n\n","sortOrder":37},{"sectionNumber":"52A","sectionType":"section","heading":"Certain amounts disregarded in ascertaining taxable income","content":"52A  Certain amounts disregarded in ascertaining taxable income\n\n (1) Notwithstanding section 8‑1 of the Income Tax Assessment Act 1997, losses or outgoings consisting of expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property as trading stock of the taxpayer shall, if the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the whole of those losses or outgoings, be allowable as a deduction to the taxpayer to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of those losses or outgoings.\n\n (a) expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property that was purchased or acquired in the carrying on or carrying out of any profit‑making undertaking or scheme would, but for this subsection, be taken into account for the purpose of ascertaining whether any profit arose, or any loss was incurred, from the carrying on or carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and\n\n (b) the Commissioner considers that it would be unreasonable that the whole of that expenditure be taken into account for those purposes;\n\nthat expenditure shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that the expenditure be taken into account for those purposes.\n\n (2A) Where:\n\n (a) prescribed property that was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection was or is treated or used by the taxpayer as an asset of a business carried on by the taxpayer;\n\n (b) but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of that property; and\n\n (c) the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the value of the property to the extent to which, but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of the property;\n\na deduction shall be allowable to the taxpayer in respect of the value of the property to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of that value.\n\n (2B) Where:\n\n (a) the value of any prescribed property that:\n\n (i) was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection; and\n\n (ii) was or is used by the taxpayer in the carrying on or carrying out of any profit‑making undertaking or scheme;\n\n  would, but for this subsection, be taken into account for the purpose of ascertaining whether or not any profit arose, or any loss was incurred, from the carrying on or the carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and\n\n (b) the Commissioner considers that it would be unreasonable that the value of the property be taken into account for those purposes to the extent to which the value would, but for this subsection, be taken into account for those purposes;\n\nthe value of the property shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that that value be taken into account for those purposes.\n\n (3) In forming an opinion for the purposes of subsection (1) or (2A) as to the extent to which it is reasonable that a deduction be allowable to a taxpayer in respect of expenditure incurred in the purchase or acquisition of prescribed property or in respect of the value of prescribed property, as the case may be, or in forming an opinion for the purposes of subsection (2) or (2B) as to the extent to which it is reasonable that expenditure incurred by a taxpayer in the purchase or acquisition of prescribed property should be taken into account for the purposes referred to in subsection (2) or that the value of prescribed property should be taken into account for the purposes referred to in subsection (2B), as the case may be:\n\n (a) if the taxpayer expended moneys in purchasing or acquiring the prescribed property—the Commissioner shall have regard to the circumstances in which, and the person or persons from whom, the taxpayer obtained moneys:\n\n (i) that were expended by the taxpayer in purchasing or acquiring the prescribed property; or\n\n (ii) that, in the opinion of the Commissioner, were obtained by, or paid to, the taxpayer to enable the taxpayer to expend moneys in purchasing or acquiring the prescribed property;\n\n (b) if the taxpayer borrowed from another person (in this paragraph referred to as the lender) moneys that were expended by the taxpayer in purchasing or acquiring the prescribed property or moneys that, in the opinion of the Commissioner, were obtained by, or paid to, the taxpayer to enable the taxpayer to expend moneys in purchasing or acquiring the prescribed property—the Commissioner shall have regard to:\n\n (i) the circumstances in which, and the terms and conditions on which, the taxpayer borrowed those moneys from the lender; and\n\n (ii) whether, in the opinion of the Commissioner, the taxpayer and the lender were dealing with each other at arm’s length in connexion with the borrowing of those moneys by the taxpayer;\n\n (c) if, either before or after the purchase or acquisition of the prescribed property by the taxpayer, an agreement or arrangement (whether or not enforceable by legal proceedings and whether or not intended to be so enforceable) was entered into, or an understanding was reached, as a result of which there has been, or there could reasonably be expected to be, a substantial reduction in the value of the prescribed property—the Commissioner shall have regard to that agreement, arrangement or understanding;\n\n (d) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the transaction, operation, undertaking, scheme or arrangement, had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n (e) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that the Commissioner is satisfied was by way of dividend stripping or was similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n (f) if:\n\n (i) the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, money was to be paid, or other property was to be transferred or made available by a person other than the taxpayer, whether before or after the purchase or acquisition of the prescribed property, to the taxpayer, to the taxpayer and a person or persons other than the taxpayer or to a person or persons other than the taxpayer;\n\n (ii) the Commissioner is satisfied that the amount of money so to be paid, or the value of the property so to be transferred or made available, as the case may be, was to be not less than, or not substantially less than, the amount expended by the taxpayer in the purchase or acquisition of the prescribed property;\n\n  the Commissioner shall have regard to the fact that the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of such a transaction, operation, undertaking, scheme or arrangement;\n\n (g) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, other prescribed property was to be issued or allotted by a company (whether to the taxpayer or any other person or persons) and it could reasonably be expected that, as a result of the issue or allotment of that other prescribed property, the value of the prescribed property purchased or acquired by the taxpayer would be substantially reduced—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n (h) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, rights in respect of the prescribed property or in respect of other prescribed property (whether that other prescribed property had been issued or allotted before the time of the purchase or acquisition by the taxpayer of the first‑mentioned prescribed property or was to be issued or allotted at a later time) were to be withdrawn or varied and it could reasonably be expected that, as a result of a withdrawal or variation of those rights, the value of the prescribed property purchased or acquired by the taxpayer would be substantially reduced—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement; and\n\n (j) the Commissioner shall have regard to any other matters that he or she considers relevant.\n\n (4) In this section, prescribed property means any chose in action.\n\n (4A) In the preceding provisions of this section, references to the value of any prescribed property shall, unless the contrary intention appears, be read as including references to part of the value of that prescribed property.\n\n (5) For the purposes of this section:\n\n (a) a person to whom prescribed property is issued or allotted by a company shall be taken to have acquired that prescribed property;\n\n (b) a person upon whom prescribed property devolves by reason of the death of a person shall be taken to have acquired that prescribed property; and\n\n (c) a person in whom prescribed property vests by the operation of any trust or the exercise of any power under a trust shall be taken to have acquired that prescribed property.\n\n (6) The reference in paragraph (3)(b) to terms and conditions shall be read as including a reference to implied terms and conditions and to terms and conditions that are not enforceable by legal proceedings whether or not they were intended to be so enforceable.\n\n (7) Where, by virtue of the application of the preceding provisions of this section, the amount (in this subsection referred to as the relevant amount) of the deduction that is allowable to a taxpayer in respect of losses or outgoings incurred by the taxpayer in the purchase or acquisition of prescribed property is less than the amount of those losses and outgoings, the cost of that prescribed property shall, for the purposes of the application of Divisions 70 (Trading stock) and 385 (Primary production) of the Income Tax Assessment Act 1997 in relation to that property in relation to the taxpayer, be taken to be an amount that is the same as the relevant amount.\n\n (8) References in this section to expenditure incurred by a taxpayer in the purchase or acquisition of any prescribed property shall, in the case of prescribed property being a share or stock in the capital of a company, be read as including references to any payment made or other consideration given by the taxpayer to the company in respect of the prescribed property, whether as a payment of unpaid capital in respect of the prescribed property or otherwise and whether on application for or allotment of the prescribed property, to meet calls or otherwise.\n\n (9) Subsection (8) applies to a non‑share equity interest in the same way as it applies to a share.\n\n","sortOrder":38},{"sectionNumber":"63","sectionType":"section","heading":"Bad debts","content":"63  Bad debts\n\n  Where a debt in respect of the whole or a part of a payment that has, or will, become liable to be made under a qualifying security within the meaning of Division 16E is written off as a bad debt by a taxpayer during a year of income, then, for the purposes of paragraph 25‑35(1)(a) of the Income Tax Assessment Act 1997, there is taken to have been included in the taxpayer’s assessable income of a year of income so much of the debt as equals the amount (if any) ascertained in accordance with the formula A – B, where:\n\nA  is the amount (if any) or the sum of the amounts (if any) included in the assessable income of the taxpayer of any year or years of income under section 159GQ that is or are attributable to the payment or to the part of the payment, as the case requires; and\n\nB  is the amount (if any) or the sum of the amounts (if any) allowable as a deduction or deductions from the assessable income of the taxpayer of any year or years of income under section 159GQ that is or are attributable to the payment or to the part of the payment, as the case requires.\n\n63D  Bad debts etc. of money‑lenders not allowable deductions where attributable to listed country or unlisted country branches\n\n (1) Subject to section 63F, if:\n\n (a) apart from this section and section 63F, a deduction would be allowable to a taxpayer:\n\n (i) under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of a debt as bad; or\n\n (ii) under section 63E of this Act in respect of a debt/equity swap in relation to a debt; and\n\n (b) the debt was created or acquired in the ordinary course of a money‑lending business of the taxpayer who carries on that business; and\n\n (c) during any part or parts (the foreign country branch period) of the period since the debt was so created or acquired (the debt holding period), it is the case that, if income had been derived by the taxpayer in respect of the debt, the income would not, because of section 23AH of this Act, have been included in the assessable income of the taxpayer;\n\nthen only a proportion of the deduction is allowable, being the proportion calculated using the formula:\n\n![Start formula start fraction Debt holding period minus Foreign country branch period over Eligible debt term end fraction end formula](image.016.png)\n\ndebt holding period means the number of days in the debt holding period.\n\neligible debt term means:\n\n (a) where the debt was acquired from a person other than an associate, within the meaning of section 318 of this Act—the number of days in the debt holding period; or\n\n (b) in any other case—the number of days in the period beginning on the day on which the debt was created (whether by the taxpayer or another person) and ending at the end of the day on which it was written off.\n\nforeign country branch period means the number of days in the foreign country branch period.\n\n (2) Where a debt that is written off, or in respect of which there is a debt/equity swap (within the meaning of section 63E), was acquired from another person, the creation, and any previous acquisition, of the debt is to be disregarded for the purposes of applying subsection (1), other than paragraph (b) of the definition of eligible debt term in subsection (1).\n\n (3) Where a part of a debt is written off as bad, this section applies as if the part were an entire debt that is written off as bad.\n\n","sortOrder":39},{"sectionNumber":"63E","sectionType":"section","heading":"Debt/equity swaps","content":"63E  Debt/equity swaps\n\nMeaning of debt/equity swap\n\n (1) For the purposes of this section, a debt/equity swap occurs if:\n\n (a) under an arrangement (defined in subsection (6)), a taxpayer discharges, releases or otherwise extinguishes the whole or part of a debt owed to the taxpayer in return for the issue by the debtor to the taxpayer of shares (other than redeemable preference shares), or units, in the debtor; and\n\n (b) the debtor is:\n\n (i) a company; or\n\n (ii) a trading trust (within the meaning of section 102N), or a public unit trust (within the meaning of section 102P), in relation to the year of income in which the units are issued; and\n\n (c) the debt either:\n\n (i) has been brought to account by the taxpayer as assessable income of any year of income; or\n\n (ii) is in respect of money lent in the ordinary course of the business of the lending of money by the taxpayer who carries on that business.\n\nMeaning of equity value and swap loss\n\n (2) For the purposes of this section:\n\n (a) the equity value of the shares or units is the greater of:\n\n (i) their market value at the time of their issue to the taxpayer; and\n\n (ii) their value shown in the accounts of the taxpayer as at the time of their issue to the taxpayer; and\n\n (b) a swap loss occurs if the amount of the whole or the part of the debt that is extinguished is greater than the equity value of the shares or units.\n\nSwap loss is deductible etc.\n\n (3) If a debt/equity swap occurs:\n\n (a) subject to section 63F, any swap loss is allowable as a deduction from the taxpayer’s assessable income of the year of income in which the shares or units are issued; and\n\n (b) no amount is allowable as a deduction from the assessable income of the taxpayer of any year of income under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of the debt as bad in connection with the debt/equity swap; and\n\n (c) for the purposes of any application of Subdivision 20‑A of the Income Tax Assessment Act 1997 in relation to the issue of the shares or units to the taxpayer, the amount received in respect of the issue is taken to be the same as the equity value of the shares or units.\n\nEffect of debt/equity swap on later equity disposal etc.\n\n (4) If a debt/equity swap occurs and the taxpayer later disposes of any of the shares or units or they are cancelled or redeemed:\n\n (a) except in accordance with paragraph (b), no amount is included in, or allowable as a deduction from, the taxpayer’s assessable income of any year of income under this Act in respect of the later disposal, cancellation or redemption; and\n\n (b) if the consideration received or receivable by the taxpayer in respect of the disposal, cancellation or redemption is different from the equity value of the shares or units:\n\n (i) if the consideration is greater—the difference is included in the taxpayer’s assessable income of the year of income in which the disposal, cancellation or redemption occurs; or\n\n (ii) if it is less—the difference is allowable as a deduction from that assessable income.\n\nConsideration of a nil amount\n\n (5) For the purposes of subsection (4), if no consideration is received or receivable by the taxpayer in respect of the disposal, cancellation or redemption, then consideration of a nil amount is taken to have been so received or receivable.\n\n (5A) Subdivisions 165‑C, 166‑C and 175‑C of the Income Tax Assessment Act 1997 apply to an allowable deduction under this section in respect of the whole or part of a debt that is extinguished, in the same way as they apply to a debt (or part of a debt) that is written off as bad.\n\nMeaning of arrangement\n\narrangement means any agreement, arrangement, understanding, promise, undertaking or scheme, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\n","sortOrder":40},{"sectionNumber":"63F","sectionType":"section","heading":"Limit on deductions where debt write offs and debt/equity swaps occur","content":"63F  Limit on deductions where debt write offs and debt/equity swaps occur\n\nSituations where limit is to be applied\n\n (a) apart from this section, a deduction (the current deduction) would be allowable to a taxpayer:\n\n (i) under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or\n\n (ii) under section 63E of this Act in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n (b) a deduction (a previous deduction) was allowed or allowable to the taxpayer under any of those sections, under former section 51 of this Act or under section 63 in respect of any number of occurrences of either or both of the following:\n\n (i) a previous writing off as bad of the whole or part of a debt (a previous debt) that was the same as, or included, the debt mentioned in subparagraph (a)(i) or (ii);\n\n (ii) a previous debt/equity swap relating to a part of a debt (a previous debt) that was the same as, or included, the debt mentioned in subparagraph (a)(i) or (ii); and\n\n (c) the current deduction or at least one previous deduction is a deduction allowable under section 63E of this Act in respect of a debt/equity swap;\n\nthen the current deduction is only allowable to the extent that it does not exceed the limit worked out under subsection (2).\n\nCalculation of limit\n\n (2) The limit is worked out as follows:\n\n \n\n- Step 1: Take the amount of the previous debt in respect of the earliest or only writing off or debt/equity swap to which paragraph (1)(b) applies.\n- Step 2: Reduce the amount by the previous deduction in respect of that writing off or debt/equity swap.\n- Step 3: If one or more of the following events occur after the writing off or debt/equity swap, progressively reduce the balance of the amount in the way set out below and in the order in which the events occur:\n- Event How balance reduced\n- A writing off or debt/equity swap in respect of which there is a previous deduction. Reduce the balance by the amount of that previous deduction. If the reduced balance is higher than the level of the debt owing after the event, further reduce the balance to that lower level.\n- Any other event (e.g. a repayment) that reduces the amount of debt owing, being an event that occurs before the writing off or debt/equity swap in respect of the current deduction. If the balance at the time of the event is higher than the level of the debt owing after the event occurs, reduce the balance to that lower level\n- The limit is the resulting balance.\n\n","sortOrder":41},{"sectionNumber":"63G","sectionType":"section","heading":"Bad debts etc. of trust not allowable in certain circumstances","content":"63G  Bad debts etc. of trust not allowable in certain circumstances\n\n  If:\n\n (a) a deduction is allowable from a trust’s assessable income of any year of income:\n\n (i) under former section 51 of this Act, under section 63 of this Act or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or\n\n (ii) under subsection 63E(3) or (4) in respect of the extinguishment of the whole or part of a debt; and\n\n (b) the debt was incurred as well as written off or extinguished on the last day of the year of income;\n\nthe deduction is not allowable.\n\n","sortOrder":42},{"sectionNumber":"Sch 2F","sectionType":"schedule","heading":"may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.","content":"Schedule 2F may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.\n\n","sortOrder":43},{"sectionNumber":"65","sectionType":"section","heading":"Payments to associated persons and relatives","content":"65  Payments to associated persons and relatives\n\n (1B) Where, by virtue of section 26‑35 (Reduction of deduction for amounts paid to related entities) of the Income Tax Assessment Act 1997, an amount is not allowable as a deduction in calculating in accordance with section 90 of this Act the net income, or a partnership loss, of a partnership in which a company, being a private company in relation to the year of income of the company to which the individual interest of the company in the net income of the partnership or in the partnership loss relates, is a partner:\n\n (a) the company shall, for the purposes of this Act other than Division 11A, be deemed to have paid, on the last day of that year of income, a dividend of an amount ascertained in accordance with subsection (1C); and\n\n (b) subsection 26‑35(4) of the Income Tax Assessment Act 1997 does not apply in relation to so much of the amount that is not so allowable as a deduction as is equal to the amount of the dividend that the company is to be so deemed to have paid.\n\n (1C) For the purposes of subsection (1B), the amount of the dividend that the company is to be deemed to have paid is:\n\n (a) where the effect of the disallowance of the deduction has been to increase the net income of the partnership—an amount equal to the difference between the amount of the individual interest of the company in the net income of the partnership and the amount that would have been the individual interest of the company in the net income of the partnership if the deduction had been allowed;\n\n (b) where the effect of the disallowance of the deduction has been to reduce the partnership loss—an amount equal to the difference between the amount of the individual interest of the company in the partnership loss and the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed;\n\n (c) where there is net income of the partnership and the amount of the deduction that was disallowed is equal to that net income—an amount equal to the individual interest of the company in the net income of the partnership;\n\n (d) where there is net income of the partnership and, but for the disallowance of the deduction, there would have been a partnership loss—an amount equal to the sum of the amount of the individual interest of the company in the net income of the partnership and the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed; and\n\n (e) where there is no net income of the partnership and, but for the disallowance of the deduction, there would have been a partnership loss—an amount equal to the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed.\n\n","sortOrder":44},{"sectionNumber":"70B","sectionType":"section","heading":"Deduction for loss on disposal or redemption of traditional securities","content":"70B  Deduction for loss on disposal or redemption of traditional securities\n\n (1) Expressions used in this section that are also used in section 26BB have the same meanings in this section as in section 26BB.\n\n (2) Where a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed, the amount of any loss on the disposal or redemption is allowable as a deduction from the assessable income of the taxpayer of the year of income in which the disposal or redemption takes place.\n\n (2A) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of traditional securities that are:\n\n (a) segregated exempt assets (for the purposes of the Income Tax Assessment Act 1997) of a life assurance company; or\n\n (b) segregated current pension assets (as defined in the Income Tax Assessment Act 1997) of a complying superannuation fund.\n\n (2B) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:\n\n (a) the disposal or redemption occurs because the traditional security is converted into ordinary shares in a company that is:\n\n (b) the traditional security was issued on the basis that it will or may convert into ordinary shares in:\n\n (ii) the connected entity.\n\n (2C) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:\n\n (a) the disposal or redemption is in exchange for ordinary shares in a company that is neither:\n\n (i) the issuer of the traditional security; nor\n\n (b) in the case of a disposal—the disposal is to:\n\n (c) the traditional security was issued on the basis that it will or may be:\n\n (i) disposed of to the issuer of the traditional security or to the connected entity; or\n\n (ii) redeemed;\n\n  in exchange for ordinary shares in the company.\n\n (3) Where the Commissioner, having regard to any connection between the parties to the transaction by which the taxpayer disposed of the traditional security or by which it was redeemed, or by which the taxpayer acquired the traditional security, is satisfied that the parties were not dealing with each other at arm’s length in relation to the transaction, then, for the purposes of determining under subsection (2) the amount of any loss on the disposal or redemption, the consideration for the transaction shall be taken to be:\n\n (a) the amount that might reasonably be expected for the transaction if the parties were independent parties dealing at arm’s length with each other; or\n\n (b) where, for any reason it is not possible or practicable for the Commissioner to ascertain that amount—such amount as the Commissioner determines.\n\n (4) If:\n\n (a) a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed; and\n\n (b) there is a loss on the disposal or redemption; and\n\n (c) in the case of a disposal or redemption of a marketable security:\n\n (i) the taxpayer did not acquire the security in the ordinary course of trading on a securities market; and\n\n (ii) at the time the taxpayer acquired the security, it was not open to the taxpayer to acquire an identical security in the ordinary course of trading on a securities market; and\n\n (d) in the case of a disposal of a marketable security—the disposal did not take place in the ordinary course of trading on a securities market; and\n\n (e) having regard to:\n\n (i) the financial position of the issuer of the security; and\n\n (ii) perceptions of the financial position of the issuer of the security; and\n\n (iii) other relevant matters;\n\n  it would be concluded that the disposal or redemption took place for the reason, or for reasons that included the reason, that there was an apprehension or belief that the issuer was, or would be likely to be, unable or unwilling to discharge all liability to pay amounts under the security;\n\na deduction is not allowable to the taxpayer under this section in respect of so much of the amount of the loss as is a loss of capital or a loss of a capital nature.\n\n (5) A reference in this section to the disposal by a taxpayer of a security, or to the redemption of a security of a taxpayer, does not include a reference to the waiver or release by the taxpayer of:\n\n (a) the whole or a part of the debt the subject of the security; or\n\n (b) any other right of the taxpayer under the security.\n\n (6) Subsection (5) does not, by implication, affect the meaning of an expression used in:\n\n (a) a provision of this Act other than this section; or\n\n (b) any other law of the Commonwealth.\n\nissuer, in relation to a security at a particular time, means the person who, if the amount or amounts payable under the security were due and payable at that time, would be liable to pay the amount or amounts.\n\nmarketable security means a traditional security that is covered by paragraph (a) of the definition of security in subsection 159GP(1).\n\nsecurities market means a market, exchange or other place at which, or a facility by means of which, offers to sell, purchase or exchange marketable securities are regularly made or accepted.\n\n","sortOrder":45},{"sectionNumber":"73A","sectionType":"section","heading":"Expenditure on scientific research","content":"73A  Expenditure on scientific research\n\n (1A) This section has effect subject to Division 245 of the Income Tax Assessment Act 1997.\n\n (1) The following payments made, and expenditure incurred, during the year of income (other than any amount which is allowable as a deduction under any other section of this Act) by a person carrying on a business for the purpose of gaining or producing assessable income shall be allowable deductions:\n\n (a) Payments to:\n\n (i) an approved research institute for scientific research related to that business; or\n\n (ii) an approved research institute, the object of which is the undertaking of scientific research related to the class of business to which that business belongs; and\n\n (b) Expenditure of a capital nature on scientific research related to that business (except to the extent that it is expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of scientific research).\n\n (2) Where, on or after the first day of the year of income ending on 30 June 1946, a taxpayer carrying on a business for the purpose of gaining or producing assessable income incurs expenditure of a capital nature in the construction or acquisition of a building, or part of a building, or in making any alteration or addition to a building, in which scientific research related to that business is to be carried on by or on behalf of the taxpayer, and the building, part of a building, alteration or addition, as the case may be, is of use for scientific research purposes only, an amount equal to one‑third of that expenditure shall be an allowable deduction:\n\n (a) from the assessable income of the year of income in which the building, part of a building, alteration or addition is first used by or on behalf of the taxpayer for such scientific research; and\n\n (b) from the assessable income of each of the 2 years of income next succeeding that year of income, if the taxpayer continues to carry on that business during the year in which that assessable income was derived.\n\n (2A) Subsection (2) does not apply to expenditure incurred by a taxpayer in the construction of a building or part of a building, in the making of an alteration or addition to a building or in the acquisition of a building or part of a building unless:\n\n (a) either of the following subparagraphs applies:\n\n (i) that construction or making commenced, or that acquisition occurred, before 21 November 1987;\n\n (ii) any contract in respect of that construction, making or acquisition was entered into before 21 November 1987; and\n\n (b) if the expenditure was incurred after 20 November 1987—the taxpayer intended, on 20 November 1987, that:\n\n (i) scientific research, being research related to a business carried on by the taxpayer for the purpose of gaining or producing assessable income, would be carried on by or on behalf of the taxpayer in the building; and\n\n (ii) the building, part of the building, alteration or addition, as the case may be, would be of use for scientific research purposes only.\n\n (3) Where any expenditure or payment to which this section refers is incurred or made outside Australia and the business in relation to which it is so incurred or made is carried on partly in and partly out of Australia, the deduction allowable under this section shall be such part of the amount which would otherwise be allowable as the Commissioner considers reasonable in the circumstances.\n\n (4) Where any expenditure has been allowed or is allowable as a deduction under subsection (2) and:\n\n (a) the taxpayer sells, transfers or otherwise disposes of the building or any part thereof; or\n\n (b) the building or any part thereof is destroyed;\n\nthe termination value of the building or part shall, to the extent of the expenditure so allowed or allowable as a deduction, be included in the assessable income of the year of income in which the disposal or destruction occurs:\n\nProvided that where the Commissioner is of opinion that part only, or no part, of that termination value relates to the disposal or destruction of any property which was acquired or created by that expenditure, that part only, or no part, as the case may be, of the termination value shall be taken into account for the purposes of this subsection.\n\n (4A) If:\n\n (a) a person has purchased from another person a building, or part of a building, where the vendor had incurred capital expenditure of a kind in respect of which deductions are or have been allowable under subsection (2); and\n\n (b) it would be concluded that, having regard to any connection between the vendor and the purchaser or to any other relevant circumstances, those persons were not dealing with each other at arm’s length; and\n\n (c) the purchase price is greater or lesser than the market value of the building, or the part of the building, at the time of the purchase;\n\nthe purchase price is, for all purposes of the application of this Act in relation to the vendor, taken to have been the amount of the market value of the property at the time of the purchase.\n\n (5) If the purchase of the building is a creditable acquisition by the vendor, references in subsection (4A) to the purchase price are taken to be references to that price reduced by the amount of the net input tax credit to which the purchaser is entitled for the acquisition.\n\nan approved research institute means the Commonwealth Scientific and Industrial Research Organization, or any university, college, institute, association or organization which is approved in writing for the purposes of this section by that Organization, by the Chief Executive Officer of the NHMRC or by the Research Secretary, as an institution, association or organization for undertaking scientific research which is or may prove to be of value to Australia.\n\nNHMRC means the National Health and Medical Research Council established by section 5B of the National Health and Medical Research Council Act 1992.\n\nResearch Secretary means the Secretary of the Department administered by the Minister administering the Australian Research Council Act 2001.\n\nscientific research means any activities in the fields of natural or applied science for the extension of knowledge.\n\ntermination value has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n (7) An approval for the purposes of subsection (6) may:\n\n (a) operate as from a date, whether before or after the date of the approval, specified in the instrument of approval; and\n\n (b) be withdrawn at any time.\n\n (8) In this section, any reference to scientific research related to a business or class of business shall be read as including a reference to:\n\n (i) any scientific research which may lead to or facilitate an extension, or an improvement in the technical efficiency, of that business, or, as the case may be, of businesses of that class; and\n\n (ii) any scientific research of a medical nature which is of special relation to the welfare of workers employed in that business or, as the case may be, in businesses of that class.\n\n (9) This section does not apply in relation to payments made, or expenditure incurred, after 30 June 1995.\n\n73AA  Section 73A roll‑over relief in the case of certain CGT roll‑overs\n\nRoll‑over relief where CGT roll‑over relief allowed\n\n (1) This section applies to the disposal of a building, or part of a building, by a taxpayer (in this section called the transferor) to another taxpayer (in this section called the transferee) if:\n\n (b) subject to subsection (7), deductions have been allowed or are allowable under subsection 73A(2) to the transferor in respect of the building or the part of the building; and\n\n (c) the disposal involves a CGT event; and\n\n (d) the conditions in an item in the table are satisfied.\n\n \n\n- CGT roll‑overs that qualify transferor for relief\n- Item Type of CGT roll‑over Conditions\n- 1 Disposal of asset to wholly‑owned company There is a roll‑over under Subdivision 122‑A of the Income Tax Assessment Act 1997 for the CGT event.\n- 2 Disposal of asset by partnership to wholly‑owned company The transferor is a partnership, the building or part is partnership property, and there is a roll‑over under Subdivision 122‑B of the Income Tax Assessment Act 1997 for the disposal by the partners of the CGT assets consisting of their interests in the building or part.\n- 3 Marriage or relationship breakdown There is a roll‑over under Subdivision 126‑A of the Income Tax Assessment Act 1997 for the CGT event.\n- 4 Disposal of asset to another member of the same wholly‑owned group There is a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 for the CGT event.\n\nNo balancing charges\n\n (2) Subsection 73A(4) (which deals with balancing charges) does not apply to the disposal of the building or the part of the building by the transferor.\n\nTransferee to inherit certain characteristics from transferor\n\n (3) Section 73A applies as if:\n\n (a) the transferee had acquired the building or the part of the building for a consideration equal to the cost of the building or the part of the building to the transferor; and\n\n (b) deductions were not allowable to the transferee under subsection 73A(2) in respect of:\n\n (i) so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the transferor under that subsection in respect of the building or the part of the building; or\n\n (ii) if there have been 2 or more prior successive applications of this section—so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the prior successive transferors under that subsection in respect of the building or the part of the building; and\n\n (c) deductions were not allowable to the transferor under subsection 73A(2) in respect of the building or the part of the building for the year of income in which the disposal took place or for a subsequent year of income.\n\nSubsection 73A(2A)—special rules\n\n (4) If subsection 73A(2A) applies to the transferor and in relation to the building or the part of the building, that subsection applies in relation to the transferee and in relation to the building or the part of the building.\n\nDisposal by transferee where no roll‑over relief—inheritance of deductions\n\n (5) If:\n\n (a) after the disposal of the building or the part of the building to the transferee, the building or the part of the building is lost or destroyed or the transferee disposes of the building or the part of the building; and\n\n (b) in the case of a disposal by the transferee—this section does not apply to the disposal;\n\nthen, for the purposes of the application of subsection 73A(4) in relation to the loss, destruction or disposal, the total of:\n\n (c) the deductions allowed or allowable to the transferor under subsection 73A(2) in relation to the building or the part of the building; and\n\n (d) if there have been 2 or more prior successive applications of this section—the deductions allowed or allowable to the prior successive transferors under subsection 73A(2) in relation to the building or the part of the building;\n\nare taken to have been deductions allowed or allowable to the transferee under subsection 73A(2) in relation to the building or the part of the building.\n\nMeaning of cost\n\n (6) A reference in this section to the cost of a building or of a part of a building to the transferor is a reference to expenditure of a capital nature incurred by the transferor in the construction or acquisition of the building or the part of the building, or in making any alteration or addition to the building or to the part of the building.\n\nSecond or subsequent application of section—paragraph (1)(b) does not apply\n\n (7) If, apart from this subsection, this section has applied to the disposal of the building or the part of the building to the transferee, then, in working out whether this section applies to a subsequent disposal of the building or the part of the building by:\n\n (a) the transferee; or\n\n (b) one or more subsequent successive transferees;\n\nthis section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.\n\n78A  Certain gifts not to be allowable deductions\n\nagreement includes any agreement, arrangement or understanding, whether formal or informal or express or implied, and whether or not enforceable by legal proceedings (whether or not the agreement, arrangement or understanding was intended to be so enforceable).\n\nassociate, in relation to the donor of a gift, means:\n\n (a) in the case of a donor being a natural person:\n\n (i) a relative of the donor;\n\n (ii) a partner of the donor;\n\n (iii) if a partner of the donor is a natural person—the spouse of that partner;\n\n (iv) a trustee of a trust estate where the donor or a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (v) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or\n\n (v) a company where:\n\n (A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor, of a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (iv) or of a company that is an associate of the donor by virtue of another application of this subparagraph; or\n\n (B) the donor is, the persons who are associates of the donor by virtue of subparagraphs (i), (ii), (iii) and (iv) are, or the donor and the persons who are associates of the donor by virtue of those paragraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or\n\n (b) in the case of a donor being a company:\n\n (i) a partner of the donor company;\n\n (ii) if a partner of the donor company is a natural person—the spouse of that partner;\n\n (iii) another person where:\n\n (A) the donor company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, whether those directions, instructions or wishes are communicated directly to the donor company or its directors, or through any interposed companies; or\n\n (B) that person is, or that person and the persons who, if that person were the donor, would be associates of that person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the donor company;\n\n (iv) a trustee of a trust estate where the donor company or a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (v) or (vi) benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts;\n\n (v) another company where:\n\n (A) the other company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor company, of a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (iv) or (vi) or of a company that is an associate of the donor company by virtue of another application of this subparagraph; or\n\n (B) the donor company is, the persons who are associates of the donor company by virtue of subparagraphs (i), (ii), (iii), (iv) and (vi) are, or the donor company and the persons who are associates of the donor company by virtue of those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other company; or\n\n (vi) another person who, if a third person who is an associate of the donor company by virtue of subparagraph (iii) were the donor, would be an associate of that third person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph.\n\n (2) Subject to this section, a gift of money, or of property other than money, made by a person (in this section referred to as the donor) to a fund, authority, institution or person is not an allowable deduction under Division 30 of the Income Tax Assessment Act 1997 where:\n\n (a) by reason of any act, transaction or circumstance that has occurred, will occur, or may reasonably be expected to occur, being an act, transaction or circumstance occurring as part of, in connexion with or as a result of:\n\n (i) the making or receipt of the gift; or\n\n (ii) any agreement or scheme entered into in association with the making or receipt of the gift;\n\n  the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift;\n\n (b) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), any fund, authority, institution or person other than the fund, authority, institution or person to which the gift was made, makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment, or transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property, to any person or incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation;\n\n (c) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), the donor or an associate of the donor has obtained, will obtain or may reasonably be expected to obtain any benefit, advantage, right or privilege other than the benefit of any deduction that, but for this section, would be allowable from the assessable income of the donor under Division 30 of the Income Tax Assessment Act 1997; or\n\n (d) by reason of any agreement or scheme entered into as part of or in association with the making of the gift, any property, other than property comprising the gift, has been acquired or will be acquired, whether directly or indirectly, from the donor or an associate of the donor by that fund, authority, institution or person or by another fund, authority, institution or person.\n\n (3) Without limiting the application of subsection (2), where the terms and conditions on which a gift of property other than money is made are such that the fund, authority, institution or person to which the gift is made does not receive immediate custody and control of the property, does not have the unconditional right to retain custody and control of the property in perpetuity to the exclusion of the donor or an associate of the donor or does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property, paragraph (2)(c) shall be deemed to apply in relation to that gift.\n\n (4) Paragraph (2)(a) does not prevent a deduction under Division 30 of the Income Tax Assessment Act 1997 from being allowed from the assessable income of the donor where the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift by reason only that the fund, authority, institution or person has incurred, will incur, or may reasonably be expected to incur, expenses for the purpose of obtaining or soliciting the gift, being expenses that, in the opinion of the Commissioner, are reasonable in relation to the value of the gift.\n\n (5) This section does not prevent a deduction under section 30‑15 of the Income Tax Assessment Act 1997 (because of item 4, 5 or 6 of the table in that section) from being allowed from the assessable income of the donor in respect of a gift of property other than money by reason only that the terms and conditions on which the gift was made are such, or the effect of any arrangement (within the meaning of that Act) entered into in association with the making or receipt of the gift is such, that the value of the gift may be reduced in accordance with section 30‑220 of that Act.\n\n \n\n \n","sortOrder":46},{"sectionNumber":"full-source-retrieval-0001","sectionType":"document_chunk","heading":"Document excerpt 1","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1-78A\n\nVolume 2: sections 79A-121L\n\nVolume 3: sections 124ZM-204\n\nVolume 4: sections 251R-468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1-4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart I—Preliminary\n\n1 Short title\n\n6 Interpretation\n\n6AB Foreign income and foreign tax\n\n6B Income beneficially derived\n\n6BA Taxation treatment of certain shares\n\n6C Source of royalty income derived by a non‑resident\n\n6CA Source of natural resource income derived by a non‑resident\n\n6D Some tax offsets under the 1997 Assessment Act are treated as credits\n\n6F Dual resident investment company\n\n6H Recognised small credit unions, recognised medium credit unions and recognised large credit unions\n\n7B Application of the Criminal Code\n\nPart II—Administration\n\n8 Commissioner\n\n14 Annual report\n\nPart III—Liability to taxation\n\nDivision 1—General\n\n18 Accounting period\n\n18A Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs\n\n21 Where consideration not in cash\n\n21A Non‑cash business benefits\n\n23AA Income of persons connected with certain projects of United States Government\n\n23AB Income of certain persons serving with an armed force under the control of the United Nations\n\n23AD Exemption of pay and allowances of Defence Force members performing certain overseas duty\n\n23AF Exemption of certain income derived in respect of approved overseas projects\n\n23AG Exemption of income earned in overseas employment\n\n23AH Foreign branch income of Australian companies not assessable\n\n23AI Amounts paid out of attributed income not assessable\n\n23AK Amounts paid out of attributed foreign investment fund income not assessable\n\n23B Reduction of disposal consideration if FIF attributed income not distributed\n\n23G Exemption of interest received by credit unions\n\n23K Substitution of certain securities\n\n23L Certain benefits in the nature of income not assessable\n\nDivision 1AB—Certain State/Territory bodies exempt from income tax\n\nSubdivision A—Exemption for certain State/Territory bodies\n\n24AK Key principle\n\n24AL Diagram—guide to work out if body is exempt under this Division\n\n24AM Certain STBs exempt from tax\n\n24AN Certain STBs not exempt from tax under this Division\n\n24AO First way in which a body can be an STB\n\n24AP Second way in which a body can be an STB\n\n24AQ Third way in which a body can be an STB\n\n24AR Fourth way in which a body can be an STB\n\n24AS Fifth way in which a body can be an STB\n\n24AT What do excluded STB, government entity and Territory mean?\n\n24AU Governor, Minister and Department Head taken to be a government entity\n\n24AV Regulations prescribing excluded STBs\n\nSubdivision B—Body ceasing to be an STB\n\n24AW Body ceasing to be an STB\n\n24AX Special provisions relating to capital gains and losses\n\n24AY Losses from STB years not carried forward\n\n24AYA Effect of unfunded superannuation liabilities\n\n24AZ Meaning of period and prescribed excluded STB\n\nDivision 2—Income\n\nSubdivision A—Assessable income generally\n\n25A Assessable income to include certain profits\n\n26AB Assessable income—premium for lease\n\n26AF Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds\n\n26AFA Assessable income to include value of certain benefits received from or in connection with former section 23F funds\n\n26AG Certain film proceeds included in assessable income\n\n26AH Bonuses and other amounts received in respect of certain short‑term life assurance policies\n\n26AJ Investment‑related lottery winnings to be included in assessable income\n\n26BB Assessability of gain on disposal or redemption of traditional securities\n\n26BC Securities lending arrangements\n\n26E Income from RSAs\n\nSubdivision AA—Non‑superannuation annuities etc.\n\n27H Assessable income to include annuities and superannuation pensions\n\nSubdivision D—Dividends\n\n43A Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997\n\n43B Application of Subdivision to non‑share dividends\n\n44 Dividends\n\n45 Streaming of bonus shares and unfranked dividends\n\n45A Streaming of dividends and capital benefits\n\n45B Schemes to provide certain benefits\n\n45BA Effect of determinations under section 45B for demerger benefits\n\n45C Effect of determinations under sections 45A and 45B for capital benefits\n\n45D Determinations under sections 45A, 45B and 45C\n\n46FA Deduction for dividends on‑paid to non‑resident owner\n\n46FB Unfranked non‑portfolio dividend account\n\n47 Distributions by liquidator\n\n47A Distribution benefits—CFCs\n\nDivision 3—Deductions\n\nSubdivision A—General\n\n51AAA Deductions not allowable in certain circumstances\n\n51AD Deductions not allowable in respect of property used under certain leveraged arrangements\n\n51AEA Meal entertainment—election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n51AEB Meal entertainment—election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method\n\n51AEC Entertainment facility—election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n51AF Car expenses incurred by employee\n\n51AGA No deduction to employee for certain car parking expenses\n\n51AH Deductions not allowable where expenses incurred by employee are reimbursed\n\n51AJ Deductions not allowable for private component of contributions for fringe benefits etc.\n\n51AK Agreements for the provision of non‑deductible non‑cash business benefits\n\n52 Loss on property acquired for profit‑making\n\n52A Certain amounts disregarded in ascertaining taxable income\n\n63 Bad debts\n\n63D Bad debts etc. of money‑lenders not allowable deductions where attributable to listed country or unlisted country branches\n\n63E Debt/equity swaps\n\n63F Limit on deductions where debt write offs and debt/equity swaps occur\n\n63G Bad debts etc. of trust not allowable in certain circumstances\n\n65 Payments to associated persons and relatives\n\n70B Deduction for loss on disposal or redemption of traditional securities\n\n73A Expenditure on scientific research\n\n73AA Section 73A roll‑over relief in the case of certain CGT roll‑overs\n\n78A Certain gifts not to be allowable deductions\n\nAn Act to consolidate and amend the law relating to the imposition assessment and collection of a tax upon incomes\n\nPart I—Preliminary\n\n1  Short title\n\nThis Act may be cited as the Income Tax Assessment Act 1936.\n\n6  Interpretation\n\n(1AA) So far as a provision of the Income Tax Assessment Act 1936 gives an expression a particular meaning, the provision does not also have effect for the purposes of the Income Tax Assessment Act 1997 (the 1997 Act), or for the purposes of Schedule 1 to the Taxation Administration Act 1953, except as provided in the 1997 Act or in that Schedule.\n\n(1) In this Act, unless the contrary intention appears:\n\n100% subsidiary has the same meaning as in the Income Tax Assessment Act 1997.\n\nadjusted fringe benefits total, of a taxpayer for a year of income, has the meaning given by clause 4 of Schedule 3 to the A New Tax System (Family Assistance) Act 1999.\n\nadjusted taxable income for rebates means adjusted taxable income (within the meaning of the A New Tax System (Family Assistance) Act 1999, disregarding clauses 3 and 3A of Schedule 3 to that Act).\n\nAFOF means an Australian venture capital fund of funds within the meaning of subsection 118‑410(3) of the Income Tax Assessment Act 1997.\n\nagent: this Act applies to some entities (within the meaning of the Income Tax Assessment Act 1997) that are not agents in the same way as it applies to agents: see section 960‑105 of the Income Tax Assessment Act 1997.\n\nallowable deduction has the same meaning as deduction has in the Income Tax Assessment Act 1997.\n\nAMIT (short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997.\n\namount paid‑up on a share means the amount (if any), including any premium, paid on that share.\n\namount unpaid on a share means the amount (if any) unpaid on that share.\n\napportionable deductions has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\napproved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953.\n\napproved stock exchange has the same meaning as in the Income Tax Assessment Act 1997.\n\nassessable income has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nassessment means:\n\n(a) the ascertainment:\n\n(i) of the amount of taxable income (or that there is no taxable income); and\n\n(ii) of the tax payable on that taxable income (or that no tax is payable); and\n\n(iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\nNote 1: A taxpayer does not have a taxable income if the taxpayer’s deductions equal or exceed the taxpayer’s assessable income: see subsection 4‑15(1) of the Income Tax Assessment Act 1997.\n\nNote 2: A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax‑free threshold or if the taxpayer’s tax offsets reduce the taxpayer’s basic income tax liability to nil.\n\n(c) for a taxpayer that is the trustee of a unit trust that is a public trading trust (within the meaning of section 102R)—the ascertainment:\n\n(i) of the net income of the trust (within the meaning of section 102M) (or that there is no net income); and\n\n(ii) of the tax payable on that net income (or that no tax is payable); and\n\n(iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\n(d) for a taxpayer that is the trustee of a trust estate (other than a trustee to which paragraph (b) or (c) applies or the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust)—the ascertainment:\n\n(i) of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable); and\n\n(ii) of the tax payable on that net income (or that no tax is payable); and\n\n(iii) of the total of a taxpayer’s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or\n\n(e) the ascertainment of the amount of interest payable under section 102AAM (about distributions from non‑resident trust estates); or\n\n(h) the ascertainment of the amount of income tax payable on the no‑TFN contributions income as defined by section 295‑610 of the Income Tax Assessment Act 1997 (or that no tax is payable); or\n\n(j) the ascertainment of the amount payable (or that no amount is payable) under the following:\n\n(i) subsection 276‑105(2) of the Income Tax Assessment Act 1997 (AMIT trustee taxed on amounts attributed to foreign resident members);\n\n(ii) subsection 276‑340(2) of that Act (AMIT trustee taxed on trust component deficit of character relating to tax offset);\n\n(iii) subsection 276‑405(2) of that Act (AMIT trustee taxed on shortfall in determined member components of character relating to assessable income);\n\n(iv) subsection 276‑410(2) of that Act (AMIT trustee taxed on excess in determined member components of character relating to tax offset);\n\n(v) subsection 276‑415(2) of that Act (AMIT trustee taxed on amounts of determined trust component that are not reflected in member components);\n\n(vi) subsection 276‑420(2) of that Act (AMIT trustee taxed on amounts of under of character relating to assessable income not properly carried forward);\n\n(vii) subsection 276‑425(2) of that Act (AMIT trustee taxed on amounts of over of character relating to tax offset not properly carried forward); or\n\n(k) the ascertainment of the amount payable under subsection 177P(1) (diverted profits tax).\n\nattribution managed investment trust: see AMIT.\n\nAustralia has the same meaning as in the Income Tax Assessment Act 1997.\n\nAustralian superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nbank or banker includes, but is not limited to, a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.\n\nbase interest rate has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nbasic income tax liability has the meaning given by section 4‑10 of the Income Tax Assessment Act 1997.\n\nbusiness has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncapital gain has the same meaning as in the Income Tax Assessment Act 1997.\n\ncapital loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ncapital proceeds has the same meaning as in the Income Tax Assessment Act 1997.\n\nCGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nCGT event has the same meaning as in the Income Tax Assessment Act 1997.\n\nChief Executive Centrelink has the same meaning as in the Human Services (Centrelink) Act 1997.\n\nchild has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nCommissioner means the Commissioner of Taxation.\n\nCommonwealth education or training payment has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncompany has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncomplying approved deposit fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\ncomplying superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nconsolidated group has the same meaning as in the Income Tax Assessment Act 1997.\n\nconstituent document, in relation to a company, means the memorandum and articles of association of the company, or any rules or other document constituting the company or governing its activities.\n\ncorporate limited partnership has the meaning given by section 94D.\n\ncorporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.\n\ncorporate tax rate has the same meaning as in the Income Tax Assessment Act 1997.\n\ncost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\ncreditable acquisition has the meaning given by section 195‑1 of the GST Act.\n\ndebenture, in relation to a company, includes debenture stock, bonds, notes and any other securities of the company, whether constituting a charge on the assets of the company or not.\n\ndebt interest has the same meaning as in the Income Tax Assessment Act 1997.\n\ndeductible gift recipient has the meaning given by the Income Tax Assessment Act 1997.\n\ndemerged entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndemerger has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndemerger allocation means:\n\n(a) the total market value of the allocation represented by the ownership interests issued by the demerged entity in itself under a demerger to the owners of ownership interests in the head entity of the demerger group; or\n\n(b) the total market value of the allocation represented by the ownership interests disposed of by a member of a demerger group under a demerger to the owners of ownership interests in the head entity; or\n\n(c) the total of both of those market values.\n\ndemerger dividend means that part of a demerger allocation that is assessable as a dividend under subsection 44(1) or that would be so assessable apart from subsections 44(3) and (4).\n\ndemerger group has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.\n\ndemerger subsidiary has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.","sortOrder":1000000},{"sectionNumber":"full-source-retrieval-0002","sectionType":"document_chunk","heading":"Document excerpt 2","content":"demerging entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997.\n\ndepreciating asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nDeputy Commissioner means a Deputy Commissioner of Taxation.\n\ndistribution, when used in a franking context, has the same meaning as in the Income Tax Assessment Act 1997.\n\ndiverted profits tax has the meaning given by the Income Tax Assessment Act 1997.\n\ndividend includes:\n\n(a) any distribution made by a company to any of its shareholders, whether in money or other property; and\n\n(b) any amount credited by a company to any of its shareholders as shareholders;\n\nbut does not include:\n\n(d) moneys paid or credited by a company to a shareholder or any other property distributed by a company to shareholders (not being moneys or other property to which this paragraph, by reason of subsection (4), does not apply or moneys paid or credited, or property distributed for the redemption or cancellation of a redeemable preference share), where the amount of the moneys paid or credited, or the amount of the value of the property, is debited against an amount standing to the credit of the share capital account of the company; or\n\n(e) moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:\n\n(i) the company gives the holder of the share a notice when it redeems or cancels the share; and\n\n(ii) the notice specifies the amount paid‑up on the share immediately before the cancellation or redemption; and\n\n(iii) the amount is debited to the company’s share capital account;\n\nexcept to the extent that the amount of those moneys or the value of that property, as the case may be, is greater than the amount specified in the notice as the amount paid‑up on the share; or\n\n(f) a reversionary bonus on a life assurance policy.\n\nNote: Subsection (4) sets out when paragraph (d) of this definition does not apply.\n\nDivision 230 financial arrangement has the same meaning as in the Income Tax Assessment Act 1997.\n\ndual resident investment company has the meaning given by section 6F.\n\ndwelling has the meaning given by the Income Tax Assessment Act 1997.\n\neligible taxable income has the meaning given by section 102AD.\n\nEmployment Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nemployment termination payment has the same meaning as in the Income Tax Assessment Act 1997.\n\nequity holder has the same meaning as in the Income Tax Assessment Act 1997.\n\nequity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nESVCLP means an early stage venture capital limited partnership within the meaning of subsection 118‑407(4) of the Income Tax Assessment Act 1997.\n\nexempt entity has the same meaning as in the Income Tax Assessment Act 1997.\n\nexempt income has the meaning given by section 6‑20 of the Income Tax Assessment Act 1997.\n\nexploration credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nFamilies Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nfarm management deposit has the meaning given by the Income Tax Assessment Act 1997.\n\nFMD provider has the meaning given by the Income Tax Assessment Act 1997.\n\nforeign superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nforeign tax has the meaning given by section 6AB.\n\nfrankable distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking debit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking deficit tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking surplus has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranks with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.\n\nfriendly society has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfriendly society dispensary has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfringe benefit has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nfull self‑assessment taxpayer, for a year of income (the current year), means any of the following:\n\n(a) a company;\n\n(c) the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division 6C of Part III;\n\n(d) the trustee of a complying approved deposit fund or a non‑complying approved deposit fund in relation to the current year;\n\n(e) the trustee of a complying superannuation fund or a non‑complying superannuation fund in relation to the current year;\n\n(f) the trustee of a pooled superannuation trust in relation to the current year.\n\nNote: A corporate limited partnership is taken to be a company under section 94J, so it will fall within paragraph (a) of this definition.\n\nfund payment has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral insurance company has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral insurance policy has the same meaning as in the Income Tax Assessment Act 1997.\n\ngeneral interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\ngeneral partner has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nGST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\nhead company of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nhead entity of a demerger group has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997.\n\nHealth Minister has the meaning given by the Income Tax Assessment Act 1997.\n\nhold, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nholder, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nincome from personal exertion or income derived from personal exertion means income consisting of earnings, salaries, wages, commissions, fees, bonuses, pensions, superannuation allowances, retiring allowances and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business, any amount that is included in the assessable income of the taxpayer by reason of section 393‑10 of the Income Tax Assessment Act 1997, the income from any property where that income forms part of the emoluments of any office or employment of profit held by the taxpayer, and any profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit‑making by sale or from the carrying on or carrying out of any profit‑making undertaking or scheme, but does not include:\n\n(a) interest, unless the taxpayer’s principal business consists of the lending of money, or unless the interest is received in respect of a debt due to the taxpayer for goods supplied or services rendered by the taxpayer in the course of the taxpayer’s business; or\n\n(b) rents, dividends or non‑share dividends.\n\nincome from property or income derived from property means all income not being income from personal exertion.\n\nincome tax means income tax imposed as such by any Act, as assessed under this Act, but, except in section 260, does not include mining withholding tax or withholding tax.\n\nIndigenous land has the same meaning as in the Income Tax Assessment Act 1997.\n\nIndigenous person has the same meaning as in the Income Tax Assessment Act 1997.\n\nindustrial, commercial or scientific equipment means industrial, commercial or scientific equipment to the extent that an amount paid or credited as consideration for the use of the equipment, or for the right to use the equipment, is not rent from land (including rent from an interest in land or rent from fixtures on land).\n\ninsurance business has the same meaning as in the Insurance Act 1973.\n\ninsurance funds, in relation to a company, means all the Australian statutory funds of the company and all other funds maintained by the company in respect of the life assurance business of the company.\n\ninterest income, in relation to a taxpayer, means income consisting of interest, or a payment in the nature of interest, in respect of:\n\n(a) money lent, advanced or deposited; or\n\n(b) credit given; or\n\n(c) any other form of debt or liability;\n\nwhether security is given or not, other than:\n\n(d) an amount to the extent to which it is a return on an equity interest in a company; or\n\n(e) interest derived by the taxpayer from a transaction directly related to the active conduct of a trade or business; or\n\n(f) interest derived by the taxpayer from carrying on a banking business or any other business whose income is principally derived from the lending of money; or\n\n(g) interest received by the taxpayer during a year of income from a foreign company, where:\n\n(i) at any time during the year of income, the taxpayer had (or would have had, if the taxpayer were a company and a resident), a voting interest, within the meaning of section 334A, amounting to at least 10% of the voting power, within the meaning of that section, in that company; and\n\n(ii) during the year of income or the preceding year of income, the company has not derived an amount of interest income exceeding 10% of the total profits derived by the company during the same year.\n\njunior minerals exploration incentive tax offset means a tax offset under Subdivision 418‑B of the Income Tax Assessment Act 1997.\n\nlife assurance company has the meaning given to life insurance company by the Income Tax Assessment Act 1997.\n\nlife assurance policy has the meaning given to life insurance policy by the Income Tax Assessment Act 1997.\n\nlife assurance premium has the meaning given to life insurance premium by the Income Tax Assessment Act 1997.\n\nlimited partner has the same meaning as in the Income Tax Assessment Act 1997.\n\nlimited partnership has the same meaning as in the Income Tax Assessment Act 1997.\n\nliquidator means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding‑up of a company.\n\nlisted public company has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: For the meaning of listed public company in Schedule 2F to this Act, see section 272‑135 in that Schedule.\n\nloss carry back tax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\nloss year has the same meaning as in the Income Tax Assessment Act 1997.\n\nmanaged investment trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nMEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nMedicare levy means Medicare levy imposed as such by any Act as assessed under this Act.\n\nMedicare levy (fringe benefits) surcharge has the meaning given by the Income Tax Assessment Act 1997.\n\nmember of a consolidated group or MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nmember of a family tax benefit (Part B) family without shared care: a taxpayer is a member of a family tax benefit (Part B) family without shared care if:\n\n(a) the taxpayer, or the taxpayer’s spouse while being the taxpayer’s partner (within the meaning of the A New Tax System (Family Assistance) Act 1999), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and\n\n(b) clause 31 of Schedule 1 to that Act does not apply in respect of the Part B rate.\n\nminerals has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nmining withholding tax means income tax payable in accordance with section 128V.\n\nmortgage includes any charge, lien or encumbrance to secure the repayment of money.\n\nmutual life assurance company means a life assurance company the profits of which are divisible only among the policy holders.\n\nnatural resource has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnet capital gain has the same meaning as in the Income Tax Assessment Act 1997.\n\nnet capital loss has the same meaning as in the Income Tax Assessment Act 1997.\n\nnet GST has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nnet input tax credit has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nnon‑assessable non‑exempt income has the meaning given by the Income Tax Assessment Act 1997.\n\nnon‑complying approved deposit fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑complying superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑entity joint venture has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nnon‑equity share has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑resident means a person who is not a resident of Australia.\n\nnon‑share capital account has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share capital return has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share dividend has the same meaning as in the Income Tax Assessment Act 1997.\n\nnon‑share equity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nonce‑only deduction: a deduction in a year of income in respect of a percentage of expenditure is a once‑only deduction, in relation to the expenditure, if no deduction is allowable in respect of a percentage of the expenditure in any other year of income.\n\nordinary class has the same meaning as in the Income Tax Assessment Act 1997.\n\nordinary income has the same meaning as in the Income Tax Assessment Act 1997.\n\nover‑franking tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nowner of a farm management deposit has the meaning given by the Income Tax Assessment Act 1997.\n\nownership interest has the meaning given by section 125‑60 of the Income Tax Assessment Act 1997.\n\npaid in relation to dividends or non‑share dividends includes credited or distributed.\n\npaid‑up share capital has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nparent has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\npartnership has the same meaning as in the Income Tax Assessment Act 1997.\n\npart of a distribution that is franked with an exempting credit has the same meaning as in the Income Tax Assessment Act 1997.\n\npart of a distribution that is franked with a venture capital credit has the same meaning as in the Income Tax Assessment Act 1997.\n\npassive commodity gain, in relation to a taxpayer, in relation to a year of income, means a gain realised by the taxpayer in a year of income from disposing of a forward contract or a futures contract, or a right or option in respect of a forward contract or a futures contract, in respect of any thing (a commodity):\n\n(a) that is capable of delivery under an agreement for its delivery; and\n\n(b) that is not an instrument creating or evidencing a chose in action;\n\nunless the contract, right or option relates to the carrying on by the taxpayer of a business:\n\n(c) of producing or processing the commodity; or\n\n(d) that involves the use of the commodity as a raw material in a production process.\n\npassive income, in relation to a taxpayer, in relation to a year of income means:\n\n(a) dividends (within the meaning of this section) and non‑share dividends paid to the taxpayer in the year of income; or\n\n(b) unit trust dividends (within the meaning of Division 6C) paid to the taxpayer in the year of income; or\n\n(c) a distribution made to the taxpayer in the year of income that is taken to be a dividend because of section 47; or\n\n(d) an amount that is taken to be a dividend paid to the taxpayer in the year of income because of section 47A or 108 or Division 7A of Part III; or\n\n(e) interest income derived by the taxpayer in the year of income; or\n\n(f) annuities derived by the taxpayer in the year of income; or\n\n(g) income derived by the taxpayer by way of rent (within the meaning of Part X) in the year of income; or\n\n(h) royalties derived by the taxpayer in the year of income; or\n\n(i) an amount derived by the taxpayer in the year of income as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right; or\n\n(j) profits of a capital nature that accrued to the taxpayer in the year of income; or\n\n(k) passive commodity gains that accrued to the taxpayer in the year of income; or\n\n(l) an amount included in the assessable income of the taxpayer of the year of income under section 102AAZD, 456, 457 or 459A;\n\nbut does not include:\n\n(m) an amount that arose from an asset necessarily held by the taxpayer in connection with an insurance business actively carried on by the taxpayer; or\n\n(n) an amount included in the taxpayer’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes).\n\nPDF (pooled development fund) means a company that is a PDF within the meaning of the Pooled Development Funds Act 1992, but does not include such a company in the capacity of a trustee.\n\nPDF component, in relation to a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income, means:\n\n(a) in a case where the amount that, if:\n\n(i) the period beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company; and","sortOrder":1000001},{"sectionNumber":"full-source-retrieval-0003","sectionType":"document_chunk","heading":"Document excerpt 3","content":"(ii) the period (the PDF notional year) beginning when the company becomes a PDF and ending at the end of the year of income were a year of income of the company; and\n\n(iii) paragraph (c) of the definition of taxable income were omitted;\n\nwould be the company’s taxable income of the PDF notional year is $1 or more—that amount; or\n\n(b) otherwise—a nil amount.\n\npermanent establishment, in relation to a person (including the Commonwealth, a State or an authority of the Commonwealth or a State), means a place at or through which the person carries on any business and, without limiting the generality of the foregoing, includes:\n\n(a) a place where the person is carrying on business through an agent;\n\n(b) a place where the person has, is using or is installing substantial equipment or substantial machinery;\n\n(c) a place where the person is engaged in a construction project; and\n\n(d) where the person is engaged in selling goods manufactured, assembled, processed, packed or distributed by another person for, or at or to the order of, the first‑mentioned person and either of those persons participates in the management, control or capital of the other person or another person participates in the management, control or capital of both of those persons—the place where the goods are manufactured, assembled, processed, packed or distributed;\n\nbut does not include:\n\n(e) a place where the person is engaged in business dealings through a bona fide commission agent or broker who, in relation to those dealings, acts in the ordinary course of his or her business as a commission agent or broker and does not receive remuneration otherwise than at a rate customary in relation to dealings of that kind, not being a place where the person otherwise carries on business;\n\n(f) a place where the person is carrying on business through an agent:\n\n(i) who does not have, or does not habitually exercise, a general authority to negotiate and conclude contracts on behalf of the person; or\n\n(ii) whose authority extends to filling orders on behalf of the person from a stock of goods or merchandise situated in the country where the place is located, but who does not regularly exercise that authority;\n\nnot being a place where the person otherwise carries on business; or\n\n(g) a place of business maintained by the person solely for the purpose of purchasing goods or merchandise.\n\nNote: Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph.\n\nperson has the same meaning as in the Income Tax Assessment Act 1997.\n\npooled superannuation trust has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\npost FIF abolition credit means a post FIF abolition credit arising under:\n\n(a) subsection 23AK(6); and\n\n(b) subsection 717‑220(2) of the Income Tax Assessment Act 1997; and\n\n(c) subsection 717‑255(2) of that Act.\n\npost FIF abolition debit means a post FIF abolition debit arising under:\n\n(a) subsection 23AK(2); and\n\n(b) subsection 23B(1); and\n\n(c) subsection 717‑220(3) of the Income Tax Assessment Act 1997; and\n\n(d) subsection 717‑255(3) of that Act.\n\npost FIF abolition surplus has the meaning given by section 23AK.\n\nprescribed dual resident means a company that satisfies either of the following conditions:\n\n(a) the first condition is that:\n\n(i) the company is a resident of Australia within the meaning of subsection 6(1); and\n\n(ii) there is an agreement (within the meaning of the International Tax Agreements Act 1953) in force in respect of a foreign country; and\n\n(iii) the agreement contains a provision that is expressed to apply where, apart from the provision, the company would, for the purposes of the agreement, be both a resident of Australia and a resident of the foreign country; and\n\n(iv) that provision has the effect that the company is, for the purposes of the agreement, a resident solely of the foreign country;\n\n(b) the alternative condition is that the company:\n\n(i) is a resident of Australia within the meaning of subsection 6(1) for no other reason than that it carries on business in Australia and has its central management and control in Australia; and\n\n(ii) it is also a resident of another country; and\n\n(iii) its central management and control is in another country.\n\nprimary production business has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nprincipal beneficiary of a special disability trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nprivate company, in relation to a year of income, means a company that is a private company in relation to that year of income for the purposes of Division 7 of Part III.\n\nproclaimed superannuation standards day means 1 July 1990.\n\nprovider, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.\n\nprudential standards has the same meaning as in the Income Tax Assessment Act 1997.\n\nrebatable benefit has the meaning given by subsection 160AAA(1).\n\nrebate income of an individual for a year of income is the sum of:\n\n(a) the individual’s taxable income for the year of income, disregarding the individual’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the year of income; and\n\n(b) the individual’s reportable superannuation contributions for the year of income; and\n\n(c) the individual’s total net investment loss for the year of income; and\n\n(d) the individual’s adjusted fringe benefits total for the year of income.\n\nrecognised large credit union has the meaning given by section 6H.\n\nrecognised medium credit union has the meaning given by section 6H.\n\nrecognised small credit union has the meaning given by section 6H.\n\nreduced cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.\n\nrelative has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nreportable superannuation contributions has the same meaning as in the Income Tax Assessment Act 1997.\n\nresident or resident of Australia means:\n\n(a) a person, other than a company, who resides in Australia and includes a person:\n\n(i) whose domicile is in Australia, unless the Commissioner is satisfied that the person’s permanent place of abode is outside Australia;\n\n(ii) who has actually been in Australia, continuously or intermittently, during more than one‑half of the year of income, unless the Commissioner is satisfied that the person’s usual place of abode is outside Australia and that the person does not intend to take up residence in Australia; or\n\n(iii) who is:\n\n(A) a member of the superannuation scheme established by deed under the Superannuation Act 1990; or\n\n(B) an eligible employee for the purposes of the Superannuation Act 1976; or\n\n(C) the spouse, or a child under 16, of a person covered by sub‑subparagraph (A) or (B); and\n\n(b) a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.\n\nresident trust for CGT purposes has the same meaning as in the Income Tax Assessment Act 1997.\n\nreturn on a debt interest or equity interest has the same meaning as in the Income Tax Assessment Act 1997.\n\nreturn of income means a return of income, or of profits or gains of a capital nature, or of both income and such profits or gains.\n\nroyalty or royalties includes any amount paid or credited, however described or computed, and whether the payment or credit is periodical or not, to the extent to which it is paid or credited, as the case may be, as consideration for:\n\n(a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark, or other like property or right;\n\n(b) the use of, or the right to use, any industrial, commercial or scientific equipment;\n\n(c) the supply of scientific, technical, industrial or commercial knowledge or information;\n\n(d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in paragraph (a), any such equipment as is mentioned in paragraph (b) or any such knowledge or information as is mentioned in paragraph (c);\n\n(da) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:\n\n(i) satellite; or\n\n(ii) cable, optic fibre or similar technology;\n\n(db) the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:\n\n(i) satellite; or\n\n(ii) cable, optic fibre or similar technology;\n\n(dc) the use of, or the right to use, some or all of the part of the spectrum (within the meaning of the Radiocommunications Act 1992) specified in a spectrum licence issued under that Act;\n\n(e) the use of, or the right to use:\n\n(i) motion picture films;\n\n(ii) films or video tapes for use in connexion with television; or\n\n(iii) tapes for use in connexion with radio broadcasting; or\n\n(f) a total or partial forbearance in respect of:\n\n(i) the use of, or the granting of the right to use, any such property or right as is mentioned in paragraph (a) or any such equipment as is mentioned in paragraph (b);\n\n(ii) the supply of any such knowledge or information as is mentioned in paragraph (c) or of any such assistance as is mentioned in paragraph (d);\n\n(iia) the reception of, or the granting of the right to receive, any such visual images or sounds as are mentioned in paragraph (da);\n\n(iib) the use of, or the granting of the right to use, any such visual images or sounds as are mentioned in paragraph (db);\n\n(iic) the use of, or the granting of the right to use, some or all of such part of the spectrum specified in a spectrum licence as is mentioned in paragraph (dc); or\n\n(iii) the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e).\n\nRSA has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997.\n\nRSA provider has the same meaning as in the Income Tax Assessment Act 1997.\n\nNote: That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997.\n\nSecond Commissioner means a Second Commissioner of Taxation.\n\nshare in a company has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nshare capital account has the same meaning as in the Income Tax Assessment Act 1997.\n\nshareholder includes member or stockholder.\n\nshareholders’ funds has the same meaning as in the Life Insurance Act 1995.\n\nshortfall interest charge means the charge worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.\n\nsmall business entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nsocial security law has the meaning given by the Social Security Act 1991.\n\nspecial disability trust has the same meaning as in the Income Tax Assessment Act 1997.\n\nspouse has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nstatutory income has the meaning given by the Income Tax Assessment Act 1997.\n\nStudent Assistance Secretary has the meaning given by the Income Tax Assessment Act 1997.\n\nsubsidiary member of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.\n\nsuperannuation benefits means individual personal benefits, pensions or retiring allowances.\n\nsuperannuation fund means:\n\n(a) a scheme for the payment of superannuation benefits upon retirement or death; or\n\n(b) a superannuation fund within the definition of superannuation fund in section 10 of the Superannuation Industry (Supervision) Act 1993.\n\nsuperannuation fund for foreign residents has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nsuperannuation lump sum has the same meaning as in the Income Tax Assessment Act 1997.\n\ntainted, in relation to a company’s share capital account, has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax means income tax imposed as such by any Act, as assessed under this Act, but does not include mining withholding tax or withholding tax.\n\ntaxable Australian property has the same meaning as in the Income Tax Assessment Act 1997.\n\ntaxable income has the same meaning as in  the Income Tax Assessment Act 1997.\n\ntaxable supply has the meaning given by section 195‑1 of the GST Act.\n\ntax cost is set has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax offset refund has the meaning given by the Income Tax Assessment Act 1997.\n\ntaxpayer means a person deriving income or deriving profits or gains of a capital nature.\n\nthis Act includes:\n\n(a) the Income Tax Assessment Act 1997; and\n\n(b) Part IVC of the Taxation Administration Act 1953, so far as that Part relates to:\n\n(i) this Act or the Income Tax Assessment Act 1997; or\n\n(ii) Schedule 1 to the Taxation Administration Act 1953; and\n\n(c) Schedule 1 to the Taxation Administration Act 1953.\n\nNote: Subsection (1AA) of this section prevents definitions in the Income Tax Assessment Act 1936 from affecting the interpretation of the Income Tax Assessment Act 1997.\n\ntotal net investment loss has the same meaning as in the Income Tax Assessment Act 1997.\n\ntrading stock has the meaning given by section 70‑10 of the Income Tax Assessment Act 1997.\n\nTribunal means the Administrative Review Tribunal.\n\ntrustee in addition to every person appointed or constituted trustee by act of parties, by order, or declaration of a court, or by operation of law, includes:\n\n(a) an executor or administrator, guardian, committee, receiver, or liquidator; and\n\n(b) every person having or taking upon himself the administration or control of income affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of the income of a person under any legal or other disability;\n\nunfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\nVCLP means a venture capital limited partnership within the meaning of subsection 118‑405(2) of the Income Tax Assessment Act 1997.\n\nVCMP means a venture capital management partnership.\n\nventure capital deficit tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nventure capital management partnership has the meaning given by subsection 94D(3).\n\nVeterans’ Affairs Secretary means the Secretary of the Department administered by the Minister administering the Veterans’ Entitlements Act 1986.\n\nwithholding tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nwork and income support related withholding payments and benefits means:\n\n(a) payments from which an amount:\n\n(i) must be withheld under a provision of Subdivision 12‑B (other than section 12‑55), 12‑C or 12‑D or Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or\n\n(ii) would be required to be withheld under a provision mentioned in subparagraph (i) (other than section 12‑55) apart from subsection 12‑1(1A) in Schedule 1 to that Act; and\n\n(b) amounts included in a person’s assessable income under section 86‑15 of the Income Tax Assessment Act 1997 in respect of which an amount must be paid under Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid); and\n\n(c) non‑cash benefits in relation to which the provider of the benefit must pay an amount to the Commissioner under Division 14 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid).\n\nNote: The payments covered by paragraph (a) are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of annuities, superannuation benefits, payments for termination of employment, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.\n\nyear of income means an income year as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nyear of tax means the financial year for which income tax is levied.\n\n(1A) Unless the contrary intention appears, a reference in this Act to a failure to do an act or thing includes a reference to a refusal to do the act or thing.\n\n(2AA) A reference in this Act to an accounting period adopted in lieu of a year of income includes a reference to an accounting period:\n\n(a) that commences or ends under section 18A; and\n\n(b) that would, but for that section, form part of an accounting period so adopted.\n\n(2AB) The Commissioner may, by legislative instrument, make a determination modifying the operation of one or more provisions of this Act in relation to limited partnerships whose accounting periods commence or end under section 18A of the Income Tax Assessment Act 1936.\n\n(2AC) A determination can only be made under subsection (2AB) in order to take account of the fact that such accounting periods are of less than 12 months’ duration.\n\n(3) The express references in this Act to companies do not imply that references to persons do not include references to companies.\n\n(4) Paragraph (d) of the definition of dividend in subsection (1) does not apply if, under an arrangement:","sortOrder":1000002},{"sectionNumber":"full-source-retrieval-0004","sectionType":"document_chunk","heading":"Document excerpt 4","content":"(a) a person pays or credits any money or gives property to the company and the company credits its share capital account with the amount of the money or the value of the property; and\n\n(b) the company pays or credits any money, or distributes property to another person, and debits its share capital account with the amount of the money or the value of the property so paid, credited or distributed.\n\n(6) Where a place is, by virtue of paragraph (d) of the definition of permanent establishment in subsection (1), a permanent establishment of a person, the person shall, for the purposes of this Act, be deemed to be carrying on at or through that permanent establishment the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person at the place that is that permanent establishment.\n\n6AB  Foreign income and foreign tax\n\n(1) A reference in this Act to foreign income is a reference to income (including superannuation lump sums and employment termination payments) derived from sources in a foreign country or foreign countries, and includes a reference to an amount included in assessable income under section 102AAZD, 456, 457 or 459A of this Act, or section 305‑70 of the Income Tax Assessment Act 1997.\n\n(1C) A reference in this Act to foreign income includes a reference to an amount included in assessable income under:\n\n(a) Division 301 of the Income Tax Assessment Act 1997 in its application under section 301‑5 of the Income Tax (Transitional Provisions) Act 1997; or\n\n(b) Division 302 of the Income Tax Assessment Act 1997 in its application under section 302‑5 of the Income Tax (Transitional Provisions) Act 1997.\n\n(2) A reference in this Act to foreign tax is a reference to tax imposed by a law of a foreign country, being:\n\n(a) tax upon income; or\n\n(b) tax upon profits or gains, whether of an income or capital nature; or\n\n(c) any other tax, being a tax that is subject to an agreement having the force of law under the International Tax Agreements Act 1953;\n\nbut does not include a unitary tax or a credit absorption tax.\n\n(5B) This section applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(6) In this section:\n\ncredit absorption tax means a tax imposed by a law of a foreign country to the extent that the tax would not have been payable if the taxpayer concerned or another taxpayer had not been entitled to an offset in respect of the tax under Division 770 of the Income Tax Assessment Act 1997.\n\nlaw, in relation to a foreign country, means a law of that country, or of any part of, or place in, that country.\n\nunitary tax means tax imposed by a law of a foreign country, being a law which, for the purposes of taxing income, profits or gains of a company derived from sources within that country, takes into account, or is entitled to take into account, income, losses, outgoings or assets of the company (or of a company that for the purposes of that law is treated as being associated with the company) derived, incurred or situated outside that country, but does not include tax imposed by that law if that law only takes those matters into account:\n\n(a) if such an associated company is a resident for the purposes of that law; or\n\n(b) for the purposes of granting any form of relief in relation to tax imposed on dividends received by one company from another company.\n\n6B  Income beneficially derived\n\n(1) For the purposes of this Act, an amount of income derived by a person, not being a dividend paid by a company to the person as a shareholder in the company, shall be deemed to be attributable to a dividend:\n\n(a) if the person derived the amount of income by reason of being the beneficial owner of the share in respect of which the dividend was paid; or\n\n(b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the dividend or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the dividend.\n\n(1A) For the purposes of this Act, an amount of income derived by a person, being income other than passive income, is to be taken to be income attributable to passive income:\n\n(a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing passive income; or\n\n(b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to passive income or to an amount that is taken, by any application or successive applications of this subsection, to be an amount of income attributable to passive income.\n\n(2) For the purposes of this Act, an amount of income derived by a person, being income other than interest income, shall be deemed to be income attributable to interest income:\n\n(a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing interest income; or\n\n(b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to interest income or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to interest income.\n\n(2A) For the purposes of this Act, an amount of income derived by a person shall be deemed to be income derived from a particular source:\n\n(a) except where paragraph (b) applies:\n\n(i) if the person derived the amount of income by reason of being beneficially entitled to an amount that is derived from that source; or\n\n(ii) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to income derived from that source or to an amount that is deemed, by any other application or applications of this subsection, to be an amount that is income derived from that source; or\n\n(b) if the income so derived is, by virtue of subsection (1), (1A) or (2), attributable to a dividend, passive income or interest income derived from that source.\n\n(3) Where a beneficiary in a trust estate is presently entitled to income of the trust estate, that income shall, for the purposes of this section, be deemed to be an amount of income derived by the person.\n\n(4) This section:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n6BA  Taxation treatment of certain shares\n\n(1) This section applies if a shareholder holds shares in a company (the original shares) and the company issues other shares (the bonus shares) in respect of the original shares.\n\n(2) If the bonus shares are a dividend, or taken to be a dividend (including as a result of section 45C), the consideration for the acquisition of the shares for the purposes of this Act is so much of the dividend as is:\n\n(a) included in the taxpayer’s assessable income; and\n\n(b) is not rebatable under section 46A.\n\n(3) If the bonus shares are issued for no consideration and are not a dividend or taken to be a dividend, then for the purposes of this Act, in determining:\n\n(a) the value of such of the original shares and bonus shares as the taxpayer elects under section 70‑45 of the Income Tax Assessment Act 1997 to value at cost; and\n\n(b) where any of the original shares or any of the bonus shares are not articles of trading stock of the taxpayer:\n\n(i) the amount or value of the consideration paid in respect of the acquisition of any of those shares for the purposes of Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997; or\n\n(ii) the amount of any profit or loss arising on the sale or disposal of any of those shares;\n\nany amounts paid or payable by the taxpayer in respect of the original shares (whether on purchase of the shares, on application for or allotment of the shares, to meet calls or otherwise) shall be deemed to have been paid or to be payable by the taxpayer in respect of the original shares and the bonus shares in such proportions as the Commissioner considers appropriate in the circumstances.\n\n(4) A company issues shares for no consideration if:\n\n(a) it credits its capital account with profits in connection with the issue of the shares; or\n\n(b) it credits its capital account with the amount of any dividend to a shareholder and the shareholder does not have a choice whether to be paid the dividend or to be issued with the shares.\n\nThis subsection does not limit the generality of subsection (3).\n\nNote: A company that makes a credit covered by paragraph (a) or (b) will have a tainted share capital account.\n\n(5) Subject to subsection (6), if a shareholder has a choice whether to be paid a dividend or to be issued shares and the shareholder chooses to be issued with shares:\n\n(a) the dividend is taken to be credited to the shareholder; and\n\n(b) the dividend is taken to have been paid out of profits; and\n\n(c) subsections (2) and (3) apply in working out the consideration for the acquisition of the shares for the purposes of this Act.\n\nHowever, the share capital account of the company does not become a tainted share capital account as a result of the crediting of the dividend to the share capital account.\n\n(6) Subsection (5) does not apply if:\n\n(a) a shareholder in a listed public company has a choice whether to be paid a dividend (other than a minimally franked dividend within the meaning of subsection 45(3)) or to be issued shares and the shareholder chooses to be issued with shares; and\n\n(b) the company does not credit the share capital account in connection with the issue of those shares.\n\nNote: If subsection (5) does not apply because of this subsection, subsection (3) will apply.\n\n(7) This section (other than subsection (6)):\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n6C  Source of royalty income derived by a non‑resident\n\n(1) This section applies to income that is derived on or after 1 July 1968 by a non‑resident and consists of royalty that:\n\n(a) is paid or credited to the non‑resident by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident and is not an outgoing wholly incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country; or\n\n(b) is paid or credited to the non‑resident by a person who is, or by persons each of whom is, a non‑resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.\n\n(1A) For the purposes of Division 5 and Division 6 of Part III, but subject to subsections (3) and (4), income to which this section applies shall be deemed to be attributable to sources in Australia.\n\n(2) For the purposes of sections 6‑5 and 6‑10 of the Income Tax Assessment Act 1997, but subject to subsections (3) and (4), income to which this section applies shall be deemed to have been derived from a source in Australia.\n\n(3) Where:\n\n(a) income to which this section applies is paid or credited to the non‑resident by whom it is derived by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident; and\n\n(b) the royalty of which the income consists is, in part, an outgoing incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country;\n\nsubsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is not an outgoing so incurred.\n\n(4) Where:\n\n(a) income to which this section applies is paid or credited to the non‑resident by whom it is derived by a person who, or by persons each of whom, is a non‑resident; and\n\n(b) the royalty of which the income consists is, in part only, an outgoing incurred by the person or persons by whom it is paid or credited in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;\n\nsubsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is an outgoing so incurred.\n\n(5) In subsection (6), a reference to a relevant person is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.\n\n(6) For the purposes of paragraphs (1)(a) and (3)(b), where:\n\n(a) royalty is paid or credited, after the commencement of this subsection, to a non‑resident by a relevant person carrying on business in a country outside Australia; and\n\n(b) the royalty or a part of the royalty:\n\n(i) is incurred by the relevant person in gaining or producing income that is derived by the relevant person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country or is incurred by the relevant person for the purpose of gaining or producing income to be so derived; or\n\n(ii) is incurred by the relevant person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the relevant person otherwise than in so carrying on business at or through a permanent establishment of the relevant person in a country outside Australia;\n\nthe royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the relevant person in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country.\n\n(7) For the purposes of paragraphs (1)(b) and (4)(b), where:\n\n(a) royalty is paid or credited, after the commencement of this subsection, to a non‑resident by another person or other persons (in this subsection referred to as the payer), being:\n\n(i) another person who is carrying on business in Australia and is a non‑resident; or\n\n(ii) other persons who are carrying on business in Australia and each of whom is a non‑resident; and\n\n(b) the royalty or a part of the royalty:\n\n(i) is incurred by the payer in gaining or producing income that is derived by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia or is incurred by the payer for the purpose of gaining or producing income to be so derived; or\n\n(ii) is incurred by the payer in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the payer in so carrying on business at or through a permanent establishment of the payer in Australia;\n\nthe royalty or the part of the royalty, as the case may be, is an outgoing incurred by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia.\n\n6CA  Source of natural resource income derived by a non‑resident\n\n(1) In this section:\n\ndouble tax agreement means an agreement within the meaning of the International Tax Agreements Act 1953.\n\nnatural resource income means income that:\n\n(a) is derived by a non‑resident; and\n\n(b) is calculated, in whole or in part, by reference to the value or quantity of natural resources produced, recovered or produced and recovered, in Australia after 7 April 1986;\n\nbut does not include:\n\n(c) income that consists of royalty; or\n\n(d) income where:\n\n(i) on 7 April 1986, the non‑resident had a continuing entitlement to receive the income;\n\n(ii) the income was derived by the non‑resident pursuant to that continuing entitlement;\n\n(iii) the non‑resident was, at 5 o’clock in the afternoon, by standard time in the Australian Capital Territory on 7 April 1986, a resident, within the meaning of a double tax agreement, of a foreign country in respect of which the double tax agreement was in force;\n\n(iv) before 8 April 1986, the Commissioner had given a statement in writing to the effect that income tax would be levied on 50% of income included in a specified class of income; and\n\n(v) the income is included in that class of income.\n\n(2) For the purposes of Divisions 5 and 6 of Part III, natural resource income shall be deemed to be attributable to sources in Australia.\n\n(3) For the purposes of section 255 of this Act and sections 6‑5 and 6‑10 of the Income Tax Assessment Act 1997, natural resource income shall be deemed to have been derived from a source in Australia.\n\n6D  Some tax offsets under the 1997 Assessment Act are treated as credits\n\nA tax offset under a provision of the Income Tax Assessment Act 1997 that corresponds to a provision of this Act that provides for a credit is taken to be a credit for the purposes of this Act.\n\nNote: All other tax offsets under the Income Tax Assessment Act 1997 are treated as rebates: see section 160ADA.\n\n6F  Dual resident investment company\n\n(1) For the purposes of this Act, a company (other than a company in the capacity of trustee) is a dual resident investment company in relation to a year of income if:","sortOrder":1000003},{"sectionNumber":"full-source-retrieval-0005","sectionType":"document_chunk","heading":"Document excerpt 5","content":"(a) at any time during the year of income the company is a resident of Australia; and\n\n(b) the company is liable to tax in a foreign country in respect of some or all of the income or profits of the company of the year of income (or would be so liable if the company derived income or profits) because:\n\n(i) the company is treated as a resident of that country for the purposes of the relevant law of that country; or\n\n(ii) the company is treated as domiciled in that country for the purposes of the relevant law of that country; or\n\n(iii) the company’s management and control is treated as being located in that country for the purposes of the relevant law of that country; and\n\n(c) at any time during the year of income when the company was in existence:\n\n(i) the company was not carrying on business with a reasonable view to profit; or\n\n(ii) a substantial purpose of the company (whether or not stated in its constituent document) was to acquire or hold shares, securities or other investments in related companies (whether directly or indirectly through one or more companies, partnerships or trusts).\n\n(2) For the purposes of this section, companies are related to each other if they are controlled (as defined by subsection (3)) by the same person, either alone or together with associates (whether or not the same associates are involved in relation to each company).\n\n(3) For the purposes of this section, a person, either alone or together with associates, controls a company if:\n\n(a) the person, either alone or together with associates:\n\n(i) controls or is capable of controlling, either directly or through one or more interposed companies, partnerships or trusts, at least 50% of the maximum number of votes that might be cast at a general meeting of the company; or\n\n(ii) is beneficially entitled to receive, directly or indirectly, at least 50% of any dividends that are or might be paid, or of any distribution of capital that is or may be made, by the company; or\n\n(iii) is capable, under a scheme, of gaining such control or such an entitlement; or\n\n(b) the company or its directors are accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the person, either alone or together with associates.\n\n(4) Section 159GZH applies for the purposes of this section in determining the beneficial entitlement of a person to receive indirectly the whole or a particular fraction of a dividend that is, or might be, paid by a company or of a distribution of capital of a company.\n\n(5) In this section:\n\nassociate has the same meaning as in section 318.\n\nscheme means:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.\n\n6H  Recognised small credit unions, recognised medium credit unions and recognised large credit unions\n\nRecognised small credit union in relation to a year of income\n\n(1) For the purposes of this Act, a credit union is a recognised small credit union in relation to a year of income if:\n\n(a) both:\n\n(i) the year of income is the 1994‑95 year of income; and\n\n(ii) either:\n\n(A) the credit union is not a designated credit union; or\n\n(B) the credit union’s notional taxable income of the year of income is less than $50,000; or\n\n(b) both:\n\n(i) the year of income is the 1995‑96 year of income or a later year of income; and\n\n(ii) the credit union’s notional taxable income of the year of income is less than $50,000.\n\nRecognised medium credit union in relation to a year of income\n\n(2) For the purposes of this Act, a credit union is a recognised medium credit union in relation to a year of income if:\n\n(a) the year of income is the 1994‑95 year of income or a later year of income; and\n\n(b) the credit union is not a recognised small credit union in relation to the year of income; and\n\n(c) the credit union’s notional taxable income of the year of income is less than $150,000.\n\nRecognised large credit union in relation to a year of income\n\n(3) For the purposes of this Act, a credit union is a recognised large credit union in relation to a year of income if:\n\n(a) the year of income is the 1994‑95 year of income or a later year of income; and\n\n(b) the credit union is neither:\n\n(i) a recognised small credit union in relation to the year of income; nor\n\n(ii) a recognised medium credit union in relation to the year of income.\n\nDesignated credit union\n\n(4) For the purposes of this section, a credit union is a designated credit union if:\n\n(a) it was in existence on 1 July 1993; and\n\n(b) assuming that its accounts for the last accounting period that ended before 1 July 1993 had been prepared in accordance with generally accepted accounting principles—the amount that would have been shown in those accounts as the gross value of its assets as at the end of that accounting period is more than $30 million.\n\nNotional taxable income\n\n(5) For the purposes of this section, the notional taxable income of a credit union of a year of income is the amount that would be its taxable income of the year of income if:\n\n(a) section 23G did not apply to income derived by it in the 1994‑95 year of income or any later year of income; and\n\n(b) Division 9 of Part III had not been enacted.\n\nDefinitions\n\n(6) In this section:\n\naccounting period, in relation to a credit union, means a period at the end of which the balance of its accounts is struck.\n\naccounts, in relation to a credit union, means accounts prepared for the purposes of reporting annually to the shareholders in the credit union.\n\ncredit union means a credit union as defined in section 23G, except a life assurance company.\n\n7B  Application of the Criminal Code\n\nChapter 2 of the Criminal Code applies to all offences against this Act.\n\nNote: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.\n\nPart II—Administration\n\n8  Commissioner\n\nThe Commissioner shall have the general administration of this Act.\n\nNote: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.\n\n14  Annual report\n\n(1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act, including any breaches or evasions of this Act of which the Commissioner has notice.\n\n(2) The Minister shall cause a copy of a report furnished to him or her under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which he or she receives the report.\n\n(3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.\n\nPart III—Liability to taxation\n\nDivision 1—General\n\n18  Accounting period\n\nAny person may, with the leave of the Commissioner, adopt an accounting period being the 12 months ending on some date other than 30 June. For the purposes of this Act, the person’s accounting period in each succeeding year shall end on the corresponding date of that year, unless:\n\n(a) with the leave of the Commissioner some other date is adopted; or\n\n(b) the accounting period ends earlier under section 18A.\n\n18A  Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs\n\n(1) If a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP on a particular day:\n\n(a) the accounting period during which that day occurs (the first accounting period) is taken to have ended immediately before that day; and\n\n(b) another accounting period is taken to have commenced at the beginning of that day.\n\nThe other accounting period ends on the day on which the first accounting period would have ended if this section did not apply.\n\nExample: A partnership whose accounting periods ended on 30 June becomes a VCLP, an ESVCLP on 1 October 2002, and ceases to be a VCLP, an ESVCLP on 1 April 2003.\n\nThe effect of becoming a VCLP, an ESVCLP: the accounting period that commenced on 1 July 2002 is taken under this section to end on 30 September 2002, and a second accounting period commences on 1 October 2002. The second accounting period is scheduled to end on 30 June 2003.\n\nThe effect of ceasing to be a VCLP, an ESVCLP: the second accounting period is now taken under this section to end on 31 March 2003, and a third accounting period commences on 1 April 2003. The third accounting period is to end on 30 June 2003.\n\n(2) This section does not apply in relation to a partnership becoming, or ceasing to be, a VCLP, an ESVCLP, an AFOF or a VCMP on the day on which an accounting period commences.\n\n21  Where consideration not in cash\n\n(1) Where, upon any transaction, any consideration is paid or given otherwise than in cash, the money value of that consideration shall, for the purposes of this Act, be deemed to have been paid or given.\n\n(2) This section has effect subject to section 21A.\n\n21A  Non‑cash business benefits\n\n(1) For the purposes of this Act, in determining the income derived by a taxpayer, a non‑cash business benefit that is not convertible to cash shall be treated as if it were convertible to cash.\n\n(2) For the purposes of this Act, if a non‑cash business benefit (whether or not convertible to cash) is income derived by a taxpayer:\n\n(a) the benefit shall be brought into account at its arm’s length value reduced by the recipient’s contribution (if any); and\n\n(b) if the benefit is not convertible to cash—in determining the arm’s length value of the benefit, any conditions that would prevent or restrict the conversion of the benefit to cash shall be disregarded.\n\n(3) Where:\n\n(a) a non‑cash business benefit is income derived by a taxpayer in a year of income; and\n\n(b) if the taxpayer had, at the time the benefit was provided, incurred and paid unreimbursed expenditure in respect of the provision of the benefit equal to the amount of the arm’s length value of the benefit—a once‑only deduction would, or would but for Subdivisions F, GA and G of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the taxpayer in respect of a percentage (in this subsection called the deductible percentage) of the expenditure;\n\nthe amount that, apart from this subsection, would be applicable under subsection (2) of this section in respect of the benefit shall be reduced by the deductible percentage.\n\n(4) Where:\n\n(a) a non‑cash business benefit is income derived by a taxpayer in a year of income; and\n\n(b) a percentage (in this subsection called the non‑deductible entertainment percentage) of any expenditure incurred by the provider in respect of the provision of the benefit is non‑deductible entertainment expenditure;\n\nthe amount that, apart from this subsection, would be applicable under subsection (2) in respect of the benefit shall be reduced by the non‑deductible entertainment percentage.\n\n(5) In this section:\n\narm’s length value, in relation to a non‑cash business benefit, means:\n\n(a) the amount that the recipient could reasonably be expected to have been required to pay to obtain the benefit from the provider under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction; or\n\n(b) if such an amount cannot be practically determined—such amount as the Commissioner considers reasonable.\n\nincome derived by a taxpayer means income derived by a taxpayer in carrying on a business for the purpose of gaining or producing assessable income.\n\nnon‑cash business benefit means property or services provided after 31 August 1988:\n\n(a) wholly or partly in respect of a business relationship; or\n\n(b) wholly or partly for or in relation directly or indirectly to a business relationship.\n\nnon‑deductible entertainment expenditure means expenditure to the extent to which:\n\n(a) section 32‑5 of the Income Tax Assessment Act 1997 applies to the expenditure; and\n\n(b) but for that section, the expenditure would be deductible under section 8‑1 of the Income Tax Assessment Act 1997.\n\nprovide:\n\n(a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise); and\n\n(b) in relation to services—includes allow, confer, give, grant or perform.\n\nrecipient’s contribution, in relation to a non‑cash business benefit, means the amount of any consideration paid to the provider by the recipient in respect of the provision of the benefit, reduced by the amount of any reimbursement paid to the recipient in respect of that consideration.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a right, benefit, privilege, service or facility that is, or is to be, provided under:\n\n(a) an arrangement for or in relation to:\n\n(i) the performance of work (including work of a professional nature), whether with or without the provision of property;\n\n(ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or\n\n(iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction;\n\n(b) a contract of insurance; or\n\n(c) an arrangement for or in relation to the lending of money.\n\n(6) Notwithstanding section 21, the consideration referred to in the definition of recipient’s contribution in subsection (5) of this section is consideration in money.\n\n(7) This section does not apply to an ESS interest (within the meaning of the Income Tax Assessment Act 1997) to which Subdivision 83A‑B or 83A‑C of that Act (about employee share schemes) applies.\n\n23AA  Income of persons connected with certain projects of United States Government\n\n(1) In this section, unless the contrary intention appears:\n\napproved project means the establishment, maintenance or operation of the North West Cape naval communication station, of the Joint Defence Space Research Facility, of the Sparta project, of the Joint Defence Space Communications Station or of a Force Posture Initiative.\n\ncivilian accompanying the United States Forces means a person (not being a member of the United States Forces, an Australian citizen or a person ordinarily resident in Australia) who:\n\n(a) is an employee:\n\n(i) of the United States Forces; or\n\n(ii) of, or of a body conducting, a club or other facility established for the benefit or welfare of members of the United States Forces or of persons accompanying those Forces and which is recognized by the Government of the United States of America as a non‑appropriated fund activity; or\n\n(b) is serving with an organization that, with the approval of the Government of the Commonwealth, accompanies the United States Forces in Australia.\n\ndependant, in relation to a person, means:\n\n(a) the spouse of that person; or\n\n(b) a relative, other than the spouse, of that person who is wholly or mainly dependent for support on that person;\n\nbut, in the case of a person who, immediately before becoming such a spouse or relative, was ordinarily resident in Australia, does not include that person so long as that person continues to be ordinarily resident in Australia.\n\nForce Posture Agreement means the Force Posture Agreement between the Government of Australia and the Government of the United States of America done at Sydney on 12 August 2014, as amended and in force for Australia from time to time.\n\nNote: The Treaty could in 2014 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\nForce Posture Initiative has the same meaning as in the Force Posture Agreement.\n\nNote: As well as some announced initiatives, this includes future initiatives that Australia and the United States mutually decide to be Force Posture Initiatives for the purposes of that Agreement.\n\nforeign contractor means a person who is a party to a prescribed contract and is not:\n\n(a) a company incorporated in Australia;\n\n(b) an Australian citizen; or\n\n(c) a person, other than a company, who is ordinarily resident in Australia.\n\nforeign employee means a person who:\n\n(a) is an employee of a foreign contractor; or\n\n(b) is a director of a company that is a foreign contractor;\n\nand is not an Australian citizen or ordinarily resident in Australia.\n\nprescribed contract means:\n\n(a) a contract to which the Government of the United States of America is a party in connexion with an approved project; or\n\n(b) a contract made for purposes connected with the performance of a contract referred to in paragraph (a).\n\nprescribed purposes means:\n\n(a) in relation to a foreign contractor or foreign employee—purposes relating to the performance of a prescribed contract;\n\n(aa) in relation to a United States employee—purposes relating to an approved project; and\n\n(b) in relation to a member of the United States Forces or a civilian accompanying the United States Forces—purposes relating to the carrying on of activities agreed upon between the Government of the Commonwealth and the Government of the United States of America.\n\nthe Joint Defence Space Communications Station means the undertaking the establishment of which is provided for by an agreement dated 10 November 1969 between the Government of the Commonwealth and the Government of the United States of America.","sortOrder":1000004},{"sectionNumber":"full-source-retrieval-0006","sectionType":"document_chunk","heading":"Document excerpt 6","content":"the Joint Defence Space Research Facility means the undertaking the establishment of which is provided for by an agreement dated 9 December 1966 between the Government of the Commonwealth and the Government of the United States of America.\n\nthe North West Cape naval communication station means the naval communication station the establishment of which is provided for by the agreement approved by the United States Naval Communication Station Agreement Act 1963.\n\nthe Sparta project means the undertaking the establishment of which is provided for by a memorandum of arrangement dated 30 March 1966 between the Government of the Commonwealth, the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America.\n\nthe United States Forces means the armed forces of the Government of the United States of America.\n\nUnited States employee means a person who is employed by the Government of the United States of America and is not:\n\n(a) a member of the United States Forces;\n\n(b) a civilian accompanying the United States Forces;\n\n(c) an Australian citizen; or\n\n(d) a person ordinarily resident in Australia.\n\n(2) For the purposes of this section, a foreign contractor, foreign employee or United States employee who is in Australia, or is carrying on business in Australia, solely for prescribed purposes does not cease to be in Australia solely for those purposes, or to be carrying on business in Australia solely for those purposes, by reason of anything undertaken or done by him or her in connexion with an undertaking in Australia of the Government of the United States of America, other than an approved project, agreed upon between the Government of the Commonwealth and the Government of the United States of America.\n\n(3) Where a person:\n\n(a) has been in Australia, or has carried on business in Australia, solely for prescribed purposes during a period when the person was a foreign contractor or foreign employee;\n\n(b) has been in Australia solely for prescribed purposes during a period when the person was a member of the United States Forces, a civilian accompanying the United States Forces or a United States employee; or\n\n(c) has been in Australia during a period when the person was a dependant of such a contractor, employee, member or civilian who was in Australia solely for prescribed purposes;\n\nthat person shall, for the purposes of the provisions of this Act other than Subdivision A of Division 17, be deemed not to have been a resident of Australia during that period, and the presence of that person in Australia during that period shall be disregarded in determining, for the purposes of those provisions, whether the person was a resident of Australia at any other time.\n\n(4) Subsection (3) does not apply in respect of, or of a part of, a period when a person was, or was a dependant of, a foreign contractor, a foreign employee, a civilian accompanying the United States Forces or a United States employee if the person:\n\n(a) being a company—was not a domestic corporation for the purposes of the law of the United States of America relating to income tax; or\n\n(b) not being a company—was not a resident of the United States of America for the purposes of that law or a citizen of the United States of America;\n\nduring that period or that part of that period, as the case may be.\n\n(5) Where:\n\n(a) a foreign contractor or a foreign employee has derived income wholly and exclusively from, or from employment in connexion with, the performance in Australia of a prescribed contract;\n\n(b) the income is not exempt from income tax imposed by Chapter One of Subtitle A of the Internal Revenue Code of 1986 of the United States of America; and\n\n(c) the foreign contractor or foreign employee was, at the time the income was derived, in Australia, or carrying on business in Australia, solely for prescribed purposes;\n\nthe income shall, for the purposes of this Act, be deemed to have been derived from sources out of Australia.\n\n(6) Where:\n\n(a) a person has derived income in respect of service as a civilian accompanying the United States Forces or as a United States employee during a period when the person was in Australia solely for prescribed purposes; and\n\n(b) the income is not exempt from income tax imposed by Chapter One of Subtitle A of the Internal Revenue Code of 1986 of the United States of America;\n\nthe income shall, for the purposes of this Act, be deemed to have been derived from sources out of Australia.\n\n23AB  Income of certain persons serving with an armed force under the control of the United Nations\n\n(1) In this section:\n\nprescribed taxpayer means a taxpayer who, being a resident of Australia, is, or is included in a class of persons that is, prescribed by the regulations for the purposes of this section.\n\ntax deductions unapplied, in relation to a deceased person, means any amounts withheld under Part 2‑5 in Schedule 1 to the Taxation Administration Act 1953 from work and income support related withholding payments and benefits derived by the deceased person in respect of United Nations service:\n\n(a) that have not been credited in payment of income tax; and\n\n(b) in respect of which a payment has not been made by the Commissioner.\n\nthe prescribed area has the same meaning as in section 79A.\n\nUnited Nations service means service, other than service as a member of the Defence Force, performed, at the direction or with the approval of the Commonwealth, outside Australia with an armed force under the control of the United Nations, at a time when the person performing the service was a prescribed taxpayer.\n\n(2) The regulations may prescribe a person or a class of persons for the purposes of this section but shall not so prescribe a person or class of persons unless the salary, wages and allowances received by the person or by all the persons in that class, as the case may be, in respect of his, her or their United Nations service are paid, given or granted by the Commonwealth or by the United Nations for and on behalf of the Commonwealth.\n\n(3) A succeeding provision of this section does not apply in relation to a person if the regulations provide that that provision does not apply in relation to that person or in relation to a class of persons in which that person is included.\n\n(4) Subsection 12(2) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to regulations made for the purposes of subsection (2) or (3) of this section.\n\n(5) Where:\n\n(a) a payment of compensation under the Safety, Rehabilitation and Compensation Act 1988 is made in respect of the incapacity, impairment or death of a taxpayer; and\n\n(b) the incapacity, impairment or death of the taxpayer resulted from an occurrence that happened during the performance by the taxpayer of United Nations service; and\n\n(c) if the taxpayer had, at the time of the happening of the occurrence, been a member of the Defence Force rendering continuous full‑time service outside Australia while the taxpayer was allotted for duty in an operational area described in item 4, 5, 6, 7 8, 9, 10, 11, 12, 13 or 14 of Column 1 of Schedule 2 to the Veterans’ Entitlements Act 1986, the Commonwealth would be liable to pay a pension under that Act in respect of the incapacity, impairment or death of the taxpayer;\n\nthe payment of compensation is exempt from income tax.\n\n(6) For the purposes of section 15‑2 of the Income Tax Assessment Act 1997, the total value of all allowances, gratuities, compensations, benefits, bonuses and premiums (in this subsection referred to as living allowances) allowed, given or granted in meals, sustenance or the use of premises or quarters (including payment in lieu of one or more of those living allowances) to a taxpayer in respect of, or for or in relation directly or indirectly to, United Nations service shall be deemed to be an amount calculated at the rate of $2 for each week of that service in which any of those living allowances were so allowed, given or granted, or in which payment in lieu of any of those living allowances was made, to the taxpayer.\n\n(7) Subject to subsections (8), (8A) and (9A) and subsection 79B(4), a taxpayer is entitled to a rebate of tax in his or her assessment in respect of income of a year of income in which he or she has performed United Nations service and derived income by way of salary, wages or other allowances in respect of that service. The amount of the rebate is:\n\n(a) where the total period of that service performed by the taxpayer during the year of income is more than one‑half of the year of income or where the taxpayer dies while performing that service during the year of income—an amount equal to the sum of:\n\n(i) $338; and\n\n(ii) the amount worked out using subsection (7A); or\n\n(b) in any other case—such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this subsection if paragraph (a) had applied to him or her in respect of the year of income.\n\n(7A) For the purposes of subparagraph (7)(a)(ii), the amount is equal to 50% of the sum of the following rebates (if any) in respect of the year of income:\n\n(a) any tax offset to which the taxpayer is entitled under Subdivision 61‑A of the Income Tax Assessment Act 1997;\n\n(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑A of the Income Tax Assessment Act 1997.\n\n(8) For the purposes of subsection (7), but subject to subsection (8A), the total period of United Nations service of a taxpayer in any year of income shall be deemed to include any period in that year of income during which the taxpayer has resided, or has actually been, in the prescribed area.\n\n(8A) For the purposes of subsection (7), United Nations service does not include any period of service of the taxpayer in respect of which an exemption from income tax applies under section 23AG.\n\n(9) Where a rebate is allowable under subsection (7) in the assessment of a taxpayer in respect of income of a year of income and, but for this subsection, a rebate of a lesser amount would be allowable in that assessment under section 79A, a rebate under section 79A is not allowable in that assessment.\n\n(9A) Where a rebate is allowable under section 79A in the assessment of a taxpayer in respect of income of a year of income and, but for this subsection, a rebate of the same or a lesser amount would be allowable in that assessment under subsection (7), a rebate under subsection (7) is not allowable in that assessment.\n\n(9B) Subsection 79B(4) shall be disregarded in determining for the purposes of subsections (9) and (9A) of this section the amount of a rebate allowable to a taxpayer under subsection (7) of this section or under section 79A.\n\n(10) Where:\n\n(a) the trustee of the estate of a deceased person who has performed United Nations service is liable to pay income tax, in respect of a year of income, upon income that consists of or includes salary, wages or allowances derived by the deceased person in respect of that service; or\n\n(b) the death of the person resulted from an occurrence that happened during that service; and\n\n(c) if the person had, at the time of the happening of the occurrence, been a member of the Defence Force rendering continuous full‑time service outside Australia while the taxpayer was allotted for duty in an operational area described in item 4, 5, 6, 7 or 8 of Column 1 of Schedule 2 to the Veterans’ Entitlements Act 1986, the Commonwealth would be liable to pay a pension under that Act in respect of the death of the person;\n\nthe trustee is, by force of this subsection, released from the payment of so much of that tax as remains after deducting any tax deductions unapplied:\n\n(d) if the assessable income of the deceased person of the year of income consists solely of the salary, wages or allowances derived in respect of that service—from the amount of income tax so payable by the trustee; or\n\n(e) if the assessable income of the deceased person of the year of income includes income other than the salary, wages or allowances derived in respect of that service:\n\n(i) from the amount of income tax so payable by the trustee; or\n\n(ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of the salary, wages or allowances so derived in the assessable income of the deceased person of the year of income;\n\nwhichever is the less.\n\n(11) Nothing in subsection (10) shall be construed as authorizing or requiring the Commissioner to refund any amount paid as or for income tax by or on behalf of the deceased person or the trustee of his or her estate.\n\n23AD  Exemption of pay and allowances of Defence Force members performing certain overseas duty\n\nRequirements for exemption\n\n(1) The pay and allowances earned by a person serving as a member of the Defence Force are exempt from tax if:\n\n(a) they are earned while there is in force a certificate in writing issued by the Chief of the Defence Force to the effect that the person is on eligible duty with a specified organisation in a specified area outside Australia; and\n\n(b) the eligible duty is not as, or under, an attaché at an Australian embassy or legation.\n\nEligible duty\n\n(2) The regulations may declare that duty with a specified organisation, in a specified area outside Australia and after a specified day, is eligible duty for the purposes of this section.\n\nWhere paragraph (1)(a) certificate in force\n\n(3) A certificate under paragraph (1)(a):\n\n(a) comes into force at the later of:\n\n(i) the time specified in the certificate (which may be before the time when it is issued, but not before the end of the specified day under the regulations); and\n\n(ii) the time when the person arrives for duty in the specified area concerned; and\n\n(b) subject to paragraph (c), continues in force until the earliest of:\n\n(i) the time of the person’s departure from the specified area; and\n\n(ii) the time when, in accordance with a certificate of revocation signed by the Chief of the Defence Force, it ceases to be in force; and\n\n(iii) any time prescribed by the regulations in relation to the eligible duty for the purposes of this subparagraph; and\n\n(c) is in force during any period of hospital treatment resulting from an illness contracted, or injuries sustained, during the person’s eligible duty.\n\nReview of paragraph (1)(a) certificate\n\n(4) An application may be made to the Tribunal for review of a decision of the Chief of the Defence Force under paragraph (1)(a).\n\nDelegation of paragraph (1)(a) power\n\n(5) The Chief of the Defence Force may, by signed instrument, delegate to an officer of the Defence Force the power conferred by paragraph (1)(a).\n\nRevocation certificate is legislative instrument\n\n(6) A certificate of revocation referred to in subparagraph (3)(b)(ii) is a legislative instrument.\n\n23AF  Exemption of certain income derived in respect of approved overseas projects\n\n(1) Where a taxpayer, being a natural person, has been engaged on qualifying service on a particular approved project for a continuous period of not less than 91 days, any eligible foreign remuneration derived by the person that is attributable to that qualifying service is exempt from tax.\n\n(3) Subject to subsections (4) and (5), a person shall be taken for the purposes of this section to be engaged on qualifying service on an approved project during any period during which:\n\n(a) the person is outside Australia and is engaged in the performance of personal services in connection with the approved project;\n\n(b) the person is travelling between Australia and the site of the approved project;\n\n(c) by reason of an incapacity for work due to accident or illness occurring while the person was, by virtue of paragraph (a) or (b), to be taken to be engaged on qualifying service on the approved project, the person is absent from work; or\n\n(d) the person is on eligible leave, being leave that accrued in respect of a period during which the person was, by virtue of any of the preceding paragraphs, to be taken to be engaged on qualifying service on the approved project.\n\n(4) A person shall not be taken to have been engaged on qualifying service on a particular approved project while the person was travelling between Australia and the site of the approved project unless the Commissioner is satisfied that the time taken for the journey is reasonable.\n\n(5) A person shall not be taken to have been engaged on qualifying service on a particular approved project by virtue of paragraph (3)(c) during a period of incapacity for work unless the person is taken to have been engaged on qualifying service on that approved project by virtue of paragraph (3)(a), (b) or (d) during a period that commenced immediately after the incapacity ceased.\n\n(6) Where:\n\n(a) a person was engaged on qualifying service on a particular approved project; and\n\n(b) due to unforeseen circumstances, the person ceased to be engaged on qualifying service on that approved project;\n\nthe period during which the person is to be taken to have been engaged on qualifying service on that approved project shall, except for the purpose of determining whether income derived by the person is eligible foreign remuneration, be taken to include the additional period after the person ceased to be engaged on qualifying service on that approved project during which the person would, in the opinion of the Commissioner, have continued to be engaged on qualifying service on that approved project but for those unforeseen circumstances.\n\n(7) Where:\n\n(a) a person (in this subsection referred to as the original person) was engaged on qualifying service on a particular approved project;\n\n(b) due to unforeseen circumstances, the original person ceased to be engaged on qualifying service on that approved project; and","sortOrder":1000005},{"sectionNumber":"full-source-retrieval-0007","sectionType":"document_chunk","heading":"Document excerpt 7","content":"(c) as soon as practicable after the time when the original person ceased to be engaged on qualifying service on that approved project, another person (in this subsection referred to as the substituted person) commenced to be engaged on qualifying service on that approved project in lieu of the original person;\n\nthe period during which the substituted person is to be taken to have been engaged on qualifying service on that approved project shall, except for the purpose of determining whether income derived by the substituted person is eligible foreign remuneration, be taken to include a period that ended immediately before the substituted person commenced to be engaged on qualifying service on that approved project in lieu of the original person and was of the same duration as the continuous period during which the original person was, immediately before the original person ceased to be engaged on qualifying service on that approved project, taken to have been engaged on qualifying service on that approved project.\n\n(8) Where:\n\n(a) during the period (in this subsection referred to as the total project period) commencing at the time when a person was first engaged on qualifying service on an approved project and ending at the time when the person was last engaged on qualifying service on that approved project, the person was in Australia during a period or periods (in this subsection referred to as the intervening period or intervening periods) during which the person was not engaged on qualifying service on that approved project;\n\n(b) the total number of days in the intervening period or intervening periods does not exceed one‑sixth of the total number of days during the total project period during which the person was engaged on qualifying service on the approved project; and\n\n(c) at all times during the total project period, the person was engaged on qualifying service on the approved project or was in Australia;\n\nthe periods during the total project period during which the person was engaged on qualifying service on the approved project shall together be taken to constitute a continuous period during which the person was engaged on qualifying service on the approved project.\n\n(9) Where, immediately before a person commences to take eligible leave, leave of the same kind as the eligible leave has accrued in relation to the person but has not been used and that unused leave consists of:\n\n(a) leave that accrued in respect of a period or periods when the person was engaged on qualifying service on an approved project and leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project;\n\n(b) leave that accrued in respect of 2 or more periods when the person was engaged on qualifying service on 2 or more different approved projects; or\n\n(c) leave that accrued in respect of 2 or more periods when the person was engaged on qualifying service on 2 or more different approved projects and leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project;\n\nthe following provisions apply for the purposes of determining the extent to which the eligible leave taken by the person was eligible leave that accrued in respect of a period when the person was engaged on qualifying service on a particular approved project:\n\n(d) in a case to which paragraph (a) applies—the person shall be deemed first to have taken leave that accrued in respect of the period when the person was engaged on qualifying service on the approved project referred to in that paragraph;\n\n(e) in a case to which paragraph (b) applies—the leave shall be deemed to have been taken in the order that is reverse to the order in which it accrued;\n\n(f) in a case to which paragraph (c) applies:\n\n(i) the person shall be deemed not to have taken any of the leave that accrued in respect of a period or periods when the person was not engaged on qualifying service on an approved project until the person had taken leave for a number of days equal to the number of days of leave referred to in that paragraph that had accrued in respect of periods when the person was engaged on qualifying service on approved projects; and\n\n(ii) the leave that had accrued in respect of periods when the person was engaged in qualifying service on approved projects shall be deemed to have been taken by the person in the order that is reverse to the order in which that leave accrued.\n\n(10) Where the amount of income derived by a person that:\n\n(a) is attributable to qualifying service on an approved project; and\n\n(b) would, apart from this subsection, be eligible foreign remuneration;\n\nexceeds the amount of income that the Commissioner considers would be reasonable remuneration in respect of that qualifying service, the amount of the excess is not eligible foreign remuneration for the purposes of this section.\n\n(11) Where the Trade Minister is satisfied that the undertaking of an eligible project that was commenced, or is proposed to be commenced, after 19 August 1980 is, or will be, in the national interest, that Minister may, by writing signed by that Minister, approve that eligible project for the purposes of this section.\n\n(12) The Trade Minister may, either generally or as otherwise provided by the instrument of delegation, by writing signed by that Minister, delegate to a person that Minister’s power under subsection (11).\n\n(13) The power so delegated, when exercised by the delegate shall, for the purposes of this section, be deemed to have been exercised by the Trade Minister.\n\n(14) A delegation under subsection (12) does not prevent the exercise of a power by the Trade Minister.\n\n(15) Where:\n\n(a) a person has derived eligible foreign remuneration during a year of income; and\n\n(b) at the time of making an assessment in respect of income of the person of the year of income, the Commissioner is of the opinion that, at a later time, circumstances will exist by reason of which that eligible foreign remuneration will be exempt from tax by virtue of this section;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\n(16) Where, in the making of an assessment, this section has been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time and the Commissioner, after making the assessment, becomes satisfied that that circumstance will not exist, then, notwithstanding anything contained in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that this section shall be taken always to have applied on the basis that that circumstance did not exist.\n\n(17) For the purposes of this section, income is excluded income if:\n\n(a) the income is income to which section 23AG applies; or\n\n(aa) the income is a payment, consideration or amount that:\n\n(i) is included in assessable income under Division 82, section 83‑295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or\n\n(ii) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or\n\n(iii) is mentioned in paragraph 82‑135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or\n\n(iv) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295‑200 of the Income Tax Assessment Act 1997; or\n\n(b) the income is derived from sources in a country other than Australia and:\n\n(i) is exempt from income tax in that country; and\n\n(ii) would not be exempt from income tax in that country apart from the operation of an agreement applying to Australia and that other country relating to the avoidance of double taxation or of a law of that other country giving effect to such an agreement; or\n\n(c) the income consists of:\n\n(i) payments in lieu of long service leave; or\n\n(ii) payments by way of superannuation or pension.\n\n(17A) If the income of a taxpayer of a year of income consists of an amount that is exempt from tax under this section (in this section called the exempt amount) and other income, the amount of tax (if any) payable in respect of the other income is calculated using the formula:\n\n![Start formula start fraction Notional gross tax over Notional gross taxable income end fraction times Other taxable income end formula](image.002.png)\n\nwhere:\n\nNotional gross tax means the number of whole dollars in the amount of income tax that would be assessed under this Act in respect of the taxpayer’s taxable income of the year of income if:\n\n(a) the exempt amount were not exempt income; and\n\n(aa) if the exempt amount is a payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997—the exempt amount (excluding any part of that amount that represented contributions made by the taxpayer) were assessable income of the taxpayer; and\n\n(b) the taxpayer were not entitled to any rebate of tax.\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\nOther taxable income means the amount (if any) remaining after deducting from so much of the other income as is assessable income:\n\n(d) any deductions allowable to the taxpayer in relation to the year of income that relate exclusively to that assessable income; and\n\n(e) so much of any other deductions (other than apportionable deductions) allowable to the taxpayer in relation to the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income; and\n\n(f) the amount calculated using the formula in subsection (17B).\n\n(17B) The formula referred to in paragraph (17A)(f) is:\n\n![Start formula Apportionable deductions times open bracket start fraction Other taxable income over Apportionable deductions plus Notional gross taxable income end fraction close bracket end formula](image.003.png)\n\nwhere:\n\nApportionable deductions means the number of whole dollars in the apportionable deductions allowable to the taxpayer in relation to the year of income.\n\nOther taxable income means the amount that, apart from paragraph (17A)(f), would be represented by the component Other taxable income in subsection (17A).\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\n(17C) Subsection (17A) applies to a taxpayer in respect of income of a year of income as if any payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997 in relation to qualifying service that was made in respect of the taxpayer during that year of income were income of the taxpayer of that year of income that is exempt from tax under this section.\n\n(18) In this section, unless the contrary intention appears:\n\napproved project means a project in respect of which there is in force an approval granted under subsection (11).\n\neligible contractor means:\n\n(a) a resident of Australia;\n\n(b) the Commonwealth, a State, a Territory, the government of a country other than Australia or an authority of the Commonwealth, of a State, of a Territory or of the government of a country other than Australia;\n\n(c) an organization:\n\n(i) of which Australia and a country or countries other than Australia are members; or\n\n(ii) that is constituted by a person or persons representing Australia and a person or persons representing a country or countries other than Australia; or\n\n(d) an agency of an organization to which paragraph (c) applies.\n\neligible foreign remuneration, in relation to a person, means income (not being excluded income) that is derived by the person at a time when the person is a resident, being:\n\n(a) income consisting of salary, wages, commission, bonuses or allowances, or of amounts included in a person’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes), derived by the person in his or her capacity as an employee of an eligible contractor; or\n\n(b) income, or amounts included in a person’s assessable income under that Division, derived by the person under a contract with an eligible contractor, being a contract that is wholly or substantially for the personal services of the person;\n\nthat is directly attributable to qualifying service by the person on an approved project and includes any payments received in lieu of eligible leave that accrued in respect of a period during which the person was a resident and was engaged on qualifying service on an approved project.\n\neligible leave means leave other than long service leave.\n\neligible project means:\n\n(a) a project for the design, supply or installation of any equipment or facilities; or\n\n(b) a project for the construction of works; or\n\n(c) a project for the development of an urban area or a regional area; or\n\n(d) a project for the development of agriculture; or\n\n(e) a project consisting of giving advice or assistance relating to the management or administration of a government department or of a public utility; or\n\n(f) a project included in a class of projects approved in writing for the purposes of this section by the Trade Minister.\n\nemployee includes:\n\n(a) a person employed by the Commonwealth, by a State, by a Territory, by the government of a country other than Australia or by an authority of the Commonwealth, of a State, of a Territory or of the government of a country other than Australia; and\n\n(b) a member of the Defence Force.\n\nlong service leave means long leave, furlough, extended leave or leave of a similar kind (however described).\n\n23AG  Exemption of income earned in overseas employment\n\n(1) Where a resident, being a natural person, has been engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived by the person from that foreign service are exempt from tax.\n\n(1AA) However, those foreign earnings are not exempt from tax under this section unless the continuous period of foreign service is directly attributable to any of the following:\n\n(a) the delivery of Australian official development assistance by the person’s employer (except if that employer is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997));\n\n(b) the activities of the person’s employer in operating a public fund that:\n\n(i) is covered by item 9.1.1 or 9.1.2 of the table in subsection 30‑80(1) of the Income Tax Assessment Act 1997 (international affairs deductible gift recipients); and\n\n(ii) meets the special conditions mentioned in that item;\n\n(c) the activities of the person’s employer, if the employer is exempt from income tax because of paragraph 50‑50(1)(c) or (d) of the Income Tax Assessment Act 1997 (prescribed institutions located or pursuing objectives outside Australia);\n\n(d) the person’s deployment outside Australia as a member of a disciplined force by:\n\n(i) the Commonwealth, a State or a Territory; or\n\n(ii) an authority of the Commonwealth, a State or a Territory;\n\n(e) an activity of a kind specified in the regulations.\n\n(1A) A person is taken, for the purposes of subsection (1), to have been engaged in foreign service for a continuous period of 91 days if:\n\n(a) the person died at a time when he or she was engaged in foreign service for a continuous period of less than 91 days; and\n\n(b) he or she would have otherwise continued to be engaged in the foreign service; and\n\n(c) his or her continuous period of engagement in the foreign service would have otherwise been a period of at least 91 days.\n\n(2) An amount of foreign earnings derived in a foreign country is not exempt from tax under this section if the amount is exempt from income tax in the foreign country only because of any of the following:\n\n(a) a law of the foreign country giving effect to a double tax agreement within the meaning of Part X;\n\n(b) a double tax agreement within the meaning of Part X;\n\n(c) provisions of a law of the foreign country under which income covered by any of the following categories is generally exempt from income tax:\n\n(i) income derived in the capacity of an employee;\n\n(ii) income from personal services;\n\n(iii) similar income;\n\n(d) the law of the foreign country does not provide for the imposition of income tax on one or more of the categories of income mentioned in paragraph (c);\n\n(e) a law of the foreign country corresponding to the International Organisations (Privileges and Immunities) Act 1963 or to the regulations under that Act;\n\n(f) an international agreement to which Australia is a party and that deals with:\n\n(i) diplomatic or consular privileges and immunities; or\n\n(ii) privileges and immunities in relation to persons connected with international organisations;\n\n(g) a law of the foreign country giving effect to an agreement covered by paragraph (f).\n\n(2A) Subsection (2) does not apply in relation to foreign earnings to the extent that the person derived them from foreign service in Iraq after 31 December 2002 but before 1 May 2004.\n\n(3) If the income of a taxpayer of a year of income consists of an amount that is exempt from tax under this section (in this section called the exempt amount) and other income, the amount of tax (if any) payable in respect of the other income is calculated using the formula:\n\n![Start formula start fraction Notional gross tax over Notional gross taxable income end fraction times Other taxable income end formula](image.004.png)\n\nwhere:\n\nNotional gross tax means the number of whole dollars in the amount of income tax that would be assessed under this Act in respect of the taxpayer’s taxable income of the year of income if:\n\n(a) the exempt amount were not exempt income; and","sortOrder":1000006},{"sectionNumber":"full-source-retrieval-0008","sectionType":"document_chunk","heading":"Document excerpt 8","content":"(aa) if the exempt amount is a payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997—the exempt amount (excluding any part of that amount that represented contributions made by the taxpayer) were assessable income of the taxpayer; and\n\n(b) the taxpayer were not entitled to any rebate of tax.\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\nOther taxable income means the amount (if any) remaining after deducting from so much of the other income as is assessable income:\n\n(d) any deductions allowable to the taxpayer in relation to the year of income that relate exclusively to that assessable income; and\n\n(e) so much of any other deductions (other than apportionable deductions) allowable to the taxpayer in relation to the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income; and\n\n(f) the amount calculated using the formula in subsection (4).\n\n(4) The formula referred to in paragraph (3)(f) is:\n\n![Start formula Apportionable deductions times open bracket start fraction Other taxable income over Apportionable deductions plus Notional gross taxable income close bracket end fraction end formula](image.005.png)\n\nwhere:\n\nApportionable deductions means the number of whole dollars in the apportionable deductions allowable to the taxpayer in relation to the year of income.\n\nOther taxable income means the amount that, apart from paragraph (3)(f), would be represented by the component Other taxable income in subsection (3).\n\nNotional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer’s taxable income of the year of income if the exempt amount were not exempt income.\n\n(5) Subsection (3) applies to a taxpayer in respect of income of a year of income as if any payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997 that related to the termination of employment that was made in respect of the taxpayer during that year of income were income of the taxpayer of that year of income that is exempt from tax under this section.\n\n(6) For the purposes of this section, a period during which a person is engaged in foreign service includes any period during which the person is, in accordance with the terms and conditions of that service:\n\n(a) absent on recreation leave, other than:\n\n(i) leave wholly or partly attributable to a period of service or employment other than that foreign service;\n\n(ii) long service leave, furlough, extended leave or leave of a similar kind (however described); or\n\n(iii) leave without pay or on reduced pay; or\n\n(b) absent from work because of accident or illness.\n\n(6A) 2 or more periods in which a person has been engaged in foreign service are together taken to constitute a continuous period of foreign service until:\n\n(a) the end of the last of the 2 or more periods; or\n\n(b) a time (if any), since the start of the first of the 2 or more periods, when the person’s total period of absence exceeds 1/6 of the person’s total period of foreign service;\n\nwhichever happens sooner.\n\nExample: Kate is engaged in foreign service for 20 days, is absent for 2 days and is then engaged in foreign service for 10 days. These 2 periods of foreign service constitute a continuous period of foreign service, because the total period of absence is never more than 1/10 of the total period of foreign service.\n\nKate is then absent for 5 days before commencing a further period of foreign service. No matter how long the further period lasts, it can never constitute a continuous period of foreign service with the first 2 periods of foreign service, because on the fourth day of the second absence the total period of absence is 1/5 of the total period of foreign service.\n\n(6B) In subsection (6A):\n\ntotal period of absence, in relation to a particular time, means the number of days, in the period starting at the start of the first of the 2 or more periods and ending at that time, for which the person was not engaged in foreign service.\n\ntotal period of foreign service, in relation to a particular time, means the number of days, in the period starting at the start of the first of the 2 or more periods and ending at that time, for which the person was engaged in foreign service.\n\n(6F) Where:\n\n(a) a person has derived foreign earnings during a year of income; and\n\n(b) at the time of making an assessment in respect of income of the person of the year of income, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which those foreign earnings will be exempted from tax by this section;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\n(7) In this section:\n\nemployee includes:\n\n(a) a person employed by a government or an authority of a government or by an international organisation; or\n\n(b) a member of a disciplined force.\n\nforeign earnings means income consisting of earnings, salary, wages, commission, bonuses or allowances, or of amounts included in a person’s assessable income under Division 83A of the Income Tax Assessment Act 1997 (about employee share schemes), but does not include any payment, consideration or amount that:\n\n(a) is included in assessable income under Division 82 or Subdivision 83‑295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or\n\n(b) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or\n\n(c) is mentioned in paragraph 82‑135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or\n\n(d) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295‑200 of the Income Tax Assessment Act 1997.\n\nforeign service means service in a foreign country as the holder of an office or in the capacity of an employee.\n\nincome tax, in relation to a foreign country:\n\n(a) in all cases—does not include a municipal income tax; and\n\n(b) in the case of a federal foreign country—does not include a State income tax.\n\n23AH  Foreign branch income of Australian companies not assessable\n\nObjects\n\n(1) The objects of this section are:\n\n(a) to ensure that active foreign branch income derived by a resident company, and capital gains made by a resident company in disposing of non‑tainted assets used in deriving foreign branch income, (except income and capital gains from the operation of ships or aircraft in international traffic) are not assessable income or exempt income of the company; and\n\n(b) to include in the assessable income of a resident company that part of its income and capital gains derived through a branch in a foreign country that is comparable to the amounts that would be included in an attributable taxpayer’s assessable income for income and capital gains derived by a CFC resident in the same foreign country; and\n\n(c) to get the same outcomes where one or more partnerships or trusts are interposed between a resident company and a foreign branch; and\n\n(d) to limit the effect mentioned in paragraph (a) where there is a branch hybrid mismatch for the purposes of Division 832 of the Income Tax Assessment Act 1997.\n\nForeign branch income not assessable\n\n(2) Subject to this section, foreign income derived by a company, at a time when the company is a resident, in carrying on a business at or through a PE of the company in a listed country or unlisted country is not assessable income, and is not exempt income, of the company.\n\nForeign capital gains and losses disregarded\n\n(3) Subject to this section, a capital gain from a CGT event happening to a CGT asset is disregarded for the purposes of Part 3‑1 of the Income Tax Assessment Act 1997 if:\n\n(a) the gain is made by a company that is a resident; and\n\n(b) the company used the asset wholly or mainly for the purpose of producing foreign income in carrying on a business at or through a PE of the company in a listed country or unlisted country; and\n\n(c) the asset is not taxable Australian property.\n\n(4) Subject to this section, a capital loss from a CGT event happening to a CGT asset is disregarded for the purposes of Part 3‑1 of the Income Tax Assessment Act 1997 if:\n\n(a) the loss is made by a company that is a resident; and\n\n(b) the company used the asset wholly or mainly for the purpose of producing foreign income in carrying on a business at or through a PE of the company in a listed country or unlisted country; and\n\n(c) had the loss been a gain, it would be disregarded under subsection (3).\n\nException relating to hybrid mismatch rules\n\n(4A) Subsection (2) does not apply to foreign income derived by the company if the foreign income is branch hybrid mismatch income (see subsection (14C)).\n\nExceptions: listed country PE\n\n(5) Subsection (2) does not apply to foreign income derived by the company if:\n\n(a) the PE is in a listed country; and\n\n(b) the PE does not pass the active income test (see subsection (12)); and\n\n(c) the foreign income is both:\n\n(i) adjusted tainted income (see subsection (13)); and\n\n(ii) eligible designated concession income in relation to a listed country.\n\n(6) Subsection (3) or (4) does not apply to a capital gain or capital loss if:\n\n(a) the PE is in a listed country; and\n\n(b) for a capital gain—the gain is from a tainted asset and is eligible designated concession income in relation to a listed country; and\n\n(c) for a capital loss—the loss is from a tainted asset and would be eligible designated concession income in relation to a listed country if it were a capital gain.\n\nExceptions: unlisted country PE\n\n(7) Subsection (2) does not apply to foreign income derived by the company if:\n\n(a) the PE is in an unlisted country; and\n\n(b) the PE does not pass the active income test (see subsection (12)); and\n\n(c) the foreign income is adjusted tainted income (see subsection (13)).\n\n(8) Subsection (3) or (4) does not apply to a capital gain or capital loss if:\n\n(a) the PE is in an unlisted country; and\n\n(b) the gain or loss is from a tainted asset.\n\nIncome derived in disposing of a business\n\n(9) This section applies to foreign income derived by an entity in the course of disposing, in whole or in part, of a business carried on in a listed country or unlisted country at or through a PE of the entity in the listed country or unlisted country as if the foreign income had been derived in carrying on that business.\n\nInterposed partnerships or trusts\n\n(10) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in foreign income derived by a partnership or trustee through a PE of the partnership or trustee in a listed country or unlisted country as if that indirect interest were foreign income derived by the company through a PE of the company in that country.\n\n(11) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in a capital gain or capital loss made in relation to an asset of a partnership, or made by a trustee, in carrying on a business at or through a PE of the partnership or trustee in a listed country or unlisted country as if that indirect interest were a capital gain or capital loss made by the company through a PE of the company in that country.\n\nActive income test\n\n(12) A PE of an entity passes the active income test for a year of income if the entity would have passed the active income test in section 432 if:\n\n(a) the assumptions in subsection (14) were made; and\n\n(b) subsection 432(3) and 446(2) and paragraphs 432(1)(b) and (e) and 447(1)(b), (d) and (f) had not been enacted.\n\nAdjusted tainted income\n\n(13) For the purposes of this section, the adjusted tainted income of a PE of an entity is income or other amounts that would be adjusted tainted income of the entity for the purposes of Part X if:\n\n(a) the assumptions in subsection (14) were made; and\n\n(b) subsection 446(2) and paragraphs 447(1)(b), (d) and (f) had not been enacted.\n\nAssumptions for subsections (12) and (13)\n\n(14) The assumptions referred to in paragraphs (12)(a) and (13)(a) are:\n\n(a) except in applying paragraphs 447(1)(a), (c) and (e) and 450(6)(c), (7)(d) and (8)(b), the only income or other amounts derived by the entity were the income derived in carrying on business at or through the PE; and\n\n(b) the entity’s statutory accounting periods were the same as the entity’s years of income; and\n\n(c) in applying paragraphs 447(1)(a), (c) and (e) and 450(6)(c), (7)(d) and (8)(b):\n\n(i) the part of the entity’s operations that consists of the business carried on at or through the PE were a company (the PE company); and\n\n(ii) the remaining part of the entity’s operations were a separate company (the HQ company); and\n\n(iii) the PE company and the HQ company had carried out the transactions that they would have carried out if the PE company were engaged in the same or similar activities as the PE under the same or similar conditions as the PE and were dealing wholly independently with the HQ company; and\n\n(iv) any income derived by the HQ company were disregarded; and\n\n(d) if the entity is an AFI entity (within the meaning of subsection 326(2))—the entity were an AFI subsidiary; and\n\n(e) in applying paragraphs 447(1)(a), (c) and (e), the HQ company were an associate of the PE company.\n\n(14A) This section does not apply to foreign income, or to a capital gain or capital loss, of a company to the extent that the income, gain or loss is from:\n\n(a) the operation of ships or aircraft in international traffic at or through a PE of the company in a listed country or unlisted country; or\n\n(b) things that are ancillary to that operation.\n\n(14B) A company operates a ship or aircraft in international traffic if the company operates it for transporting passengers or goods between a place in one country and a place in another country.\n\nBranch hybrid mismatch income\n\n(14C) For the purposes of this section, if foreign income derived by the company is an amount that, for the purposes of Division 832 of the Income Tax Assessment Act 1997, is a payment:\n\n(a) received by the company; and\n\n(b) that, apart from subsection (4A) of this section, would give rise to a branch hybrid mismatch;\n\nthen so much of the foreign income as does not exceed the amount of the branch hybrid mismatch is branch hybrid mismatch income.\n\n(14D) For the purposes of this section, PE, when it is used in Division 832 of the Income Tax Assessment Act 1997, does not have the meaning it has in that Act but instead has the same meaning as in this section.\n\nDefinitions\n\n(15) In this section:\n\ncompany does not include a company in the capacity of a trustee.\n\ndouble tax agreement has the same meaning as in Part X.\n\neligible designated concession income has the same meaning as in Part X.\n\nforeign income includes an amount that:\n\n(a) apart from this section, would be included in assessable income under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (CGT); and\n\n(b) is derived from sources in a listed country or unlisted country.\n\nlisted country has the same meaning as in Part X.\n\npermanent establishment, or PE, in relation to a listed country or unlisted country:\n\n(a) if there is a double tax agreement in relation to that country—has the same meaning as in the double tax agreement; or\n\n(b) in any other case—has the meaning given by subsection 6(1).\n\nstatutory accounting period has the same meaning as in Part X.\n\ntainted asset has the same meaning as in Part X.\n\nunlisted country has the same meaning as in Part X.\n\n23AI  Amounts paid out of attributed income not assessable\n\n(1) Where:\n\n(a) either:\n\n(i) an attribution account payment of a kind referred to in paragraph 365(1)(a), (b), (c) or (e) is made to a taxpayer (other than a partnership or taxpayer in the capacity of trustee of a trust); or\n\n(ii) an attribution account payment of a kind referred to in paragraph 365(1)(d) is made to a taxpayer; and\n\n(b) on the making of the payment, an attribution debit arises, for the entity making the payment, in relation to the taxpayer;\n\nthe following provisions have effect:\n\n(c) if the payment is of a kind referred to in paragraph 365(1)(a)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n(d) if the payment is of a kind referred to in paragraph 365(1)(b) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 92 in respect of an individual interest in the net income of the partnership of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n(e) if the payment is of a kind referred to in paragraph 365(1)(c) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 97, 98A or 100 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not assessable income and is not exempt income, to the extent of the debit;\n\n(ea) if the payment is of a kind referred to in paragraph 365(1)(c) and, apart from this section, an amount would be assessable to the trustee of the trust referred to in that paragraph under section 98 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not so assessable to the extent of the debit;\n\n(f) if the payment is of a kind referred to in paragraph 365(1)(d)—the payment is not, to the extent of the debit, assessable to the taxpayer as mentioned in that paragraph;","sortOrder":1000007},{"sectionNumber":"full-source-retrieval-0009","sectionType":"document_chunk","heading":"Document excerpt 9","content":"(g) if the payment is of a kind referred to in paragraph 365(1)(e) and, apart from this section, an amount would be included in the taxpayer’s assessable income, of the year of income referred to in that paragraph, under section 99B in respect of the trust property referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit.\n\n(2) This section is to be disregarded for the purposes of applying any other provision of this Act to determine allowable deductions.\n\n(3) In this section:\n\nattribution account payment has the same meaning as in Part X.\n\nattribution debit has the same meaning as in Part X.\n\ncompany has the same meaning as in Part X.\n\ntrust has the same meaning as in Part X, but does not include a trust covered by subsection 371(7).\n\n23AK  Amounts paid out of attributed foreign investment fund income not assessable\n\nWhen this section applies\n\n(1) This section applies if:\n\n(a) either:\n\n(i) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(a), (b), (c), (d), (f), (g) or (h) is made to a taxpayer (other than a partnership or taxpayer in the capacity of trustee of a trust); or\n\n(ii) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(e) is made to a taxpayer; and\n\n(b) on the making of the payment, a post FIF abolition debit arises, for the FIF attribution account entity making the payment, in relation to the taxpayer.\n\nPost FIF abolition debit arises\n\n(2) A post FIF abolition debit arises for a FIF attribution account entity (the eligible entity) in relation to a taxpayer if:\n\n(a) the eligible entity makes a FIF attribution account payment to the taxpayer or to a FIF attribution account entity; and\n\n(b) immediately before the eligible entity makes the FIF attribution account payment, there is a post FIF abolition surplus for the eligible entity in relation to the taxpayer.\n\nAmount of post FIF abolition debit\n\n(3) The amount of the post FIF abolition debit is the lesser of:\n\n(a) the post FIF abolition surplus; and\n\n(b) whichever of the following is applicable:\n\n(i) if the attribution account payment is made to the taxpayer—the FIF attribution account payment;\n\n(ii) in any other case—the taxpayer’s FIF attribution account percentage (for the FIF attribution account entity to which the payment is made) of the FIF attribution account payment;\n\nreduced by any attribution debit that arises under section 372 for the entity in relation to the taxpayer as a result of the making of the payment.\n\nWhen the post FIF abolition debit arises\n\n(4) The post FIF abolition debit arises when the FIF attribution account payment is made.\n\nWhen a post FIF abolition surplus exists\n\n(5) A post FIF abolition surplus for a FIF attribution account entity in relation to a taxpayer exists at a particular time (the relevant time) if the sum of:\n\n(a) the entity’s total FIF attribution credits (within the meaning of former section 605) that arose before the commencement of Schedule 1 to the Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010; and\n\n(b) the entity’s total post FIF abolition credits arising before the relevant time in relation to the taxpayer;\n\nexceeds the sum of:\n\n(c) the entity’s total FIF attribution debits (within the meaning of former section 606) that arose before that commencement in relation to the taxpayer; and\n\n(d) the entity’s total post FIF abolition debits arising before the relevant time in relation to the taxpayer.\n\nPost FIF abolition credit arises\n\n(6) A post FIF abolition credit arises for a FIF attribution account entity (the eligible entity) in relation to a taxpayer if a FIF attribution account payment that requires a post FIF abolition debit for another entity in relation to the taxpayer is made to the eligible entity.\n\nAmount of post FIF abolition credit\n\n(7) The amount of the post FIF abolition credit is equal to the amount of the post FIF abolition debit for the other entity.\n\nWhen the post FIF abolition credit arises\n\n(8) The post FIF abolition credit arises when the FIF attribution account payment referred to in subsection (6) is made.\n\nEffect of this section applying\n\n(9) If this section applies, the following provisions have effect:\n\n(a) if the payment is of a kind referred to in former paragraph 603(1)(a) or (b)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n(b) if the payment is of a kind referred to in former paragraph 603(1)(c) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 92 in respect of an individual interest in the net income of the partnership of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n(c) if the payment is of a kind referred to in former paragraph 603(1)(d) and, apart from this section, an amount would be included in the taxpayer’s assessable income under section 97, 98A or 100 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n(d) if the payment is of a kind referred to in former paragraph 603(1)(d) and, apart from this section, an amount would be assessable to the trustee of the trust referred to in that paragraph under section 98 in respect of a share of the net income of the trust of the year of income referred to in that paragraph—that amount is not so assessable to the extent of the debit;\n\n(e) if the payment is of a kind referred to in former paragraph 603(1)(e)—the payment is not, to the extent of the debit, assessable to the taxpayer as mentioned in that paragraph;\n\n(f) if the payment is of a kind referred to in former paragraph 603(1)(f) and, apart from this section, an amount would be included in the taxpayer’s assessable income, of the year of income referred to in that paragraph, under section 99B in respect of the trust property referred to in that paragraph—that amount is not assessable income, and is not exempt income, to the extent of the debit;\n\n(g) if the payment is of a kind referred to in former paragraph 603(1)(g)—the payment is not assessable income, and is not exempt income, to the extent of the debit;\n\n(h) if the payment is of a kind referred to in former paragraph 603(1)(h)—the payment is not assessable income, and is not exempt income, to the extent of the debit.\n\n(10) This section is to be disregarded for the purposes of applying any other provision of this Act to determine allowable deductions.\n\n(11) In this section:\n\nFIF attribution account entity has the same meaning as in former Part XI.\n\nFIF attribution account payment has the same meaning as in former Part XI.\n\nFIF attribution account percentage has the same meaning as in former Part XI.\n\ntrust has the same meaning as in former Part XI, but does not include a trust covered by former subsection 605(11).\n\n23B  Reduction of disposal consideration if FIF attributed income not distributed\n\n(1) If:\n\n(a) it is necessary, for the purposes of applying a provision of this Act in the assessment of a taxpayer for a year of income, to take into account:\n\n(i) the amount of consideration received, entitled to be received or taken to have been received, by the taxpayer in respect of the disposal of an asset; or\n\n(ii) the capital proceeds from a CGT event happening in relation to a CGT asset;\n\nbeing an asset that is an interest in a FIF attribution account entity; and\n\n(b) immediately before the disposal or CGT event takes place there is a post FIF abolition surplus for the FIF attribution account entity in relation to the taxpayer;\n\nthen, for the purposes of this Act:\n\n(c) the consideration or capital proceeds that, apart from this section, would be taken into account under the provision referred to in paragraph (a) in respect of the disposal or CGT event is taken to be reduced by so much of the amount of the post FIF abolition surplus as does not exceed the consideration or capital proceeds; and\n\n(d) a post FIF abolition debit arises at the time of the disposal or the CGT event under this paragraph, in relation to the taxpayer, for the FIF attribution account entity; and\n\n(e) the amount of the post FIF abolition debit is equal to so much of the surplus as is taken into account under paragraph (c).\n\n(2) For the purposes of paragraph (1)(c), if the disposal of the asset or the CGT event causes the taxpayer’s FIF attribution account percentage for the FIF attribution account entity to be reduced by a proportion, then only that proportion of the post FIF abolition surplus for the entity is to be taken into account under that paragraph.\n\n(3) In this section:\n\nFIF attribution account entity has the same meaning as in former Part XI.\n\nFIF attribution account percentage has the same meaning as in former Part XI.\n\n23G  Exemption of interest received by credit unions\n\n(1) In this section:\n\ncredit union means a company in relation to which the following conditions are satisfied:\n\n(a) the company is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959;\n\n(b) the company has a consent under section 66 of that Act that allows it to assume or use the expression “credit union” or “credit society”, or another expression (whether or not in English) that is of like import to either of those expressions.\n\n(2) Income derived during a year of income by a credit union that is an approved credit union in relation to that year of income, being interest paid to the credit union by members of the credit union not being companies in respect of loans made to those members, is exempt from income tax.\n\n(2A) Subsection (2) does not apply to a credit union in relation to a year of income if:\n\n(a) the credit union is a recognised medium credit union in relation to the year of income; or\n\n(b) the credit union is a recognised large credit union in relation to the year of income.\n\n(3) For the purposes of this section, a credit union is an approved credit union in relation to a year of income if, and only if, the Commissioner is satisfied that:\n\n(a) during that year of income the credit union did not enter into any transactions of a kind not ordinarily entered into by a company of a kind referred to in paragraph (a) of the definition of credit union in subsection (1); and\n\n(b) by comparison with the profits of other credit unions for that year of income and the amounts transferred by those credit unions out of those profits to reserves, and after making due allowance for differences in the numbers of transactions entered into by other credit unions and the first‑mentioned credit union and the amounts to which the respective transactions related, the profit of the first‑mentioned credit union for that year of income was not excessive and the first‑mentioned credit union did not transfer an unreasonable part of that profit to a reserve.\n\n(4) In determining for the purposes of paragraph (3)(a) whether any transactions entered into by a credit union during a year of income were transactions of a kind referred to in that paragraph, the Commissioner may have regard to:\n\n(a) the circumstances in which, and the terms and conditions upon which, during that year of income:\n\n(i) moneys were lent to, invested with, or otherwise obtained by, the credit union;\n\n(ii) moneys were lent or otherwise made available by the credit union to its members or to other persons; and\n\n(iii) moneys were invested by the credit union;\n\n(b) the nature of the connexion (if any) between:\n\n(i) the credit union or any of its members and any of the persons by whom moneys were lent to, invested with, or otherwise made available to, the credit union during that year of income;\n\n(ii) the credit union or any of its members and any of the persons who owed moneys to the credit union at any time during that year of income; or\n\n(iii) any of the persons by whom moneys were lent to, invested with, or otherwise made available to, the credit union during that year of income and any of the persons who owed moneys to the credit union at any time during that year of income; and\n\n(c) any other relevant matters.\n\n23K  Substitution of certain securities\n\n(1) In this section:\n\ncentral borrowing authority means:\n\n(a) the New South Wales Treasury Corporation;\n\n(b) the Victorian Public Authorities Finance Agency;\n\n(c) the Victoria Transport Borrowing Agency;\n\n(d) the Queensland Government Development Authority;\n\n(e) the Treasurer of the State of Western Australia;\n\n(f) the South Australian Government Financing Authority;\n\n(g) the Local Government Finance Authority of South Australia;\n\n(h) any other public authority of a State, being a public authority that is empowered to issue securities in the manner referred to in paragraph (2)(a).\n\npublic authority includes a Minister of the Crown in right of a State, a municipal corporation and any other local government body.\n\nsecurity means stock, a bond or debenture, or any other document evidencing the indebtedness of a person, whether or not the debt is secured.\n\n(2) For the purposes of this section, a person shall be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer if and only if:\n\n(a) the substituted security was issued by the person to the taxpayer in exchange for the surrender or transfer of, or otherwise in replacement or substitution for, the original security; and\n\n(b) the terms and conditions provided for by the substituted security were identical in all material respects to those provided for by the original security.\n\n(3) Where:\n\n(a) but for this subsection, a person would be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer; and\n\n(b) either or both of the following conditions is or are satisfied:\n\n(i) an amount was payable by the taxpayer by way of consideration for the issue of the substituted security; or\n\n(ii) an amount was payable to the taxpayer by way of consideration for the surrender, transfer, replacement or substitution of the original security;\n\nthe person shall not be taken for the purposes of this section to have issued the substituted security in substitution for the original security.\n\n(4) Where:\n\n(a) under terms and conditions provided for by a security, the day on which interest is payable in respect of a period is different from that on which interest is payable in respect of the same period under another security; and\n\n(b) the terms and conditions provided for by the securities are otherwise identical in all material respects;\n\nthe following provisions have effect:\n\n(c) if the days on which the interest is payable are separated by an interval not exceeding 31 days—the terms and conditions provided for by the 2 securities shall, for the purposes of paragraph (2)(b), be taken to be identical in all material respects; and\n\n(d) in any other case—the terms and conditions provided for by the 2 securities shall, for the purposes of paragraph (2)(b), be taken not to be identical in all material respects.\n\n(5) Where, on or after 8 August 1984, a central borrowing authority issued or issues a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer that was issued by a public authority other than the central borrowing authority:\n\n(a) the substituted security shall, for the purposes of this Act, be deemed to be a continuation of the original security on the terms and conditions provided for by the substituted security; and\n\n(b) no amount shall, in respect of the issue of the substituted security or the surrender, transfer, replacement or substitution of the original security, be included in, allowable as a deduction from or taken into account in ascertaining any amount included in or allowable as a deduction from, the assessable income of any taxpayer in respect of any year of income.\n\n23L  Certain benefits in the nature of income not assessable\n\n(1) Income derived by a taxpayer by way of the provision of a fringe benefit is not assessable income and is not exempt income of the taxpayer.\n\n(1A) Income derived by a taxpayer by way of the provision of a benefit (other than a benefit to which section 15‑70 of the Income Tax Assessment Act 1997 applies) that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit is exempt income of the taxpayer.\n\n(2) Where:\n\n(a) in a year of income, a taxpayer derives income consisting of one or more non‑cash business benefits (within the meaning of section 21A); and\n\n(b) the total amount that is applicable under section 21A in respect of those benefits does not exceed $300;\n\nthe income is exempt income.\n\nDivision 1AB—Certain State/Territory bodies exempt from income tax\n\nSubdivision A—Exemption for certain State/Territory bodies\n\n24AK  Key principle\n\nA body that is a State/Territory body (an STB) is exempt from income tax under this Division unless it is an excluded STB. There are 5 different ways in which a body can be an STB.\n\n24AL  Diagram—guide to work out if body is exempt under this Division\n\nThe following diagram is a guide to help work out whether a body is exempt from income tax under this Division:\n\n![Diagram showing how to work out if a State/Territory body is exempt from income tax under this Division](image.006.png)\n\n24AM  Certain STBs exempt from tax","sortOrder":1000008},{"sectionNumber":"full-source-retrieval-0010","sectionType":"document_chunk","heading":"Document excerpt 10","content":"The income of a State/Territory body (an STB) is exempt from income tax unless section 24AN applies to the STB.\n\n24AN  Certain STBs not exempt from tax under this Division\n\nIncome derived by an STB is not exempt from income tax under this Division if, at the time that it is derived, the STB is an excluded STB.\n\nNotes: 1. For the definition of excluded STB see section 24AT.\n\n2. Even though an excluded STB is not exempt from income tax under this Division, it may still be exempt under another provision of this Act.\n\n24AO  First way in which a body can be an STB\n\nA body is an STB if:\n\n(a) it is a company limited solely by shares; and\n\n(b) all the shares in it are beneficially owned by one or more government entities.\n\nNote: For the definition of government entity see section 24AT. Note that an excluded STB is not a government entity.\n\n24AP  Second way in which a body can be an STB\n\nA body is an STB if:\n\n(a) it is established by State or Territory legislation; and\n\n(b) it is not a company limited solely by shares; and\n\n(c) the legislation provides that it must distribute all of its profits (if any) only to one or more government entities; and\n\n(d) if the legislation makes provision as to the way its net assets may be distributed if it is dissolved or wound up—the provision is that, if it is dissolved, all of its net assets (if any) must be distributed only to one or more government entities.\n\n24AQ  Third way in which a body can be an STB\n\nA body is an STB if:\n\n(a) it is established by State or Territory legislation; and\n\n(b) it is not a company limited solely by shares; and\n\n(c) the legislation gives the power to appoint or dismiss its governing person or body only to one or more government entities.\n\n24AR  Fourth way in which a body can be an STB\n\nA body is an STB if:\n\n(a) it is established by State or Territory legislation; and\n\n(b) it is not a company limited solely by shares; and\n\n(c) the legislation gives the power to direct its governing person or body as to the conduct of its affairs only to one or more government entities.\n\n24AS  Fifth way in which a body can be an STB\n\nA body is an STB if:\n\n(a) it is not a company limited solely by shares; and\n\n(b) it is not established by State or Territory legislation; and\n\n(c) all the legal and beneficial interests (including, but not limited to, interests as to income, profits, dividends, capital and distributions of capital) in it are held only by one or more government entities; and\n\n(d) all the rights or powers (if any) to vote, appoint or dismiss its governing person or body and direct its governing person or body as to the conduct of its affairs are held only by one or more government entities.\n\n24AT  What do excluded STB, government entity and Territory mean?\n\nIn this Division:\n\nexcluded STB means an STB that:\n\n(a) at a particular time, is prescribed as an excluded STB in relation to that time; or\n\n(b) is a municipal corporation or other local governing body (within the meaning of section 50‑25 of the Income Tax Assessment Act 1997); or\n\n(c) is a public educational institution to which any of paragraphs 50‑55(1)(a) to (c) of the Income Tax Assessment Act 1997 applies; or\n\n(d) is a public hospital to which any of paragraphs 50‑55(1)(a) to (c) of the Income Tax Assessment Act 1997 applies; or\n\n(e) is a superannuation fund.\n\ngovernment entity means:\n\n(a) a State; or\n\n(b) a Territory; or\n\n(ba) a municipal corporation or other local governing body (within the meaning of section 50‑25 of the Income Tax Assessment Act 1997); or\n\nNote: The effect of this paragraph is that some bodies owned or controlled by a municipal corporation or other local governing body may be an STB even though the municipal corporation or other local governing body is an excluded STB.\n\n(c) another STB that is not an excluded STB.\n\nTerritory means the Northern Territory or the Australian Capital Territory.\n\n24AU  Governor, Minister and Department Head taken to be a government entity\n\nFor the purposes of sections 24AQ, 24AR and 24AS, if the power to appoint, dismiss or direct the governing body is given to, or is held by:\n\n(a) a Governor of a State; or\n\n(b) a Minister of the Crown of a State; or\n\n(c) a Minister of a Territory; or\n\n(d) the head of a Department of a State or a Territory; or\n\n(e) any combination of paragraphs (a) to (d);\n\nthe power is taken to be given to, or held by, a government entity.\n\n24AV  Regulations prescribing excluded STBs\n\nStates and Territories to consent to STBs being excluded STBs\n\n(1) The regulations may prescribe that an STB is an excluded STB only if all States and Territories consent to the STB being so prescribed.\n\nRetrospective application of regulations prescribing excluded STBs\n\n(2) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation prescribing an STB as an excluded STB.\n\nSubdivision B—Body ceasing to be an STB\n\n24AW  Body ceasing to be an STB\n\nIf a body ceases to be an STB in a year of income (the cessation year), this Act applies to the body as if:\n\n(a) the cessation were a change which requires a company to calculate its taxable income and tax loss under Subdivision 165‑B of the Income Tax Assessment Act 1997; and\n\n(b) the references in that Subdivision to “company” were references to “body”; and\n\n(c) if the body is not a company—there were no further requirement for the body to calculate its taxable income for the year of income under that Subdivision; and\n\n(d) the amount of any notional loss of the body calculated under section 165‑50 of that Act for the period before the cessation were nil; and\n\n(e) the body’s deductions for tax losses were attributed under section 165‑55 of that Act to the period before the cessation and not to any other period; and\n\n(f) those deductions were taken not to be full year deductions under section 165‑55 of that Act; and\n\n(g) the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 were modified, for the purposes of that Subdivision, in accordance with section 24AX of this Act.\n\n24AX  Special provisions relating to capital gains and losses\n\nPeriod after cessation date—prior net capital losses to be disregarded\n\n(1) In determining if an amount is to be included in the assessable income of the body under Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 for a period that occurred after the cessation, any net capital losses incurred before the cessation are to be disregarded.\n\nSpecial cases where net capital gain before cessation and net capital loss after cessation\n\n(2) Subsections (3) and (4) apply if:\n\n(a) a net capital gain accrued in the period before the cessation; and\n\n(b) if the period from the cessation until the end of the year of income were treated as a year of income—a net capital loss would have accrued in that period.\n\nSpecial case 1—gain exceeds loss\n\n(3) If this subsection applies and the net capital gain exceeds the net capital loss:\n\n(a) the amount that is to be included in the assessable income of the body for the period that occurred before the cessation as a result of the net capital gain accruing to the body is taken to be the amount by which the net capital gain exceeds the net capital loss; and\n\n(b) no net capital gain is taken to have accrued, and no net capital loss is taken to have been incurred, in any period in the cessation year after the cessation; and\n\n(c) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, no net capital loss is taken to have been incurred by the body in the cessation year.\n\nSpecial case 2—loss equal to or exceeds gain\n\n(4) If this subsection applies and the net capital gain does not exceed the net capital loss:\n\n(a) no amount is to be included in the assessable income of the body for any period in the cessation year as a result of a net capital gain accruing to the body; and\n\n(b) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, the net capital loss that the body incurred in the cessation year is taken to be the amount (if any) by which the net capital loss exceeds the net capital gain.\n\n24AY  Losses from STB years not carried forward\n\n(1) If a body is an STB on the last day of a year of income in which it incurs a tax loss, the tax loss is not allowable as a deduction from the body’s assessable income of a later year of income unless the body is an STB on the first day of that later year of income.\n\nNote: This section prevents losses from years prior to the cessation year from being carried forward to years after the cessation year.\n\n(2) This section only applies to a tax loss incurred in the 1995‑96 year of income or a later year of income.\n\n24AYA  Effect of unfunded superannuation liabilities\n\n(1) This section applies to a deduction under section 290‑60 of the Income Tax Assessment Act 1997 in respect of a contribution made in relation to a person who was an employee of a prescribed excluded STB when it ceased to be an STB.\n\n(2) A deduction to which this section applies is not allowable to the body for any year of income unless the requirements of subsections (3) and (4) are complied with.\n\n(3) For the deduction to be allowable, the body must obtain a certificate by an authorised actuary stating the actuarial value, as at the time the body ceases to be an STB, of liabilities of the STB to provide superannuation benefits for, or for SIS dependants of, employees of the body, where the liabilities:\n\n(a) accrued after 30 June 1995 and before the time when the body ceased to be an STB; and\n\n(b) were, according to actuarial principles, unfunded at that time.\n\n(4) The certificate must be in a form approved in writing by the Commissioner. The body must obtain the certificate:\n\n(a) before the date of lodgment of its return of income of the year of income in which the body ceased to be an STB; or\n\n(b) within such further time as the Commissioner allows.\n\n(5) If the body obtains the certificate, a deduction to which this section applies is nevertheless not allowable for a year of income if the sum of all deductions to which this section applies for the year of income is less than or equal to the unfunded liability limit (see subsection (6)) for the year of income.\n\n(6) If the sum is greater than that limit, so much of the deduction as is worked out using the following formula is not allowable:\n\n![Start formula start fraction Amount of deduction over Sum of all deductions to which this section applies for the year of income end fraction times Unfunded liability limit for the year of income end formula](image.007.png)\n\nwhere:\n\nUnfunded liability limit for a year of income is:\n\n(a) if the year of income is the one in which the body ceases to be an STB—the actuarial value of the liabilities set out in the actuary’s certificate; or\n\n(b) in any other case—that actuarial value as reduced by the total amount of deductions to which this section applies that, because of subsection (5), have not been allowable to the body for all previous years of income.\n\n(7) Expressions used in this section that are also used in section 290‑60 of the Income Tax Assessment Act 1997 have the same respective meanings as in that section.\n\n24AZ  Meaning of period and prescribed excluded STB\n\nIn this Subdivision:\n\nperiod means any of the periods into which the cessation year is divided under section 165‑45 of the Income Tax Assessment Act 1997.\n\nprescribed excluded STB means an STB that is an excluded STB as a result of regulations made for the purposes of paragraph (a) of the definition of excluded STB in section 24AT.\n\nDivision 2—Income\n\nSubdivision A—Assessable income generally\n\n25A  Assessable income to include certain profits\n\n(1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.\n\n(1B) This section does not apply to a profit arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.\n\nNote: Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 deals with such a profit.\n\n(1) The assessable income of a taxpayer shall include profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit‑making by sale, or from the carrying on or carrying out of any profit‑making undertaking or scheme.\n\n(2) Subject to subsection (3), where:\n\n(a) after 23 August 1983, a taxpayer sold or sells property (in this subsection referred to as the relevant property) being:\n\n(i) shares in a private company;\n\n(ii) an interest in a partnership; or\n\n(iii) an interest in a private trust estate; and\n\n(b) at the time of sale of the relevant property:\n\n(i) the company, partnership or trustee of the trust estate, as the case may be, held property that:\n\n(A) was acquired for the purpose of profit‑making by sale by the company, partnership or trustee, as the case may be; and\n\n(B) was not excepted property of the company, partnership or trust estate, as the case may be; or\n\n(ii) the company, partnership or trustee of the trust estate, as the case may be, held an interest, through one or more interposed companies, partnerships or trusts, in property that:\n\n(A) was acquired for the purpose of profit‑making by sale by another private company, partnership or trustee of a private trust estate; and\n\n(B) was not excepted property of that other company, partnership or trust estate, as the case may be;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any application of any other provision of this section), be deemed to have acquired the relevant property for the purpose of profit‑making by sale.\n\n(3) Subsection (2) does not apply in relation to the sale by a taxpayer of property where the Commissioner, having regard to:\n\n(a) the extent to which the assets of the company, partnership or trust estate, as the case may be, referred to in paragraph (2)(a), immediately before the time of sale, consisted of the property referred to in subparagraph (2)(b)(i) or the interest referred to in subparagraph (2)(b)(ii), as the case may be;\n\n(b) the nature and extent, immediately before the time of sale, of the taxpayer’s control of the company, partnership or trust estate, as the case may be, referred to in paragraph (2)(a) including, in the case of a company, the nature and extent of the taxpayer’s shareholding in the company;\n\n(c) the circumstances surrounding any other sale, whether or not by the taxpayer, of shares in the company, or an interest in the partnership or trust estate, as the case may be, referred to in paragraph (2)(a), being a sale at a time when the property of that company, partnership or trust estate included the property referred to in subparagraph (2)(b)(i) or the interest referred to in subparagraph (2)(b)(ii), as the case may be; and\n\n(d) such other matters as the Commissioner considers relevant;\n\nconsiders that it is not appropriate that that subsection should apply in relation to the sale of the property by the taxpayer.\n\n(4) Where:\n\n(a) a taxpayer acquired or acquires property, being shares in a company, for the purpose of profit‑making by sale; and\n\n(b) after 23 August 1983:\n\n(i) the company issued or issues other shares (in this subsection referred to as the bonus shares) to the taxpayer in satisfaction of a dividend (including an amount debited against an amount standing to the credit of a share premium account) payable to the taxpayer in respect of the shares referred to in paragraph (a); or\n\n(ii) by reason that the taxpayer was the owner of the shares referred to in paragraph (a), the company issued or issues to the taxpayer rights to acquire other shares in the company;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the bonus shares or the rights, as the case may be, for the purpose of profit‑making by sale.\n\n(5) Where, after 23 August 1983, property was or is acquired by a taxpayer as a result of a transfer in the prescribed manner by a person who acquired the property for the purpose of profit‑making by sale, the taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the property for the purpose of profit‑making by sale.\n\n(6) Where:\n\n(a) after 23 August 1983, a taxpayer sold or sells property; and\n\n(b) the property sold was:\n\n(i) an interest in property, being property acquired by the taxpayer for the purpose of profit‑making by sale; or\n\n(ii) property, or an interest in property, in which was merged an interest in property, being an interest acquired by the taxpayer for the purpose of profit‑making by sale;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any application of any other provision of this section), be deemed to have acquired the property sold for the purpose of profit‑making by sale.\n\n(7) For the purposes of subsection (2), where a company, partnership or trustee of a trust estate holds or held property (in this subsection referred to as the underlying property) consisting of:\n\n(a) an interest in property, being property acquired by the company, partnership or trustee for the purpose of profit‑making by sale; or\n\n(b) property, or an interest in property, in which was merged an interest in property, being an interest acquired by the company, partnership or trustee for the purpose of profit‑making by sale;","sortOrder":1000009},{"sectionNumber":"full-source-retrieval-0011","sectionType":"document_chunk","heading":"Document excerpt 11","content":"the company, partnership or trustee, as the case may be, shall be deemed to have acquired the underlying property for the purpose of profit‑making by sale.\n\n(8) Where:\n\n(a) property (in this subsection referred to as the acquired property) was or is acquired for the purpose of profit‑making by sale; and\n\n(b) after 23 August 1983, property (in this subsection referred to as the transferred property) being:\n\n(i) an interest in the acquired property; or\n\n(ii) property, or an interest in property, in which was merged an interest in the acquired property;\n\nwas or is transferred to a taxpayer in the prescribed manner;\n\nthe taxpayer shall, for the purposes of the application of this Act (including any other application of this subsection and any application of any other provision of this section), be deemed to have acquired the transferred property for the purpose of profit‑making by sale.\n\n(9) Where a taxpayer sold or sells property that, by virtue of any of the preceding provisions of this section, is deemed to have been acquired by the taxpayer for the purpose of profit‑making by sale, so much (if any) of the proceeds of sale as, in the opinion of the Commissioner, is appropriate shall, for the purposes of this Act, be deemed to be profit arising from the sale by the taxpayer of the property.\n\n(10) For the purposes of the application of subsection (9) in relation to the sale of property (in this subsection referred to as the relevant property) by a taxpayer:\n\n(a) if:\n\n(i) the relevant property is deemed by subsection (2) to have been acquired by the taxpayer for the purpose of profit‑making by sale;\n\n(ii) the property (in this paragraph referred to as the underlying property) to which sub‑subparagraph (2)(b)(i)(A) or (2)(b)(ii)(A), as the case may be, applies was actually acquired for the purpose of profit‑making by sale by the company, partnership or trustee referred to in that sub‑subparagraph (which company, partnership or trustee is in this paragraph referred to as the underlying owner); and\n\n(iii) the relevant property was not transferred to the taxpayer in the prescribed manner;\n\nthe Commissioner shall have regard to the extent to which, in the Commissioner’s opinion, the proceeds of sale of the relevant property are attributable to the amount of any increase in the value of the underlying property during the period (in this paragraph referred to as the relevant period) when the underlying property was held by the underlying owner and the relevant property was held by the taxpayer reduced by the amount of any capital expenditure incurred by the underlying owner in respect of the underlying property during the relevant period (not including expenditure in respect of which a deduction has been allowed, or is allowable, to the underlying owner);\n\n(b) if the relevant property is deemed by subsection (5) to have been acquired by the taxpayer for the purpose of profit‑making by sale and the relevant property was actually acquired for the purpose of profit‑making by sale by the person (in this paragraph referred to as the transferor) who transferred the relevant property to the taxpayer in the prescribed manner—the Commissioner shall have regard to the extent to which the amount (if any) that would have been included in the assessable income of the transferor if the transferor had sold the relevant property at the time when it was sold by the taxpayer for an amount of consideration equal to the amount of the consideration received or receivable by the taxpayer in respect of the sale of the relevant property by the taxpayer exceeds the sum of:\n\n(i) any expenditure incurred by the taxpayer in respect of the relevant property, not including:\n\n(A) any consideration given by the taxpayer in respect of the transfer of the relevant property to the taxpayer; or\n\n(B) expenditure to which subparagraph (ii) applies;\n\n(ii) where the taxpayer incurred expenditure of a capital nature in respect of the relevant property otherwise than:\n\n(A) in acquiring property for the purpose of profit‑making by sale; or\n\n(B) as part of a profit‑making undertaking or scheme;\n\nan amount equal to so much of the consideration received or receivable by the taxpayer in respect of the sale of the relevant property by the taxpayer as exceeds the amount that, in the opinion of the Commissioner, would have been the consideration received or receivable by the taxpayer if the taxpayer had not incurred that capital expenditure; and\n\n(iii) the amount of any profit included in the assessable income of the transferor in respect of the transfer of the relevant property to the taxpayer;\n\n(c) if the relevant property is deemed to have been acquired by the taxpayer by virtue of the application of this section (either directly or indirectly) in relation to property (in this paragraph referred to as the related property) that was actually acquired by the taxpayer or by another person or other persons for the purpose of profit‑making by sale—the Commissioner shall have regard to the extent to which the relevant property consists of, or is attributable to, the related property;\n\n(d) if the relevant property consists of rights to acquire shares in a company, being rights that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the relevant property shall be deemed to have been acquired by the taxpayer at no cost; and\n\n(e) if the relevant property consists of bonus shares that the taxpayer is deemed by subsection (4) to have acquired for the purpose of profit‑making by sale—the cost to the taxpayer of the relevant property shall be ascertained in accordance with section 6BA.\n\n(11) For the purposes of this section, property shall be taken to have been transferred to a person (in this subsection referred to as the transferee) in the prescribed manner if:\n\n(a) the following conditions are satisfied:\n\n(i) the property is transferred by way of gift or for consideration the amount or value of which is less than the amount that, in the opinion of the Commissioner, is the value of the property immediately before the time of transfer;\n\n(ii) the property is transferred otherwise than as a result of:\n\n(A) a will, a codicil or an order of a court that varied or modified the provisions of a will or a codicil; or\n\n(B) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate; and\n\n(iii) the Commissioner is satisfied that the transferee and the person who transferred the property were not dealing with each other at arm’s length in relation to the transfer of the property; or\n\n(b) the property:\n\n(i) is transferred by way of a distribution of property of a private company or private trust estate made (whether in the course of the winding up of the company or trust estate or otherwise) to the transferee in the transferee’s capacity as a shareholder in the company or a beneficiary of the trust estate, as the case may be; and\n\n(ii) is not excepted property of the company or trust estate, as the case may be.\n\n(12) In this section:\n\n(a) a reference to excepted property of a company, partnership or trust estate is a reference to:\n\n(i) trading stock of the company, partnership or trustee; or\n\n(ii) property being plant within the meaning of section 45‑40 of the Income Tax Assessment Act 1997 purchased for use by the company, partnership or trustee of the trust estate for the purpose of producing assessable income;\n\n(b) a reference to a private company is a reference to a company other than a company the shares in which are listed for quotation in the official list of a stock exchange in Australia or elsewhere;\n\n(c) a reference to a private trust estate is a reference to a trust estate other than a unit trust the units in which are listed for quotation in the official list of a stock exchange in Australia or elsewhere or are ordinarily available for subscription or purchase by the public; and\n\n(d) a reference to property generally or to a particular kind of property includes a reference to an estate or interest in property or in that kind of property, as the case may be.\n\n26AB  Assessable income—premium for lease\n\n(1A) For the purposes of assessments for the 1997‑98 year of income and later years of income, this section applies only in relation to assignments of leases granted before 20 September 1985.\n\nNote: The Income Tax Assessment Act 1997 does not contain a rewritten version of this section.\n\nFor the 1998‑99 year of income and later years of income, Parts 3‑1 and 3‑3 (about CGT) deal with the income tax treatment of premiums for:\n\n- granting leases; and\n- assigning leases granted on or after 20 September 1985.\n\nFor the 1997‑98 year of income, former Part IIIA of this Act (about CGT) dealt with the income tax treatment of such premiums.\n\n(1) In this section, premium means a consideration payable in one amount, or each amount of a consideration payable in more than one amount, where the consideration is:\n\n(a) in the nature of a premium, fine or foregift payable for or in connexion with the grant or assignment of a lease; or\n\n(b) for or in connexion with an assent to the grant or assignment of a lease;\n\nbut does not include an amount in respect of goodwill or a licence.\n\n(2) Where, in the year of income, a taxpayer receives a premium that relates to the grant or assignment of a lease of property that was not, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, intended by the grantee or assignee to be used by the grantee or the assignee or some other person wholly or partly for the purpose of gaining or producing assessable income, the assessable income of the taxpayer shall include the premium.\n\n(3) Where, in the year of income, a taxpayer receives a premium that relates to the grant or assignment of a lease of property that was, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, intended by the grantee or assignee to be used by the grantee or assignee or some other person partly for the purpose of gaining or producing assessable income and partly for other purposes, the assessable income of the taxpayer shall include such part of the premium as the Commissioner considers may reasonably be attributed to the intended use of the property for purposes other than gaining or producing assessable income.\n\n(4) Where, in a case referred to in subsection (2) or (3), the taxpayer satisfies the Commissioner that, at the date on which the agreement to grant or assign the lease was made, or the assent to the grant or assignment of the lease was given, as the case may be, the taxpayer believed on reasonable grounds that the grantee or assignee intended a particular use of the property by the grantee or assignee or some other person for the purpose of gaining or producing assessable income, the Commissioner may apply this section on the basis that that intention existed.\n\n(5) This section does not apply in relation to:\n\n(b) a premium received in connexion with the assignment of a lease of land granted under a law of a State or Territory relating to mining;\n\n(c) a premium received in connexion with the grant or assignment of a lease that was, for the purposes of former section 88B, a grant or assignment for mining purposes; or\n\n(d) a premium received in connexion with the assignment from the Commonwealth or a State of a lease:\n\n(i) granted in perpetuity or for a term not less than 99 years; or\n\n(ii) with a right of purchase; or\n\n(iii) effecting improvements to be used for residential purposes only.\n\n26AF  Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds\n\n(1) Where:\n\n(a) in a year of income and after 19 August 1980, a taxpayer receives or obtains a benefit of any kind out of, or attributable to assets of, a paragraph 23(ja) fund or a section 23FB fund;\n\n(aa) if the fund is an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)—the benefit was received or obtained by the taxpayer before the proclaimed superannuation standards day;\n\n(b) the benefit is received or obtained otherwise than in accordance with approved terms and conditions applicable to the fund at the time when the benefit is received or obtained; and\n\n(c) the Commissioner is satisfied that the taxpayer received or obtained the benefit:\n\n(i) by reason that the taxpayer was, or had been, a member of the fund;\n\n(ii) by reason that the taxpayer was, or had been, a dependant of a person who was, or had been, a member of the fund; or\n\n(iii) by reason that the taxpayer was, or had been, associated with a person who was, or had been, a member of the fund;\n\nthe assessable income of the taxpayer of the year of income shall include the amount or value of that benefit.\n\n(2) Where, in a year of income and after 19 August 1980, a taxpayer receives valuable consideration in respect of the transfer by the taxpayer to another person (whether by assignment, by declaration of trust or by any other means) of a right (whether vested or contingent) to receive a benefit from a fund, being a paragraph 23(ja) fund or a section 23FB fund and not being an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007), the assessable income of the taxpayer of the year of income shall include the amount or value of that consideration.\n\n(3) In this section:\n\napproved terms and conditions, in relation to a fund, means:\n\n(a) in the case of a paragraph 23(ja) fund—terms and conditions approved by the Commissioner under subparagraph 23(ja)(ii) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987; or\n\n(b) in the case of a section 23FB fund—terms and conditions approved by the Commissioner under subsection 23FB(2) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987.\n\nparagraph 23(ja) fund means a fund the income of which of any year of income is or has been exempt from tax by virtue of paragraph 23(ja) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 or would, but for the provisions of section 121C as in force at any time before the commencement of section 21 of the Taxation Laws Amendment Act 1985 and Division 9C, be, or have been, exempt from tax by virtue of that paragraph;\n\nsection 23FB fund means:\n\n(a) a fund the income of which of any year of income is or has been exempt from tax by virtue of section 23FB as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 or would, but for the provisions of Division 9C, be, or have been, exempt from tax by virtue of that section; and\n\n(b) a fund that was a section 79 fund for the purposes of this section as in force at any time before the commencement of the Income Tax Assessment Amendment Act (No. 3) 1984.\n\n(4) For the purposes of this section, where either of the following paragraphs applies in relation to an exempt fund within the meaning of section 26AFB of this Act (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007) in relation to the year of income of the fund commencing on 1 July 1986 or a subsequent year of income:\n\n(a) the year of income ended before the proclaimed superannuation standards day and the income of the fund of the year of income would, but for the amendments made by the  Taxation Laws Amendment Act (No. 4) 1987, have been exempt from tax under paragraph 23(ja) or section 23FB of this Act, as in force at any time before the commencement of section 1 of that Act;\n\n(b) the proclaimed superannuation standards day occurred during the year of income and, if the year of income had ended on the proclaimed superannuation standards day, the income of the fund of the year of income would have been exempt from tax under paragraph 23(ja) or section 23FB of this Act, as in force at any time before the commencement of section 1 of that Act;\n\nparagraph 23(ja) or section 23FB of this Act, as in force immediately before the commencement of section 1 of that Act, shall be taken to have continued to apply in relation to the fund in relation to the year of income of the fund.\n\n26AFA  Assessable income to include value of certain benefits received from or in connection with former section 23F funds\n\n(1) Where:\n\n(a) in a year of income and on or after 7 December 1983, a taxpayer receives or obtains a benefit of any kind out of, or attributable to assets of, a section 23F fund;\n\n(aa) if the fund is an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)—the benefit was received or obtained by the taxpayer before the proclaimed superannuation standards day;\n\n(b) the benefit:\n\n(i) is not a benefit that the taxpayer has a right to receive from the fund; or\n\n(ii) is an excessive benefit; and\n\n(c) the Commissioner is satisfied that the taxpayer received or obtained the benefit:\n\n(i) by reason that the taxpayer was, or had been, a member of the fund;\n\n(ii) by reason that the taxpayer was, or had been, a dependant of a person who was, or had been, a member of the fund;\n\n(iii) by reason that the taxpayer was, or had been, associated with a person who was, or had been, a member of the fund; or","sortOrder":1000010},{"sectionNumber":"full-source-retrieval-0012","sectionType":"document_chunk","heading":"Document excerpt 12","content":"(iv) by reason that the taxpayer was, or had been, associated with a person who had made contributions to the fund, being contributions to which Subdivision AA of Division 3 applied;\n\nthe assessable income of the taxpayer of the year of income shall include the amount or value of that benefit.\n\n(2) Where:\n\n(a) subsection (1) would, but for this subsection, apply to the amount or value of an excessive benefit received or obtained by a taxpayer out of, or attributable to assets of, a section 23F fund; and\n\n(b) the Commissioner, having regard to:\n\n(i) the nature of the fund;\n\n(ii) the circumstances by reason of which the benefit is an excessive benefit; and\n\n(iii) such other matters relating to the receiving or obtaining of the benefit by the taxpayer as the Commissioner considers relevant;\n\nis satisfied that it would be unreasonable for subsection (1) to apply to the whole or part of the benefit;\n\nthat subsection does not apply to the benefit, or to that part of the benefit, as the case may be.\n\n(3) Where, in a year of income and on or after 7 December 1983, a taxpayer receives valuable consideration in respect of the transfer by the taxpayer to another person (whether by assignment, by declaration of trust or by any other means) of a right (whether vested or contingent) to receive a benefit from a fund, being a section 23F fund and not being an exempt fund within the meaning of section 26AFB (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007), the assessable income of the taxpayer of the year of income shall include the amount or value of that consideration.\n\n(4) In this section:\n\ndependant, in relation to a taxpayer, includes the spouse and any child of the taxpayer.\n\nexcessive benefit means a benefit of any kind that is excessive in amount or value having regard to the matters mentioned in subparagraphs 23F(2)(h)(i), (ii), (iii) and (iv) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987.\n\nsection 23F fund means a fund to which section 23F (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987) applies, or has applied, in relation to any year of income.\n\n(5) For the purposes of this section, where either of the following paragraphs applies in relation to an exempt fund within the meaning of section 26AFB of this Act (as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007) in relation to the year of income of the fund commencing on 1 July 1986 or a subsequent year of income:\n\n(a) the year of income ended before the proclaimed superannuation standards day and section 23F of this Act, as in force immediately before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987, would, but for the amendments made by that Act, have applied in relation to the fund in relation to the year of income;\n\n(b) the proclaimed superannuation standards day occurred during the year of income and, if the year of income had ended on the proclaimed superannuation standards day, section 23F of this Act, as in force immediately before the commencement of section 1 of that Act, would, but for the amendments made by that Act, have applied in relation to the fund in relation to the year of income;\n\nsection 23F of this Act, as in force immediately before the commencement of section 1 of that Act, shall be taken to have continued to apply in relation to the fund in relation to the year of income of the fund.\n\n26AG  Certain film proceeds included in assessable income\n\n(1) Where:\n\n(a) under a contract entered into on or after 1 October 1980, a taxpayer has expended, or is deemed by former section 124ZAP to have expended, capital moneys in producing, or by way of contribution to the cost of producing, a film;\n\n(b) by reason of the moneys having been expended, the taxpayer became the owner of an interest in the copyright in the film; and\n\n(c) a deduction has been allowed, or is allowable, to the taxpayer under former section 124ZAF or 124ZAFA in respect of some or all of those moneys;\n\nthis section applies, and shall be deemed always to have applied, in relation to the taxpayer in relation to a year of income (whether commencing before or after the commencement of this section), to:\n\n(d) any amount derived by the taxpayer in the year of income from sources in or out of Australia as consideration for the use of, or the right to use, the copyright or the film, to the extent to which the amount derived is attributable to the interest referred to in paragraph (b); and\n\n(e) any amount (other than an amount to which paragraph (d) applies) receivable by the taxpayer from sources in or out of Australia as consideration in respect of the disposal, in the year of income, of the whole or a part of the interest referred to in paragraph (b).\n\n(2) The assessable income of a taxpayer of a year of income shall include amounts to which this section applies in relation to the taxpayer in relation to the year of income.\n\n(3) Where:\n\n(a) for any reason, including:\n\n(i) the formation or dissolution of a partnership; or\n\n(ii) a variation in the constitution of a partnership or in the interests of the partners;\n\na change has occurred in the ownership of, or in the interests of persons in, a copyright in a film;\n\n(b) the person, or one or more of the persons, who owned the copyright before the change has or have an interest in the copyright after the change; and\n\n(c) any person (in this subsection referred to as the relevant person) who had an interest in the copyright before the change:\n\n(i) did not have an interest in the copyright after the change; or\n\n(ii) had a lesser interest in the copyright after the change;\n\nthe following provisions have effect:\n\n(d) if the relevant person did not have an interest in the copyright after the change, the relevant person shall be deemed, for the purposes of subsection (1), to have disposed of the whole of his or her interest in the copyright at the time when the change occurred for an amount of consideration equal to:\n\n(i) if the change occurred in pursuance of an agreement and the agreement specified, as the value of the copyright for the purposes of the agreement, an amount greater than the value of the copyright at the time when the change occurred—so much of the amount specified in the agreement as bears to that amount the same proportion as the value, at the time when the change occurred, of the interest deemed to have been disposed of bears to the value of the copyright at the time when the change occurred; and\n\n(ii) in any other case—the value, at the time when the change occurred, of the interest disposed of;\n\n(e) if the relevant person had a lesser interest in the copyright after the change, the relevant person shall be deemed, for the purposes of subsection (1), to have disposed of a part of his or her interest in the copyright at the time when the change occurred for an amount of consideration equal to:\n\n(i) if the change occurred in pursuance of an agreement and the agreement specified, as the value of the copyright for the purposes of the agreement, an amount greater than the value of the copyright at the time when the change occurred—so much of the amount specified in the agreement as bears to that amount the same proportion as the value, at the time when the change occurred, of the part of the interest deemed to have been disposed of bears to the value of the copyright at the time when the change occurred; and\n\n(ii) in any other case—the value, at the time when the change occurred, of the part of the interest disposed of.\n\n(4) For the purposes of this section, where, in pursuance of a judgment of a court or otherwise, an amount is paid to a taxpayer in respect of an infringement, or an alleged infringement, of a copyright in a film, the taxpayer shall be deemed to have disposed of a part of his or her interest in the copyright, at the time of payment, in consideration of the payment of that amount.\n\n(5) Subject to subsections (3) and (6), a reference in this section to the consideration receivable by a taxpayer in respect of the disposal of the whole or a part of the taxpayer’s interest in a copyright (which whole or part is in this subsection referred to as the unit) is a reference to:\n\n(a) where the unit is disposed of for a specified price—that price less:\n\n(i) the expenses of the disposal; and\n\n(ii) if the disposal is a taxable supply—an amount equal to the GST payable on the supply; or\n\n(b) where the unit is disposed of together with other property and no separate price is allocated to the unit—such amount as the Commissioner determines.\n\n(6) Where:\n\n(a) a taxpayer disposes of the whole or a part of the taxpayer’s interest in a copyright (which whole or part is in this subsection referred to as the unit) to another person;\n\n(b) the Commissioner is satisfied, having regard to any connection between the taxpayer and that other person or to any other relevant circumstances, that the taxpayer and that other person were not dealing with each other at arm’s length in relation to the disposal; and\n\n(c) there was no amount receivable by the taxpayer in respect of the disposal or the amount receivable by the taxpayer in respect of the disposal was less than the value of the unit at the time of the disposal;\n\nthe amount of the consideration receivable by the taxpayer in respect of the disposal shall be taken, for the purposes of this section, to be the amount that was the value of the unit at the time of the disposal.\n\n(8) If:\n\n(a) a non‑resident taxpayer derives, from sources outside Australia, income in respect of a film; and\n\n(b) but for this subsection, subsection (2) would include the amount in the taxpayer’s assessable income of a year of income;\n\nthat subsection does not include in the taxpayer’s assessable income so much of the amount as:\n\n(c) is attributable to the exhibition of the film in the country from sources in which the income was derived; and\n\n(d) is not exempt from income tax in the country from sources in which the income was derived.\n\n(9) Where:\n\n(a) an amount (in this subsection referred to as the relevant amount) is derived by a partnership in a year of income; and\n\n(b) if the relevant amount were derived by a partner in the partnership, the relevant amount, or a part of the relevant amount, would, by virtue of paragraph (1)(d), be an amount to which this section applies in relation to that partner in relation to the year of income;\n\nthe following provisions have effect:\n\n(c) the relevant amount shall not be taken into account, for the purposes of any provision of this Act, in calculating the net income of the partnership, or the partnership loss, of any year of income in accordance with section 90; and\n\n(d) for the purposes of the application of this Act in relation to a taxpayer being a partner in the partnership, an amount equal to:\n\n(i) so much of the relevant amount as the partners have agreed is derived for the benefit of the taxpayer; or\n\n(ii) if the partners have not agreed as mentioned in subparagraph (i)—so much of the relevant amount as bears to the relevant amount the same proportion as the individual interest of the taxpayer in the net income of the partnership of the year of income in which the relevant amount was derived by the partnership bears to that net income or, as the case requires, the individual interest of the taxpayer in the partnership loss for that year of income bears to that partnership loss;\n\nshall be taken to have been derived by the taxpayer.\n\n(10) Where:\n\n(a) a partnership has disposed of the whole or a part of the copyright or of an interest in the copyright in a film;\n\n(b) an amount (in this subsection referred to as the relevant amount) is receivable by the partnership as consideration in respect of that disposal; and\n\n(c) if the relevant amount were receivable by a partner in the partnership, the relevant amount or a part of the relevant amount would, by virtue of paragraph (1)(e), be an amount to which this section applies in relation to that partner in relation to the year of income;\n\nthe following provisions have effect:\n\n(d) the relevant amount shall not be taken into account, for the purposes of any provision of this Act, in calculating the net income of the partnership, or the partnership loss, of any year of income in accordance with section 90;\n\n(e) for the purposes of the application of this Act in relation to a taxpayer being a partner in the partnership, an amount equal to:\n\n(i) so much of the relevant amount as the partners have agreed is receivable for the benefit of the taxpayer; or\n\n(ii) if the partners have not agreed as mentioned in subparagraph (i)—so much of the relevant amount as bears to the relevant amount the same proportion as the individual interest of the taxpayer in the net income of the partnership of the year of income in which the disposal mentioned in paragraph (a) occurred bears to that net income, or, as the case requires, the individual interest of the taxpayer in the partnership loss for that year of income bears to that partnership loss;\n\nshall be taken to be receivable by the taxpayer;\n\n(f) where the taxpayer had an interest in the copyright before the disposal and did not have an interest in the copyright after the disposal or had a lesser interest in the copyright after the disposal, the amount deemed to be receivable by the taxpayer shall be deemed to be receivable in respect of the disposal by the taxpayer of his or her interest in the copyright or of a part of his or her interest in the copyright, as the case may be;\n\n(g) where the disposal is deemed to have occurred by virtue of subsection (4) or is a disposal to which paragraph (13)(a) applies, the amount deemed to be receivable by the taxpayer shall be deemed to be receivable, in respect of the disposal by the taxpayer of a part of his or her interest in the copyright.\n\n(11) In determining for the purposes of subsection (10) whether a partnership has disposed of the whole or part of a copyright or of an interest in a copyright and in determining the amount of consideration receivable by the partnership in respect of the disposal, subsections (4), (5), (6) and (13) apply as if the partnership were a taxpayer.\n\n(12) Where:\n\n(a) a taxpayer has disposed of the whole or a part of the taxpayer’s interest in a copyright;\n\n(b) by reason of that disposal, an amount would, but for former subsection 124T(3), be included in the assessable income of the taxpayer of a year of income under former section 124P or would be applied, under former section 124N or 124S, in reducing the residual value, for the purposes of former Division 10B, of a unit of industrial property owned by the taxpayer; and\n\n(c) but for this subsection, this section would apply, in relation to a year of income, to the amount of the consideration receivable by the taxpayer in respect of the disposal;\n\nthe amount to which this section applies by virtue of the disposal is the amount of the consideration referred to in paragraph (c) reduced by the amount that would be included in the assessable income of the taxpayer, or would be applied under former section 124N or 124S, as mentioned in paragraph (b).\n\n(13) In this section:\n\n(a) a reference to a disposal by a taxpayer of the whole or a part of the taxpayer’s interest in a copyright in a film includes a reference to the assignment by the taxpayer of a right to receive amounts as consideration for the use of, or the right to use, the copyright or the film;\n\n(b) a reference to an amount derived by a taxpayer as consideration for the use of, or the right to use, a copyright in a film includes a reference to an amount derived as consideration for the granting of a licence in respect of copyright in the film that is to come into existence at a future time or upon the happening of a future event;\n\n(c) a reference to the value of property at a particular time shall, if there is insufficient evidence of the value of the property at that time, be read as a reference to such amount as, in the opinion of the Commissioner, is fair and reasonable;\n\n(d) a reference to the expenditure of capital moneys is a reference to the expenditure of moneys that is expenditure of a capital nature;\n\n(e) a reference to a taxpayer becoming the owner of an interest in copyright includes a reference to the taxpayer becoming the owner of the copyright; and\n\n(f) a reference to copyright, in relation to a film, is a reference to the copyright subsisting in the film by virtue of Part IV of the Copyright Act 1968 and includes a reference to copyright subsisting in, or in relation to, the film or in any work comprised in the film, under the law of a country other than Australia.\n\n26AH  Bonuses and other amounts received in respect of certain short‑term life assurance policies\n\n(1) In this section, unless the contrary intention appears:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nassurance year, in relation to an eligible policy, means the period of 12 months commencing on, or on any anniversary of, the date of commencement of risk of the policy.\n\ndate of commencement of risk, in relation to an eligible policy, means the date of commencement of the period in respect of which the first or only premium paid under the policy was paid or, if the first or only premium was not paid in respect of a period, the date on which that premium was paid.\n\neligible period, in relation to an eligible policy, means the period of 10 years commencing on the date of commencement of risk of the policy.","sortOrder":1000011},{"sectionNumber":"full-source-retrieval-0013","sectionType":"document_chunk","heading":"Document excerpt 13","content":"eligible policy means a life assurance policy in relation to which the date of commencement of risk is after 27 August 1982, other than a funeral policy (as defined in the Income Tax Assessment Act 1997) issued on or after 1 January 2003.\n\neligible reckoning date, in relation to an eligible policy, means the date of commencement of an assurance year that, for the purposes of an application of subsection (13), is the premium increase year referred to in that subsection.\n\n(2) Where a paid‑up life assurance policy is issued to a taxpayer in lieu of an eligible policy:\n\n(a) the paid‑up policy shall, for the purposes of this section, be deemed to be a continuation of the eligible policy; and\n\n(b) no amount shall be taken for the purposes of subsection (4) to have been re‑invested or otherwise dealt with on behalf of the taxpayer or as he or she directs in connection with the issue of the paid‑up policy to the taxpayer in lieu of the eligible policy.\n\n(3) This section applies to any amount received after 27 August 1982 under an eligible policy.\n\n(4) For the purposes of this section, but subject to subsection (5), a taxpayer shall be taken to have received an amount under or in relation to an eligible policy although the amount is not actually paid to the taxpayer but is re‑invested or otherwise dealt with on his or her behalf or as he or she directs.\n\n(5) Subsection (4) does not apply in relation to an amount in relation to an eligible policy if the amount is re‑invested or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs so as to increase the amount that might reasonably be expected to be received under the eligible policy on a surrender or maturity of the eligible policy.\n\n(6) Where, during the eligible period in relation to an eligible policy, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under the policy as or by way of a bonus, being an amount that, but for this section, would not be included in the assessable income of the taxpayer of any year of income, the assessable income of the taxpayer of the year of income in which the relevant amount is received shall include:\n\n(a) if the relevant amount is received during the first 8 years of the eligible period—an amount equal to the relevant amount;\n\n(b) if the relevant amount is received during the ninth year of the eligible period—an amount equal to two‑thirds of the relevant amount; or\n\n(c) if the relevant amount is received during the tenth year of the eligible period—an amount equal to one‑third of the relevant amount.\n\n(6A) If, during the year of income, an amount referred to in subsection (6) is received during the eligible period in relation to an eligible policy held by the trustee of a non‑complying superannuation fund:\n\n(a) subsection (6) does not apply to the amount; and\n\n(b) the amount is included in the assessable income of the fund of the year of income.\n\n(7) Subsection (6) does not apply to any amount received by a taxpayer in a year of income under an eligible policy where:\n\n(a) the amount is received in consequence of:\n\n(i) the death of the person on whose life the policy was effected; or\n\n(ii) an accident, illness or other disability suffered by the person on whose life the policy was effected; or\n\n(aa) the eligible policy is an RSA; or\n\n(b) the eligible policy is held by the trustee of:\n\n(i) a complying superannuation fund; or\n\n(ii) a complying approved deposit fund; or\n\n(iii) a pooled superannuation trust; or\n\n(ba) the eligible policy is issued by a life assurance company and the company’s liabilities under the policy are to be discharged out of:\n\n(i) complying superannuation assets within the meaning of the Income Tax Assessment Act 1997; or\n\n(ii) segregated exempt assets within the meaning of that Act; or\n\n(c) except where the policy was effected, purchased or taken on assignment with a view to it being forfeited, surrendered or otherwise terminated, or to it maturing, within 10 years—the amount was received by the taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of the policy in circumstances arising out of serious financial difficulties of the taxpayer.\n\n(8) Where:\n\n(a) subsection (6) would, but for this subsection, apply to an amount (in this subsection referred to as the relevant amount) received by a taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of an eligible policy; and\n\n(b) the Commissioner, having regard to:\n\n(i) the total amount of premiums paid under the eligible policy;\n\n(ii) the total amounts received by the taxpayer or by any other person under the eligible policy and the total amounts of bonuses included in the amounts so received;\n\n(iii) the amount of the surrender value of the eligible policy at the time when the forfeiture, surrender or other termination occurred; and\n\n(iv) such other matters as the Commissioner considers relevant, is of the opinion that it would be unreasonable for subsection (6) to apply to the relevant amount or to a part of the relevant amount;\n\nsubsection (6) does not apply to the relevant amount, or to that part of the relevant amount, as the case may be.\n\n(9) Where:\n\n(a) otherwise than as or by way of a bonus, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under an eligible policy; and\n\n(b) the Commissioner is of the opinion that the relevant amount or a part of the relevant amount represents the whole or part of:\n\n(i) a bonus that has accrued or has been declared in respect of the policy; or\n\n(ii) a bonus that can reasonably be expected to accrue in respect of the policy;\n\nthe relevant amount or the part of the relevant amount, as the case may be, shall, for the purposes of subsection (6), be deemed to have been received by the taxpayer under the policy as or by way of a bonus.\n\n(10) Where:\n\n(a) subsection (9) applies by reason that the Commissioner has formed an opinion under paragraph (9)(b) that the whole or a part of an amount received by a taxpayer represents the whole or a part of a bonus; and\n\n(b) the taxpayer subsequently receives an amount (in this subsection referred to as the actual bonus), being the whole or a part of the bonus, or of the part of the bonus, as the case may be, referred to in paragraph (a) of this subsection;\n\nthe following provisions have effect:\n\n(c) the operation of subsection (9) is not affected by the receipt of the actual bonus; and\n\n(d) no part of the actual bonus shall be included in the assessable income of the taxpayer.\n\n(11) Where, in relation to an eligible policy, a taxpayer receives an amount from the assurer, or from another person at the request of, or under an agreement with, the assurer, by way of an advance or loan in respect of which interest is not payable or in respect of which interest is payable at a rate less than the rate of interest that could reasonably be expected to be payable in respect of a loan of the same amount made on similar terms and conditions by the assurer or the other person, as the case may be, to a person with whom the assurer or that other person was dealing at arm’s length, the amount shall, for the purposes of subsection (9), be deemed to be an amount to which paragraph (9)(a) applies.\n\n(12) Where an eligible policy, or any right to receive any benefits that have accrued, or will or may reasonably be expected to accrue, under an eligible policy, is sold or assigned in whole or in part by a taxpayer during the eligible period in relation to the policy:\n\n(a) the amount of any consideration received by the taxpayer in respect of that sale or assignment shall be deemed to be an amount to which paragraph (9)(a) applies; and\n\n(b) subsections (9) and (10) apply in relation to that consideration as if “represents” were omitted from paragraphs (9)(b) and (10)(a) and “is attributable” to  were substituted.\n\n(13) Where the amount of the premiums payable under an eligible policy in relation to an assurance year (in this subsection referred to as the premium increase year) exceeds by more than 25% the amount of the premiums payable under the policy in relation to the immediately preceding assurance year, the eligible period in relation to the policy shall, for the purposes of:\n\n(a) the application of subsection (6) in relation to any amount received under the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy; and\n\n(b) the application of subsection (12) in relation to any sale or assignment of the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy;\n\nbe reckoned from the date of commencement of the premium increase year.\n\n(14) This section has effect in relation to an eligible policy in relation to which the date of commencement of risk is on or before 7 December 1983 as if:\n\n(a) “10 years” were omitted from the definition of eligible period in subsection (1) and “4 years” were substituted;\n\n(b) “8 years”, “ninth year” and “tenth year” were omitted from subsection (6) and “2 years”, “third year” and “fourth year” respectively were substituted; and\n\n(c) “10 years” were omitted from paragraph (7)(c) and “4 years” were substituted.\n\n26AJ  Investment‑related lottery winnings to be included in assessable income\n\n(1) If:\n\n(a) either:\n\n(i) a loan benefit is provided to a taxpayer, or to another person, in respect of a year of income (in this subsection called the current year of income); or\n\n(ii) an amount (other than loan principal) is paid or credited to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); or\n\n(iii) other property or services are provided to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); and\n\n(b) the making of a loan, the payment or crediting of the amount, or the provision of the property or services, as the case may be, is by way of winnings from:\n\n(i) betting (including pool betting); or\n\n(ii) a lottery or other form of gambling; or\n\n(iii) a game with prizes; and\n\n(c) the chance to participate in the betting, lottery, gambling or game (in this subsection called the betting chance) was provided:\n\n(i) wholly or partly in respect of an investment held by the taxpayer in or with a third person (who may be an associate of the taxpayer) (in this subsection called the investment body); or\n\n(ii) wholly or partly in relation directly or indirectly to such an investment; and\n\n(d) the betting, lottery, gambling or game was organised by, or on behalf of:\n\n(i) the investment body (either acting alone or together with one or more other persons); or\n\n(ii) an associate of the investment body (either acting alone or together with one or more other persons); and\n\n(e) if the recipient of the loan benefit, amount or property or services, as the case may be, is a person other than the taxpayer—either:\n\n(i) the other person is an associate of the taxpayer; or\n\n(ii) the loan benefit, amount or property or services, as the case may be, is provided under an arrangement to which the taxpayer, or an associate of the taxpayer, is a party; and\n\n(f) no part of the value of the betting chance is included in the assessable income of the taxpayer of any year of income; and\n\n(g) the provision of the betting chance is neither:\n\n(i) a fringe benefit; nor\n\n(ii) a benefit that, apart from paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit;\n\nthen:\n\n(h) if subparagraph (a)(i) applies—the taxpayer’s assessable income of the current year of income includes the amount (if any) by which the benchmark amount of interest in relation to the loan in respect of the current year of income exceeds the amount of interest that has accrued on the loan in respect of the current year of income; or\n\n(i) if subparagraph (a)(ii) applies—the taxpayer’s assessable income of the current year of income includes the amount paid or credited; or\n\n(j) if subparagraph (a)(iii) applies—the taxpayer’s assessable income of the current year of income includes the arm’s length value of the property or services, reduced by the recipient’s contribution (if any).\n\n(2) If:\n\n(a) apart from this subsection, an amount (in this subsection called the gross assessable amount) is included in a taxpayer’s assessable income of a year of income under paragraph (1) (h) in respect of a loan benefit; and\n\n(b) assuming that:\n\n(i) the recipient of the loan benefit had, on the last day of the period (in this subsection called the loan period) during the year of income when the recipient was under an obligation to repay the whole or any part of the loan, incurred and paid unreimbursed interest (in this subsection called the gross interest), in respect of the loan, in respect of the loan period; and\n\n(ii) the amount of the gross interest was equal to the benchmark amount of interest in relation to the loan in respect of the year of income;\n\na once‑only deduction (in this subsection called the gross deduction) would, or would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient in respect of the gross interest;\n\nthe gross assessable amount is reduced by:\n\n(c) if no interest accrued on the loan in respect of the loan period—the amount of the gross deduction; or\n\n(d) in any other case—the amount worked out using the formula:\n\n![Start formula Gross deduction minus Reducing amount end formula](image.008.png)\n\nwhere:\n\nGross deduction means the amount of the gross deduction.\n\nReducing amount means the amount (if any) that would, or that would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once‑only deduction to the recipient in respect of the interest that accrued on the loan in respect of the loan period if that interest had been incurred and paid by the recipient on the last day of the loan period.\n\n(3) If:\n\n(a) apart from this subsection, an amount (in this subsection called the gross assessable amount) is included in a taxpayer’s assessable income of a year of income under paragraph (1)(j) in respect of the provision of property or services; and\n\n(b) assuming that:\n\n(i) the recipient of the property or services had, at the time the property or services were provided, incurred and paid unreimbursed expenditure in respect of the provision of the property or services; and\n\n(ii) the expenditure was equal to the amount of the arm’s length value of the property or services;\n\na once‑only deduction would, or would apart from Subdivisions F and GA of Division 3 of this Part, and Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient in respect of a percentage (in this subsection called the deductible percentage) of the expenditure;\n\nthe gross assessable amount is reduced by the deductible percentage.\n\n(4) For the purposes of the application of this section to a taxpayer, if a person (in this subsection called the provider) makes a loan to another person (who may be the taxpayer) (in this subsection called the recipient):\n\n(a) the making of the loan is taken to constitute a loan benefit provided by the provider to the recipient; and\n\n(b) that loan benefit is taken to be provided in respect of each year of income of the taxpayer during the whole or part of which the recipient is under an obligation to repay the whole or any part of the loan.\n\n(5) For the purposes of this section, if a person (in this subsection called the provider) makes a deferred interest loan (in this subsection called the principal loan) to another person (in this subsection called the recipient):\n\n(a) the provider is taken, at the end of:\n\n(i) the period of 6 months commencing on the day on which the principal loan was made; and\n\n(ii) each subsequent period of 6 months;\n\n(being in either case a period during the whole of which the recipient is under an obligation to repay the whole or any part of the principal loan) to have made a loan (in this subsection called the deemed loan) to the recipient; and\n\n(b) the amount of the deemed loan is equal to the amount by which the interest (in this subsection called the accrued interest) that has accrued on the principal loan in respect of that period exceeds the amount (if any) paid in respect of the accrued interest before the end of that period; and\n\n(c) if any part of the accrued interest becomes payable or is paid after the time when the deemed loan is taken to have been made, the deemed loan is to be reduced accordingly; and\n\n(d) the deemed loan is taken to have been made at a nil rate of interest.\n\n(6) For the purposes of this section, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.\n\n(7) For the purposes of this section, a person is taken to be under an obligation to pay or repay an amount even though the amount is not due for payment or repayment.\n\n(8) For the purposes of this section, if a person does anything that results in the creation of property in another person, the first‑mentioned person is taken to have provided that property to the other person at the time when the property comes into existence.\n\n(9) For the purposes of this section, if:\n\n(a) a particular mode of application of money by a taxpayer in relation to another person (in this subsection called the investment body) would not, apart from this subsection, be an investment; and\n\n(b) a chance to participate in:\n\n(i) betting (including pool betting); or\n\n(ii) a lottery or other form of gambling; or\n\n(iii) a game with prizes;","sortOrder":1000012},{"sectionNumber":"full-source-retrieval-0014","sectionType":"document_chunk","heading":"Document excerpt 14","content":"is provided to the taxpayer or a third person:\n\n(iv) wholly or partly in respect of the mode of application of money by the taxpayer; or\n\n(v) wholly or partly in relation directly or indirectly to the mode of application of money by the taxpayer; and\n\n(c) if a cash payment had been provided by the investment body to the taxpayer instead of that chance, the payment would constitute, to any extent, a return on an investment held by the taxpayer in or with the investment body;\n\nthe mode of application of money is taken to be an investment held by the taxpayer with the investment body.\n\n(10) If a ballot is held to determine the order in which loans are to be made by a Starr‑Bowkett building society to its members, then the making of a loan in accordance with the ballot is not covered by paragraph (1)(b).\n\n(11) In this section:\n\narm’s length value, in relation to property or services, means:\n\n(a) the amount that the recipient could reasonably have been expected to have been required to pay to obtain the property or services from the provider under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction; or\n\n(b) if such an amount cannot be practically determined—such amount as represents a reasonable valuation of the property or services.\n\narrangement means:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.\n\nassociate has the same meaning in relation to a person as that expression has in relation to a person in section 318.\n\nbenchmark amount of interest, in relation to a loan, in relation to a year of income, means the amount of interest that would have accrued on the loan in respect of the year of income if the interest was calculated on the daily balance of the loan at the benchmark interest rate in relation to the year of income.\n\nbenchmark interest rate, in relation to a year of income, means the predominant per cent per annum interest rate on new, variable interest rate housing loans to individuals for owner‑occupation that is specified, for the June immediately preceding the financial year to which the year of income relates, in the “Interest Rates and Yields: Banks” table in the Statistical Directory of the Reserve Bank of Australia Bulletin dated July in that financial year.\n\ndeferred interest loan means a loan in respect of which interest is payable at a rate exceeding nil, other than:\n\n(a) a loan where the whole of the interest is due for payment within 6 months after the loan is made; or\n\n(b) a loan where:\n\n(i) the interest is payable by instalments; and\n\n(ii) the intervals between instalments do not exceed 6 months; and\n\n(iii) the first instalment is due for payment within 6 months after the loan is made.\n\ninvestment means any mode of application of money for the purpose of gaining a return.\n\nloan includes:\n\n(a) an advance of money; and\n\n(b) the provision of credit or any other form of financial accommodation; and\n\n(c) the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation (whether express or implied) to repay the amount; and\n\n(d) a transaction (whatever its terms or form) which in substance effects a loan of money.\n\nloan benefit has the meaning given by subsection (4).\n\nperson means any of the following:\n\n(a) a company;\n\n(b) a partnership;\n\n(c) a person in the capacity of trustee;\n\n(d) any other person.\n\nprovide:\n\n(a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise); and\n\n(b) in relation to services—includes allow, confer, give, grant or perform.\n\nrecipient’s contribution, in relation to property or services, means the amount of any consideration paid to the provider by the recipient in respect of the provision of the property or services, reduced by the amount of any reimbursement paid to the recipient in respect of that consideration.\n\nreturn, in relation to an investment, includes interest, income or profit.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a right, benefit, privilege, service or facility that is, or is to be, provided under:\n\n(a) an arrangement for or in relation to:\n\n(i) the performance of work (including work of a professional nature), whether with or without the provision of property; or\n\n(ii) the provision of, or the use of facilities for, entertainment, recreation or instruction; or\n\n(iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or\n\n(b) a contract of insurance; or\n\n(c) an arrangement for or in relation to the lending of money.\n\nunreimbursed expenditure means expenditure no part of which has been reimbursed.\n\nunreimbursed interest means interest no part of which has been reimbursed.\n\n26BB  Assessability of gain on disposal or redemption of traditional securities\n\n(1) In this section:\n\nacquire, in relation to a security, means acquire, on issue, purchase, transfer, assignment or otherwise, the security or the right to receive payment of the amount or amounts payable under the security.\n\nconnected entity has the same meaning as in the Income Tax Assessment Act 1997.\n\ndispose, in relation to a security, means sell, transfer, assign or dispose of in any way the security or the right to receive payment of the amount or amounts payable under the security.\n\neligible return has the same meaning as in Division 16E.\n\nperiodic interest has the same meaning as in Division 16E.\n\nsecurity has the same meaning as in Division 16E.\n\ntraditional security, in relation to a taxpayer, means a security held by the taxpayer that:\n\n(a) is or was acquired by the taxpayer after 10 May 1989;\n\n(b) either:\n\n(i) does not have an eligible return; or\n\n(ii) has an eligible return, where:\n\n(A) the precise amount of the eligible return is able to be ascertained at the time of issue of the security; and\n\n(B) that amount is not greater than 11/2 % of the amount calculated in accordance with the formula:\n\n![Start formula Payments times Term end formula](image.009.png)\n\nwhere:\n\nPayments is the amount of the payment or of the sum of the payments (excluding any periodic interest) liable to be made under the security when held by any person; and\n\nTerm is the number (including any fraction) of years in the term of the security; and\n\n(d) is not trading stock of the taxpayer.\n\n(2) Where a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed, the amount of any gain on the disposal or redemption shall be included in the assessable income of the taxpayer of the year of income in which the disposal or redemption takes place.\n\n(3) Where the Commissioner, having regard to any connection between the parties to the transaction by which the taxpayer disposed of the traditional security or by which it was redeemed, or by which the taxpayer acquired the traditional security, is satisfied that the parties were not dealing with each other at arm’s length in relation to the transaction, then, for the purposes of determining under subsection (2) the amount of any gain on the disposal or redemption, the consideration for the transaction shall be taken to be:\n\n(a) the amount that might reasonably be expected for the transaction if the parties were independent parties dealing at arm’s length with each other; or\n\n(b) where, for any reason it is not possible or practicable for the Commissioner to ascertain that amount—such amount as the Commissioner determines.\n\n(4) Subsection (2) does not apply to a gain on the disposal or redemption of a traditional security if:\n\n(a) the disposal or redemption occurs because the traditional security is converted into ordinary shares in a company that is:\n\n(i) the issuer of the traditional security; or\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(b) the traditional security was issued on the basis that it will or may convert into ordinary shares in:\n\n(i) the issuer of the traditional security; or\n\n(ii) the connected entity.\n\n(5) Subsection (2) does not apply to a gain on the disposal or redemption of a traditional security if:\n\n(a) the disposal or redemption is in exchange for ordinary shares in a company that is neither:\n\n(i) the issuer of the traditional security; nor\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(b) in the case of a disposal—the disposal is to:\n\n(i) the issuer of the traditional security; or\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(c) the traditional security was issued on the basis that it will or may be:\n\n(i) disposed of to the issuer of the traditional security or to the connected entity; or\n\n(ii) redeemed;\n\nin exchange for ordinary shares in the company.\n\n26BC  Securities lending arrangements\n\n(1) In this section:\n\nconvertible note:\n\n(a) in relation to a company—has the same meaning as in Division 3A; or\n\n(b) in relation to a unit trust—means a note issued by the trustee of the unit trust, being a note that, if the unit trust were a company, would be a convertible note issued by the company, and includes a note that would be a convertible note within the meaning of Division 3A if:\n\n(i) references in that Division to a company were references to a unit trust, or to the trustee of the unit trust, as the context requires; and\n\n(ii) references in that Division to shares were references to units.\n\ndebenture, in relation to a unit trust, means an instrument issued by the trustee of the unit trust, being an instrument that, if the unit trust were a company, would be a debenture issued by the company.\n\ndistribution includes:\n\n(a) interest; or\n\n(b) a dividend; or\n\n(c) a share issued by a company to a shareholder in the company where the share is issued:\n\n(i) as a bonus share; or\n\n(ii) in the circumstances mentioned in subsection 6BA(1); or\n\n(d) an amount credited by the trustee of a unit trust to a unit holder as a unit holder; or\n\n(e) a unit issued by the trustee of a unit trust to which section 130‑20 of the Income Tax Assessment Act 1997 applies (apart from subsection (4) of that section).\n\neligible security means:\n\n(a) a share, bond, debenture, convertible note, right, option or similar financial instrument issued by a public company; or\n\n(b) a unit, bond, debenture, convertible note, right, option or similar financial instrument issued by the trustee of:\n\n(i) a listed unit trust; or\n\n(ii) a unit trust any of the units of which were offered to the public; or\n\n(c) a bond, debenture, right, option or similar financial instrument issued by a government or by an authority of a government.\n\ngovernment means:\n\n(a) the Commonwealth, a State or a Territory; or\n\n(b) the government of, or of a part of, a foreign country.\n\nlisted company means a company any of the shares of which are listed for quotation in the official list of a stock exchange in Australia or elsewhere.\n\nlisted unit trust means a unit trust any of the units of which are listed for official quotation in the official list of a stock exchange in Australia or elsewhere.\n\noption:\n\n(a) in relation to a company—means an option to acquire shares in the company; or\n\n(b) in relation to a unit trust—means an option to acquire units in the unit trust; or\n\n(c) in relation to a government or an authority of a government—means an option to acquire a bond, debenture or similar financial instrument issued by the government or by the authority.\n\npublic company means:\n\n(a) a listed company; or\n\n(b) a mutual life assurance company; or\n\n(c) a company in which a government or an authority of a government has a controlling interest; or\n\n(d) a company that is a 100% subsidiary of a company covered by paragraph (a), (b) or (c).\n\nright:\n\n(a) in relation to a company—means a right to acquire shares in the company or to acquire an option; or\n\n(b) in relation to a unit trust—means a right to acquire units in the unit trust or to acquire an option; or\n\n(c) in relation to a government or an authority of a government—means a right to acquire a bond, debenture or similar financial instrument issued by the government or by the authority or to acquire an option.\n\n(2) If an eligible security is held by a person as trustee for another person who is absolutely entitled to the eligible security as against the trustee, this section applies as if the eligible security were vested in the other person and any acts of the trustee were the acts of that other person.\n\n(3) This section applies where:\n\n(a) under a written agreement of the kind known as a securities lending arrangement, being an agreement that was entered into after 9 May 1990:\n\n(i) at a particular time (in this section called the original disposal time), a taxpayer (in this section called the lender) disposed of an eligible security (in this section called the borrowed security) to another taxpayer (in this section called the borrower); and\n\n(ii) at a later time (in this section called the re‑acquisition time), being less than 12 months after the original disposal time, the lender:\n\n(A) re‑acquired the borrowed security (which re‑acquired security is in this section called the  replacement security) from the borrower; or\n\n(B) acquired an identical security (which acquired security is in this section also called the replacement security) from the borrower; and\n\n(b) both the borrower and the lender were dealing with each other at arm’s length in relation to each of the transactions mentioned in paragraph (a); and\n\n(c) if any of the following events occurred during the period (in this section called the borrowing period) commencing at the original disposal time and ending at the re‑acquisition time:\n\n(i) the making or payment of a distribution (whether in property or money) in respect of the borrowed security;\n\n(ii) the issue, by the company, trustee, government or government authority concerned, of a right or option in respect of the borrowed security;\n\n(iii) if the borrowed security is a right or option:\n\n(A) the giving of a direction by the lender to the borrower to exercise the right or option; or\n\n(B) the giving of a direction by the lender to the borrower to exercise an identical right or option;\n\nthen (even if the event occurred after the borrowed security was disposed of by the borrower to a third party), the lender receives from the borrower, under the agreement:\n\n(iv) if subparagraph (i) applies:\n\n(A) the distribution; or\n\n(B) if the distribution is in property—identical property; or\n\n(C) a payment (in this section called the compensatory payment) equal to the value to the lender of the distribution; or\n\n(v) if subparagraph (ii) applies:\n\n(A) the right or option; or\n\n(B) an identical right or option; or\n\n(C) a payment (in this section also called the compensatory payment) equal to the value to the lender of the right or option; or\n\n(vi) if subparagraph (iii) applies:\n\n(A) the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option; or\n\n(B) shares, units, bonds, debentures or financial instruments that are identical to those that resulted from, or that would have resulted from, exercising the right or option; or\n\n(C) a payment (in this section also called the compensatory payment) equal to the value to the lender of the shares, units, bonds, debentures or financial instruments that resulted from, or would have resulted from, exercising the right or option; and\n\n(d) if the total consideration payable or to be given by the borrower under the agreement consists of:\n\n(i) the transfer of, or the promise to transfer, the replacement security or replacement securities concerned; and\n\n(ii) other consideration (in this paragraph called the notifiable consideration);\n\nthe agreement contains:\n\n(iii) if the notifiable consideration is wholly covered by one of the following categories:\n\n(A) a fee;\n\n(B) an adjustment for variations in the market value of eligible securities;\n\n(C) other consideration;\n\na statement specifying the category concerned and setting out such information as will enable the amount or value of the notifiable consideration to be readily ascertained; or\n\n(iv) if the notifiable consideration is covered by 2 or more of the following categories:\n\n(A) a fee;\n\n(B) an adjustment for variations in the market value of eligible securities;\n\n(C) other consideration;\n\na statement dissecting the notifiable consideration into those categories in such a manner as will enable the amount or value of each category to be readily ascertained; and\n\n(e) the lender does not dispose of (by transfer, declaration of trust or otherwise) the right to receive any part of the total consideration payable or to be given by the borrower under the agreement.\n\n(3A) For the purposes of paragraph (3)(c), if, apart from this subsection, either of the following events occurred after the commencement of the borrowing period:\n\n(a) the making or payment of a distribution (whether in property or money) in respect of the borrowed security;\n\n(b) the issue, by the company, trustee, government or government authority concerned, of a right or option in respect of the borrowed security;","sortOrder":1000013},{"sectionNumber":"full-source-retrieval-0015","sectionType":"document_chunk","heading":"Document excerpt 15","content":"(even if the event occurred after the borrowed security was disposed of by the borrower to a third party), the event is taken to have occurred during the borrowing period if, and only if, (assuming that the borrower had held the borrowed security at all times during the borrowing period) the entitlement to the distribution or issue would have been attributable to the borrower’s holding of the borrowed security at a particular time during the borrowing period.\n\n(4) In determining:\n\n(a) whether an amount (other than a fee payable under the securities lending arrangement) is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (about CGT); or\n\n(b) whether an amount is allowable as a deduction to the lender;\n\nin respect of either or both of the transactions covered by paragraph (3)(a), the lender is to be treated as if:\n\n(c) neither of those transactions had been entered into; and\n\n(d) the lender had held the borrowed security at all times during the borrowing period; and\n\n(e) if the replacement security is not the borrowed security—the replacement security were the borrowed security.\n\n(4A) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(v)(C), then, in determining whether an amount is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997, the lender is to be treated as if:\n\n(a) the lender had held the borrowed security at all relevant times during the borrowing period; and\n\n(b) the right or option had been issued directly to the lender in respect of the borrowed security; and\n\n(c) the lender had disposed of the right or option immediately after its issue for a consideration equal to the compensatory payment.\n\n(4B) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(vi)(C), then, in determining whether an amount is included in the assessable income of the lender under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997, the lender is to be treated as if:\n\n(a) the lender had held the right or option at all relevant times during the borrowing period; and\n\n(b) the lender had exercised the right or option; and\n\n(c) the lender had immediately disposed of the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option for a consideration equal to the compensatory payment.\n\n(5) In determining:\n\n(a) whether an amount is included in the assessable income of the borrower under a provision of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997; or\n\n(b) an amount (other than a fee payable under the securities lending arrangement) is allowable as a deduction to the borrower;\n\nin respect of either or both of the transactions covered by paragraph (3)(a):\n\n(c) if the borrowed security was disposed of by the borrower to a third party:\n\n(i) the borrower is to be treated as if the borrower had acquired the borrowed security from the lender for a consideration equal to the market value of the borrowed security at the time of its acquisition; and\n\n(ii) the borrower is to be treated as if the borrower had disposed of the replacement security to the lender for a consideration equal to the market value of the borrowed security at the time of its acquisition from the lender; or\n\n(d) in any other case—the borrower is to be treated as if neither of the transactions referred to in paragraph (3)(a) had been entered into.\n\n(6) Any capital gain or capital loss from the disposal of the borrowed security by the lender is disregarded.\n\n(6A) If the lender acquired the borrowed security before 20 September 1985, the lender is taken (for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997) to have acquired the replacement security before that day.\n\n(6B) If the lender acquired the borrowed security on or after 20 September 1985, the first element of the cost base of the replacement security is the cost base of the borrowed security just before the acquisition of the replacement security. The reduced cost base of the replacement security is worked out similarly.\n\n(7) If:\n\n(a) the borrowed security was acquired on or after 20 September 1985; and\n\n(b) a CGT event (other than one involving a transaction covered by subsection (3)) happens in relation to the replacement security at least 12 months after the lender acquired a paired security in relation to the replacement security (otherwise than under a transaction covered by subsection (3));\n\nsection 114‑10 of the Income Tax Assessment Act 1997 (about the requirement for 12 months ownership) does not apply to the CGT event.\n\n(8) For the purposes of subsection (7):\n\n(a) if CGT event A1 happens (involving a transaction covered by subsection (3)) by the lender disposing of an eligible security to the borrower, that security is a paired security in relation to the replacement security subsequently acquired or re‑acquired by the lender; and\n\n(b) a security is a paired security in relation to a second security if the first security is a paired security in relation to a third security that is a paired security in relation to the second security (including a pairing with the second security by another application or other applications of this paragraph).\n\n(9) For the purpose of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the borrower:\n\n(a) if the borrower disposes of the borrowed security to a third party:\n\n(i) the first element of the cost base and reduced cost base of the borrowed security (in the hands of the borrower) is taken to be its market value when the borrower acquired it; and\n\n(ii) when the borrower disposes of a replacement security to the lender, the capital proceeds from that CGT event are taken to be that market value; and\n\n(b) if no third party is involved—the transactions referred to in paragraph (3)(a) are ignored.\n\n(9A) For the purpose of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the borrower, the incidental costs to the borrower of the acquisition of an eligible security covered by sub‑subparagraph (3)(a)(ii)(B) include a compensatory payment incurred by the borrower (to the extent that the borrower has not deducted and cannot deduct it).\n\n(9B) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a right or option received by the lender as mentioned in subparagraph (3)(c)(v), the borrower and lender are to be treated as if the eligible security in respect of which the right or option was issued had been held by the lender at the time of the acquisition of the right or option.\n\n(9C) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share, unit, bond, debenture or financial instrument received by the lender as mentioned in subparagraph (3)(c)(vi), the borrower and the lender are to be treated as if:\n\n(a) the share, unit, bond, debenture or financial instrument had been received as the result of the exercise of the borrowed security; and\n\n(b) the borrowed security had been held by the lender at the time of the exercise; and\n\n(c) the lender had exercised the borrowed security; and\n\n(d) the lender had exercised the borrowed security at the time the direction concerned was given; and\n\n(e) the amount of the contribution (if any) made by the lender to the borrower in respect of the carrying out of the direction were an amount paid as consideration by the lender in respect of the exercise.\n\n(9D) If a distribution covered by subparagraph (3)(c)(i) consists of one or more shares issued by a company to the borrower or to a third party in the circumstances mentioned in subsection 6BA(1), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share (in this subsection called the notional bonus share) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:\n\n(a) the company had issued the notional bonus share to the lender instead of the borrower or the third party, as the case requires; and\n\n(b) the notional bonus share had been issued in the circumstances mentioned in subsection 6BA(1); and\n\n(c) the notional bonus share had been issued in respect of the borrowed security; and\n\n(d) the lender had held the borrowed security at the time the notional bonus share was issued.\n\n(9E) If a distribution covered by subparagraph (3)(c)(i) consists of one or more units issued by the trustee of a unit trust to the borrower or to a third party in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997, then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a unit (in this subsection called the notional bonus unit) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:\n\n(a) the trustee had issued the notional bonus unit to the lender instead of the borrower or the third party, as the case requires; and\n\n(b) the notional bonus unit had been issued in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997; and\n\n(c) the notional bonus unit had been issued in respect of the borrowed security; and\n\n(d) the lender had held the borrowed security at the time the notional bonus unit was issued.\n\n(9F) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(v)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:\n\n(a) the lender had held the borrowed security at all relevant times during the borrowing period; and\n\n(b) the right or option had been issued directly to the lender in respect of the borrowed security; and\n\n(c) the lender had disposed of the right or option immediately after its issue and had received capital proceeds of an amount equal to the compensatory payment.\n\n(9G) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(vi)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:\n\n(a) the lender had held the right or option at all relevant times during the borrowing period; and\n\n(b) the lender had exercised the right or option; and\n\n(c) the lender had immediately disposed of the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option and had received capital proceeds of an amount equal to the compensatory payment.\n\n(11A) If:\n\n(a) the lender receives from the borrower a distribution or identical property covered by subparagraph (3)(c)(iv); and\n\n(b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender’s assessable income of a year of income in respect of the distribution concerned;\n\nthe lender’s assessable income of the year of income includes an amount equal to the otherwise assessable amount.\n\n(11B) If:\n\n(a) the lender receives from the borrower a compensatory payment covered by sub‑subparagraph (3)(c)(iv)(C); and\n\n(b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection called the otherwise assessable amount) would have been included in the lender’s assessable income of a year of income in respect of the distribution concerned;\n\nthe lender’s assessable income of the year of income includes an amount equal to the otherwise assessable amount.\n\n(12) Where:\n\n(a) a taxpayer has entered into a transaction of a kind referred to in subparagraph (3)(a)(i); and\n\n(b) at the time of making an assessment in respect of income of the taxpayer of the year of income in which the transaction occurred, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which this section will apply in connection with that transaction;\n\nthe Commissioner may apply the provisions of this section as if those circumstances existed at the time of making the assessment.\n\n(13) Where:\n\n(a) in the making of an assessment, this section has been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time; and\n\n(b) after the making of the assessment, the Commissioner becomes satisfied that the circumstance will not exist;\n\nthen, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purpose of ensuring that this section is to be taken always to have applied on the basis that the circumstance did not exist.\n\n26E  Income from RSAs\n\n(1) All benefits provided in respect of, and amounts that are paid from, an RSA (including amounts taken to be paid from an RSA under subsection (2)) are taken to have an Australian source.\n\n(2) If the premiums of an insurance policy are paid from an RSA, any amounts paid by the insurer under the policy are taken to be paid by the RSA provider as a benefit of the RSA.\n\nSubdivision AA—Non‑superannuation annuities etc.\n\n27H  Assessable income to include annuities and superannuation pensions\n\n(1) Subject to Division 54 of the Income Tax Assessment Act 1997, the assessable income of a taxpayer of a year of income shall include:\n\n(a) the amount of any annuity derived by the taxpayer during the year of income excluding, in the case of an annuity that has been purchased, any amount that, in accordance with the succeeding provisions of this section, is the deductible amount in relation to the annuity in relation to the year of income; and\n\n(b) the amount of any payment made to the taxpayer during the year of income as a supplement to an annuity, whether the payment is made voluntarily, by agreement or by compulsion of law and whether or not the payment is one of a series of recurrent payments.\n\nNote: Division 54 of the Income Tax Assessment Act 1997 provides a tax exemption for certain payments under structured settlements and structured orders.\n\n(2) Subject to subsections (3) and (3A), the deductible amount in relation to an annuity derived by a taxpayer during a year of income is the amount (if any) ascertained in accordance with the\n\nformula ![Start formula start fraction A open bracket B minus C close bracket over D end fraction end formula](image.010.png), where:\n\nA  is the relevant share in relation to the annuity in relation to the taxpayer in relation to the year of income.\n\nB  is the amount of the undeducted purchase price of the annuity.\n\nC  is:\n\n(a) if there is a residual capital value in relation to the annuity and that residual capital value is specified in the agreement by virtue of which the annuity is payable or is capable of being ascertained from the terms of that agreement at the time when the annuity is first derived—that residual capital value; or\n\n(b) in any other case—nil; and\n\nD  is the relevant number in relation to the annuity.\n\n(3) Subject to subsection (3A), where the Commissioner is of the opinion that the deductible amount ascertained in accordance with subsection (2) is inappropriate having regard to:\n\n(a) the terms and conditions applying to the annuity; and\n\n(b) such other matters as the Commissioner considers relevant;\n\nthe deductible amount in relation to the annuity derived by the taxpayer during the year of income is so much of the annuity as, in the opinion of the Commissioner, represents the undeducted purchase price having regard to:\n\n(c) the terms and conditions applying to the annuity;\n\n(d) any certificate or certificates of an actuary or actuaries stating the extent to which, in the opinion of the actuary or actuaries, the amount of the annuity derived by the taxpayer during the year of income represents the undeducted purchase price; and\n\n(e) such other matters as the Commissioner considers relevant.\n\n(3A) For the purposes of this section, where the annuity derived by a taxpayer during a year of income is part of an annuity of which a part has been commuted in the year of income or a preceding year of income, the deductible amount ascertained under subsection (2) or (3) shall be reduced by such amount as, in the opinion of the Commissioner, is appropriate having regard to:\n\n(c) any deductible amount ascertained under this section in relation to the annuity in relation to a preceding year of income; and\n\n(d) such other matters as the Commissioner considers relevant.\n\n(4) In this section:\n\nactuary means a Fellow or Accredited Member of the Institute of Actuaries of Australia.\n\nagreement means any agreement, arrangement or understanding whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nannuity means an annuity, a pension paid from a foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997) or a pension paid from a scheme mentioned in paragraph 290‑5(c) of that Act, but does not include:\n\n(a) an annuity that is a qualifying security for the purposes of Division 16E; or\n\n(b) a superannuation income stream (within the meaning of the Income Tax Assessment Act 1997).\n\nlife expectation factor, in relation to a person in relation to an annuity, means the number of years in the complete expectation of life of the person as ascertained by reference to the prescribed Life Tables at the time at the beginning of the period to which the first payment of the annuity relates.\n\npurchase price means:\n\n(a) in relation to a pension—the sum of:","sortOrder":1000014},{"sectionNumber":"full-source-retrieval-0016","sectionType":"document_chunk","heading":"Document excerpt 16","content":"(i) contributions made by any person to a foreign superannuation fund to obtain the pension; and\n\n(ii) so much as the Commissioner considers reasonable of contributions made by any person to a foreign superannuation fund to obtain superannuation benefits including the pension; and\n\n(b) in relation to an annuity other than a pension—the sum of:\n\n(i) payments made solely to purchase the annuity; and\n\n(ii) so much as the Commissioner considers reasonable of payments made to purchase the annuity and to obtain other benefits.\n\nrelevant number, in relation to an annuity in relation to a year of income, means:\n\n(a) where the annuity is payable for a term of years certain—the number of years in the term;\n\n(b) where the annuity is payable during the lifetime of a person and not thereafter—the life expectation factor of the person; and\n\n(c) in any other case—the number that the Commissioner considers appropriate having regard to the number of years in the total period during which the annuity will be, or may reasonably be expected to be, payable.\n\nrelevant share, in relation to an annuity derived by a taxpayer during a year of income, means:\n\n(a) in a case where the annuity derived by the taxpayer is a share of an annuity (which annuity is in this paragraph referred to as the total annuity) payable to the taxpayer and another person or other persons—the fraction ascertained by dividing the number of whole dollars in the amount of the annuity derived by the taxpayer during the year of income by the number of whole dollars in the amount of the total annuity derived during the year of income by the taxpayer and the other person or persons; or\n\n(b) in any other case—the number 1.\n\nresidual capital value, in relation to an annuity, means the capital amount payable on the termination of the annuity.\n\nundeducted purchase price, in relation to an annuity, has the meaning given by section 27A immediately before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007.\n\n(5) In the definition of purchase price in subsection (4):\n\n(a) a reference to contributions made by any person to a foreign superannuation fund to obtain a pension does not include a reference to contributions made to a foreign superannuation fund by an employer, or by another person under an agreement to which the employer is a party, for the purpose of providing superannuation benefits for, or for dependants of, an employee of the employer; and\n\n(b) a reference to payments made to purchase, or solely to purchase, an annuity (other than a pension) does not include a reference to payments made by an employer, or by another person under an agreement to which the employer is a party, to purchase, or solely to purchase, the annuity for, or for dependants of, an employee of the employer.\n\n(6) For the purposes of subsection (5), in determining whether a person is an employer of another person, treat the holding of an office by the other person as employment of that person.\n\nSubdivision D—Dividends\n\n43A  Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997\n\nThis Subdivision has effect subject to the provisions of Division 216 of the Income Tax Assessment Act 1997 (which describes cum dividend sales in which a distribution to a member of a corporate tax entity is treated as having been made to someone else).\n\n43B  Application of Subdivision to non‑share dividends\n\n(1) This Subdivision:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(2) Subsection (1) does not apply to section 47A.\n\n(3) Paragraph (1)(c) does not apply to subsection 44(1).\n\n(4) Subsection (1) has effect subject to the special provision that is made for non‑share dividends in subsection 44(1).\n\n44  Dividends\n\n(1) The assessable income of a shareholder in a company (whether the company is a resident or a non‑resident) includes:\n\n(a) if the shareholder is a resident:\n\n(i) dividends (other than non‑share dividends) that are paid to the shareholder by the company out of profits derived by it from any source; and\n\n(ii) all non‑share dividends paid to the shareholder by the company; and\n\n(b) if the shareholder is a non‑resident:\n\n(i) dividends (other than non‑share dividends) paid to the shareholder by the company to the extent to which they are paid out of profits derived by it from sources in Australia; and\n\n(ii) non‑share dividends paid to the shareholder by the company to the extent to which they are derived from sources in Australia; and\n\n(c) if the shareholder is a non‑resident carrying on business in Australia at or through a permanent establishment of the shareholder in Australia, and the company is a resident:\n\n(i) dividends (other than non‑share dividends) that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are paid out of profits derived by the company from sources outside Australia; and\n\n(ii) non‑share dividends that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are derived from sources outside Australia.\n\nThis subsection does not apply to a dividend (or non‑share dividend) to the extent to which another provision of this Act that expressly deals with dividends includes some or all of the dividend (or non‑share dividend) in, or excludes some or all of the dividend (or non‑share dividend) from, the shareholder’s assessable income.\n\nNote 1: Some other provisions that expressly deal with dividends are sections 23AI, 23AK and 128D of this Act and section 768‑5 of the Income Tax Assessment Act 1997.\n\nNote 2: An amount declared to be conduit foreign income is not included in assessable income under paragraph (1)(b) or (c): see section 802‑15 of the Income Tax Assessment Act 1997.\n\n(1A) For the purposes of this Act, a dividend paid out of an amount other than profits is taken to be a dividend paid out of profits.\n\n(1B) Where:\n\n(a) the amount of the moneys or of the value of other property of which a dividend paid by a company consists is debited against an amount standing to the credit of a share capital account of the company; or\n\n(b) a dividend paid by a company is a repayment by the company of an amount paid‑up on a share;\n\nthe dividend shall, for the purposes of this section, be deemed to have been paid by the company out of profits derived by it.\n\n(2) Subsections (3) and (4) apply to a demerger dividend unless the head entity elects in writing, within one month after it decides which of its shareholders will receive ownership interests in the demerged entity under the demerger, that those subsections do not apply to the total demerger dividend for all shareholders.\n\n(3) This section applies to the demerger dividend as if it had not been paid out of profits.\n\n(4) A demerger dividend is not assessable income or exempt income.\n\n(5) However, subsections (3) and (4) do not apply to a demerger dividend unless, just after the demerger, CGT assets owned by the demerged entity or a demerger subsidiary representing at least 50% by market value of all the CGT assets (or a reasonable approximation of market value) owned by the demerged entity and its demerger subsidiaries are used, directly or indirectly, in one or more businesses carried on by one or more of those entities.\n\n(6) In applying subsection (5), disregard any assets that are ownership interests in a demerger subsidiary unless they are used in a business referred to in that subsection.\n\n(7) In this section:\n\npermanent establishment of a person:\n\n(a) has the same meaning as in a double tax agreement (as defined in Part X) that relates to a foreign country and affects the person; or\n\n(b) has the meaning given by subsection 6(1), if there is no such agreement.\n\n45  Streaming of bonus shares and unfranked dividends\n\nApplication of section\n\n(1) This section applies in respect of a company that, whether in the same year of income or in different years of income, streams the provision of shares (other than shares to which subsection 6BA(5) applies) and the payment of minimally franked dividends to its shareholders in such a way that:\n\n(a) the shares are received by some shareholders but not all shareholders; and\n\n(b) some or all of the shareholders who do not receive the shares receive or will receive minimally franked dividends.\n\n(2) The value of the share at the time that the shareholder is provided with the share is taken, for the purposes of this Act, to be a dividend that is unfrankable (within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997) and that is paid by the company, out of profits of the company, to the shareholder at that time.\n\n(3) A dividend is minimally franked if it is not franked, or is franked to less than 10%, in accordance with section 202‑5 or 208‑60 of the Income Tax Assessment Act 1997.\n\n45A  Streaming of dividends and capital benefits\n\nApplication of section\n\n(1) This section applies in respect of a company that, whether in the same year of income or in different years of income, streams the provision of capital benefits and the payment of dividends to its shareholders in such a way that:\n\n(a) the capital benefits are, or apart from this section would be, received by shareholders (the advantaged shareholders) who would, in the year of income in which the capital benefits are provided, derive a greater benefit from the capital benefits than other shareholders; and\n\n(b) it is reasonable to assume that the other shareholders (the disadvantaged shareholders) have received, or will receive, dividends.\n\nHowever, it does not apply if section 45 applies in relation to the streaming or in the circumstances set out in subsection (5).\n\nCommissioner to determine that section 45C applies\n\n(2) The Commissioner may make, in writing, a determination that section 45C applies in relation to the whole, or a part, of the capital benefits. A determination does not form part of an assessment.\n\nNote: Subsection (6) limits the determination to a part of the capital benefit in certain cases.\n\nMeaning of provision of capital benefit\n\n(3) A reference to the provision of a capital benefit to a shareholder in a company is a reference to any of the following:\n\n(a) the provision to the shareholder of shares in the company;\n\n(b) the distribution to the shareholder of share capital or share premium;\n\n(c) something that is done in relation to a share that has the effect of increasing the value of a share (which may or may not be the same share) held by the shareholder.\n\n(3A) For the purposes of this section, a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return.\n\nMeaning of greater benefit from capital benefits\n\n(4) The circumstances in which a shareholder would, in a year of income, derive a greater benefit from capital benefits than another shareholder include, but are not limited to, any of the following circumstances existing in relation to the first shareholder and not in relation to the other shareholder:\n\n(a) some or all of the shares in the company held by the shareholder were acquired, or are taken to have been acquired, before 20 September 1985;\n\n(b) the shareholder is a non‑resident;\n\n(c) the cost base (for the purposes of Part IIIA) of the relevant share is not substantially less than the value of the applicable capital benefit;\n\n(d) the shareholder has a net capital loss for the year of income in which this capital benefit is provided;\n\n(e) the shareholder is a private company who would not have been entitled to a rebate under former section 46F if the shareholder had received the dividend that was paid to the disadvantaged shareholder;\n\n(f) the shareholder has income tax losses.\n\nCertain capital benefits not covered\n\n(5) This section does not apply where the capital benefit provided to the advantaged shareholders is the provision of shares and it is reasonable to assume that the disadvantaged shareholders have received, or will receive, fully franked dividends.\n\nDetermination limited in certain cases\n\n(6) If the capital benefit provided to the advantaged shareholders is the provision of shares and it is reasonable to assume that the disadvantaged shareholders have received, or will receive, partly franked dividends, the Commissioner may only make a determination under subsection (2) in relation to so much of the capital benefit as the Commissioner considers relates to the unfranked part of the dividend.\n\n45B  Schemes to provide certain benefits\n\nPurpose of section\n\n(1) The purpose of this section is to ensure that relevant amounts are treated as dividends for taxation purposes if:\n\n(a) components of a demerger allocation as between capital and profit do not reflect the circumstances of a demerger; or\n\n(b) certain payments, allocations and distributions are made in substitution for dividends.\n\nApplication of section\n\n(2) This section applies if:\n\n(a) there is a scheme under which a person is provided with a demerger benefit or a capital benefit by a company; and\n\n(b) under the scheme, a taxpayer (the relevant taxpayer), who may or may not be the person provided with the demerger benefit or the capital benefit, obtains a tax benefit; and\n\n(c) having regard to the relevant circumstances of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling a taxpayer (the relevant taxpayer) to obtain a tax benefit.\n\nCommissioner to determine that section 45BA or 45C applies\n\n(3) The Commissioner may make, in writing, a determination that:\n\n(a) section 45BA applies in relation to the whole, or a part, of the demerger benefit; or\n\n(b) section 45C applies in relation to the whole, or a part, of the capital benefit.\n\nA determination does not form part of an assessment.\n\nNote: If section 45BA applies in relation to the whole, or a part, of a demerger benefit, this benefit may be a capital benefit.\n\nMeaning of provided with a demerger benefit\n\n(4) A person is provided with a demerger benefit if in relation to a demerger:\n\n(a) a company provides the person with ownership interests in that or another company; or\n\n(b) something is done in relation to an ownership interest owned by the person that has the effect of increasing the value of an ownership interest (which may or may not be the same ownership interest) owned by the person.\n\nMeaning of provided with a capital benefit\n\n(5) A reference to a person being provided with a capital benefit is a reference to any of the following:\n\n(a) the provision of ownership interests in a company to the person;\n\n(b) the distribution to the person of share capital or share premium;\n\n(c) something that is done in relation to an ownership interest that has the effect of increasing the value of an ownership interest (which may or may not be the same interest) that is held by the person.\n\n(6) However, a person is not provided with a capital benefit to the extent that the provision of interests, the distribution or the thing done referred to in subsection (5) involves the person receiving a demerger dividend.\n\n(7) For the purposes of this section, a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return.\n\nMeaning of relevant circumstances of scheme\n\n(8) The relevant circumstances of a scheme include the following:\n\n(a) the extent to which the demerger benefit or capital benefit is attributable to capital or the extent to which the demerger benefit or capital benefit is attributable to profits (realised and unrealised) of the company or of an associate (within the meaning in section 318) of the company;\n\n(b) the pattern of distributions of dividends, bonus shares and returns of capital or share premium by the company or by an associate (within the meaning in section 318) of the company;\n\n(c) whether the relevant taxpayer has capital losses that, apart from the scheme, would be unutilised (within the meaning of the Income Tax Assessment Act 1997) at the end of the relevant year of income;\n\n(d) whether some or all of the ownership interests in the company or in an associate (within the meaning in section 318) of the company held by the relevant taxpayer were acquired, or are taken to have been acquired, by the relevant taxpayer before 20 September 1985;\n\n(e) whether the relevant taxpayer is a non‑resident;\n\n(f) whether the cost base (for the purposes of the Income Tax Assessment Act 1997) of the relevant ownership interest is not substantially less than the value of the applicable demerger benefit or capital benefit;\n\n(h) if the scheme involves the distribution of share capital or share premium—whether the interest held by the relevant taxpayer after the distribution is the same as the interest would have been if an equivalent dividend had been paid instead of the distribution of share capital or share premium;\n\n(i) if the scheme involves the provision of ownership interests and the later disposal of those interests, or an increase in the value of ownership interests and the later disposal of those interests:\n\n(i) the period for which the ownership interests are held by the holder of the interests; and\n\n(ii) when the arrangement for the disposal of the ownership interests was entered into;\n\n(j) for a demerger only:","sortOrder":1000015},{"sectionNumber":"full-source-retrieval-0017","sectionType":"document_chunk","heading":"Document excerpt 17","content":"(i) whether the profits of the demerging entity and demerged entity are attributable to transactions between the entity and an associate (within the meaning in section 318) of the entity; and\n\n(ii) whether the assets of the demerging entity and demerged entity were acquired under transactions between the entity and an associate (within the meaning in section 318) of the entity;\n\n(k) any of the matters referred to in subsection 177D(2).\n\nMeaning of obtaining a tax benefit\n\n(9) A relevant taxpayer obtains a tax benefit if an amount of tax payable, or any other amount payable under this Act, by the relevant taxpayer would, apart from this section, be less than the amount that would have been payable, or would be payable at a later time than it would have been payable, if the demerger benefit had been an assessable dividend or the capital benefit had been an assessable dividend.\n\n(10) In this section:\n\nscheme has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n45BA  Effect of determinations under section 45B for demerger benefits\n\n(1) If the Commissioner makes a determination under subsection 45B(3), the amount of the demerger benefit, or the part of the benefit, is taken not to be a demerger dividend for the purposes of this Act for the owner of the ownership interest or the relevant taxpayer at the time when the owner or relevant taxpayer is provided with the demerger benefit.\n\n(2) The amount of the demerger benefit is:\n\n(a) if the benefit is the provision of an ownership interest—the market value of the interest at the time that it is provided; or\n\n(b) if the benefit is an increase in the value of an ownership interest—the increase in the market value of the interest as a result of the change; or\n\n(c) if the benefit is a distribution to the shareholder of share capital or share premium—the amount debited to the share capital account or share premium account of the company in connection with the provision of the benefit.\n\n45C  Effect of determinations under sections 45A and 45B for capital benefits\n\n(1) If the Commissioner makes a determination under subsection 45A(2) or 45B(3), the amount of the capital benefit, or the part of the benefit, is taken, for the purposes of this Act, to be an unfranked dividend that is paid by the company to the shareholder or relevant taxpayer at the time that the shareholder or relevant taxpayer is provided with the capital benefit.\n\n(2) The dividend is taken to have been paid out of profits of the company.\n\n(3) If the Commissioner has made a determination under section 45B in respect of the whole or a part of a capital benefit and the Commissioner makes a further written determination that the capital benefit, or the part of the capital benefit, was paid under a scheme for which a purpose, other than an incidental purpose, was to avoid franking debits arising in relation to the distribution from the company:\n\n(a) on the day on which notice of the determination is served in writing on the company, a franking debit of the company arises in respect of the capital benefit; and\n\n(b) the amount of the franking debit is the amount that, if the company had:\n\n(i) paid a dividend of an amount equal to the amount of the capital benefit, or the part of the capital benefit, at the time when it was provided; and\n\n(ii) fully franked the dividend;\n\nwould have been the amount of the franking credit of the company that would have arisen as a result of the dividend.\n\n(4) The amount of the capital benefit is:\n\n(a) if the benefit is the provision of an ownership interest—the market value of the interest at the time that it is provided; or\n\n(b) if the benefit is an increase in the market value of an ownership interest—the increase in the market value of the interest as a result of the change; or\n\n(c) if the benefit is a distribution to the shareholder of share capital or share premium—the amount debited to the share capital account or share premium account of the company in connection with the provision of the benefit.\n\n(4A) For the purposes of this section:\n\n(a) a non‑share distribution to an equity holder is taken to be the distribution to the equity holder of share capital to the extent to which it is a non‑share capital return; and\n\n(b) the debit to the company’s non‑share capital account, in respect of the non‑share distribution, is taken to be a debit to the company’s share capital account.\n\n45D  Determinations under sections 45A, 45B and 45C\n\nNotice by Commissioner of determination\n\n(1) If the Commissioner makes a determination under section 45A, 45B or 45C, the Commissioner must give a copy of the determination to the company concerned (which, in the case of a demerger benefit referred to in section 45B, is the head entity of the demerger group).\n\nNotice by company of determination\n\n(1A) That company must, in the case of a determination under section 45A or 45B, give a copy of the notice to:\n\n(a) the advantaged shareholder referred to in section 45A; or\n\n(b) the relevant taxpayer referred to in section 45B.\n\nPublication of determination in relation to listed public company\n\n(2) If the Commissioner makes a determination under section 45A, in respect of a dividend paid by a listed public company, the Commissioner is taken to have served notice in writing of the determination on the advantaged shareholder if the Commissioner causes the notice to be published in a manner that results in the notice being accessible to the public and reasonably prominent. The notice is taken to have been served on the day on which the publication takes place.\n\nEvidence of determination\n\n(3) The production of:\n\n(a) a notice of a determination; or\n\n(b) a document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of a determination;\n\nis conclusive evidence of:\n\n(c) the due making of the determination; and\n\n(d) except in proceedings under Part IVC of the Taxation Administration Act 1953 on an appeal or review relating to the determination, that the determination is correct.\n\nObjections\n\n(4) If a taxpayer to whom a determination relates is dissatisfied with the determination, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n46FA  Deduction for dividends on‑paid to non‑resident owner\n\nAllowable deduction\n\n(1) An amount is allowable as a deduction from the assessable income of a company (the resident company) if:\n\n(a) the resident company is paid a dividend (the original dividend) that:\n\n(i) is paid by a company that is a resident; and\n\n(ii) is a non‑portfolio dividend; and\n\n(iii) is not a fully‑franked dividend; and\n\n(b) the resident company is not a group company in relation to the company that paid the original dividend in relation to the year of income in which the dividend is paid; and\n\n(ba) neither the resident company, nor the company that pays the dividend, is a prescribed dual resident; and\n\n(c) ignoring the amendments made by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006, but for subsection 46AB(1) or 46AC(2) or subparagraph 46F(2)(a)(i) of this Act as in force just before the commencement of those amendments, the resident company would have been entitled to a rebate under section 46 of this Act as so in force in respect of the unfranked amount of the original dividend; and\n\n(d) the resident company pays a dividend (the flow‑on dividend) to a company that is not a resident (the non‑resident company); and\n\n(e) the flow‑on dividend is not a fully‑franked dividend; and\n\n(f) the resident company declares that the unfranked amount of the flow‑on dividend is an on‑payment of the unfranked amount of the original dividend to the extent of a specified percentage (not exceeding 100%); and\n\n(g) when the original dividend is paid, when the declaration is made and when the flow‑on dividend is paid, the resident company is:\n\n(i) a resident; and\n\n(ii) wholly owned by the non‑resident company.\n\nThe deduction is from assessable income of the year of income in which the flow‑on dividend is paid. The amount of the deduction is equal to the flow‑on amount worked out using subsection (2).\n\n(2) The flow‑on amount is:\n\n![Start formula Percentage specified under paragraph (1)(f) times Unfranked amount of the flow-on dividend end formula](image.011.png)\n\nFlow‑on declarations\n\n(3) The declaration under paragraph (1)(f) (the flow‑on declaration) must be made:\n\n(a) in writing; and\n\n(b) before the flow‑on dividend is paid.\n\nThe declaration cannot be revoked or varied.\n\n(4) The flow‑on declaration is effective only to the extent to which the flow‑on amount does not exceed the surplus in the resident company’s unfranked non‑portfolio dividend account immediately before the declaration is made.\n\nNote: See section 46FB for the unfranked non‑portfolio dividend account.\n\nUnfranked amount of flow‑on dividend unfrankable\n\n(5) Part 3‑6 of the Income Tax Assessment Act 1997 (the imputation system) applies to the unfranked amount of the flow‑on dividend as if it were an unfrankable distribution within the meaning of section 202‑45 of that Act if a deduction is allowed to the resident company in relation to the flow‑on dividend.\n\nWholly owned by non‑resident company\n\n(6) The resident company is wholly owned by the non‑resident company if all the shares in the resident company are held by and beneficially owned by the non‑resident company.\n\n(7) However, the company is not wholly owned by the non‑resident company if a person is in a position to affect rights, in relation to the resident company, of the non‑resident company.\n\n(8) The resident company is also not wholly owned by the non‑resident company if at some future time a person will be in a position to affect rights as described in subsection (7).\n\nA person in a position to affect rights\n\n(9) A person is in a position to affect rights of a company in relation to another company if the person has a right, power or option:\n\n(a) to acquire those rights from one or other of those companies; or\n\n(b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.\n\n(10) It does not matter whether the person has the right, power or option because of the constitution of one or other of those companies, any agreement or otherwise.\n\nDefinitions\n\n(11) In this section:\n\nfully‑franked dividend means a dividend whose franking percentage (within the meaning of section 203‑35 of the Income Tax Assessment Act 1997) is 100%.\n\ngroup company has the same meaning as in former section 160AFE as in force immediately before 1 July 2002.\n\nnon‑portfolio dividend has the same meaning as in section 317.\n\nnon‑resident company means a company that is not a resident.\n\nunfranked amount of a dividend (including an unfrankable distribution within the meaning of section 202‑45 of the Income Tax Assessment Act 1997) means the amount of the dividend less the franked part.\n\n46FB  Unfranked non‑portfolio dividend account\n\nCompany may establish account\n\n(1) A company may establish an unfranked non‑portfolio dividend account.\n\nAccount surplus\n\n(2) An unfranked non‑portfolio dividend account surplus exists for a company at a particular time if the company’s total unfranked non‑portfolio dividend credits arising before that time exceed its total unfranked non‑portfolio dividend debits arising before that time.\n\n(3) The amount of the surplus is equal to the amount of the excess.\n\nCredits\n\n(4) An unfranked non‑portfolio dividend credit arises for a company if:\n\n(a) the company is paid an unfranked non‑portfolio dividend; and\n\n(b) the company is not a group company in relation to the company that paid the dividend in relation to the year of income in which the dividend is paid; and\n\n(c) ignoring the amendments made by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006, but for subsection 46AB(1) or 46AC(2) or subparagraph 46F(2)(a)(i) of this Act as in force just before the commencement of those amendments, the company would have been entitled to a rebate under section 46 of this Act as so in force in respect of the unfranked amount of the dividend.\n\nThe amount of the credit is the unfranked amount of the dividend. The credit arises when the dividend is paid to the company.\n\nDebits\n\n(5) An unfranked non‑portfolio dividend debit arises for a company if the company makes a declaration under paragraph 46FA(1)(f) in relation to a dividend paid on a particular day. The amount of the debit is the flow‑on amount under subsection 46FA(2). The debit arises when the declaration is made.\n\nDefinitions\n\n(6) In this section:\n\ngroup company has the same meaning as in former section 160AFE as in force immediately before 1 July 2002.\n\nnon‑portfolio dividend has the same meaning as in section 317.\n\nunfranked amount of a dividend (including an unfrankable distribution within the meaning of section 202‑45 of the Income Tax Assessment Act 1997) means the amount of the dividend less the franked part.\n\n47  Distributions by liquidator\n\n(1) Distributions to shareholders of a company by a liquidator in the course of winding‑up the company, to the extent to which they represent income derived by the company (whether before or during liquidation) other than income which has been properly applied to replace a loss of paid‑up share capital, shall, for the purposes of this Act, be deemed to be dividends paid to the shareholders by the company out of profits derived by it.\n\n(1A) A reference in subsection (1) to income derived by a company includes a reference to:\n\n(a) an amount (except a net capital gain) included in the company’s assessable income for a year of income; or\n\n(b) a net capital gain that would be included in the company’s assessable income for a year of income if the Income Tax Assessment Act 1997 required a net capital gain to be worked out as follows:\n\nMethod statement\n\nStep 1. Work out each capital gain (except a capital gain that is disregarded) that the company made during that year of income. Do so without indexing any amount used to work out the cost base of a CGT asset.\n\nStep 2. Total the capital gain or gains worked out under Step 1. The result is the net capital gain for that year of income.\n\n(2) Those distributions shall, to the extent to which they are made out of any profits or income, be deemed to have been paid wholly and exclusively out of those profits or that income.\n\n(2A) Where:\n\n(a) the business of a company has been, or is in the course of being, discontinued otherwise than in the course of a winding up of the company under any law relating to companies;\n\n(b) in connexion with the discontinuance, any moneys of the company have been or other property of the company has been, on or after 19 October 1967, distributed, otherwise than by the company, to shareholders of the company; and\n\n(c) the moneys or other property so distributed are not, for the purposes of this Act, dividends;\n\nthe distribution shall, subject to subsection (2B), be deemed to be, for the purposes of this section, a distribution to the shareholders by a liquidator in the course of winding up the company.\n\n(2B) Where:\n\n(a) subsection (2A) would, but for this subsection, apply in relation to any moneys or other property of a company distributed to shareholders of the company; and\n\n(b) the company does not cease to exist within a period of 3 years after the distribution, or within such further period as the Commissioner allows;\n\nsubsection (2A) shall not apply, and shall be deemed never to have applied, in relation to those moneys or that other property, and those moneys or that other property so distributed shall, for the purposes of this Act, be deemed to be dividends paid by the company to the shareholders out of profits derived by it.\n\n(3) For the purposes of this section, paid‑up share capital includes capital which has been paid up in money or by other valuable consideration and which has been cancelled and has not been repaid by the company to the shareholders.\n\n47A  Distribution benefits—CFCs\n\n(1) Subject to subsection (2), if:\n\n(a) a company (in this section called the first company) has profits immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n(b) the distribution time occurred after 3 June 1990; and\n\n(c) the first company is a CFC at the distribution time; and\n\n(d) the first company is a resident of an unlisted country at the distribution time;\n\nso much of the distribution payment in relation to the distribution time as would not otherwise be a dividend and does not exceed the amount of those profits is taken, for the purposes of this Act, to be a dividend paid by the first company:\n\n(e) to the recipient of the benefit as a shareholder in the first company; and\n\n(f) out of profits derived by the first company; and\n\n(g) at the distribution time.\n\n(2) If:\n\n(a) any of the following subparagraphs applies:\n\n(i) by virtue of subsection (1), the whole or a part of the distribution payment is included in the assessable income of a taxpayer of the year of income in which the distribution time occurred under section 44;\n\n(ii) by virtue of subsection (1), the whole or a part of the distribution payment would, apart from section 23AI or section 768‑5 of the Income Tax Assessment Act 1997, be included in the assessable income of a taxpayer of the year of income in which the distribution time occurred under section 44; and\n\n(b) both of the following subparagraphs apply:\n\n(i) the taxpayer’s return of income for the year of income was not prepared on the basis that the distribution payment had the consequence specified in subsection (1);\n\n(ii) the taxpayer has not notified the Commissioner, in writing, within 12 months after the end of the year of income, that the distribution payment had the consequence specified in subsection (1);","sortOrder":1000016},{"sectionNumber":"full-source-retrieval-0018","sectionType":"document_chunk","heading":"Document excerpt 18","content":"that subsection has effect in relation to the taxpayer and in relation to that distribution payment as if the reference in that subsection to the purposes of this Act were a reference to the purposes of this Act (other than section 365 of this Act and Division 770 of the Income Tax Assessment Act 1997).\n\n(3) Subject to subsections (9) and (12), a reference in this section to a distribution benefit in relation to the first company is a reference to an eligible benefit where the following conditions are satisfied:\n\n(a) the eligible benefit was provided to:\n\n(i) an associated entity in relation to the first company; or\n\n(ii) another entity that, immediately after the time of the provision of the eligible benefit, was an associated entity in relation to the first company;\n\n(b) the eligible benefit was provided by:\n\n(i) the first company; or\n\n(ii) an entity (in this subsection called the arranger) other than the first company under an arrangement between:\n\n(A) the first company; and\n\n(B) the arranger or another entity;\n\n(c) if subparagraph (b)(ii) applies—the first company made, or entered into an undertaking to make, one or more transfers of property or services to the arranger or to another entity (which transfers are in this section called the arrangement transfers) that are attributable, in whole or in part, to the provision of the eligible benefit.\n\n(4) Where the first company entered into an undertaking to make one or more arrangement transfers, the time of the arrangement transfers is the time the undertaking was entered into.\n\n(5) Where, at a particular time, an entity (in this subsection called the provider) waives or releases the obligation of another entity (in this subsection called the recipient) to pay or repay to the provider an amount:\n\n(a) the waiver or release is taken to constitute an eligible benefit provided at that time by the provider to the recipient; and\n\n(b) if the eligible benefit is a distribution benefit in relation to the first company—each of the following times is a distribution time for the eligible benefit:\n\n(i) if the eligible benefit was provided by the first company—the time of the provision of the eligible benefit; or\n\n(ii) in any other case—the time, or each of the times, of the arrangement transfers concerned;\n\n(c) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n(i) if the benefit was provided by the first company—the amount the payment or repayment of which is waived or released; or\n\n(ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n(6) For the purposes of subsection (5), an entity is taken to be under an obligation to pay or repay an amount even if the amount is not due for payment or repayment.\n\n(7) Where, at a particular time, an entity (in this subsection called the provider) makes a loan to another entity (in this subsection called the recipient), where:\n\n(a) the parties to the loan are not at arm’s length with each other in relation to the loan; or\n\n(b) the purpose, or one of the purposes, of the making of the loan was to facilitate, directly or indirectly (through one or more interposed companies, partnerships or trusts), the payment of a dividend that is, or would be, non‑assessable non‑exempt income under section 768‑5 of the Income Tax Assessment Act 1997 (in whole or in part); or\n\n(c) the purpose, or one of the purposes, of the making of the loan was to facilitate, directly or indirectly, the provision of an eligible benefit by the recipient, being an eligible benefit that is a distribution benefit in relation to any company;\n\nthe following provisions have effect:\n\n(d) the making of the loan is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n(e) if the eligible benefit is a distribution benefit in relation to the first company—each of the following times is a distribution time for the eligible benefit:\n\n(i) if the benefit was provided by the first company—the time of the provision of the benefit; or\n\n(ii) in any other case—the time, or each of the times, of the arrangement transfers concerned;\n\n(f) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n(i) if the benefit was provided by the first company—the amount of the loan; or\n\n(ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n(8) Where, at a particular time:\n\n(a) an entity (in this subsection called the provider) acquires from a company (in this subsection called the recipient):\n\n(i) a share in the recipient;\n\n(ii) a right to acquire a share in the recipient;\n\n(iii) an option to acquire a share in the recipient; or\n\n(b) an entity (in this subsection also called the provider) acquires from the trustee of a unit trust (in this subsection also called the recipient):\n\n(i) a unit in the recipient;\n\n(ii) a right to acquire a unit in the recipient;\n\n(iii) an option to acquire a unit in the recipient;\n\nthe following provisions have effect:\n\n(c) the acquisition is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n(d) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n(i) if the benefit was provided by the first company—the time of the provision of the benefit; or\n\n(ii) in any other case—the time, or each of the times, of the arrangement transfers concerned;\n\n(e) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n(i) if the benefit was provided by the first company—the amount or market value of the consideration paid or given by the first company in respect of the acquisition; or\n\n(ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit;\n\n(f) if:\n\n(i) the eligible benefit is a distribution benefit in relation to the first company; and\n\n(ii) the provider transferred property or services to the recipient in respect of the acquisition;\n\nin determining the profits of the company immediately before the distribution time, or the first distribution time, as the case requires, for the distribution benefit, the following assumptions are to be made:\n\n(iii) if the benefit was provided by the first company—the assumption that, immediately before the distribution time, the company had:\n\n(A) disposed of the property or services to an entity other than the recipient; and\n\n(B) received, in respect of that disposal, consideration equal to the market value of the property or services;\n\n(iv) if subparagraph (iii) does not apply—the assumption that, immediately before the distribution time, the company had:\n\n(A) disposed of equivalent property or services to an entity other than the recipient or the entity who provided the eligible benefit; and\n\n(B) received, in respect of that disposal, consideration equal to the market value of the property or services.\n\n(9) An eligible benefit that is covered by subsection (8) and provided at a particular time is not a distribution benefit in relation to the first company if, at that time, there is no entity (other than the provider referred to in that subsection) who is:\n\n(a) either:\n\n(i) the holder of an eligible equity interest in the first company; or\n\n(ii) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n(b) the holder of an eligible equity interest in the recipient referred to in that subsection.\n\n(10) Where:\n\n(a) an entity (in this subsection called the provider) transfers property or services to another entity (in this subsection called the recipient); and\n\n(b) the property or services are transferred:\n\n(i) for no consideration; or\n\n(ii) for a consideration less than the market value of the property or services; and\n\n(c) in the case of a transfer of services—the services do not consist of the making of a loan; and\n\n(d) in any case—the property or services are not transferred by way of consideration for the acquisition from a company of:\n\n(i) a share in the company; or\n\n(ii) a right to acquire a share in the company; or\n\n(iii) an option to acquire a share in the company; and\n\n(e) in any case—the property or services are not transferred in respect of the acquisition from the trustee of a unit trust of:\n\n(i) a unit in the unit trust; or\n\n(ii) a right to acquire a unit in the unit trust; or\n\n(iii) an option to acquire a unit in the unit trust; and\n\n(f) in the case of a transfer of property—the property does not consist of a payment in respect of a call on a share in a company;\n\nthe following provisions have effect:\n\n(g) the transfer is taken to constitute an eligible benefit provided by the provider to the recipient at that time;\n\n(h) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n(i) if the benefit was provided by the first company—the time of the provision of the benefit; or\n\n(ii) in any other case—the time, or each of the times, of the arrangement transfers concerned;\n\n(j) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n(i) if the benefit was provided by the first company—the amount by which the amount or market value of the property or services exceeds the consideration (including nil consideration) mentioned in paragraph (b); or\n\n(ii) if subparagraph (i) does not apply and there is only one arrangement transfer—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit; or\n\n(iii) if subparagraph (i) does not apply and there are 2 or more arrangement transfers—the amount worked out in relation to the arrangement transfer using the following formula:\n\n![Start formula Total Excess times start fraction Arrangement transfer over Total arrangement transfers end fraction end formula](image.012.png)\n\nwhere:\n\nTotal Excess  means so much of the total amount or market value of all the arrangement transfers as is attributable to the provision of the eligible benefit.\n\nArrangement transfer  means the amount or market value of the arrangement transfer concerned.\n\nTotal arrangement transfers  means the total amount or market value of all of the arrangement transfers.\n\n(k) if the eligible benefit is a distribution benefit in relation to the first company—in determining the profits of the company immediately before a distribution time for the distribution benefit, the following assumptions are to be made:\n\n(i) if the benefit was provided by the first company—the assumption that, immediately before the distribution time, the company had:\n\n(A) disposed of the property or services to an entity other than the recipient; and\n\n(B) received, in respect of that disposal, consideration equal to the market value of the property or services;\n\n(ii) if subparagraph (i) does not apply and there is only one arrangement transfer—the assumption that, immediately before the distribution time, the company had:\n\n(A) disposed of the property or services covered by the arrangement transfer to an entity other than the entity who provided the eligible benefit; and\n\n(B) received, in respect of that disposal, consideration equal to the market value of the property or services;\n\n(iii) if subparagraph (i) does not apply and there are 2 or more arrangement transfers—the assumption that, immediately before each distribution time, the company had:\n\n(A) disposed of the property or services covered by the arrangement transfer concerned to an entity other than the entity who provided the eligible benefit; and\n\n(B) received, in respect of that disposal, consideration equal to the market value of the property or services.\n\n(10A) Subsection (10) does not apply to a transfer that is taken by section 70‑30 or 70‑110 of the Income Tax Assessment Act 1997 to have occurred.\n\n(11) Where, at a particular time, an entity (in this subsection called the provider) makes a payment to another entity, being a company (in this subsection called the recipient), in respect of a call on a share in the recipient:\n\n(a) the making of the payment is taken to constitute an eligible benefit provided by the provider to the recipient at that time; and\n\n(b) if the eligible benefit is a distribution benefit in relation to the first company—each of the following is a distribution time for the eligible benefit:\n\n(i) if the benefit was provided by the first company—the time of the provision of the benefit; or\n\n(ii) in any other case—the time, or each of the times, of the arrangement transfers concerned;\n\n(c) if the eligible benefit is a distribution benefit in relation to the first company—the distribution payment in relation to the distribution time is:\n\n(i) if the benefit was provided by the first company—the amount of the payment; or\n\n(ii) in any other case—so much of the amount or market value of the arrangement transfer as is attributable to the provision of the eligible benefit.\n\n(12) An eligible benefit that is covered by subsection (11) and provided at a particular time is not a distribution benefit in relation to the first company if, at that time, there is no entity (other than the provider referred to in that subsection) who is:\n\n(a) either:\n\n(i) the holder of an eligible equity interest in the first company; or\n\n(ii) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n(b) the holder of an eligible equity interest in the recipient referred to in that subsection.\n\n(13) If:\n\n(a) apart from this subsection, a particular eligible benefit that is covered by subsection (8) or (11) and provided at a particular time is not a distribution benefit in relation to the first company only because of subsection (9) or (12); and\n\n(b) at a later time, there is an entity (other than the provider referred to in subsection (8) or (11), as the case may be) who is:\n\n(i) either:\n\n(A) the holder of an eligible equity interest in the first company; or\n\n(B) an associate of an entity who is the holder of an eligible equity interest in the first company; and\n\n(ii) the holder of an eligible equity interest in the recipient referred to in whichever of subsections (8) and (11) is applicable; and\n\n(ba) if the eligible benefit consists of the acquisition of a share or unit—at that later time, the share or unit has not been redeemed or bought back by the recipient mentioned in subsection (8) for a consideration equal to or greater than the arm’s length value of the share or unit;\n\nthe following provisions have effect:\n\n(c) this section has effect as if subsection (9) or (12), as the case requires, had never applied in relation to that eligible benefit;\n\n(d) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n(14) If:\n\n(a) apart from this subsection, a particular eligible benefit (in this subsection called the first eligible benefit) that is covered by subsection (8) or (11) and provided at a particular time is not a distribution benefit in relation to the first company only because of subsection (9) or (12); and\n\n(b) the recipient referred to in whichever of subsections (8) and (11) is applicable provides an eligible benefit (in this subsection called the second eligible benefit) to:\n\n(i) the first company; or\n\n(ii) the provider referred to in whichever of those subsections is applicable; or\n\n(iii) an associated entity in relation to:\n\n(A) the first company; or\n\n(B) that provider; and\n\n(c) the provision of the first eligible benefit facilitated, directly or indirectly, the provision of the second eligible benefit; and\n\n(ca) if the second eligible benefit is covered by subsection (8) or (11):\n\n(i) the second eligible benefit is provided on or after 13 September 1990; or\n\n(ii) both:\n\n(A) the second eligible benefit was provided before 13 September 1990; and\n\n(B) the Commissioner is of the opinion that the provision of the second eligible benefit had, or would be likely to have, the effect of enabling any taxpayer to avoid tax;\n\nthe following provisions have effect:\n\n(d) this section has effect as if subsection (9) or (12), as the case requires, had never applied in relation to the first eligible benefit;\n\n(e) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n(15) In determining whether a company has profits at a particular time, it is to be assumed that the accounts of the company had been drawn up immediately before that time.\n\n(16) For the purposes of this section, where:\n\n(a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n(b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n(c) any of the following subparagraphs applies:\n\n(i) the original taxpayer is:\n\n(A) a resident at any time during the original year of income; and\n\n(B) a company or a natural person (other than a company or a natural person in the capacity of a trustee);","sortOrder":1000017},{"sectionNumber":"full-source-retrieval-0019","sectionType":"document_chunk","heading":"Document excerpt 19","content":"(iii) the original taxpayer is the trustee of a public trading trust in relation to the original year of income;\n\n(iv) the original taxpayer is the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the original year of income;\n\n(v) the original taxpayer is the trustee of a resident trust estate (within the meaning of Division 6) in relation to the year of income who is liable to be assessed and pay tax under section 99 or 99A in respect of a part of the net income of the trust estate;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the original assessable amount.\n\n(17) For the purposes of this section, where:\n\n(a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n(b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n(c) all of the following conditions are satisfied:\n\n(i) the original taxpayer is the trustee of a trust estate who is liable to be assessed and pay tax under section 98 in respect of a share in the net income of the trust estate of the original year of income;\n\n(ii) the beneficiary who was entitled to that share was a resident at any time during the original year of income;\n\n(iii) the whole or a part (which whole or part is in this subsection called the beneficiary’s portion of the original assessable amount) of the share of the net income is attributable to the original assessable amount;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the beneficiary’s portion of the original assessable amount.\n\n(18) For the purposes of this section, where:\n\n(a) the first company has profits (in this subsection called the original profits) immediately before a distribution time for a distribution benefit in relation to the first company; and\n\n(b) by virtue of subsection (1), an amount (in this subsection called the original assessable amount) is included in the assessable income of a taxpayer (in this subsection called the original taxpayer) of a year of income (in this subsection called the original year of income) under section 44 in respect of the distribution payment in relation to the distribution time; and\n\n(c) the original taxpayer is the trustee of a trust estate or a partnership; and\n\n(d) the following conditions are satisfied in relation to another taxpayer (in this subsection called the actual taxpayer):\n\n(i) an amount is included in the assessable income of the actual taxpayer of a year of income (in this subsection called the assessment year of income) under subsection 92(1) or section 97 or 100;\n\n(ii) the actual taxpayer is:\n\n(A) a resident at any time during the assessment year of income, being a company or a natural person (other than a company or a natural person in the capacity of a trustee); or\n\n(C) the trustee of a public trading trust in relation to the assessment year of income; or\n\n(D) the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the assessment year of income; or\n\n(E) the trustee of a trust estate who is liable to be assessed and pay tax under section 98 in respect of a share in the net income of a trust estate; or\n\n(F) the trustee of a trust estate who is liable to be assessed and pay tax under section 99 or 99A in respect of a part of the net income of a trust estate; or\n\n(G) the trustee of a trust estate where trustee beneficiary non‑disclosure tax is payable under Division 6D on the whole or part of the net income of the trust estate;\n\n(iii) if sub‑subparagraph (ii)(A), (B), (C) or (D) applies—the whole or a part of the amount so included in the actual taxpayer’s assessable income (which whole or part is in this subsection called the actual taxpayer’s portion of the original assessable amount) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n(iv) if sub‑subparagraph (ii)(E) applies:\n\n(A) the beneficiary who was entitled to the share concerned was a resident at any time during the assessment year of income; and\n\n(B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n(v) if sub‑subparagraph (ii)(F) applies:\n\n(A) the trust estate was a resident trust estate (within the meaning of Division 6) in relation to the assessment year of income; and\n\n(B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the part of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\n(vi) if sub‑subparagraph (ii)(G) applies:\n\n(A) the trust estate was a resident trust estate (within the meaning of Division 6) in relation to the assessment year of income; and\n\n(B) the whole or a part (which whole or part is in this subsection also called the actual taxpayer’s portion of the original assessable amount) of the whole or the part of the share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the original assessable amount;\n\nthen, in determining the profits that the first company has at a later time, no account is to be taken of so much of the original profits as is equal to the actual taxpayer’s portion of the original assessable amount.\n\n(18A) An assessment may be made of a taxpayer on the assumption that subsection (2) will not be applicable in relation to a particular distribution payment made during a year of income of the taxpayer.\n\n(18B) Where:\n\n(a) the assessment mentioned in subsection (18A) is made; and\n\n(b) after the making of the assessment, the Commissioner becomes aware that subsection (2) was applicable in relation to the distribution payment concerned;\n\nthen, in spite of anything in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that the assessment is made as if subsection (18A) of this section were disregarded.\n\n(19) The provisions of section 102AAJ apply for the purposes of this section in like manner as they apply for the purposes of Division 6AAA.\n\n(20) For the purposes of this section, the question whether a company is a resident of an unlisted country is to be determined in the same manner in which that question is determined for the purposes of Part X.\n\n(21) In this section:\n\narm’s length value, in relation to the redemption or buy‑back of a share in a company or a unit in a unit trust, means the amount that the company or trustee could reasonably be expected to have been required to pay to obtain the redemption or buy‑back of the share or unit under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction.\n\narrangement means:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.\n\nassociate has the same meaning as in Part X.\n\nassociated entity, in relation to a company, means either of the following entities:\n\n(a) a shareholder in the company;\n\n(b) an entity who is an associate of a shareholder in the company.\n\nCFC has the same meaning as in Part X.\n\ndistribution benefit has the meaning given by subsection (3) of this section.\n\neligible equity interest:\n\n(a) in relation to a company, means any of the following:\n\n(i) a share, or an interest in a share, in the company;\n\n(ii) a right to acquire a share, or an interest in a share, in the company;\n\n(iii) an option to acquire a share, or an interest in a share, in the company; or\n\n(b) in relation to a unit trust, means any of the following:\n\n(i) a unit, or an interest in a unit, in the unit trust;\n\n(ii) a right to acquire a unit, or an interest in a unit, in the unit trust;\n\n(iii) an option to acquire a unit, or an interest in a unit, in the unit trust; or\n\nentity has the same meaning as in Part X.\n\nloan includes:\n\n(a) an advance of money; and\n\n(b) the provision of credit or any other form of financial accommodation; and\n\n(c) the payment of an amount for, on account of, on behalf or at the request of an entity where there is an obligation (whether expressed or implied) to repay the amount; and\n\n(d) a transaction (whatever its terms or form) which in substance effects a loan of money.\n\nproperty has the same meaning as in Division 6AAA.\n\nservices has the same meaning as in Division 6AAA.\n\nstatutory accounting period has the same meaning as in Part X.\n\ntransfer has the same meaning as in Division 6AAA.\n\nDivision 3—Deductions\n\nSubdivision A—General\n\n51AAA  Deductions not allowable in certain circumstances\n\n(1) Where:\n\n(a) an amount is included in the assessable income of a taxpayer of a year of income by section 102‑5 of the Income Tax Assessment Act 1997 (about net capital gains) or subsection 124ZZB(1) of this Act (about notional capital gains of PDFs);\n\n(b) a deduction would, but for this section, be allowable under a provision listed in the table in subsection (2) to the taxpayer; and\n\n(c) if the amount had not been included in the assessable income the deduction would not be allowable;\n\nthe deduction is not allowable.\n\n(2) The table lists provisions allowing deductions that are affected by subsection (1). Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.\n\n- Deduction provisions affected by net capital gains limit\n- Item Provision Description\n- 1 Subdivision A of Division 3 of Part III General\n- 2 section 8‑1 General deductions\n- 3 Division 25 Some expenses you can deduct\n- 4 Division 30 Gifts or contributions\n- 5 Division 34 Non‑compulsory uniforms\n- 6 Division 36 Tax losses of earlier income years\n- 7 Subdivision 40‑F Facilities to conserve or convey water\n- 8 Subdivision 40‑F Establishing grapevines\n- 9 Subdivision 40‑G Landcare operations\n- 10 Subdivision 40‑G Mains electricity supply\n- 11 Subdivision 40‑G Telephone lines\n- 12 Division 165 Income tax consequences of changing ownership or control of a company\n- 13 Subdivision 170‑A Transfer of tax losses within wholly‑owned groups of companies\n- 14 Division 230 Financial arrangements\n\n51AD  Deductions not allowable in respect of property used under certain leveraged arrangements\n\n(1) In this section:\n\narrangement includes:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.\n\nassociate has the same meaning in relation to a person as that expression has in relation to a person in section 318.\n\nconstruction includes manufacture.\n\ncontrol means effectively control.\n\ngoods includes whatever is capable of being owned or used.\n\nhire‑purchase agreement means a hire purchase agreement to which Division 240 of the Income Tax Assessment Act 1997 applies.\n\nlease, in relation to property, includes:\n\n(a) any arrangement under which a right to use the property is granted by the owner to another person; and\n\n(b) any arrangement under which a right to use the property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person;\n\nbut does not include a hire‑purchase agreement.\n\nowner, in relation to property, includes a person who has taken, and holds, the property on hire under a hire‑purchase agreement.\n\nperson includes a person in the capacity of a trustee.\n\nprescribed time means one o’clock in the afternoon, by standard time in the Australian Capital Territory, on 24 June 1982.\n\nNote: This section applies to deductions under Division 40 (Capital allowances) and Division 43 (Capital works) of the Income Tax Assessment Act 1997 as if you were the owner of an asset you hold (under that Division) instead of any other person: see section 40‑135 of that Act.\n\n(1A) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if the tax preferred use:\n\n(a) starts on or after 1 July 2007; and\n\n(b) does not occur under a legally enforceable arrangement entered into before 1 July 2007.\n\n(1B) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if:\n\n(a) the tax preferred use starts on or after 1 July 2007; and\n\n(b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and\n\n(c) an election is made under item 71 of Schedule 1 to the Tax Laws Amendment (2007 Measures No. 5) Act 2007 to have subitem 71(2) of that Schedule apply to the property.\n\n(1C) This section does not apply to property on or after 1 July 2007 if:\n\n(a) Division 16D applied to the property immediately before 1 July 2007; or\n\n(b) this section did not apply to the property immediately before 1 July 2007 and Division 16D would apply to the property on or after 1 July 2007 but for subsection 159GH(2).\n\nFor the purposes of applying paragraph (b), disregard the operation of section 159GL.\n\n(1D) Subparagraph (4)(a)(iii) and sub‑subparagraph (4)(b)(ii)(D) do not apply to property acquired by a taxpayer if:\n\n(a) the property is acquired by the taxpayer on or after 1 July 2007; and\n\n(b) the property is not acquired under a legally enforceable arrangement entered into before 1 July 2007.\n\n(2) In this section, a reference to the acquisition of property by a person is a reference to:\n\n(a) the person becoming the owner of the property; or\n\n(b) the construction of the property for the person by another person or other persons on premises of the first‑mentioned person.\n\n(3) In this section, a reference to property being held for use includes a reference to property that is installed ready for use and held in reserve.\n\n(3B) For the purpose of this section, disregard an acquisition or disposal of property by way of the transfer of the property for the provision or redemption of a security. Consequently this section applies as if the person who was the owner of the property before the transfer continues to be the owner after the transfer.\n\n(4) Subject to subsections (1A), (1B), (1C), (1D) and (8), this section applies, in relation to a taxpayer, to property acquired or constructed by the taxpayer, being property acquired by the taxpayer under a contract entered into after the prescribed time or property constructed by the taxpayer, construction having commenced after that time, if:\n\n(a) at a time when the property is owned by the taxpayer, a person (which person is in this section referred to as the end‑user) holds rights as lessee under a lease of the property, and:\n\n(i) in a case where the end‑user is not a resident of Australia—while the lease is in force, the property is, or is to be, used by a person other than the taxpayer wholly or principally outside Australia;\n\n(ii) while the lease is in force, the property is, or is to be, used by a person other than the taxpayer otherwise than wholly and exclusively for the purpose of producing assessable income; or\n\n(iii) in a case where the property was acquired by the taxpayer—the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end‑user; or\n\n(b) in a case to which paragraph (a) does not apply:\n\n(i) at a time when the property is owned by the taxpayer, the property is, or is to be, used (whether or not by the taxpayer) wholly or partly in or in connection with the production, supply, carriage, transmission or delivery of goods or the provision of services; and\n\n(ii) a person other than the taxpayer (which person is in this section also referred to as the end‑user) controls, will control, or is or will be able to control, directly or indirectly, that use of the property, and:\n\n(A) in a case where the end‑user is not a resident of Australia—that use of the property takes place, or is to take place, wholly or principally outside Australia;\n\n(B) in a case where some or all of the goods are, or are to be, produced for the end‑user or supplied, carried, transmitted or delivered to or for the end‑user, or some or all of the services are, or are to be, provided to or for the end‑user—any of those goods or services are, or are to be, used by the end‑user otherwise than wholly and exclusively for the purpose of producing assessable income;","sortOrder":1000018},{"sectionNumber":"full-source-retrieval-0020","sectionType":"document_chunk","heading":"Document excerpt 20","content":"(C) in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (i), the end‑user derives, or is to derive, no income or income that is wholly or partly exempt from income tax; or\n\n(D) in a case where the property was acquired by the taxpayer—the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end‑user.\n\n(5) In subparagraph (4)(a)(iii) and sub‑subparagraph (4)(b)(ii)(D), a reference to the end‑user is a reference to the end‑user, any of the end‑users (where there are 2 or more end‑users), any associate of the end‑user or of any of those end‑users, or any 2 or more such persons.\n\n(6) For the purposes of subsection (4), property shall be taken not to have been, prior to its acquisition by the taxpayer, owned, and used or held for use, by a person if:\n\n(a) the property was first used or held for use by the person at a time within 6 months before the acquisition of the property by the taxpayer; and\n\n(b) at that time there was in existence an arrangement that the property would be sold to another person and leased by that person to the first‑mentioned person.\n\n(7) Where:\n\n(a) the end‑user consists of all or any of the partners in a partnership; and\n\n(b) a condition of paragraph (4)(a) or (b), as the case may be, is satisfied in relation to any of the partners in the partnership;\n\nthat condition shall be taken to be satisfied in relation to all the partners in the partnership.\n\n(8) This section does not apply to property, in relation to a taxpayer, unless the whole or a predominant part of the cost of the acquisition or construction, as the case may be, of the property by the taxpayer is financed directly or indirectly by a debt or debts (which debt is, or debts are, referred to in this subsection as the non‑recourse debt) and the rights of the creditor or creditors as against the taxpayer in the event of default in the repayment of principal or payment of interest:\n\n(a) are limited wholly or predominantly to any or all of the following:\n\n(i) rights (including the right to moneys payable) in relation to any or all of the following:\n\n(A) the property or the use of the property;\n\n(B) goods produced, supplied, carried, transmitted or delivered, or services provided, by means of the property;\n\n(C) the loss or disposal of the whole or a part of the property or of the taxpayer’s interest in the property;\n\n(ii) rights in respect of a mortgage or other security over the property;\n\n(iii) rights arising out of any arrangement relating to the financial obligations of the end‑user of the property towards the taxpayer, being financial obligations in relation to the property;\n\n(b) are in the opinion of the Commissioner capable of being so limited, having regard to either or both of the following:\n\n(i) the assets of the taxpayer;\n\n(ii) any arrangement to which the taxpayer is a party; or\n\n(c) where paragraphs (a) and (b) do not apply—are limited by reason that not all of the assets of the taxpayer (not being assets that are security for debts of the taxpayer other than the non‑recourse debt) would be available for the purpose of the discharge of the whole of the non‑recourse debt (including the payment of interest) in the event of any action or actions by the creditor or creditors against the taxpayer arising out of that debt.\n\n(9) Where:\n\n(a) property has been financed by a debt or debts as mentioned in subsection (8); and\n\n(b) the rights of the creditor or creditors as against the taxpayer are, or are capable of being, limited as mentioned in that subsection;\n\nthe Commissioner may treat those rights as not being, or capable of being, so limited if the Commissioner is of the opinion, having regard to the circumstances in which the debt was, or debts were, incurred and any other matters that the Commissioner thinks relevant, that it would be reasonable to do so.\n\n(10) Subject to subsections (11), (12), (13) and (15), where this section has applied to property, in relation to a taxpayer, at any time, the taxpayer shall be deemed not to have occupied or used the property, or held the property for use, at that time, for the purpose of producing assessable income or in carrying on a business for that purpose.\n\n(11) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of subparagraph (4)(a)(ii) or sub‑subparagraph (4)(b)(ii)(B), and for any part of that time the end‑user held, occupied or used the property referred to in that subparagraph, or held it for use, or used any goods or services referred to in that sub‑subparagraph, as the case may be, partly for the purpose of producing assessable income, the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n(12) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of sub‑subparagraph (4)(b)(ii)(C), and for any part of that time the end‑user derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (4)(b)(i), the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n(13) Where:\n\n(a) this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of subparagraph (4)(a)(ii) or sub‑subparagraph (4)(b)(ii)(B) or (C);\n\n(b) the end‑user referred to in that subparagraph or sub‑subparagraph, as the case may be, consisted of all or any of the partners in a partnership; and\n\n(c) for any part of that time one or more of the partners in the partnership was a person in respect of whom, but for the operation of subsection (7), that subparagraph or sub‑subparagraph, as the case may be, would not have applied;\n\nthe taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.\n\n(14) In considering, for the purposes of subsection (13), the extent to which the taxpayer shall be deemed to have held, occupied or used property, or held if for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, the Commissioner shall have regard:\n\n(a) to the interest or interests of the partner or partners referred to in paragraph (13)(c) in the net income, or the partnership loss, of the partnership of the year of income corresponding to the year of income referred to in paragraph (13)(a);\n\n(b) the extent to which, for any part of the time referred to in paragraph (13)(a), a partner or partners other than the partner or partners referred to in paragraph (13)(c) held, occupied or used the property, or held it for use, or used the goods or services referred to in sub‑subparagraph (4)(b)(ii)(B), as the case may be, for the purpose of producing assessable income; and\n\n(c) the extent to which, for any part of the time referred to in paragraph (13)(a), a partner or partners other than the partner or partners referred to in paragraph (13)(c) derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in subparagraph (4)(b)(i).\n\n(15) Notwithstanding anything contained in subsections (10), (11) and (13), at any time when this section applies to property by reason of subparagraph (4)(a)(ii), the property shall be deemed not to be held, occupied or used, or held for use, by the taxpayer for the purpose of producing assessable income, or in carrying on a business for that purpose, if, at that time:\n\n(a) 2 or more end‑users hold rights as lessees under the lease of the property;\n\n(b) one or more of the end‑users (which end‑user is, or end‑users are, referred to in this subsection as the exempt end‑user) is a company, or are companies, the income of which is ordinarily exempt from income tax;\n\n(c) the property is, or is to be, used wholly or principally in or in connection with the conduct of operations or transactions of a kind that the exempt end‑user ordinarily engages in;\n\n(d) the exempt end‑user controls, will control, or is or will be able to control, directly or indirectly, that use of the property; and\n\n(e) in relation to those operations or transactions, the exempt end‑user derives, or is to derive, no income or income that is exempt from income tax.\n\n(16) Where a taxpayer has incurred expenditure for repairs to property to which this section applies or has applied in relation to the taxpayer and, but for this section, a deduction would be allowable under section 25‑10 (Repairs) of the Income Tax Assessment Act 1997 in respect of that expenditure, so much of the expenditure as the Commissioner considers appropriate shall be deemed not to be allowable, having regard to:\n\n(a) the period for which the taxpayer owned the property before the repairs were commenced and any part of that period during which this section applies or applied to the property in relation to the taxpayer; and\n\n(b) in a case to which subsection (11), (12) or (13) of this section applies or applied—the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer was deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n(17) Where a taxpayer has incurred expenditure in borrowing money to finance the acquisition or construction of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997 in relation to that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to:\n\n(a) the period for which the money was borrowed or, by the operation of subsection 25‑25(6) of that Act, is deemed to have been borrowed and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and\n\n(b) in a case to which subsection (11), (12), or (13) of this section applies or applied—the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n(18) Where a taxpayer has incurred expenditure for the preparation, registration and stamping of a lease, or of an assignment or surrender of a lease, of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 25‑20 (Lease document expenses) of the Income Tax Assessment Act 1997 in respect of that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to:\n\n(a) the period of the lease and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and\n\n(b) in a case to which subsection (11), (12) or (13) of this section applies or applied—the extent to which, for the time during the part of the period mentioned in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose.\n\n(19) Where:\n\n(a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n(b) a deduction was taken into account in calculating that net income or partnership loss;\n\n(c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction) would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership;\n\n(d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time; and\n\n(e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer after the prescribed time;\n\nthere shall be included in the assessable income of the taxpayer of the relevant year of income an amount that bears to the amount of the relevant deduction the same proportion as the individual interest of the taxpayer in that net income bears to that net income or, as the case requires, as the individual interest of the taxpayer in that partnership loss bears to that partnership loss.\n\n(20) Where:\n\n(a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n(b) a deduction was taken into account in calculating that net income or partnership loss;\n\n(c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction) would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership;\n\n(d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time;\n\n(e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer before the prescribed time; and\n\n(f) after the prescribed time, the taxpayer made or agreed to make a contribution or contributions (which contribution is or contributions are in this subsection referred to as the additional contribution) to the capital of the partnership in addition to any contribution or contributions to the capital of the partnership that, under a contract or contracts entered into at or before that time, the taxpayer had made or agreed to make; and\n\n(g) by reason of making or agreeing to make the additional contribution, the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss, is greater than it would otherwise have been;\n\nthere shall be included in the assessable income of the taxpayer of the relevant year of income an amount ascertained in accordance with the formula A (B – C), where:\n\nA  is the amount of the relevant deduction.\n\nB  is the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss; and\n\nC  is the fraction that would be B if another partner, and not the taxpayer, had made or agreed to make the additional contribution.\n\n(21) For the purposes of determining if this section applies to property, the income of a prescribed excluded STB (within the meaning of Division 1AB) is taken to be exempt.\n\n51AEA  Meal entertainment—election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n(1) If a meal entertainment fringe benefit arises for a taxpayer for an FBT year and the taxpayer elects that Division 9A of Part III of the Fringe Benefits Tax Assessment Act 1986 applies to the taxpayer for the FBT year, and has not elected that Subdivision C of that Division applies:\n\n(a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and\n\n(b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.","sortOrder":1000019},{"sectionNumber":"full-source-retrieval-0021","sectionType":"document_chunk","heading":"Document excerpt 21","content":"(2) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AEB  Meal entertainment—election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method\n\n(1) If a taxpayer has made an election under section 37CA of the Fringe Benefits Tax Assessment Act 1986:\n\n(a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to the amount worked out using the following formula is allowable to the taxpayer for the year of income in which it is incurred:\n\n![Start formula Amount of expense times Register percentage end formula](image.013.png)\n\n(b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.\n\n(2) The register percentage is the percentage worked out using the formula:\n\n![Start formula start fraction Total deductions for register meal entertainment over Total register meal entertainment expenses end fraction times 100% end formula](image.014.png)\n\nwhere:\n\nTotal deductions for register meal entertainment means the total of deductions that would (but for this section and section 51AEA) be allowable to the taxpayer for expenses incurred by the taxpayer in providing meal entertainment in the 12 week period covered by the register kept by the employer under Subdivision C of Division 9A of the Fringe Benefits Tax Assessment Act 1986.\n\nTotal register meal entertainment expenses means the total of expenses incurred by the taxpayer in providing meal entertainment during that 12 week period.\n\n(3) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AEC  Entertainment facility—election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method\n\n(1) If a taxpayer has made an election under section 152B of the Fringe Benefits Tax Assessment Act 1986:\n\n(a) for each entertainment facility leasing expense incurred in the FBT year by the taxpayer, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and\n\n(b) no other deduction under any provision of this Act is allowable to the taxpayer for entertainment facility leasing expenses incurred in the FBT year.\n\n(2) Expressions used in this section have the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AF  Car expenses incurred by employee\n\n(1) Where:\n\n(a) during a particular period, an employer provides a car for the exclusive use of a person who is, or of persons any of whom is, an employee of the employer or a relative of such an employee; and\n\n(b) at any time during that period, the employee or a relative of the employee is entitled to use the car for private purposes;\n\na deduction is not allowable under this Act in respect of a car expense that relates to the car and:\n\n(c) is incurred by the employee during that period; or\n\n(d) is incurred by the employee and is wholly or partly attributable to that period.\n\n(2) In this section:\n\ncar has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997, but does not include a car covered by section 28‑165 of that Act.\n\ncar expense has the meaning given by section 28‑13 of the Income Tax Assessment Act 1997, but does not include a car expense covered by section 28‑165 of that Act.\n\nemployee means a person who receives, or is entitled to receive, work and income support related withholding payments and benefits.\n\nemployer means a person who pays or is liable to pay work and income support related withholding payments and benefits, and includes:\n\n(a) in the case of an unincorporate body of persons other than a partnership—the manager or other principal officer of that body; and\n\n(b) in the case of a partnership—each partner; and\n\n(c) an Australian government agency as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n51AGA  No deduction to employee for certain car parking expenses\n\nNo deduction\n\n(1) A deduction is not allowable to an employee under this Act in respect of expenditure to the extent to which it is incurred in respect of the provision of car parking facilities for a car on a day if:\n\n(a) on that day, the employee has a primary place of employment; and\n\n(b) on that day, the car is parked for one or more daylight periods exceeding 4 hours in total at, or in the vicinity of, that primary place of employment; and\n\n(c) the expenditure is in respect of the provision of the parking facilities to which that parking relates; and\n\n(d) on that day, the car was used in connection with travel by the employee between:\n\n(i) the place of residence of the employee; and\n\n(ii) that primary place of employment; and\n\n(e) the provision of parking facilities for the car during the period or periods is not taken, under the regulations, to be excluded from this section; and\n\n(f) the day is on or after 1 July 1993.\n\nDefinitions\n\n(2) In this section:\n\ncar has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\ndaylight period has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\nemployee has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\nplace of residence has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\nprimary place of employment has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.\n\n51AH  Deductions not allowable where expenses incurred by employee are reimbursed\n\n(1) Where:\n\n(a) either of the following subparagraphs applies:\n\n(i) a person makes a payment in discharge, in whole or in part, of an obligation of the taxpayer to pay an amount to a third person in respect of an amount of a loss or outgoing incurred by the taxpayer;\n\n(ii) a person reimburses the taxpayer, in whole or in part, in respect of an amount of a loss or outgoing incurred by the taxpayer;\n\n(b) the payment or reimbursement, as the case may be, constitutes:\n\n(i) a fringe benefit; or\n\n(ii) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit; and\n\n(c) in the case of a reimbursement—the amount of the reimbursement is not included in the taxpayer’s assessable income under section 15‑70 of the Income Tax Assessment Act 1997;\n\nthe amount of the deduction that, but for this section, has been allowed or would be allowable in respect of the loss or outgoing shall be:\n\n(d) if it would be concluded that the amount of the payment or reimbursement would have been the same even if the loss or outgoing were not incurred in producing assessable income of the taxpayer—calculated as if the loss or outgoing were reduced by the amount of the payment or reimbursement; or\n\n(e) in any other case—reduced by the amount of the payment or reimbursement.\n\n(2) Expressions (other than “fringe benefit”) used in this section and in the Fringe Benefits Tax Assessment Act 1986 have the same respective meanings in this section as they have in that Act.\n\n(3) This section does not apply to deductions under Division 40 of the Income Tax Assessment Act 1997 (about capital allowances).\n\n51AJ  Deductions not allowable for private component of contributions for fringe benefits etc.\n\n(1) Where:\n\n(a) any of the following benefits is provided in respect of the employment of an employee of an employer:\n\n(i) an airline transport benefit;\n\n(ii) a board benefit;\n\n(iii) a loan benefit;\n\n(iv) a property benefit;\n\n(v) a residual benefit;\n\n(b) the benefit is:\n\n(i) a fringe benefit; or\n\n(ii) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit;\n\n(c) in the case of a loan benefit—the taxpayer, being the recipient or the employee, incurs interest (in this section called the recipients interest) in respect of the loan;\n\n(d) in the case of a benefit other than a loan benefit—the taxpayer, being the recipient or the employee, incurs consideration (in this section called the recipients contribution) to the provider or to the employer in respect of the provision of the recipients transport, the recipients meal, the recipients property or the recipients benefit, as the case may be;\n\n(e) it would be concluded that, in calculating the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, the provider or the employer made an allowance for a particular level of application or use of the benefit in producing assessable income of the taxpayer; and\n\n(f) it would be concluded that the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, would have been greater if it had been calculated without making that allowance;\n\nthe following provisions have effect:\n\n(g) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer is equal to, or less than, that level—a deduction is not allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution;\n\n(h) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer exceeds that level—the amount of the deduction that, but for this section, has been allowed or would be allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution shall not exceed the amount calculated in accordance with the formula:\n\n![Start formula D minus A end formula](image.015.png)\n\nwhere:\n\nD  is the amount of the deduction that, but for this section, would have been allowable to the taxpayer under this Act in respect of the amount of the recipients interest or the amount of the recipients contribution if it had been calculated without making that allowance; and\n\nA  is the amount of that allowance.\n\n(2) Expressions (other than “recipients contribution” and “fringe benefit”) used in this section and in the  Fringe Benefits Tax Assessment Act 1986 have the same respective meanings in this section as they have in that Act.\n\n51AK  Agreements for the provision of non‑deductible non‑cash business benefits\n\n(1) Subject to this section, where:\n\n(a) under an agreement:\n\n(i) a taxpayer incurs expenditure; and\n\n(ii) a non‑cash business benefit is provided to the taxpayer or another person; and\n\n(b) that benefit is not exclusively for use or application for the purpose of producing assessable income of the taxpayer;\n\nthe taxpayer shall be treated, for the purposes of this Act, as if so much of the expenditure as does not exceed the arm’s length value of the benefit had been incurred by the taxpayer exclusively in respect of that benefit.\n\n(2) This section does not apply so as to treat particular expenditure, or the cost of particular property, to be a particular amount for a particular purpose if there is another provision of this Act that deems that expenditure, or the cost of that property, to be a lesser amount for that purpose.\n\n(3) A reference in this section to producing assessable income includes a reference to:\n\n(a) gaining assessable income; or\n\n(b) carrying on a business for the purpose of gaining or producing assessable income.\n\n(4) Expressions used in this section and in section 21A have the same respective meanings in this section as they have in that section.\n\n(5) In this section:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nexpenditure includes a loss or outgoing.\n\n52  Loss on property acquired for profit‑making\n\n(1AA) This section does not apply to a loss arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.\n\nNote: Section 25‑40 (Loss from profit‑making scheme) of the Income Tax Assessment Act 1997 deals with such a loss.\n\n(1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.\n\n(1) Any loss incurred by the taxpayer in the year of income upon the sale of any property or from the carrying on or carrying out of any undertaking or scheme, the profit (if any) from which sale, undertaking or scheme would have been included in the taxpayer’s assessable income, shall be an allowable deduction:\n\nProvided that, in respect of property acquired by the taxpayer after the date of the commencement of this proviso, no deduction shall be allowable under this section (except where the Commissioner, being satisfied that the property was acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme, otherwise directs) unless the taxpayer, not later than the date upon which he or she lodges his or her first return under this Act after having acquired the property, notifies the Commissioner that the property has been acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme.\n\n(2) Where:\n\n(a) a taxpayer sells property (in this subsection referred to as the relevant property) that is deemed by subsection 25A(5) or (8) to have been acquired by the taxpayer for the purpose of profit‑making by sale;\n\n(b) the Commissioner is satisfied that the relevant property has not been held or used by the taxpayer in a manner inconsistent with such a purpose; and\n\n(c) the Commissioner, having regard to:\n\n(i) the amount of the consideration paid by the person who transferred the relevant property or, in a case to which subsection 25A(8) applies, the property referred to in paragraph 25A(8)(b), to the taxpayer in respect of the purchase of the property so transferred; and\n\n(ii) such other matters as the Commissioner considers relevant;\n\nconsiders that it is appropriate that a loss be deemed to be incurred by the taxpayer upon the sale of the relevant property;\n\nthe taxpayer shall be deemed, for the purposes of this section, to have incurred a loss upon the sale of the relevant property of such amount as the Commissioner considers appropriate.\n\n(3) Except as provided by subsection (2), a deduction is not allowable to a taxpayer under this section in respect of a loss incurred upon a sale of property to which paragraph (2)(a) applies.\n\n(4) Where:\n\n(a) a loss is incurred by a taxpayer upon the sale of property (in this subsection referred to as the relevant property); and\n\n(b) the taxpayer is deemed to have acquired the relevant property for the purpose of profit‑making by sale by virtue of the application of subsection 25A(6) in accordance with subparagraph (b)(ii) of that subsection;\n\nthe deduction that would, but for this subsection, be allowable to the taxpayer under subsection (1) in respect of the loss shall be reduced by such amount (if any) as the Commissioner considers reasonable having regard to the extent to which the relevant property is attributable to the interest in property that was acquired by the taxpayer for the purpose of profit‑making by sale as mentioned in that subparagraph.\n\n(5) A deduction is not allowable to a taxpayer under subsection (1) in respect of a loss incurred by the taxpayer upon the sale of property if:\n\n(a) the sale is a transfer in the prescribed manner by the taxpayer for the purposes of section 25A; or\n\n(b) the property is deemed by subsection 25A(2) to have been acquired by the taxpayer for the purposes of profit‑making by sale and was not actually acquired by the taxpayer for that purpose.\n\n52A  Certain amounts disregarded in ascertaining taxable income\n\n(1) Notwithstanding section 8‑1 of the Income Tax Assessment Act 1997, losses or outgoings consisting of expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property as trading stock of the taxpayer shall, if the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the whole of those losses or outgoings, be allowable as a deduction to the taxpayer to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of those losses or outgoings.\n\n(2) Where:\n\n(a) expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property that was purchased or acquired in the carrying on or carrying out of any profit‑making undertaking or scheme would, but for this subsection, be taken into account for the purpose of ascertaining whether any profit arose, or any loss was incurred, from the carrying on or carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and\n\n(b) the Commissioner considers that it would be unreasonable that the whole of that expenditure be taken into account for those purposes;\n\nthat expenditure shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that the expenditure be taken into account for those purposes.\n\n(2A) Where:\n\n(a) prescribed property that was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection was or is treated or used by the taxpayer as an asset of a business carried on by the taxpayer;\n\n(b) but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of that property; and","sortOrder":1000020},{"sectionNumber":"full-source-retrieval-0022","sectionType":"document_chunk","heading":"Document excerpt 22","content":"(c) the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the value of the property to the extent to which, but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of the property;\n\na deduction shall be allowable to the taxpayer in respect of the value of the property to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of that value.\n\n(2B) Where:\n\n(a) the value of any prescribed property that:\n\n(i) was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection; and\n\n(ii) was or is used by the taxpayer in the carrying on or carrying out of any profit‑making undertaking or scheme;\n\nwould, but for this subsection, be taken into account for the purpose of ascertaining whether or not any profit arose, or any loss was incurred, from the carrying on or the carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and\n\n(b) the Commissioner considers that it would be unreasonable that the value of the property be taken into account for those purposes to the extent to which the value would, but for this subsection, be taken into account for those purposes;\n\nthe value of the property shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that that value be taken into account for those purposes.\n\n(3) In forming an opinion for the purposes of subsection (1) or (2A) as to the extent to which it is reasonable that a deduction be allowable to a taxpayer in respect of expenditure incurred in the purchase or acquisition of prescribed property or in respect of the value of prescribed property, as the case may be, or in forming an opinion for the purposes of subsection (2) or (2B) as to the extent to which it is reasonable that expenditure incurred by a taxpayer in the purchase or acquisition of prescribed property should be taken into account for the purposes referred to in subsection (2) or that the value of prescribed property should be taken into account for the purposes referred to in subsection (2B), as the case may be:\n\n(a) if the taxpayer expended moneys in purchasing or acquiring the prescribed property—the Commissioner shall have regard to the circumstances in which, and the person or persons from whom, the taxpayer obtained moneys:\n\n(i) that were expended by the taxpayer in purchasing or acquiring the prescribed property; or\n\n(ii) that, in the opinion of the Commissioner, were obtained by, or paid to, the taxpayer to enable the taxpayer to expend moneys in purchasing or acquiring the prescribed property;\n\n(b) if the taxpayer borrowed from another person (in this paragraph referred to as the lender) moneys that were expended by the taxpayer in purchasing or acquiring the prescribed property or moneys that, in the opinion of the Commissioner, were obtained by, or paid to, the taxpayer to enable the taxpayer to expend moneys in purchasing or acquiring the prescribed property—the Commissioner shall have regard to:\n\n(i) the circumstances in which, and the terms and conditions on which, the taxpayer borrowed those moneys from the lender; and\n\n(ii) whether, in the opinion of the Commissioner, the taxpayer and the lender were dealing with each other at arm’s length in connexion with the borrowing of those moneys by the taxpayer;\n\n(c) if, either before or after the purchase or acquisition of the prescribed property by the taxpayer, an agreement or arrangement (whether or not enforceable by legal proceedings and whether or not intended to be so enforceable) was entered into, or an understanding was reached, as a result of which there has been, or there could reasonably be expected to be, a substantial reduction in the value of the prescribed property—the Commissioner shall have regard to that agreement, arrangement or understanding;\n\n(d) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the transaction, operation, undertaking, scheme or arrangement, had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the transaction, operation, undertaking, scheme or arrangement had not been entered into or carried out—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n(e) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that the Commissioner is satisfied was by way of dividend stripping or was similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n(f) if:\n\n(i) the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, money was to be paid, or other property was to be transferred or made available by a person other than the taxpayer, whether before or after the purchase or acquisition of the prescribed property, to the taxpayer, to the taxpayer and a person or persons other than the taxpayer or to a person or persons other than the taxpayer;\n\n(ii) the Commissioner is satisfied that the amount of money so to be paid, or the value of the property so to be transferred or made available, as the case may be, was to be not less than, or not substantially less than, the amount expended by the taxpayer in the purchase or acquisition of the prescribed property;\n\nthe Commissioner shall have regard to the fact that the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of such a transaction, operation, undertaking, scheme or arrangement;\n\n(g) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, other prescribed property was to be issued or allotted by a company (whether to the taxpayer or any other person or persons) and it could reasonably be expected that, as a result of the issue or allotment of that other prescribed property, the value of the prescribed property purchased or acquired by the taxpayer would be substantially reduced—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement;\n\n(h) if the purchase or acquisition of the prescribed property by the taxpayer arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement under which, or in the course of which, rights in respect of the prescribed property or in respect of other prescribed property (whether that other prescribed property had been issued or allotted before the time of the purchase or acquisition by the taxpayer of the first‑mentioned prescribed property or was to be issued or allotted at a later time) were to be withdrawn or varied and it could reasonably be expected that, as a result of a withdrawal or variation of those rights, the value of the prescribed property purchased or acquired by the taxpayer would be substantially reduced—the Commissioner shall have regard to that transaction, operation, undertaking, scheme or arrangement; and\n\n(j) the Commissioner shall have regard to any other matters that he or she considers relevant.\n\n(4) In this section, prescribed property means any chose in action.\n\n(4A) In the preceding provisions of this section, references to the value of any prescribed property shall, unless the contrary intention appears, be read as including references to part of the value of that prescribed property.\n\n(5) For the purposes of this section:\n\n(a) a person to whom prescribed property is issued or allotted by a company shall be taken to have acquired that prescribed property;\n\n(b) a person upon whom prescribed property devolves by reason of the death of a person shall be taken to have acquired that prescribed property; and\n\n(c) a person in whom prescribed property vests by the operation of any trust or the exercise of any power under a trust shall be taken to have acquired that prescribed property.\n\n(6) The reference in paragraph (3)(b) to terms and conditions shall be read as including a reference to implied terms and conditions and to terms and conditions that are not enforceable by legal proceedings whether or not they were intended to be so enforceable.\n\n(7) Where, by virtue of the application of the preceding provisions of this section, the amount (in this subsection referred to as the relevant amount) of the deduction that is allowable to a taxpayer in respect of losses or outgoings incurred by the taxpayer in the purchase or acquisition of prescribed property is less than the amount of those losses and outgoings, the cost of that prescribed property shall, for the purposes of the application of Divisions 70 (Trading stock) and 385 (Primary production) of the Income Tax Assessment Act 1997 in relation to that property in relation to the taxpayer, be taken to be an amount that is the same as the relevant amount.\n\n(8) References in this section to expenditure incurred by a taxpayer in the purchase or acquisition of any prescribed property shall, in the case of prescribed property being a share or stock in the capital of a company, be read as including references to any payment made or other consideration given by the taxpayer to the company in respect of the prescribed property, whether as a payment of unpaid capital in respect of the prescribed property or otherwise and whether on application for or allotment of the prescribed property, to meet calls or otherwise.\n\n(9) Subsection (8) applies to a non‑share equity interest in the same way as it applies to a share.\n\n63  Bad debts\n\nWhere a debt in respect of the whole or a part of a payment that has, or will, become liable to be made under a qualifying security within the meaning of Division 16E is written off as a bad debt by a taxpayer during a year of income, then, for the purposes of paragraph 25‑35(1)(a) of the Income Tax Assessment Act 1997, there is taken to have been included in the taxpayer’s assessable income of a year of income so much of the debt as equals the amount (if any) ascertained in accordance with the formula A – B, where:\n\nA  is the amount (if any) or the sum of the amounts (if any) included in the assessable income of the taxpayer of any year or years of income under section 159GQ that is or are attributable to the payment or to the part of the payment, as the case requires; and\n\nB  is the amount (if any) or the sum of the amounts (if any) allowable as a deduction or deductions from the assessable income of the taxpayer of any year or years of income under section 159GQ that is or are attributable to the payment or to the part of the payment, as the case requires.\n\n63D  Bad debts etc. of money‑lenders not allowable deductions where attributable to listed country or unlisted country branches\n\n(1) Subject to section 63F, if:\n\n(a) apart from this section and section 63F, a deduction would be allowable to a taxpayer:\n\n(i) under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of a debt as bad; or\n\n(ii) under section 63E of this Act in respect of a debt/equity swap in relation to a debt; and\n\n(b) the debt was created or acquired in the ordinary course of a money‑lending business of the taxpayer who carries on that business; and\n\n(c) during any part or parts (the foreign country branch period) of the period since the debt was so created or acquired (the debt holding period), it is the case that, if income had been derived by the taxpayer in respect of the debt, the income would not, because of section 23AH of this Act, have been included in the assessable income of the taxpayer;\n\nthen only a proportion of the deduction is allowable, being the proportion calculated using the formula:\n\n![Start formula start fraction Debt holding period minus Foreign country branch period over Eligible debt term end fraction end formula](image.016.png)\n\nwhere:\n\ndebt holding period means the number of days in the debt holding period.\n\neligible debt term means:\n\n(a) where the debt was acquired from a person other than an associate, within the meaning of section 318 of this Act—the number of days in the debt holding period; or\n\n(b) in any other case—the number of days in the period beginning on the day on which the debt was created (whether by the taxpayer or another person) and ending at the end of the day on which it was written off.\n\nforeign country branch period means the number of days in the foreign country branch period.\n\n(2) Where a debt that is written off, or in respect of which there is a debt/equity swap (within the meaning of section 63E), was acquired from another person, the creation, and any previous acquisition, of the debt is to be disregarded for the purposes of applying subsection (1), other than paragraph (b) of the definition of eligible debt term in subsection (1).\n\n(3) Where a part of a debt is written off as bad, this section applies as if the part were an entire debt that is written off as bad.\n\n63E  Debt/equity swaps\n\nMeaning of debt/equity swap\n\n(1) For the purposes of this section, a debt/equity swap occurs if:\n\n(a) under an arrangement (defined in subsection (6)), a taxpayer discharges, releases or otherwise extinguishes the whole or part of a debt owed to the taxpayer in return for the issue by the debtor to the taxpayer of shares (other than redeemable preference shares), or units, in the debtor; and\n\n(b) the debtor is:\n\n(i) a company; or\n\n(ii) a trading trust (within the meaning of section 102N), or a public unit trust (within the meaning of section 102P), in relation to the year of income in which the units are issued; and\n\n(c) the debt either:\n\n(i) has been brought to account by the taxpayer as assessable income of any year of income; or\n\n(ii) is in respect of money lent in the ordinary course of the business of the lending of money by the taxpayer who carries on that business.\n\nMeaning of equity value and swap loss\n\n(2) For the purposes of this section:\n\n(a) the equity value of the shares or units is the greater of:\n\n(i) their market value at the time of their issue to the taxpayer; and\n\n(ii) their value shown in the accounts of the taxpayer as at the time of their issue to the taxpayer; and\n\n(b) a swap loss occurs if the amount of the whole or the part of the debt that is extinguished is greater than the equity value of the shares or units.\n\nSwap loss is deductible etc.\n\n(3) If a debt/equity swap occurs:\n\n(a) subject to section 63F, any swap loss is allowable as a deduction from the taxpayer’s assessable income of the year of income in which the shares or units are issued; and\n\n(b) no amount is allowable as a deduction from the assessable income of the taxpayer of any year of income under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of the debt as bad in connection with the debt/equity swap; and\n\n(c) for the purposes of any application of Subdivision 20‑A of the Income Tax Assessment Act 1997 in relation to the issue of the shares or units to the taxpayer, the amount received in respect of the issue is taken to be the same as the equity value of the shares or units.\n\nEffect of debt/equity swap on later equity disposal etc.\n\n(4) If a debt/equity swap occurs and the taxpayer later disposes of any of the shares or units or they are cancelled or redeemed:\n\n(a) except in accordance with paragraph (b), no amount is included in, or allowable as a deduction from, the taxpayer’s assessable income of any year of income under this Act in respect of the later disposal, cancellation or redemption; and\n\n(b) if the consideration received or receivable by the taxpayer in respect of the disposal, cancellation or redemption is different from the equity value of the shares or units:\n\n(i) if the consideration is greater—the difference is included in the taxpayer’s assessable income of the year of income in which the disposal, cancellation or redemption occurs; or\n\n(ii) if it is less—the difference is allowable as a deduction from that assessable income.\n\nConsideration of a nil amount\n\n(5) For the purposes of subsection (4), if no consideration is received or receivable by the taxpayer in respect of the disposal, cancellation or redemption, then consideration of a nil amount is taken to have been so received or receivable.\n\n(5A) Subdivisions 165‑C, 166‑C and 175‑C of the Income Tax Assessment Act 1997 apply to an allowable deduction under this section in respect of the whole or part of a debt that is extinguished, in the same way as they apply to a debt (or part of a debt) that is written off as bad.\n\nMeaning of arrangement\n\n(6) In this section:\n\narrangement means any agreement, arrangement, understanding, promise, undertaking or scheme, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings.","sortOrder":1000021},{"sectionNumber":"full-source-retrieval-0023","sectionType":"document_chunk","heading":"Document excerpt 23","content":"63F  Limit on deductions where debt write offs and debt/equity swaps occur\n\nSituations where limit is to be applied\n\n(1) If:\n\n(a) apart from this section, a deduction (the current deduction) would be allowable to a taxpayer:\n\n(i) under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under section 63E of this Act in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) a deduction (a previous deduction) was allowed or allowable to the taxpayer under any of those sections, under former section 51 of this Act or under section 63 in respect of any number of occurrences of either or both of the following:\n\n(i) a previous writing off as bad of the whole or part of a debt (a previous debt) that was the same as, or included, the debt mentioned in subparagraph (a)(i) or (ii);\n\n(ii) a previous debt/equity swap relating to a part of a debt (a previous debt) that was the same as, or included, the debt mentioned in subparagraph (a)(i) or (ii); and\n\n(c) the current deduction or at least one previous deduction is a deduction allowable under section 63E of this Act in respect of a debt/equity swap;\n\nthen the current deduction is only allowable to the extent that it does not exceed the limit worked out under subsection (2).\n\nCalculation of limit\n\n(2) The limit is worked out as follows:\n\n- Step 1: Take the amount of the previous debt in respect of the earliest or only writing off or debt/equity swap to which paragraph (1)(b) applies.\n- Step 2: Reduce the amount by the previous deduction in respect of that writing off or debt/equity swap.\n- Step 3: If one or more of the following events occur after the writing off or debt/equity swap, progressively reduce the balance of the amount in the way set out below and in the order in which the events occur:\n- Event How balance reduced\n- A writing off or debt/equity swap in respect of which there is a previous deduction. Reduce the balance by the amount of that previous deduction. If the reduced balance is higher than the level of the debt owing after the event, further reduce the balance to that lower level.\n- Any other event (e.g. a repayment) that reduces the amount of debt owing, being an event that occurs before the writing off or debt/equity swap in respect of the current deduction. If the balance at the time of the event is higher than the level of the debt owing after the event occurs, reduce the balance to that lower level\n- The limit is the resulting balance.\n\n63G  Bad debts etc. of trust not allowable in certain circumstances\n\nIf:\n\n(a) a deduction is allowable from a trust’s assessable income of any year of income:\n\n(i) under former section 51 of this Act, under section 63 of this Act or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of the extinguishment of the whole or part of a debt; and\n\n(b) the debt was incurred as well as written off or extinguished on the last day of the year of income;\n\nthe deduction is not allowable.\n\nSchedule 2F may also prevent a taxpayer deducting an amount in respect of a debt in other circumstances.\n\n65  Payments to associated persons and relatives\n\n(1B) Where, by virtue of section 26‑35 (Reduction of deduction for amounts paid to related entities) of the Income Tax Assessment Act 1997, an amount is not allowable as a deduction in calculating in accordance with section 90 of this Act the net income, or a partnership loss, of a partnership in which a company, being a private company in relation to the year of income of the company to which the individual interest of the company in the net income of the partnership or in the partnership loss relates, is a partner:\n\n(a) the company shall, for the purposes of this Act other than Division 11A, be deemed to have paid, on the last day of that year of income, a dividend of an amount ascertained in accordance with subsection (1C); and\n\n(b) subsection 26‑35(4) of the Income Tax Assessment Act 1997 does not apply in relation to so much of the amount that is not so allowable as a deduction as is equal to the amount of the dividend that the company is to be so deemed to have paid.\n\n(1C) For the purposes of subsection (1B), the amount of the dividend that the company is to be deemed to have paid is:\n\n(a) where the effect of the disallowance of the deduction has been to increase the net income of the partnership—an amount equal to the difference between the amount of the individual interest of the company in the net income of the partnership and the amount that would have been the individual interest of the company in the net income of the partnership if the deduction had been allowed;\n\n(b) where the effect of the disallowance of the deduction has been to reduce the partnership loss—an amount equal to the difference between the amount of the individual interest of the company in the partnership loss and the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed;\n\n(c) where there is net income of the partnership and the amount of the deduction that was disallowed is equal to that net income—an amount equal to the individual interest of the company in the net income of the partnership;\n\n(d) where there is net income of the partnership and, but for the disallowance of the deduction, there would have been a partnership loss—an amount equal to the sum of the amount of the individual interest of the company in the net income of the partnership and the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed; and\n\n(e) where there is no net income of the partnership and, but for the disallowance of the deduction, there would have been a partnership loss—an amount equal to the amount that would have been the individual interest of the company in the partnership loss if the deduction had been allowed.\n\n70B  Deduction for loss on disposal or redemption of traditional securities\n\n(1) Expressions used in this section that are also used in section 26BB have the same meanings in this section as in section 26BB.\n\n(2) Where a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed, the amount of any loss on the disposal or redemption is allowable as a deduction from the assessable income of the taxpayer of the year of income in which the disposal or redemption takes place.\n\n(2A) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of traditional securities that are:\n\n(a) segregated exempt assets (for the purposes of the Income Tax Assessment Act 1997) of a life assurance company; or\n\n(b) segregated current pension assets (as defined in the Income Tax Assessment Act 1997) of a complying superannuation fund.\n\n(2B) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:\n\n(a) the disposal or redemption occurs because the traditional security is converted into ordinary shares in a company that is:\n\n(i) the issuer of the traditional security; or\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(b) the traditional security was issued on the basis that it will or may convert into ordinary shares in:\n\n(i) the issuer of the traditional security; or\n\n(ii) the connected entity.\n\n(2C) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:\n\n(a) the disposal or redemption is in exchange for ordinary shares in a company that is neither:\n\n(i) the issuer of the traditional security; nor\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(b) in the case of a disposal—the disposal is to:\n\n(i) the issuer of the traditional security; or\n\n(ii) a connected entity of the issuer of the traditional security; and\n\n(c) the traditional security was issued on the basis that it will or may be:\n\n(i) disposed of to the issuer of the traditional security or to the connected entity; or\n\n(ii) redeemed;\n\nin exchange for ordinary shares in the company.\n\n(3) Where the Commissioner, having regard to any connection between the parties to the transaction by which the taxpayer disposed of the traditional security or by which it was redeemed, or by which the taxpayer acquired the traditional security, is satisfied that the parties were not dealing with each other at arm’s length in relation to the transaction, then, for the purposes of determining under subsection (2) the amount of any loss on the disposal or redemption, the consideration for the transaction shall be taken to be:\n\n(a) the amount that might reasonably be expected for the transaction if the parties were independent parties dealing at arm’s length with each other; or\n\n(b) where, for any reason it is not possible or practicable for the Commissioner to ascertain that amount—such amount as the Commissioner determines.\n\n(4) If:\n\n(a) a taxpayer disposes of a traditional security or a traditional security of a taxpayer is redeemed; and\n\n(b) there is a loss on the disposal or redemption; and\n\n(c) in the case of a disposal or redemption of a marketable security:\n\n(i) the taxpayer did not acquire the security in the ordinary course of trading on a securities market; and\n\n(ii) at the time the taxpayer acquired the security, it was not open to the taxpayer to acquire an identical security in the ordinary course of trading on a securities market; and\n\n(d) in the case of a disposal of a marketable security—the disposal did not take place in the ordinary course of trading on a securities market; and\n\n(e) having regard to:\n\n(i) the financial position of the issuer of the security; and\n\n(ii) perceptions of the financial position of the issuer of the security; and\n\n(iii) other relevant matters;\n\nit would be concluded that the disposal or redemption took place for the reason, or for reasons that included the reason, that there was an apprehension or belief that the issuer was, or would be likely to be, unable or unwilling to discharge all liability to pay amounts under the security;\n\na deduction is not allowable to the taxpayer under this section in respect of so much of the amount of the loss as is a loss of capital or a loss of a capital nature.\n\n(5) A reference in this section to the disposal by a taxpayer of a security, or to the redemption of a security of a taxpayer, does not include a reference to the waiver or release by the taxpayer of:\n\n(a) the whole or a part of the debt the subject of the security; or\n\n(b) any other right of the taxpayer under the security.\n\n(6) Subsection (5) does not, by implication, affect the meaning of an expression used in:\n\n(a) a provision of this Act other than this section; or\n\n(b) any other law of the Commonwealth.\n\n(7) In this section:\n\nissuer, in relation to a security at a particular time, means the person who, if the amount or amounts payable under the security were due and payable at that time, would be liable to pay the amount or amounts.\n\nmarketable security means a traditional security that is covered by paragraph (a) of the definition of security in subsection 159GP(1).\n\nsecurities market means a market, exchange or other place at which, or a facility by means of which, offers to sell, purchase or exchange marketable securities are regularly made or accepted.\n\n73A  Expenditure on scientific research\n\n(1A) This section has effect subject to Division 245 of the Income Tax Assessment Act 1997.\n\n(1) The following payments made, and expenditure incurred, during the year of income (other than any amount which is allowable as a deduction under any other section of this Act) by a person carrying on a business for the purpose of gaining or producing assessable income shall be allowable deductions:\n\n(a) Payments to:\n\n(i) an approved research institute for scientific research related to that business; or\n\n(ii) an approved research institute, the object of which is the undertaking of scientific research related to the class of business to which that business belongs; and\n\n(b) Expenditure of a capital nature on scientific research related to that business (except to the extent that it is expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of scientific research).\n\n(2) Where, on or after the first day of the year of income ending on 30 June 1946, a taxpayer carrying on a business for the purpose of gaining or producing assessable income incurs expenditure of a capital nature in the construction or acquisition of a building, or part of a building, or in making any alteration or addition to a building, in which scientific research related to that business is to be carried on by or on behalf of the taxpayer, and the building, part of a building, alteration or addition, as the case may be, is of use for scientific research purposes only, an amount equal to one‑third of that expenditure shall be an allowable deduction:\n\n(a) from the assessable income of the year of income in which the building, part of a building, alteration or addition is first used by or on behalf of the taxpayer for such scientific research; and\n\n(b) from the assessable income of each of the 2 years of income next succeeding that year of income, if the taxpayer continues to carry on that business during the year in which that assessable income was derived.\n\n(2A) Subsection (2) does not apply to expenditure incurred by a taxpayer in the construction of a building or part of a building, in the making of an alteration or addition to a building or in the acquisition of a building or part of a building unless:\n\n(a) either of the following subparagraphs applies:\n\n(i) that construction or making commenced, or that acquisition occurred, before 21 November 1987;\n\n(ii) any contract in respect of that construction, making or acquisition was entered into before 21 November 1987; and\n\n(b) if the expenditure was incurred after 20 November 1987—the taxpayer intended, on 20 November 1987, that:\n\n(i) scientific research, being research related to a business carried on by the taxpayer for the purpose of gaining or producing assessable income, would be carried on by or on behalf of the taxpayer in the building; and\n\n(ii) the building, part of the building, alteration or addition, as the case may be, would be of use for scientific research purposes only.\n\n(3) Where any expenditure or payment to which this section refers is incurred or made outside Australia and the business in relation to which it is so incurred or made is carried on partly in and partly out of Australia, the deduction allowable under this section shall be such part of the amount which would otherwise be allowable as the Commissioner considers reasonable in the circumstances.\n\n(4) Where any expenditure has been allowed or is allowable as a deduction under subsection (2) and:\n\n(a) the taxpayer sells, transfers or otherwise disposes of the building or any part thereof; or\n\n(b) the building or any part thereof is destroyed;\n\nthe termination value of the building or part shall, to the extent of the expenditure so allowed or allowable as a deduction, be included in the assessable income of the year of income in which the disposal or destruction occurs:\n\nProvided that where the Commissioner is of opinion that part only, or no part, of that termination value relates to the disposal or destruction of any property which was acquired or created by that expenditure, that part only, or no part, as the case may be, of the termination value shall be taken into account for the purposes of this subsection.\n\n(4A) If:\n\n(a) a person has purchased from another person a building, or part of a building, where the vendor had incurred capital expenditure of a kind in respect of which deductions are or have been allowable under subsection (2); and\n\n(b) it would be concluded that, having regard to any connection between the vendor and the purchaser or to any other relevant circumstances, those persons were not dealing with each other at arm’s length; and\n\n(c) the purchase price is greater or lesser than the market value of the building, or the part of the building, at the time of the purchase;\n\nthe purchase price is, for all purposes of the application of this Act in relation to the vendor, taken to have been the amount of the market value of the property at the time of the purchase.\n\n(5) If the purchase of the building is a creditable acquisition by the vendor, references in subsection (4A) to the purchase price are taken to be references to that price reduced by the amount of the net input tax credit to which the purchaser is entitled for the acquisition.\n\n(6) In this section:\n\nan approved research institute means the Commonwealth Scientific and Industrial Research Organization, or any university, college, institute, association or organization which is approved in writing for the purposes of this section by that Organization, by the Chief Executive Officer of the NHMRC or by the Research Secretary, as an institution, association or organization for undertaking scientific research which is or may prove to be of value to Australia.\n\nNHMRC means the National Health and Medical Research Council established by section 5B of the National Health and Medical Research Council Act 1992.\n\nResearch Secretary means the Secretary of the Department administered by the Minister administering the Australian Research Council Act 2001.\n\nscientific research means any activities in the fields of natural or applied science for the extension of knowledge.\n\ntermination value has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n(7) An approval for the purposes of subsection (6) may:","sortOrder":1000022},{"sectionNumber":"full-source-retrieval-0024","sectionType":"document_chunk","heading":"Document excerpt 24","content":"(a) operate as from a date, whether before or after the date of the approval, specified in the instrument of approval; and\n\n(b) be withdrawn at any time.\n\n(8) In this section, any reference to scientific research related to a business or class of business shall be read as including a reference to:\n\n(i) any scientific research which may lead to or facilitate an extension, or an improvement in the technical efficiency, of that business, or, as the case may be, of businesses of that class; and\n\n(ii) any scientific research of a medical nature which is of special relation to the welfare of workers employed in that business or, as the case may be, in businesses of that class.\n\n(9) This section does not apply in relation to payments made, or expenditure incurred, after 30 June 1995.\n\n73AA  Section 73A roll‑over relief in the case of certain CGT roll‑overs\n\nRoll‑over relief where CGT roll‑over relief allowed\n\n(1) This section applies to the disposal of a building, or part of a building, by a taxpayer (in this section called the transferor) to another taxpayer (in this section called the transferee) if:\n\n(b) subject to subsection (7), deductions have been allowed or are allowable under subsection 73A(2) to the transferor in respect of the building or the part of the building; and\n\n(c) the disposal involves a CGT event; and\n\n(d) the conditions in an item in the table are satisfied.\n\n- CGT roll‑overs that qualify transferor for relief\n- Item Type of CGT roll‑over Conditions\n- 1 Disposal of asset to wholly‑owned company There is a roll‑over under Subdivision 122‑A of the Income Tax Assessment Act 1997 for the CGT event.\n- 2 Disposal of asset by partnership to wholly‑owned company The transferor is a partnership, the building or part is partnership property, and there is a roll‑over under Subdivision 122‑B of the Income Tax Assessment Act 1997 for the disposal by the partners of the CGT assets consisting of their interests in the building or part.\n- 3 Marriage or relationship breakdown There is a roll‑over under Subdivision 126‑A of the Income Tax Assessment Act 1997 for the CGT event.\n- 4 Disposal of asset to another member of the same wholly‑owned group There is a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 for the CGT event.\n\nNo balancing charges\n\n(2) Subsection 73A(4) (which deals with balancing charges) does not apply to the disposal of the building or the part of the building by the transferor.\n\nTransferee to inherit certain characteristics from transferor\n\n(3) Section 73A applies as if:\n\n(a) the transferee had acquired the building or the part of the building for a consideration equal to the cost of the building or the part of the building to the transferor; and\n\n(b) deductions were not allowable to the transferee under subsection 73A(2) in respect of:\n\n(i) so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the transferor under that subsection in respect of the building or the part of the building; or\n\n(ii) if there have been 2 or more prior successive applications of this section—so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the prior successive transferors under that subsection in respect of the building or the part of the building; and\n\n(c) deductions were not allowable to the transferor under subsection 73A(2) in respect of the building or the part of the building for the year of income in which the disposal took place or for a subsequent year of income.\n\nSubsection 73A(2A)—special rules\n\n(4) If subsection 73A(2A) applies to the transferor and in relation to the building or the part of the building, that subsection applies in relation to the transferee and in relation to the building or the part of the building.\n\nDisposal by transferee where no roll‑over relief—inheritance of deductions\n\n(5) If:\n\n(a) after the disposal of the building or the part of the building to the transferee, the building or the part of the building is lost or destroyed or the transferee disposes of the building or the part of the building; and\n\n(b) in the case of a disposal by the transferee—this section does not apply to the disposal;\n\nthen, for the purposes of the application of subsection 73A(4) in relation to the loss, destruction or disposal, the total of:\n\n(c) the deductions allowed or allowable to the transferor under subsection 73A(2) in relation to the building or the part of the building; and\n\n(d) if there have been 2 or more prior successive applications of this section—the deductions allowed or allowable to the prior successive transferors under subsection 73A(2) in relation to the building or the part of the building;\n\nare taken to have been deductions allowed or allowable to the transferee under subsection 73A(2) in relation to the building or the part of the building.\n\nMeaning of cost\n\n(6) A reference in this section to the cost of a building or of a part of a building to the transferor is a reference to expenditure of a capital nature incurred by the transferor in the construction or acquisition of the building or the part of the building, or in making any alteration or addition to the building or to the part of the building.\n\nSecond or subsequent application of section—paragraph (1)(b) does not apply\n\n(7) If, apart from this subsection, this section has applied to the disposal of the building or the part of the building to the transferee, then, in working out whether this section applies to a subsequent disposal of the building or the part of the building by:\n\n(a) the transferee; or\n\n(b) one or more subsequent successive transferees;\n\nthis section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.\n\n78A  Certain gifts not to be allowable deductions\n\n(1) In this section:\n\nagreement includes any agreement, arrangement or understanding, whether formal or informal or express or implied, and whether or not enforceable by legal proceedings (whether or not the agreement, arrangement or understanding was intended to be so enforceable).\n\nassociate, in relation to the donor of a gift, means:\n\n(a) in the case of a donor being a natural person:\n\n(i) a relative of the donor;\n\n(ii) a partner of the donor;\n\n(iii) if a partner of the donor is a natural person—the spouse of that partner;\n\n(iv) a trustee of a trust estate where the donor or a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (v) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or\n\n(v) a company where:\n\n(A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor, of a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (iv) or of a company that is an associate of the donor by virtue of another application of this subparagraph; or\n\n(B) the donor is, the persons who are associates of the donor by virtue of subparagraphs (i), (ii), (iii) and (iv) are, or the donor and the persons who are associates of the donor by virtue of those paragraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or\n\n(b) in the case of a donor being a company:\n\n(i) a partner of the donor company;\n\n(ii) if a partner of the donor company is a natural person—the spouse of that partner;\n\n(iii) another person where:\n\n(A) the donor company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, whether those directions, instructions or wishes are communicated directly to the donor company or its directors, or through any interposed companies; or\n\n(B) that person is, or that person and the persons who, if that person were the donor, would be associates of that person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the donor company;\n\n(iv) a trustee of a trust estate where the donor company or a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (v) or (vi) benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts;\n\n(v) another company where:\n\n(A) the other company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor company, of a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (iv) or (vi) or of a company that is an associate of the donor company by virtue of another application of this subparagraph; or\n\n(B) the donor company is, the persons who are associates of the donor company by virtue of subparagraphs (i), (ii), (iii), (iv) and (vi) are, or the donor company and the persons who are associates of the donor company by virtue of those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other company; or\n\n(vi) another person who, if a third person who is an associate of the donor company by virtue of subparagraph (iii) were the donor, would be an associate of that third person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph.\n\n(2) Subject to this section, a gift of money, or of property other than money, made by a person (in this section referred to as the donor) to a fund, authority, institution or person is not an allowable deduction under Division 30 of the Income Tax Assessment Act 1997 where:\n\n(a) by reason of any act, transaction or circumstance that has occurred, will occur, or may reasonably be expected to occur, being an act, transaction or circumstance occurring as part of, in connexion with or as a result of:\n\n(i) the making or receipt of the gift; or\n\n(ii) any agreement or scheme entered into in association with the making or receipt of the gift;\n\nthe amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift;\n\n(b) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), any fund, authority, institution or person other than the fund, authority, institution or person to which the gift was made, makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment, or transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property, to any person or incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation;\n\n(c) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), the donor or an associate of the donor has obtained, will obtain or may reasonably be expected to obtain any benefit, advantage, right or privilege other than the benefit of any deduction that, but for this section, would be allowable from the assessable income of the donor under Division 30 of the Income Tax Assessment Act 1997; or\n\n(d) by reason of any agreement or scheme entered into as part of or in association with the making of the gift, any property, other than property comprising the gift, has been acquired or will be acquired, whether directly or indirectly, from the donor or an associate of the donor by that fund, authority, institution or person or by another fund, authority, institution or person.\n\n(3) Without limiting the application of subsection (2), where the terms and conditions on which a gift of property other than money is made are such that the fund, authority, institution or person to which the gift is made does not receive immediate custody and control of the property, does not have the unconditional right to retain custody and control of the property in perpetuity to the exclusion of the donor or an associate of the donor or does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property, paragraph (2)(c) shall be deemed to apply in relation to that gift.\n\n(4) Paragraph (2)(a) does not prevent a deduction under Division 30 of the Income Tax Assessment Act 1997 from being allowed from the assessable income of the donor where the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift by reason only that the fund, authority, institution or person has incurred, will incur, or may reasonably be expected to incur, expenses for the purpose of obtaining or soliciting the gift, being expenses that, in the opinion of the Commissioner, are reasonable in relation to the value of the gift.\n\n(5) This section does not prevent a deduction under section 30‑15 of the Income Tax Assessment Act 1997 (because of item 4, 5 or 6 of the table in that section) from being allowed from the assessable income of the donor in respect of a gift of property other than money by reason only that the terms and conditions on which the gift was made are such, or the effect of any arrangement (within the meaning of that Act) entered into in association with the making or receipt of the gift is such, that the value of the gift may be reduced in accordance with section 30‑220 of that Act.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1-78A\n\nVolume 2: sections 79A-121L\n\nVolume 3: sections 124ZM-204\n\nVolume 4: sections 251R-468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1-4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart III—Liability to taxation\n\nDivision 3—Deductions\n\n79A Rebates for residents of isolated areas\n\n79B Rebates for members of Defence Force serving overseas\n\n82 Double deductions\n\nSubdivision D—Losses and outgoings incurred under certain tax avoidance schemes\n\n82KH Interpretation\n\n82KJ Deduction not allowable in respect of certain pre‑paid outgoings\n\n82KK Schemes designed to postpone tax liability\n\n82KL Tax benefit not allowable in respect of certain recouped expenditure\n\nSubdivision H—Period of deductibility of certain advance expenditure\n\n82KZL Interpretation\n\n82KZLA Subdivision does not apply to financial arrangements to which Subdivision 250‑E applies\n\n82KZLB How this Subdivision applies to deductible R&D expenditure incurred to associates in earlier income years\n\n82KZM Expenditure by small and medium business entities and individuals incurring non‑business expenditure\n\n82KZMA Application of section 82KZMD\n\n82KZMD Business expenditure and non‑business expenditure by non‑individual\n\n82KZME Expenditure under some agreements\n\n82KZMF Proportional deduction\n\n82KZMG Deductions for certain forestry expenditure\n\n82KZMGA Deductions for certain forestry expenditure\n\n82KZMGB CGT event in relation to interest in 82KZMG agreement\n\n82KZN Transfer etc. of rights under agreement\n\n82KZO Partnership changes where entire interest in agreement rights is not transferred\n\nDivision 3A—Convertible notes\n\n82LA Application of Division","sortOrder":1000023},{"sectionNumber":"full-source-retrieval-0025","sectionType":"document_chunk","heading":"Document excerpt 25","content":"82L Interpretation\n\n82M New loans and replacement loans\n\n82P Bonus share allotments\n\n82Q Classes of shares\n\n82R Interest on certain convertible notes not to be an allowable deduction\n\n82SA Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976\n\n82T Value of shares\n\nDivision 5—Partnerships\n\n90 Interpretation\n\n91 Liability of partnerships\n\n92 Income and deductions of partner\n\n92A Deductions in respect of outstanding subsection 92(2AA) amounts\n\n94 Partner not having control and disposal of share in partnership income\n\nDivision 5A—Income of certain limited partnerships\n\nSubdivision A—Preliminary\n\n94A Object\n\n94B Interpretation\n\n94C Continuity of limited partnership not affected by changes in composition\n\nSubdivision B—Corporate limited partnerships\n\n94D Corporate limited partnerships\n\n94E Continuity of business test\n\n94F Change in composition of limited partnership—election that partnership not be treated as an eligible limited partnership\n\n94G Continuity of ownership test\n\nSubdivision C—Corporate tax modifications applicable to corporate limited partnerships\n\n94H Corporate tax modifications applicable to corporate limited partnerships\n\n94J Company includes corporate limited partnership\n\n94K Partnership does not include corporate limited partnership\n\n94L Dividend includes distribution of corporate limited partnership\n\n94M Drawings etc. deemed to be dividends paid out of profits\n\n94N Private company does not include corporate limited partnership\n\n94P Share includes interest in corporate limited partnership\n\n94Q Shareholder includes partner in corporate limited partnership\n\n94R Liquidator may include partner in corporate limited partnership\n\n94S Continuity of corporate limited partnership not affected by changes in composition\n\n94T Residence of corporate limited partnership\n\n94U Incorporation\n\n94V Obligations and offences\n\n94X Modification of loss provisions\n\nDivision 6—Trust income\n\n95AAA Simplified outline of the relationship between this Division, Division 6E and Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997\n\n95AAB Adjustments under Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997—references in this Act to assessable income under section 97, 98A or 100\n\n95AAC Adjustments under Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997—references in this Act to liabilities under section 98, 99 or 99A\n\n95AAD Division does not apply in relation to AMIT\n\n95 Interpretation\n\n95AB Modifications for special disability trusts\n\n95A Special provisions relating to present entitlement\n\n95B Certain beneficiaries deemed not to be under legal disability\n\n96 Trustees\n\n97 Beneficiary not under any legal disability\n\n97A Beneficiaries who are owners of farm management deposits\n\n98 Liability of trustee\n\n98A Non‑resident beneficiaries assessable in respect of certain income\n\n98B Deduction from beneficiary’s tax\n\n99 Certain trust income to be taxed as income of an individual\n\n99A Certain trust income to be taxed at special rate\n\n99B Receipt of trust income not previously subject to tax\n\n99C Determining whether property is applied for benefit of beneficiary\n\n99D Refund of tax to non‑resident beneficiary\n\n99E Later trust not taxed on income already taxed under subsection 98(4)\n\n99G Amounts covered by withholding requirement\n\n99GA Amounts covered by sovereign immunity exemption\n\n99H Late payments\n\n100 Beneficiary assessable in respect of certain trust income\n\n100AA Failure to pay or notify present entitlement of exempt entity\n\n100AB Adjusted Division 6 percentage exceeding benchmark percentage: present entitlement of exempt entity\n\n100A Present entitlement arising from reimbursement agreement\n\n101 Discretionary trusts\n\n101A Income of deceased received after death\n\n102 Revocable trusts\n\nDivision 6AAA—Special provisions relating to non‑resident trust estates etc.\n\nSubdivision A—Preliminary\n\n102AAA Object of Division\n\n102AAB Interpretation\n\n102AAC Each listed country and unlisted country to be treated as a separate foreign country\n\n102AAD Subject to tax—application of subsection 324(2)\n\n102AAE Listed country trust estates\n\n102AAF Public unit trusts\n\n102AAG When entity is in a position to control a trust estate\n\n102AAH Non‑resident family trusts\n\n102AAJ Transfer of property or services\n\n102AAK Deemed transfers of property or services to trust estate\n\n102AAL Division not to apply to transfers by trustees of deceased estates\n\nSubdivision B—Payment of interest by taxpayer on distributions from certain non‑resident trust estates\n\n102AAM Payment of interest by taxpayer on distributions from certain non‑resident trust estates\n\n102AAN Collection etc. of interest\n\nSubdivision D—Accruals system of taxation of certain non‑resident trust estates\n\n102AAS Object of Subdivision\n\n102AAT Accruals system of taxation—attributable taxpayer\n\n102AAU Attributable income of a trust estate\n\n102AAV Double tax agreements to be disregarded\n\n102AAW Certain provisions to be disregarded in calculating attributable income\n\n102AAY Modified application of trading stock provisions\n\n102AAZ Modified application of depreciation provisions\n\n102AAZB General modifications—CGT\n\n102AAZBA Modified application of CGT—effect of certain changes of residence\n\n102AAZC Modified application of loss provisions—pre‑1990‑91 losses\n\n102AAZD Assessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services\n\n102AAZE Accruals system of taxation does not apply to small amounts\n\n102AAZF Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution\n\n102AAZG Keeping of records\n\nDivision 6AA—Income of certain children\n\n102AA Interpretation\n\n102AB Application of Division\n\n102AC Persons to whom Division applies\n\n102AD Taxable income to which Division applies\n\n102AE Eligible assessable income\n\n102AF Employment income and business income\n\n102AG Trust income to which Division applies\n\n102AGA Transfer of property as the result of a family breakdown\n\nDivision 6A—Alienation of income\n\n102A Interpretation\n\n102B Certain income transferred for short periods to be included in assessable income of transferor\n\n102C Effect of certain transfers of rights to receive income from property\n\n102CA Consideration in respect of transfer to be included in assessable income of transferor in certain cases\n\nDivision 6C—Income of certain public trading trusts\n\n102M Interpretation\n\n102MA Arrangements not covered\n\n102MB Investing in land\n\n102MC When trading business not carried on\n\n102MD Exempt institution that is eligible for a refund not treated as exempt entity\n\n102N Trading trusts\n\n102NA Certain interposed trusts not trading trusts\n\n102P Public unit trusts\n\n102Q Resident unit trusts\n\n102R Public trading trusts\n\n102S Taxation of net income of public trading trust\n\n102T Modified application of Act in relation to certain unit trusts\n\nDivision 6D—Provisions relating to certain closely held trusts\n\nSubdivision A—Overview\n\n102UA What this Division is about\n\nSubdivision B—Interpretation\n\n102UB Definitions—general\n\n102UC Closely held trust\n\n102UD Trustee beneficiary\n\n102UE Meaning of untaxed part\n\n102UG Correct TB statement\n\n102UH TB statement period\n\n102UI Tax‑preferred amount\n\n102UJ Extended concept of present entitlement to capital of a trust\n\nSubdivision C—Trustee beneficiary non‑disclosure tax on share of net income\n\n102UK Trustee beneficiary non‑disclosure tax where no correct TB statement\n\n102UL Exclusion of directors of closely held trust from liability to pay tax\n\n102UM Trustee beneficiary non‑disclosure tax where share is distributed to trustee of closely held trust\n\nSubdivision D—Payment etc. of trustee beneficiary non‑disclosure tax\n\n102UN Amount of trustee beneficiary non‑disclosure tax reduced by notional tax offset\n\n102UO Payment of trustee beneficiary non‑disclosure tax\n\n102UP Late payment of trustee beneficiary non‑disclosure tax\n\n102UR Notice of liability\n\n102URA Request for notice of liability\n\n102USA Recovery of trustee beneficiary non‑disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee\n\nSubdivision E—Making correct TB statement about trustee beneficiaries of tax‑preferred amounts\n\n102UT Requirement to make correct TB statement about trustee beneficiaries of tax‑preferred amounts\n\nSubdivision F—Special provisions about tax file numbers\n\n102UU Trustee beneficiary may quote tax file number to trustee of closely held trust\n\n102UV Trustee of closely held trust may record etc. tax file number\n\nDivision 6E—Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits\n\n102UW Application of Division\n\n102UX Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits\n\n102UY Interpretation\n\nDivision 7—Private companies\n\n102V Application of Division to non‑share dividends\n\n103 Interpretation\n\n103A Private companies\n\n109 Excessive payments to shareholders, directors and associates deemed to be dividends\n\nDivision 7A—Distributions to entities connected with a private company\n\nSubdivision A—Overview of this Division\n\n109B Simplified outline of this Division\n\nSubdivision AA—Application of Division\n\n109BA Application of Division to non‑share dividends\n\n109BB Application of Division to closely‑held corporate limited partnerships\n\n109BC Application of Division to non‑resident companies\n\nSubdivision B—Private company payments, loans and debt forgiveness are treated as dividends\n\n109C Payments treated as dividends\n\n109CA Payment includes provision of asset\n\n109D Loans treated as dividends\n\n109E Amalgamated loan from a previous year treated as dividend if minimum repayment not made\n\n109F Forgiven debts treated as dividends\n\nSubdivision C—Forgiven debts that are not treated as dividends\n\n109G Debt forgiveness that does not give rise to a dividend\n\nSubdivision D—Payments and loans that are not treated as dividends\n\n109H Simplified outline of this Subdivision\n\n109J Payments discharging pecuniary obligations not treated as dividends\n\n109K Inter‑company payments and loans not treated as dividends\n\n109L Certain payments and loans not treated as dividends\n\n109M Loans made in the ordinary course of business on arm’s length terms not treated as dividends\n\n109N Loans meeting criteria for minimum interest rate and maximum term not treated as dividends\n\n109NA Certain liquidator’s distributions and loans not treated as dividends\n\n109NB Loans to purchase shares under employee share schemes not treated as dividends\n\n109P Amalgamated loans not treated as dividends in the year they are made\n\n109Q Commissioner may allow amalgamated loan not to be treated as dividend\n\n109R Some payments relating to loans not taken into account\n\nSubdivision DA—Demerger dividends not treated as dividends\n\n109RA Demerger dividends not treated as dividends\n\nSubdivision DB—Other exceptions\n\n109RB Commissioner may disregard operation of Division or allow dividend to be franked\n\n109RC Dividend may be franked if taken to be paid because of family law obligation\n\n109RD Commissioner may extend period for repayments of amalgamated loan\n\nSubdivision E—Payments and loans through interposed entities\n\n109S Simplified outline of this Subdivision\n\n109T Payments and loans by a private company to an entity through one or more interposed entities\n\n109U Payments and loans through interposed entities relying on guarantees\n\n109UA Certain liabilities under guarantees treated as payments\n\n109V Amount of private company’s payment to target entity through one or more interposed entities\n\n109W Private company’s loan to target entity through one or more interposed entities\n\n109X Operation of Subdivision D in relation to payment or loan\n\nSubdivision EA—Unpaid present entitlements\n\n109XA Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement\n\n109XB Amounts included in assessable income\n\n109XC Modifications\n\n109XD Forgiveness of loan debt does not give rise to assessable income if loan gives rise to assessable income\n\nSubdivision EB—Unpaid present entitlements—interposed entities\n\n109XE Simplified outline of this Subdivision\n\n109XF Payments through interposed entities\n\n109XG Loans through interposed entities\n\n109XH Amount and timing of payment or loan through interposed entities\n\n109XI Entitlements to trust income through interposed trusts\n\nSubdivision F—General rules applying to all amounts treated as dividends\n\n109Y Proportional reduction of dividends so they do not exceed distributable surplus\n\n109Z Characteristics of dividends taken to be paid under this Division\n\n109ZA No dividend taken to be paid for withholding tax purposes\n\n109ZB Amount treated as dividend is not a fringe benefit\n\n109ZC Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend\n\n109ZCA Treatment of dividend that is reduced on account of an amount included in assessable income under Subdivision EA\n\nSubdivision G—Defined terms\n\n109ZD Defined terms\n\n109ZE Interpretation rules about entities\n\nDivision 9—Co‑operative and mutual companies\n\n117 Co‑operative companies\n\n118 Company not co‑operative if less than 90% of business with members\n\n119 Sums received to be taxed\n\n120 Deductions allowable to co‑operative company\n\n121 Mutual insurance associations\n\nDivision 9AA—Demutualisation of insurance companies and affiliates\n\nSubdivision A—What this Division is about\n\n121AA What this Division is about\n\nSubdivision B—Key concepts and related definitions\n\n121AB Insurance company definitions\n\n121AC Mutual affiliate company\n\n121AD Demutualisation and demutualisation resolution day\n\n121AE Demutualisation methods, the policyholder/member group and the listing period\n\n121AEA Replacement of policyholders by persons exercising certain rights\n\n121AF Demutualisation method 1\n\n121AG Demutualisation method 2\n\n121AH Demutualisation method 3\n\n121AI Demutualisation method 4\n\n121AJ Demutualisation method 5\n\n121AK Demutualisation method 6\n\n121AL Demutualisation method 7\n\n121AM Embedded value of a mutual life insurance company\n\n121AN Net tangible asset value of a general insurance company or mutual affiliate company\n\n121AO Treasury bond rate, capital reserve adequacy level, eligible actuary and security\n\n121AP Subsidiary and wholly‑owned subsidiary\n\n121AQ Other definitions\n\n121AR List of definitions\n\nSubdivision C—Tax consequences of demutualisation\n\n121AS CGT consequences of demutualisation\n\n121AT Other tax consequences of demutualisation\n\n121AU This Subdivision does not apply to demutualisation of friendly society health or life insurers\n\nDivision 9A—Offshore banking units\n\nSubdivision A—Object and simplified outline\n\n121B Simplified outline\n\nSubdivision B—Interpretation\n\n121C Interpretation\n\n121D Meaning of OB activity\n\n121DA Meaning of expressions relevant to investment activity\n\n121DB Meaning of OB eligible contract activity\n\n121DC Meaning of OB advisory activity\n\n121DD Meaning of OB leasing activity\n\n121E Meaning of offshore person\n\n121EA OBU requirement\n\n121EAA Activities recorded in domestic books not OB activities\n\n121EB Internal financial dealings of an OBU\n\n121EC Meaning of OBU resident‑owner money\n\n121ED Meaning of trade with a person\n\n121EDA Meaning of OB income\n\n121EE Definitions relating to assessable income of an OBU\n\n121EF Definitions relating to allowable deductions of an OBU\n\nSubdivision C—Operative provisions\n\n121EJ Source of income derived from OB activities\n\n121EK Deemed interest on 90% of certain OBU resident‑owner money\n\n121EL Exemption of income etc. of OBU offshore investment trusts\n\n121ELA Exemption of income etc. of overseas charitable institutions\n\n121ELB Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts\n\nDivision 9C—Assessable income diverted under certain tax avoidance schemes\n\n121F Interpretation\n\n121G Diverted income and diverted trust income\n\n121H Assessment of diverted income and diverted trust income\n\n121J Ascertainment of diverted income or diverted trust income deemed to be an assessment\n\n121K Application of International Tax Agreements Act\n\n121L Division applies notwithstanding exemption under other laws\n\nPart III—Liability to taxation\n\nDivision 3—Deductions\n\n79A  Rebates for residents of isolated areas\n\n(1) For the purpose of granting to residents of the prescribed area an income tax concession in recognition of the disadvantages to which they are subject because of the uncongenial climatic conditions, isolation and high cost of living in Zone A and, to a lesser extent, in Zone B, in comparison with parts of Australia not included in the prescribed area, a taxpayer (not being a company or a taxpayer in the capacity of a trustee) who is a resident of the prescribed area in the year of income is entitled, in the taxpayer’s assessment in respect of income of that year of income, to a rebate of tax ascertained in accordance with this section.\n\n(2) Subject to subsections (2A) and 79B(4), the rebate allowable under this section in the assessment of a taxpayer in respect of income of the year of income is:\n\n(a) if the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income—an amount equal to the sum of:\n\n(i) $1,173; and\n\n(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or\n\n(b) if the taxpayer is a resident of Zone A (but not of the special area in Zone A or of the special area in Zone B) in the year of income—an amount equal to the sum of:\n\n(i) $338; and\n\n(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or\n\n(c) if the taxpayer is a resident of Zone B (but not of Zone A or of the special area in Zone B) in the year of income—an amount equal to the sum of:","sortOrder":1000024},{"sectionNumber":"full-source-retrieval-0026","sectionType":"document_chunk","heading":"Document excerpt 26","content":"(i) $57; and\n\n(ii) an amount equal to 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or\n\n(f) in any other case—such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this section if paragraph (a) had applied to the taxpayer in respect of the year of income and not less than the amount of rebate to which the taxpayer would have been so entitled if paragraph (c) had so applied to the taxpayer.\n\n(2A) The amount of any rebate that would, but for this subsection, be allowable to a taxpayer under this section in the taxpayer’s assessment in respect of income of a year of income shall be reduced by the amount of any prescribed allowance paid to the taxpayer in respect of the year of income.\n\n(3) Any alteration of the boundaries of any area referred to in Schedule 2 made (otherwise than by an amendment of this Act) after the commencement of this section shall not affect the operation of this section.\n\n(3A) This section has effect subject to section 23AB.\n\n(3B) For the purposes of this section, a taxpayer is a resident of a particular area, being the prescribed area, Zone A, Zone B, the special area in Zone A or the special area in Zone B (in this subsection referred to as the relevant area) in a year of income if:\n\n(a) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of more than one‑half of the year of income; or\n\n(c) the taxpayer died during the year of income and at the date of his or her death had his or her usual place of residence in the relevant area; or\n\n(d) the following conditions are satisfied:\n\n(i) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one‑half of the year of income;\n\n(ii) the taxpayer had his or her usual place of residence in the relevant area in the next preceding year of income for a period of not more than one‑half of the next preceding year of income;\n\n(iii) for the purposes of this section, the taxpayer was not a resident of the relevant area in the next preceding year of income;\n\n(iv) the sum of:\n\n(A) the number of days in the period mentioned in subparagraph (i); and\n\n(B) the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection 23AB(8) or 79B(3) applied in relation to the taxpayer in relation to the next preceding year of income;\n\nexceeds 182; or\n\n(e) the following conditions are satisfied:\n\n(i) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one‑half of the year of income, being a period that included the first day of the year of income;\n\n(ii) the taxpayer had his or her usual place of residence in the relevant area, in a relevant preceding year of income, for a period of not more than one‑half of that relevant preceding year of income;\n\n(iii) for the purposes of this section, the taxpayer was not a resident of the relevant area in that relevant preceding year of income;\n\n(iv) the sum of:\n\n(A) the number of days in the period mentioned in subparagraph (i); and\n\n(B) the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection 23AB(8) or 79B(3) applied in relation to the taxpayer in relation to that relevant preceding year of income;\n\nexceeds 182;\n\n(v) the taxpayer had his or her usual place of residence in the relevant area continuously from the commencement of the period mentioned in subparagraph (ii) until the end of the period mentioned in subparagraph (i).\n\n(3C) In subsection (3B), a reference to a taxpayer having his or her usual place of residence in a particular area in a year of income for a period of more than, or not more than, one‑half of the year of income is a reference to the taxpayer:\n\n(a) having his or her usual place of residence in that area in the year of income for one period of more than, or not more than, as the case may be, one‑half of the year of income; or\n\n(b) having his or her usual place of residence in that area in the year of income for 2 or more periods the aggregate of the lengths of which is more than, or not more than, as the case may be, one‑half of the year of income.\n\n(3D) For the purposes of this section:\n\n(a) the special area within Zone A or Zone B is constituted by:\n\n(i) the points in that Zone that were not, as at 1 November 1981, situated at a distance of 250 kilometres or less by the shortest practicable surface route, from the centre point of the nearest urban centre (whether or not within that Zone) with a census population of not less than 2,500; and\n\n(ii) the points in that Zone that were within the special area in that Zone for the purposes of this section as in force immediately before the commencement of the Income Tax Assessment Amendment Act (No. 4) 1984; and\n\n(b) the distance, by the shortest practicable surface route, between a point in Zone A or Zone B and the centre point of an urban centre is:\n\n(i) where there is only one location within that urban centre from which distances between the urban centre and other places are usually measured—the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and that location; and\n\n(ii) where there are 2 or more locations within that urban centre from which distances between parts of the urban centre and other places are usually measured—the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and the one of those locations that is in the principal one of those parts.\n\n(3E) For the purposes of this section other than this subsection, the Commissioner may, if he or she considers it appropriate having regard to all the circumstances, treat a point in Zone A or Zone B that is not in the special area in that Zone but is adjacent to or in close proximity to the special area in that Zone as being a point in the special area in that Zone.\n\n(3F) For the purposes of this section, the census population of Nhulunbuy is taken to be less than 2,500.\n\n(4) In this section:\n\ncensus population, in relation to an urban centre, means the population of that urban centre specified in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled “Persons and Dwellings in Local Government Areas and Urban Centres”.\n\nprescribed allowance means so much of a payment under the Social Security Act 1991 or the Veterans’ Entitlements Act 1986 as was included in the payment by way of remote area allowance.\n\nrelevant preceding year of income, in relation to a year of income, means any of the next 4 preceding years of income other than the immediately preceding year of income.\n\nrelevant rebate amount, in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):\n\n(a) any tax offset to which the taxpayer is entitled under Subdivision 61‑A of the Income Tax Assessment Act 1997;\n\n(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑A of the Income Tax Assessment Act 1997;\n\n(c) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑B of the Income Tax Assessment Act 1997.\n\nsurface route means a route other than an air route.\n\nthe prescribed area means the area comprised in Zone A and Zone B.\n\nurban centre means an area that is described as an urban centre or bounded locality in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled “Persons and Dwellings in Local Government Areas and Urban Centres”.\n\nZone A means the area described in Part I of Schedule 2.\n\nZone B means the area described in Part II of Schedule 2.\n\n79B  Rebates for members of Defence Force serving overseas\n\n(1) Subject to this section, a taxpayer who, during the year of income, serves as a member of the Defence Force at an overseas locality is entitled, in his or her assessment in respect of income of the year of income, to a rebate of tax ascertained in accordance with this section.\n\n(1A) A taxpayer is not entitled to a rebate under this section in relation to service:\n\n(a) as or under an attaché at an Australian Embassy or Legation in an overseas locality at a time as at which that locality was, or is deemed to have been, a specified locality for the purposes of this subsection; or\n\n(b) with the South‑East Asia Treaty Organization Military Planning Office.\n\n(1B) Where the Chief of the Defence Force or a person authorized by the Chief of the Defence Force to give certificates under this subsection certifies, and the Minister is satisfied, that any service of a taxpayer in any locality was or will be performed in circumstances similar to those in which any service referred to in subsection (1A) is performed, the taxpayer is not entitled to a rebate under this section in relation to that service.\n\n(2) Subject to the succeeding provisions of this section, the rebate allowable under this section in the assessment of a taxpayer in respect of income of the year of income is:\n\n(a) where the total period of service of the taxpayer at overseas localities during the year of income is more than one‑half of the year of income, or where the taxpayer dies at an overseas locality during the year of income—an amount equal to the sum of:\n\n(i) $338; and\n\n(ii) an amount equal to 50% of the concessional rebate amount; or\n\n(b) in any other case—such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this section if paragraph (a) had applied to him or her in respect of the year of income.\n\n(3) For the purposes of subsection (2), the total periods of service of the taxpayer in any year of income at overseas localities shall be deemed to include any period of service of the taxpayer as a member of the Defence Force in that year of income in the prescribed area.\n\n(3A) For the purposes of subsection (2), the total periods of service of the taxpayer in any year of income at overseas localities shall be deemed not to include any period of service of the taxpayer in respect of which an exemption from income tax applies under section 23AD or 23AG.\n\n(4) The aggregate of the rebates allowable under this section and section 23AB or under this section and section 79A in the assessment of a taxpayer in respect of income of a year of income shall not exceed an amount equal to the sum of:\n\n(a) $338; and\n\n(b) an amount equal to 50% of the concessional rebate amount.\n\n(4A) Where:\n\n(a) but for subsection (4) and this subsection, a rebate would be allowable under this section and a rebate would be allowable under section 79A in the assessment of a taxpayer in respect of income of a year of income; and\n\n(b) the rebate allowable under section 79A exceeds an amount equal to the sum of:\n\n(i) $338; and\n\n(ii) an amount equal to 50% of the concessional rebate amount;\n\nthe taxpayer is not entitled to a rebate under this section in that assessment and subsection (4) does not apply in relation to that assessment.\n\n(5) For the purposes of this section the Minister may, by writing signed by the Minister and deposited with the Commissioner, declare that a locality outside Australia specified in the declaration shall:\n\n(a) by reason of the uncongenial nature of service in that locality and the isolation of the locality, be, or be deemed to have been, as from a date, or during a period, (whether before or after the date of the declaration) specified in the declaration, a locality in relation to which this section applies; or\n\n(b) as from a date (whether before or after the date of the declaration) specified in the declaration, cease, or be deemed to have ceased, to be such a locality;\n\nand this section shall apply, or be deemed to have applied, and shall cease to apply, or be deemed to have ceased to apply, in relation to any such locality accordingly.\n\n(5A) The Minister may, by writing signed by the Minister and deposited with the Commissioner, declare that an overseas locality specified in the declaration shall become, or be deemed to have become, on a specified date, or shall cease, or be deemed to have ceased, on a specified date, to be, a specified locality for the purposes of subsection (1A).\n\n(5B) Nothing in section 170 prevents the amendment of an assessment at any time for the purpose of allowing a rebate to which the taxpayer has become entitled under this section after the making of the assessment.\n\n(6) For the purpose of this section:\n\nconcessional rebate amount, in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):\n\n(a) any tax offset to which the taxpayer is entitled under Subdivision 61‑A of the Income Tax Assessment Act 1997;\n\n(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑A of the Income Tax Assessment Act 1997;\n\n(c) any notional tax offset to which the taxpayer is entitled under Subdivision 961‑B of the Income Tax Assessment Act 1997.\n\nlocality means an area of land or waters or an area of land and waters.\n\noverseas locality means, in relation to service during any period or death at any time, a locality in relation to which, during that period or at that time, this section applies or is deemed to have applied; and\n\nthe prescribed area has the same meaning as that expression has in section 79A.\n\n82  Double deductions\n\nWhere the profit arising from the sale of any property is included in the assessable income of any person, or where the loss arising from the sale is an allowable deduction, and any expenditure incurred by the person in connexion with that property has been allowed or is allowable as a deduction under this Act, that expenditure shall not be deducted in ascertaining the amount of the profit or loss.\n\nSubdivision D—Losses and outgoings incurred under certain tax avoidance schemes\n\n82KH  Interpretation\n\n(1) In this Subdivision, unless the contrary intention appears:\n\nadditional benefit, in relation to an amount of eligible relevant expenditure, means the additional benefit, or the aggregate of the additional benefits, as the case may be, referred to in paragraph (1F)(b) in relation to that eligible relevant expenditure.\n\nagreement means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nassociate, in relation to a taxpayer, means:\n\n(a) in the case of a taxpayer who is a natural person, other than a taxpayer in the capacity of a trustee:\n\n(i) a relative of the taxpayer;\n\n(ii) a partner of the taxpayer;\n\n(iii) if a person who is an associate of the taxpayer by virtue of subparagraph (ii) is a natural person—the spouse or a child of that person;\n\n(iv) a trustee of a trust estate where the taxpayer or another person who is an associate of the taxpayer by virtue of another subparagraph of this paragraph benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or\n\n(v) a company where:\n\n(A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the taxpayer, of another person who is an associate of the taxpayer by virtue of another subparagraph of this paragraph, of a company that is an associate of the taxpayer by virtue of another application of this subparagraph or of any 2 or more such persons; or\n\n(B) the taxpayer is, the persons who are associates of the taxpayer by virtue of sub‑subparagraph (A) and the preceding subparagraphs of this paragraph are, or the taxpayer and the persons who are associates of the taxpayer by virtue of that sub‑subparagraph and those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company;\n\n(b) in the case of a taxpayer being a company, other than a taxpayer in the capacity of a trustee:\n\n(i) a partner of the taxpayer;\n\n(ii) if a person who is an associate of the taxpayer by virtue of subparagraph (i) is a natural person—the spouse or a child of that person;\n\n(iii) a trustee of a trust estate where the taxpayer or another person who is an associate of the taxpayer by virtue of another subparagraph of this paragraph benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts;\n\n(iv) another person where:\n\n(A) the taxpayer company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, or of that person and another person or other persons, whether those directions, instructions or wishes are communicated directly to the taxpayer company or its directors, or through any interposed companies, partnerships or trusts; or","sortOrder":1000025},{"sectionNumber":"full-source-retrieval-0027","sectionType":"document_chunk","heading":"Document excerpt 27","content":"(B) that person is, or that person and the persons who, if that person were the taxpayer, would be associates of that person by virtue of paragraph (a), by virtue of sub‑subparagraph (A), by virtue of another subparagraph of this paragraph or by virtue of paragraph (c) are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the taxpayer company;\n\n(v) another company where:\n\n(A) the other company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the taxpayer company, of a person who is an associate of the taxpayer company by virtue of another subparagraph of this paragraph, of a company that is an associate of the taxpayer company by virtue of another application of this subparagraph or of any 2 or more such persons; or\n\n(B) the taxpayer company is, the persons who are associates of the taxpayer company by virtue of sub‑subparagraph (A) and the other subparagraphs of this paragraph are, or the taxpayer company and the persons who are associates of the taxpayer company by virtue of that sub‑subparagraph and those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other company; or\n\n(vi) any other person who, if a third person who is an associate of the taxpayer company by virtue of subparagraph (iv) were the taxpayer, would be an associate of that third person by virtue of paragraph (a), by virtue of another subparagraph of this paragraph or by virtue of paragraph (c);\n\n(c) in the case of a taxpayer in the capacity of a trustee of a trust estate:\n\n(i) any person who benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust estate, either directly or through any interposed companies, partnerships or trusts;\n\n(ii) where a person who is an associate of the taxpayer by virtue of subparagraph (i) is a natural person—any person who, if that natural person were the taxpayer, would be an associate of that natural person by virtue of paragraph (a) or this paragraph; or\n\n(iii) where a person who is an associate of the taxpayer by virtue of subparagraph (i) or (ii) is a company—any person who, if that company were the taxpayer, would be an associate of that company by virtue of paragraph (b) or this paragraph; or\n\n(d) in the case of a taxpayer being a partnership:\n\n(i) a partner in the partnership;\n\n(ii) where any partner in the partnership is a natural person—any person who, if that natural person were the taxpayer, would be an associate of that natural person by virtue of paragraph (a) or (c); or\n\n(iii) where any partner in the partnership is a company—any person who, if the company were the taxpayer, would be an associate of the company by virtue of paragraph (b) or (c).\n\nconsumable supplies means property other than:\n\n(a) trading stock; or\n\n(b) choses in action.\n\nexpected tax saving, in relation to an amount of eligible relevant expenditure incurred by a taxpayer, means:\n\n(a) where only one amount is, under subsection (1B), a tax saving amount for the purposes of the application of this definition in relation to the eligible relevant expenditure—that tax saving amount; and\n\n(b) where 2 or more amounts are, under subsection (1B), tax saving amounts for the purposes of the application of this definition in relation to the eligible relevant expenditure—the sum of those tax saving amounts.\n\nfilm means an aggregate of images, or of images and sounds, embodied in any material.\n\nmarket research means:\n\n(a) the undertaking of research to ascertain the location, extent, value or other characteristics of the market, or the potential market, for goods or services; and\n\n(b) the provision of information, advice or assistance in connection with the marketing of particular goods or services or of goods or services generally.\n\nproperty includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.\n\nrelevant expenditure, in relation to a taxpayer, means:\n\n(a) expenditure in respect of which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997;\n\n(b) expenditure in respect of which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 25‑30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997;\n\n(c) a loss or outgoing incurred by the taxpayer in the purchase by the taxpayer of property (not being a chose in action) that, for the purposes of the application of this Act in relation to the taxpayer, is trading stock, to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(d) a loss or outgoing incurred by the taxpayer in respect of interest to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(e) a loss or outgoing incurred by the taxpayer in respect of rent to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(f) a bad debt incurred by the taxpayer in respect of money lent by the taxpayer in the course of carrying on a business to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 or section 25‑35 of the Income Tax Assessment Act 1997 in respect of the bad debt;\n\n(g) a loss or outgoing incurred by the taxpayer in respect of:\n\n(i) the production, marketing or distribution of a film; or\n\n(ii) the acquisition of a copyright subsisting in a film;\n\nto the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(h) expenditure incurred by the taxpayer in respect of a unit of industrial property, being a unit of industrial property that relates to copyright subsisting in a film, to the extent to which the amount of that expenditure is taken into account, or would, apart from former subsections 124R(2) and (3), be taken into account, in calculating the residual value of the unit of industrial property in ascertaining whether, apart from section 82KL, a deduction would be allowable to the taxpayer under former section 124M or 124N in respect of the residual value of the unit of industrial property;\n\n(ka) expenditure incurred by the taxpayer in respect of an item of intellectual property (as defined in of the Income Tax Assessment Act 1997) that relates to copyright subsisting in a film, but only to the extent described at the end of this definition;\n\n(k) a loss or outgoing incurred by the taxpayer in the purchase of consumable supplies to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(m) a loss or outgoing incurred by the taxpayer in respect of market research to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(n) expenditure incurred by the taxpayer in respect of the acquisition of a unit of industrial property, being a licence under a copyright subsisting in computer software, to the extent to which the amount of that expenditure is taken into account, or would, apart from former subsection 124R(3) be taken into account, in calculating the residual value of the unit of industrial property in ascertaining whether, apart from section 82KL, a deduction would be allowable to the taxpayer under former section 124M or 124N in respect of the residual value of the unit of industrial property;\n\n(oa) expenditure incurred by the taxpayer in respect of acquiring an item of intellectual property (as defined in of the Income Tax Assessment Act 1997) that is a licence under a copyright subsisting in computer software, but only to the extent described at the end of this definition;\n\n(o) a loss or outgoing or expenditure incurred by the taxpayer by way of commission for collecting assessable income of the taxpayer to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing or the expenditure;\n\n(p) a loss or outgoing incurred by the taxpayer in respect of the growing, care or supervision of trees on behalf of the taxpayer to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(pa) a loss or outgoing incurred by the taxpayer in respect of the establishment and tending of trees for felling on behalf of the taxpayer to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 394‑10 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(q) a loss or outgoing incurred by the taxpayer for the purpose of increasing the value of shares in a company, being shares held or beneficially owned by the taxpayer as trading stock, to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(r) a loss or outgoing incurred by the taxpayer in respect of:\n\n(i) the production by another person of a master sound recording; or\n\n(ii) the procuration of the production by another person of a master sound recording;\n\nto the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing;\n\n(s) calls paid by the taxpayer on shares owned by the taxpayer in respect of which a deduction would, apart from section 82KL, be allowable to the taxpayer under Division 30 (which is about gifts) of the Income Tax Assessment Act 1997;\n\n(v) expenditure (other than expenditure to which a preceding paragraph of this definition applies) incurred by the taxpayer in respect of a unit of industrial property to the extent to which the amount of that expenditure is taken into account, or would, apart from former subsections 124R(2) and (3), be taken into account, in calculating the residual value of the unit of industrial property in ascertaining whether, apart from section 82KL, a deduction would be allowable to the taxpayer under former section 124M or 124N in respect of the residual value of the unit of industrial property; or\n\n(wa) expenditure (unless covered by an earlier paragraph of this definition) incurred by the taxpayer in respect of an item of intellectual property (as defined in of the Income Tax Assessment Act 1997), but only to the extent described at the end of this definition;\n\n(w) a loss or outgoing (other than a loss or outgoing referred to in subsection 52A(1) or to which a preceding paragraph of this definition applies) incurred by the taxpayer to the extent to which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the loss or outgoing.\n\nHowever, paragraph (ka), (oa) or (wa) only covers expenditure to the extent that:\n\n(x) it is taken into account in working out under Division 40 of the Income Tax Assessment Act 1997 the adjustable value of the item to the taxpayer in determining whether, apart from section 82KL of this Act, the taxpayer could deduct an amount under that Division for the item for a year of income; or\n\n(y) it would be so taken into account apart from item 8 in the table in subsection 40‑180(2), or item 1 in the table in subsection 40‑190(3) (both about non‑arm’s length transactions).\n\nrent means rent in respect of land or premises.\n\ntax avoidance agreement means an agreement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the agreement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the agreement had not been entered into or carried out.\n\nunit of industrial property has the same meaning as in former Division 10B.\n\n(1A) In determining for the purposes of this Subdivision whether an agreement is a tax avoidance agreement, no regard shall be had to a purpose that is a merely incidental purpose.\n\n(1AA) A reference in this Subdivision to the incurring by a taxpayer of a bad debt shall be read as a reference to a debt, or a part of a debt, owed to the taxpayer becoming a bad debt.\n\n(1AB) A reference in:\n\n(a) subsection 82KL(2); or\n\n(b) former section 80 in relation to this Subdivision;\n\nto the incurring by a taxpayer of a loss or outgoing shall be read as including a reference to the incurring by a taxpayer of a bad debt.\n\n(1ABA) This section has the same effect in relation to an allowable deduction under section 63E in respect of the extinguishing of the whole or part of a debt as it has in respect of an allowable deduction under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of the whole or part of a debt as bad.\n\n(1AC) In this Subdivision:\n\n(a) a reference to a copyright subsisting in a film shall be read as including a reference to:\n\n(i) a licence under a copyright subsisting in a film; and\n\n(ii) an interest, whether at law or in equity, in respect of a copyright, or in respect of a licence under a copyright, subsisting in a film; and\n\n(b) a reference to a licence under a copyright subsisting in computer software shall be read as including a reference to an interest, whether at law or in equity, in a licence under a copyright subsisting in computer software.\n\n(1AD) A reference in this Subdivision to a tax benefit being allowed or allowable or not being allowed or allowable in respect of relevant expenditure incurred by a taxpayer shall be read as a reference to:\n\n(a) in a case where the relevant expenditure is relevant expenditure to which paragraph (h), (n) or (v) of the definition of relevant expenditure in subsection (1) applies—a deduction being allowed or allowable or not being allowed or allowable, as the case may be, to the taxpayer under former section 124M or 124N in respect of the residual value of a unit of industrial property where that residual value would be calculated by reference to the relevant expenditure; and\n\n(b) if paragraph (ka), (oa) or (wa) of the definition of relevant expenditure in subsection (1) covers the expenditure—the taxpayer deducting or being able to deduct, or not deducting or not being able to deduct, as appropriate, an amount under Division 40 of the Income Tax Assessment Act 1997 for an item of intellectual property for a year of income because the taxpayer’s adjustable value of the item would be calculated under that Division by reference to the relevant expenditure; and\n\n(d) in any other case—a deduction being allowed or allowable or not being allowed or allowable, as the case may be, to the taxpayer in respect of the relevant expenditure.\n\n(1B) For the purposes of the application of the definition of expected tax saving in subsection (1) in relation to an amount of eligible relevant expenditure incurred by a taxpayer:\n\n(a) where:\n\n(i) if a tax benefit were not allowable in respect of any part of that eligible relevant expenditure, a person (whether the taxpayer or another person and whether in the capacity of a trustee of a trust estate or otherwise) would be liable to pay income tax in respect of a year of income; and\n\n(ii) if a tax benefit or tax benefits were allowable under this Act in respect of that eligible relevant expenditure, that person would be liable to pay a lesser amount of income tax in respect of that year of income;\n\nthe amount by which the amount of the tax referred to in subparagraph (i) exceeds the amount of the tax referred to in subparagraph (ii) is a tax saving amount; and\n\n(b) where:\n\n(i) if a tax benefit were not allowable in respect of any part of that eligible relevant expenditure, a person (whether the taxpayer or another person and whether in the capacity of a trustee of a trust estate or otherwise) would be liable to pay income tax in respect of a year of income; and\n\n(ii) if a tax benefit or tax benefits were allowable under this Act in respect of that eligible relevant expenditure, that person would not be liable to pay income tax in respect of that year of income;\n\nthe amount of the tax referred to in subparagraph (i) is a tax saving amount.\n\n(1BA) In the application of subsection (1B) in determining whether there is a tax saving amount in relation to an amount of eligible relevant expenditure incurred by a taxpayer in a case where, if a tax benefit or tax benefits were allowable in respect of that eligible relevant expenditure, a person (whether the taxpayer or another person and whether in the capacity of a trustee of a trust estate or otherwise) would:\n\n(a) have a tax loss for a year of income that the person would not have; or\n\n(b) have a greater tax loss for a year of income than the person would have;","sortOrder":1000026},{"sectionNumber":"full-source-retrieval-0028","sectionType":"document_chunk","heading":"Document excerpt 28","content":"if a tax benefit were not allowable in respect of any part of that eligible relevant expenditure, apply Division 36 and former Subdivision 375‑G of the Income Tax Assessment Act 1997 as if the amount were relevant expenditure but not eligible relevant expenditure.\n\n(1D) Subject to subsection (1E), where, in respect of any 2 or more amounts of eligible relevant expenditure (whether incurred by one taxpayer or by 2 or more taxpayers and whether incurred in one year of income or in 2 or more years of income), the following conditions are satisfied, namely:\n\n(a) if subsection (1B) were applied in relation to one of those amounts of eligible relevant expenditure in relation to a person (whether or not that person is the person or one of the persons who incurred the eligible relevant expenditure) in relation to a year of income on the assumption that no tax benefit is or was allowable in respect of any part of the other amount of eligible relevant expenditure, or in respect of any part of any of the other amounts of eligible relevant expenditure, as the case may be, the tax saving amount determined in accordance with that subsection would be greater than the tax saving amount that would be determined in accordance with that subsection in relation to that amount of eligible relevant expenditure in relation to that person in relation to that year of income if that subsection were applied on the assumption that a tax benefit or tax benefits were allowable under this Act in respect of the other amount of eligible relevant expenditure, or in respect of each of the other amounts of eligible relevant expenditure, as the case may be; and\n\n(b) if paragraph (a) of this subsection were applied in relation to that person in relation to that year of income in relation to the other amount of eligible relevant expenditure, or in relation to each of the other amounts of eligible relevant expenditure, as the case may be, the condition specified in that paragraph would be satisfied in relation to that other amount or in relation to each of those other amounts, as the case may be;\n\nthen, in the application of subsection (1B) in calculating the tax saving amount in relation to that person in relation to the year of income in relation to any one of the amounts of eligible relevant expenditure first referred to in this subsection, it shall be assumed that no tax benefit is or was allowable in respect of any part of the other of those amounts or in respect of any part of any of the other of those amounts, as the case may be.\n\n(1E) Where:\n\n(a) but for this subsection, subsection (1D) would apply to require it to be assumed, for the purposes of the application of subsection (1B) in relation to an amount of eligible relevant expenditure, that no tax benefit is or was allowable in respect of any part of another amount of eligible relevant expenditure (in this subsection referred to as the allowable relevant expenditure); and\n\n(b) section 82KL does not and will not operate to deem a tax benefit not to be allowable and never to have been allowable in respect of any part of the allowable relevant expenditure;\n\nsubsection (1D) shall not apply and shall be taken never to have applied so as to require it to be assumed, in the application of subsection (1B) in relation to an amount of eligible relevant expenditure other than the allowable relevant expenditure, that no tax benefit is or was allowable in respect of any part of the allowable relevant expenditure.\n\n(1F) For the purposes of this Subdivision, an amount of relevant expenditure incurred by a taxpayer shall be taken to be an amount of eligible relevant expenditure if:\n\n(a) that amount of relevant expenditure was incurred after 24 September 1978 by reason of, as a result of or as part of a tax avoidance agreement entered into after that date;\n\n(b) by reason of, as a result of or as part of the tax avoidance agreement the taxpayer has obtained, in relation to that relevant expenditure being incurred, a benefit or benefits in addition to:\n\n(i) in a case to which subparagraph (ii) does not apply:\n\n(A) the benefit in respect of which the relevant expenditure was incurred; and\n\n(B) any benefit that resulted directly or indirectly from the benefit in respect of which the relevant expenditure was incurred and is a benefit that, in the opinion of the Commissioner, might reasonably be expected to have resulted if the benefit in respect of which the relevant expenditure was incurred had been obtained otherwise than by reason of, as a result of or as part of a tax avoidance agreement; or\n\n(ii) in a case where the relevant expenditure is relevant expenditure to which paragraph (w) of the definition of relevant expenditure in subsection (1) applies—any benefit that resulted directly or indirectly from the incurring of the relevant expenditure and is a benefit that, in the opinion of the Commissioner, might reasonably be expected to have resulted if the relevant expenditure had been incurred otherwise than by reason of, as a result of or as part of a tax avoidance agreement; and\n\n(c) in a case where the relevant expenditure is relevant expenditure to which paragraph (s), (v) or (w) of the definition of relevant expenditure in subsection (1) applies—that amount of relevant expenditure was incurred by reason of, as a result of or as part of a tax avoidance agreement entered into before 28 May 1981.\n\n(1FA) For the purposes of the application of subsection (1F) in relation to an amount of relevant expenditure to which paragraph (f) of the definition of relevant expenditure in subsection (1) applies, any benefit obtained by the taxpayer in relation to the making of the loan in respect of which the bad debt is incurred shall be taken to be a benefit obtained by the taxpayer in relation to that relevant expenditure being incurred.\n\n(1G) The reference in subsection (1F) to the benefit in respect of which relevant expenditure was incurred by a taxpayer shall be read as a reference to:\n\n(a) in a case where the relevant expenditure is expenditure incurred by the taxpayer in borrowing money, being expenditure in respect of which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997—the making available to the taxpayer of the money borrowed by the taxpayer;\n\n(b) in a case where the relevant expenditure is expenditure incurred by the taxpayer in connection with the discharge of a mortgage, being expenditure in respect of which a deduction would, apart from section 82KL, be allowable to the taxpayer under section 25‑30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997—the discharge of the mortgage;\n\n(c) in a case where the relevant expenditure was incurred by the taxpayer in the purchase of property that, for the purposes of the application of this Act in relation to the taxpayer, is or was trading stock—the acquisition of that property by the taxpayer;\n\n(d) in a case where the relevant expenditure was incurred by the taxpayer in respect of interest—the availability to the taxpayer of the money borrowed by the taxpayer;\n\n(e) in a case where the relevant expenditure was incurred by the taxpayer in respect of rent—the use of the property in respect of which the rent was paid;\n\n(f) in a case where the relevant expenditure incurred by the taxpayer was in respect of a bad debt—any interest received or receivable by the taxpayer in respect of the loan in respect of which the bad debt was incurred;\n\n(g) in a case where the relevant expenditure was incurred by the taxpayer in respect of the production, marketing or distribution of a film or the acquisition of a copyright subsisting in a film and is relevant expenditure to which paragraph (g) of the definition of relevant expenditure in subsection (1) applies—the production, marketing or distribution of the film, or the acquisition of the copyright by the taxpayer, as the case may be;\n\n(h) in a case where the relevant expenditure was incurred by the taxpayer in respect of a unit of industrial property, being a unit of industrial property that relates to copyright subsisting in a film, and is relevant expenditure to which paragraph (h) of the definition of relevant expenditure in subsection (1) applies—the ownership by the taxpayer of the unit of industrial property;\n\n(k) in a case where the relevant expenditure was incurred by the taxpayer in the purchase of consumable supplies—the acquisition of those consumable supplies by the taxpayer;\n\n(m) in a case where the relevant expenditure was incurred by the taxpayer in respect of market research—the undertaking of the research, or the provision of the information, advice or assistance, in respect of which the relevant expenditure was incurred;\n\n(n) in a case where the relevant expenditure was incurred by the taxpayer in respect of the acquisition of a unit of industrial property, being a licence under a copyright subsisting in computer software—the acquisition by the taxpayer of the unit of industrial property;\n\n(o) in a case where the relevant expenditure was incurred by the taxpayer by way of commission for collecting assessable income of the taxpayer—the collection on behalf of the taxpayer of assessable income of the taxpayer;\n\n(p) in a case where the relevant expenditure was incurred by the taxpayer in respect of the growing, care or supervision of trees on behalf of the taxpayer—the growing, care or supervision of the trees on behalf of the taxpayer;\n\n(pa) in a case where the relevant expenditure was incurred by the taxpayer in respect of the establishment and tending of trees for felling on behalf of the taxpayer—the establishment and tending of trees for felling on behalf of the taxpayer;\n\n(q) in a case where the relevant expenditure was incurred by the taxpayer for the purpose of increasing the value of shares in a company, being shares held or beneficially owned by the taxpayer as trading stock—the increase in the value of those shares;\n\n(r) in a case where the relevant expenditure was incurred by the taxpayer in respect of the production of, or the procuration of the production of, a master sound recording—any amount payable to the taxpayer in respect of the master sound recording, being an amount that, in the opinion of the Commissioner, would be payable to the taxpayer as a result of the incurring by the taxpayer of the relevant expenditure if that expenditure had been incurred by reason of, as a result of or as part of an agreement other than a tax avoidance agreement;\n\n(s) in a case where the relevant expenditure consists of calls paid by the taxpayer on shares owned by the taxpayer and is relevant expenditure to which paragraph (s) of the definition of relevant expenditure in subsection (1) applies—the satisfaction of any liability of the taxpayer to pay the calls and the taxpayer’s continuing ownership of the shares; and\n\n(u) in a case where the relevant expenditure was incurred by the taxpayer in respect of a unit of industrial property and is relevant expenditure to which paragraph (v) of the definition of relevant expenditure in subsection (1) applies—the ownership by the taxpayer of the unit of industrial property.\n\n(1H) For the purposes of paragraph (1F)(b), but without limiting the generality of that paragraph, where:\n\n(a) an amount of relevant expenditure is incurred by a taxpayer by reason of, as a result of or as part of a tax avoidance agreement;\n\n(b) in relation to that relevant expenditure being incurred and by reason of, as a result of or as part of the tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, the taxpayer or an associate of the taxpayer acquires from another person the right to recover the amount of a debt that was owed to that other person; and\n\n(c) by reason of, as a result of or as part of the tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, no consideration was paid or given by the taxpayer or the associate of the taxpayer, as the case may be, in respect of the acquisition of that right or the amount or value of the consideration paid or given by the taxpayer or the associate of the taxpayer, as the case may be, in respect of the acquisition of that right was less than the amount of the debt;\n\nthe taxpayer shall be deemed to have obtained, by reason of the tax avoidance agreement and in relation to the relevant expenditure being incurred by the taxpayer, a benefit having a value equal to:\n\n(d) in a case where no consideration was paid or given by the taxpayer or the associate of the taxpayer, as the case may be, in respect of the acquisition of the right to recover the amount of the debt—the amount of the debt; and\n\n(e) in any other case—the amount by which the amount of the debt exceeds the amount or value of the consideration paid or given by the taxpayer or the associate of the taxpayer, as the case may be, in respect of the acquisition of the right to recover the amount of the debt.\n\n(1J) For the purposes of paragraph (1F)(b), but without limiting the generality of that paragraph, where:\n\n(a) an amount of relevant expenditure is incurred by a taxpayer by reason of, as a result of or as part of a tax avoidance agreement;\n\n(b) in relation to that relevant expenditure being incurred and by reason of, as a result of or as part of the tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement:\n\n(i) a debt becomes owing by the taxpayer or an associate of the taxpayer; or\n\n(ii) a debt became owing, before or at the time of the incurring of the relevant expenditure, by the taxpayer or an associate of the taxpayer; and\n\n(c) it may reasonably be expected that, by reason of, as a result of or as part of the tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, the person to whom the debt is owed will release, abandon or fail to demand repayment of the debt or of a part of the debt;\n\nthe taxpayer shall be deemed to have obtained, by reason of the tax avoidance agreement and in relation to the relevant expenditure being incurred by the taxpayer, a benefit of an amount equal to the amount of the debt or that part of the debt, as the case may be.\n\n(1JA) For the purposes of the application of subsection (1H) in relation to an amount of relevant expenditure incurred by a taxpayer, being relevant expenditure to which paragraph (f) of the definition of relevant expenditure in subsection (1) applies, a reference in paragraph (1H)(b) to the acquisition by the taxpayer or an associate of the taxpayer, in relation to that relevant expenditure being incurred, of the right to recover a debt shall be read as including a reference to the acquisition by the taxpayer or an associate of the taxpayer, in relation to the making by the taxpayer of the loan in respect of which the relevant expenditure was incurred, of such a right.\n\n(1JB) For the purposes of the application of subsection (1J) in relation to an amount of relevant expenditure incurred by a taxpayer, being relevant expenditure to which paragraph (f) of the definition of relevant expenditure in subsection (1) applies, a reference in paragraph (1J)(b) to a debt becoming owing, or having become owing, by the taxpayer or an associate of the taxpayer in relation to that relevant expenditure being incurred, shall be read as including a reference to a debt becoming owing, or having become owing, by the taxpayer or an associate of the taxpayer, in relation to the making by the taxpayer of the loan in respect of which the relevant expenditure was incurred.\n\n(1JE) For the purposes of paragraph (1F)(b), but without limiting the generality of that paragraph, where:\n\n(a) an amount of relevant expenditure is incurred by a taxpayer by reason of, as a result of or as part of a tax avoidance agreement;\n\n(b) that relevant expenditure consists of calls paid by the taxpayer on shares owned by the taxpayer and is relevant expenditure to which paragraph (s) of the definition of relevant expenditure in subsection (1) applies; and\n\n(c) in relation to that relevant expenditure being incurred and by reason of, as a result of or as part of the tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, consideration (in this subsection referred to as the relevant consideration) is paid or given to the taxpayer or an associate of the taxpayer in respect of the acquisition by any person from the taxpayer of:\n\n(i) all or any of those shares;\n\n(ii) the right to purchase all or any of those shares; or\n\n(iii) the right to require a person to vote, in a meeting of shareholders of the company, in favour of a resolution to vary the rights attached to all or any of those shares;\n\nthe taxpayer shall be deemed to have obtained, by reason of the tax avoidance agreement and in relation to the relevant expenditure being incurred by the taxpayer, a benefit in addition to the benefits referred to in subparagraphs (1F)(b)(i) and (ii) having a value equal to the amount or value of the relevant consideration reduced by the amount or value of the part (if any) of that relevant consideration that, in the opinion of the Commissioner, is attributable to expenditure (other than the relevant expenditure) incurred by the taxpayer in respect of the shares.\n\n(1K) Where:\n\n(a) 2 or more amounts of relevant expenditure are incurred by a taxpayer (whether in the same year of income or in different years of income) by reason of, as a result of or as part of the same tax avoidance agreement;","sortOrder":1000027},{"sectionNumber":"full-source-retrieval-0029","sectionType":"document_chunk","heading":"Document excerpt 29","content":"(b) the same paragraph of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts; and\n\n(c) those amounts were incurred in respect of the same benefit;\n\nthose amounts shall, for the purposes of this Subdivision, be treated as together constituting one amount of relevant expenditure.\n\n(1L) For the purposes of subsection (1K), 2 or more amounts of relevant expenditure shall be taken to have been incurred in respect of the same benefit if:\n\n(a) in a case where paragraph (a) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same loan;\n\n(b) in a case where paragraph (b) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the discharge of the same mortgage;\n\n(c) in a case where paragraph (c) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in the purchase of the same property;\n\n(d) in a case where paragraph (d) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same loan;\n\n(e) in a case where paragraph (e) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same property;\n\n(f) in a case where paragraph (f) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same loan;\n\n(g) in a case where paragraph (g) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same film;\n\n(h) in a case where paragraph (h) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same film;\n\n(k) in a case where paragraph (k) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in the purchase of the same property;\n\n(m) in a case where paragraph (m) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same market research;\n\n(n) in a case where paragraph (n) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same unit of industrial property;\n\n(o) in a case where paragraph (o) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same source of assessable income;\n\n(p) in a case where paragraph (p) or paragraph (pa) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of trees on the same parcel of land;\n\n(q) in a case where paragraph (q) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same shares;\n\n(r) in a case where paragraph (r) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were payable to the same person;\n\n(s) in a case where paragraph (s) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were calls paid on shares in the same company;\n\n(v) in a case where paragraph (v) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same unit of industrial property; and\n\n(w) in a case where paragraph (w) of the definition of relevant expenditure in subsection (1) applies in relation to each of those amounts—those amounts were incurred in respect of the same source of assessable income or in carrying on the same business.\n\n(1M) For the purposes of this Subdivision, a person who obtains a benefit by reason of an act, transaction or circumstance that occurs as part of, in connection with or as a result of a tax avoidance agreement shall be deemed to have obtained that benefit by reason of the tax avoidance agreement.\n\n(1N) Where, for the purposes of the application of any provision of this Subdivision, it is required to be assumed that a tax benefit is not or was not allowable in respect of any part of an amount of eligible relevant expenditure and that expenditure is expenditure that was incurred in the acquisition of property that, for the purposes of the application of this Act in relation to the person who incurred the expenditure, is or was trading stock, it shall also be assumed, for the purposes of the application of that provision, that, for the purposes of the application of Division 70 (Trading stock) or 385 (Primary production) of the Income Tax Assessment Act 1997 in relation to that property in relation to the person who incurred the expenditure, that the cost of that property is, and at all times was, nil.\n\n(1P) For the purposes of this Subdivision, any benefit that has been obtained by an associate of a taxpayer by reason of, as a result of or as part of a tax avoidance agreement, being a benefit that was obtained in relation to the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of relevant expenditure, not being relevant expenditure to which subsection (1Q) applies, shall be taken to be a benefit that was obtained by the taxpayer by reason of that tax avoidance agreement and in relation to that relevant expenditure being incurred by the taxpayer.\n\n(1Q) For the purposes of this Subdivision, any benefit that has been obtained by an associate of a taxpayer by reason of, as a result of or as part of a tax avoidance agreement, being a benefit that was obtained in relation to:\n\n(a) the incurring by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of relevant expenditure to which paragraph (f) of the definition of relevant expenditure in subsection (1) applies; or\n\n(b) the making by the taxpayer, by reason of, as a result of or as part of that tax avoidance agreement, of the loan in respect of which relevant expenditure to which that paragraph applies was incurred;\n\nshall be taken to be a benefit that was obtained by the taxpayer by reason of that tax avoidance agreement and in relation to the relevant expenditure being incurred by the taxpayer or that loan being made by the taxpayer, as the case may be.\n\n(1S) For the purposes of the application of this section in determining the amount of any additional benefit obtained by a taxpayer in relation to an amount of relevant expenditure to which paragraph (h) of the definition of relevant expenditure in subsection (1) applies being incurred, being expenditure that, by virtue of the expenditure of moneys (in this subsection referred to as the partnership moneys) by a partnership, is deemed by former section 124KA to have been incurred by the taxpayer:\n\n(a) the partnership shall be taken to be an associate of the taxpayer;\n\n(b) a reference to the relevant expenditure being incurred by the taxpayer shall be read as including a reference to the partnership moneys being expended by the partnership; and\n\n(c) any benefit obtained by the partnership in relation to the partnership moneys being expended by the partnership shall be taken to have been obtained by the taxpayer in relation to the relevant expenditure being incurred by the taxpayer to such extent only as the Commissioner considers fair and reasonable.\n\n(1T) Where:\n\n(a) a taxpayer expends moneys (in this subsection referred to as the film moneys) in producing, or by way of contribution to the cost of producing, a film; and\n\n(b) by virtue of the operation of former subsection 124K(2), a part only of the film moneys is taken to be an amount of relevant expenditure to which paragraph (h) of the definition of relevant expenditure in subsection (1) applies;\n\nfor the purposes of the application of this section in determining the amount of any additional benefit obtained by the taxpayer in relation to the relevant expenditure being incurred:\n\n(c) a reference to the relevant expenditure being incurred by the taxpayer shall read as including a reference to the film moneys being expended by the taxpayer; and\n\n(d) any benefit obtained by the taxpayer in relation to the film moneys being expended by the taxpayer shall be taken to have been obtained by the taxpayer in relation to the relevant expenditure being incurred by the taxpayer to such extent only as the Commissioner considers fair and reasonable.\n\n(2) A reference in this Subdivision to the supply of goods or the provision of services shall be read as not including a reference to the making available of money by way of loan.\n\n(3) For the purposes of this Subdivision, an agreement shall be taken to have been entered into or carried out for a particular purpose, or for purposes that included a particular purpose, if any of the parties to the agreement entered into or carried out the agreement for that purpose, or for the purposes that included that purpose, as the case may be.\n\n(4) A reference in this Subdivision to a person shall be read as including a reference to a person in the capacity of a trustee.\n\n(5) A reference in this Subdivision to a provision of the Income Tax Assessment Act 1997 includes a reference to the corresponding provision of the Income Tax Assessment Act 1936.\n\n82KJ  Deduction not allowable in respect of certain pre‑paid outgoings\n\nWhere:\n\n(a) a loss or outgoing in respect of which a deduction would, but for this Subdivision, be allowable, was incurred by a taxpayer after 19 April 1978 by reason of, as a result of or as part of a tax avoidance agreement;\n\n(b) having regard to the benefit in respect of which the loss or outgoing was incurred (but without regard to any benefit relating to the acquisition or possible acquisition of the property referred to in paragraph (c)), the amount of the loss or outgoing was greater than the amount (if any) that might reasonably be expected to have been incurred, at the time when the loss or outgoing was incurred, in respect of that benefit if the loss or outgoing had not been incurred by reason of, as a result of or as part of a tax avoidance agreement;\n\n(c) property has been, will be, or may reasonably be expected to be, acquired by the taxpayer or by an associate of the taxpayer as a result of, by reason of, or as part of the tax avoidance agreement; and\n\n(d) the consideration (if any) that was payable in respect of the acquisition of that property was less, or the consideration that may reasonably be expected to be payable in respect of the acquisition of that property is less, than the consideration that might reasonably be expected to have been payable, or to be payable, as the case may be, in respect of the acquisition of that property if the loss or outgoing had not been incurred;\n\nnotwithstanding any other provision of this Act, a deduction is not allowable to the taxpayer in respect of the loss or outgoing.\n\n82KK  Schemes designed to postpone tax liability\n\n(1) This section applies to a loss or outgoing incurred by a taxpayer if:\n\n(a) the loss or outgoing was incurred after 19 April 1978 and was incurred to an associate of the taxpayer;\n\n(b) a deduction is allowable to the taxpayer in respect of that loss or outgoing; and\n\n(c) the deduction allowable in respect of that loss or outgoing would, but for this section, be allowable to the taxpayer in the year of income in which the loss or outgoing was incurred and:\n\n(i) in a case where the loss or outgoing is in respect of interest that, if it had actually been paid, would be subject to withholding tax under Division 11A—the withholding tax payable in respect of the whole or a part of the interest is not payable until a time occurring in a subsequent year of income; and\n\n(ii) in any other case—the whole or a part of the amount incurred to the associate will not be included in the assessable income of the associate until a subsequent year of income.\n\n(2) Notwithstanding any other provision of this Act, where:\n\n(a) a taxpayer incurs in a year of income (in this subsection referred to as the relevant year of income) a loss or outgoing (not being a loss or outgoing in respect of the supply of goods or the provision of services at a time that occurs after, or during a period that occurs after or extends beyond, the end of the relevant year of income) and the loss or outgoing is a loss or outgoing to which this section applies; and\n\n(b) the loss or outgoing was incurred by reason of, as a result of, as part of or in connection with an agreement, course of conduct or course of business that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that:\n\n(i) in a case where the loss or outgoing is in respect of interest that, if it had actually been paid, would be subject to withholding tax under Division 11A—the withholding tax payable in respect of the whole or a part of the interest will not be payable until a time occurring in a subsequent year of income; and\n\n(ii) in any other case—the whole or a part of the amount incurred to the associate would not be included in the assessable income of the associate until a subsequent year of income;\n\nthe loss or outgoing shall, for the purposes of this Act, be deemed to have been incurred by the taxpayer in the relevant year of income and in any subsequent year of income only to the extent to which the loss or outgoing represents an amount actually paid during the relevant year of income or that subsequent year of income by the taxpayer to the person to whom the loss or outgoing is incurred.\n\n(3) Notwithstanding any other provision of this Act but subject to subsection (4), where:\n\n(a) a taxpayer incurs in a year of income a loss or outgoing in respect of the supply of goods or the provision of services at a time that occurs after, or during a period that occurs after or extends beyond, the end of the year of income and the loss or outgoing is a loss or outgoing to which this section applies; and\n\n(b) the loss or outgoing was incurred by reason of, as a result of or as part of an agreement that was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that:\n\n(i) a deduction would be allowable to the taxpayer in a year of income in respect of the loss or outgoing; and\n\n(ii) the whole or a part of the amount of the loss or outgoing would not be included in the assessable income of the person to whom the loss or outgoing was incurred until a subsequent year of income;\n\nthat loss or outgoing shall, for the purposes of this Act, be deemed to have been incurred by the taxpayer in the year of income in which, or in the years of income in which, goods to which the loss or outgoing relates are supplied or services to which the loss or outgoing relates are provided.\n\n(4) Where, by virtue of subsection (3), a loss or outgoing incurred by a taxpayer in respect of the supply of goods or the provision of services is deemed to have been incurred by the taxpayer in each of 2 or more years of income, there shall be allowable as a deduction to the taxpayer in each such year of income so much only of the amount that, apart from this section, would be allowable as a deduction in respect of the loss or outgoing as the Commissioner considers reasonable having regard to the extent to which the goods in respect of which the loss or outgoing was incurred were supplied or the services in respect of which the loss or outgoing was incurred were provided, in each of those years of income.\n\n(5) In determining whether paragraph (2)(b) or (3)(b) applies in relation to a loss or outgoing, no regard shall be had to a purpose that is a merely incidental purpose.\n\n82KL  Tax benefit not allowable in respect of certain recouped expenditure\n\n(1) Where the sum of the amount or value of the additional benefit in relation to an amount of eligible relevant expenditure incurred by a taxpayer and the expected tax saving in relation to that amount of eligible relevant expenditure is equal to or greater than the amount of the eligible relevant expenditure, notwithstanding any other provision of this Act but subject to this section, a tax benefit is not and shall be deemed never to have been, allowable in respect of any part of that amount of eligible relevant expenditure.\n\n(2) Where, at any time, the Commissioner is of the opinion that, apart from this subsection, subsection (1) might reasonably be expected, at a later time, to operate to deem a tax benefit not to be allowable and never to have been allowable in respect of expenditure or a loss or outgoing incurred by a taxpayer then, notwithstanding any other provision of this Act but subject to this section, a tax benefit is not allowable and shall be deemed never to have been allowable in respect of that expenditure or that loss or outgoing, as the case may be.\n\n(3) Where, in the making of an assessment, subsection (2) has been applied by reason that the Commissioner was of the opinion that a particular circumstance would exist and the Commissioner later becomes satisfied that that circumstance will not exist, then, notwithstanding anything contained in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that this Subdivision shall be taken always to have applied on the basis that that circumstance did not, and would not, exist.\n\n(4) Where:","sortOrder":1000028},{"sectionNumber":"full-source-retrieval-0030","sectionType":"document_chunk","heading":"Document excerpt 30","content":"(a) an amount of eligible relevant expenditure is incurred by a partnership;\n\n(b) apart from this subsection, this section would not operate to deem a tax benefit not to be allowable and never to have been allowable in respect of any part of that amount of eligible relevant expenditure; and\n\n(c) the Commissioner is satisfied that any partner in the partnership became a partner in the partnership by reason of or as a result of an agreement (whether or not that agreement was the agreement by virtue of which the partner became a partner in the partnership) that was entered into by any of the parties to the agreement for the purpose, or primarily for the purpose, of ensuring that this section would not operate to deem a tax benefit not to be allowable and never to have been allowable in respect of any part of the amount of the eligible relevant expenditure;\n\nthen, notwithstanding any other provision of this Act, a tax benefit is not allowable and shall be deemed never to have been allowable in respect of any part of that amount of eligible relevant expenditure.\n\n(5) Where:\n\n(a) in the making of an assessment, this section has been applied on the basis that a taxpayer was to be taken to have obtained a benefit by reason that it was reasonable to expect that a person to whom a debt was owed by the taxpayer or an associate of the taxpayer would release, abandon or fail to demand repayment of the debt or of a part of the debt; and\n\n(b) the whole or a part of that debt or of that part of the debt is repaid;\n\nthen, notwithstanding anything contained in section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that this Subdivision shall be taken never to have applied on the basis that it was reasonable to expect that the person to whom the debt was owed would release, abandon or fail to demand repayment of the amount that was repaid.\n\n(6) Where subsection (1), (2) or (4) deems a tax benefit not to be and never to have been allowable in respect of a loss or outgoing incurred by a taxpayer in the purchase of property that, for the purposes of the application of this Act and the Income Tax Assessment Act 1997 in relation to the taxpayer is or was trading stock, then, notwithstanding any other provision of this Act or that Act, the cost or cost price of that property, for the purposes of the application of (Primary production) of the Income Tax Assessment Act 1997 Subdivision B of Division 2 of Part III of this Act or Division 70 (Trading stock) or 385 in relation to that property in relation to the taxpayer, shall be taken to be, and at all times to have been, nil.\n\n(7) Where, at any time after the making of an assessment in relation to a taxpayer, the taxpayer considers that the Commissioner ought to amend the assessment in accordance with subsection (3) or (5), the taxpayer may post to or lodge with the Commissioner a request in writing for an amendment of the assessment in accordance with subsection (3) or (5) or in accordance with subsections (3) and (5).\n\n(8) The Commissioner shall consider the request and shall serve on the taxpayer, by post or otherwise, a written notice of the Commissioner’s decision on the request.\n\n(9) If the taxpayer is dissatisfied with the Commissioner’s decision on the request, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\nSubdivision H—Period of deductibility of certain advance expenditure\n\n82KZL  Interpretation\n\n(1) In this Subdivision, unless the contrary intention appears:\n\nagreement means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nassociate has the meaning given by section 318.\n\neligible service period, in relation to an amount of expenditure incurred under an agreement, means the period from the beginning of:\n\n(a) the day, or the first day, on which the thing to be done under the agreement in return for the amount of expenditure is required, or permitted, as the case may be, to commence being done; or\n\n(b) if the expenditure is incurred on a later day—the day on which the expenditure is incurred;\n\nuntil the end of:\n\n(c) the day, or the last day, on which the thing to be done under the agreement in return for the amount of expenditure is required, or permitted, as the case may be, to cease being done; or\n\n(d) if that day or last day ends more than 10 years after the beginning of the period—10 years after the beginning of the period.\n\nexcluded expenditure means an amount of expenditure:\n\n(a) less than $1,000; or\n\n(b) required to be incurred by a law, or by an order of a court, of the Commonwealth, a State or a Territory; or\n\n(c) under a contract of service; or\n\n(d) to the extent that it is of a capital nature and cannot be deducted under:\n\n(i) section 355‑205 (R&D expenditure); or\n\n(ii) section 355‑480 (earlier year associate R&D expenditure);\n\nof the Income Tax Assessment Act 1997; or\n\n(da) to the extent that it is of a private or domestic nature; or\n\n(e) that has been or is incurred after 21 September 1999 by a general insurance company in connection with the issue of a general insurance policy and was related or relates to the gross premiums derived by the company in respect of the policy; or\n\n(f) that has been or is incurred after 21 September 1999 by a general insurance company in payment of reinsurance premiums in respect of the reinsurance of risks covered by general insurance policies, other than reinsurance premiums that were or are paid in respect of a particular class of insurance business where, under the contract of reinsurance, the reinsurer agrees, in respect of a loss incurred by the company that is covered by the relevant policy, to pay only some or all of the excess over an agreed amount.\n\npre‑RBT obligation means a contractual obligation that:\n\n(a) exists under an agreement at or before 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999; and\n\n(b) requires the payment of an amount for the doing of a thing under the agreement; and\n\n(c) requires the payment to be made before the doing of the thing; and\n\n(d) cannot be escaped by unilateral action by the party bound by the obligation to make the payment.\n\nR&D activities has the same meaning as in the Income Tax Assessment Act 1997.\n\ntransfer includes assign.\n\n(2) Without otherwise limiting the generality of references in this Subdivision to expenditure being incurred under an agreement in return for the doing of a thing under the agreement:\n\n(a) where expenditure incurred under an agreement consists of a payment of loan interest or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the making available or continued making available, as the case requires, of the loan principal, or other amount of a similar kind, under the agreement during the period to which the payment relates; and\n\n(b) where expenditure incurred under an agreement consists of a payment of rent, a lease payment or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the making available or continued making available, as the case requires, of the thing rented or leased, or other thing of a similar kind, under the agreement during the period to which the payment relates; and\n\n(c) where expenditure incurred under an agreement consists of a payment of an insurance premium or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the provision or continued provision, as the case requires, of insurance against the risk concerned, or of a thing of a similar kind, under the agreement during the period to which the payment relates.\n\n(3) This Subdivision has effect as if conducting R&D activities were carrying on a business.\n\n82KZLA  Subdivision does not apply to financial arrangements to which Subdivision 250‑E applies\n\nTo avoid doubt, this Subdivision does not apply to:\n\n(a) a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997); or\n\n(b) a financial benefit (within the meaning of that Act) that is provided or received in relation to such an arrangement.\n\nNote: See section 250‑210 of the Income Tax Assessment Act 1997.\n\n82KZLB  How this Subdivision applies to deductible R&D expenditure incurred to associates in earlier income years\n\nIn addition to its application apart from this section, this Subdivision applies to expenditure deductible under section 355‑480 of the Income Tax Assessment Act 1997 as if:\n\n(a) references in this Subdivision to incurring the expenditure were references to paying the expenditure; and\n\n(b) references in this Subdivision to the expenditure year were references to the payment year.\n\n82KZM  Expenditure by small and medium business entities and individuals incurring non‑business expenditure\n\n(1) Where:\n\n(a) a taxpayer incurs expenditure under an agreement entered into after 25 May 1988; and\n\n(aa) at least one of the following applies:\n\n(i) the taxpayer is a small business entity, or is covered by subsection (1A), for the year of income and has not chosen to apply section 82KZMD to the expenditure;\n\n(ii) the taxpayer is an individual and the expenditure is not incurred in carrying on a business;\n\n(iii) the expenditure meets a pre‑RBT obligation (see subsection 82KZL(1)); and\n\n(b) the expenditure is not excluded expenditure; and\n\n(ba) either:\n\n(i) the eligible service period for the expenditure is longer than 12 months; or\n\n(ii) the eligible service period for the expenditure is 12 months or shorter but ends after the last day of the year of income after the one in which the expenditure was incurred; and\n\n(c) apart from this section, a deduction under:\n\n(i) section 8‑1; or\n\n(ii) section 355‑205 (R&D expenditure) or 355‑480 (earlier year associate R&D expenditure);\n\nof the Income Tax Assessment Act 1997, in respect of the expenditure, would be allowable from the taxpayer’s assessable income for the year of income in which the expenditure is incurred;\n\nthen, for the purposes of this Act, instead of the deduction being allowable as mentioned in paragraph (c), a proportion of the deduction is allowable from the assessable income of the taxpayer of each year of income during which the whole or part of the eligible service period in relation to the expenditure occurs, being a proportion ascertained in accordance with the formula:\n\n![Start formula start fraction Period in year over Eligible service period end fraction end formula](image.002.png)\n\nwhere:\n\nPeriod in year is the number of days in the whole or the part of the eligible service period that occurs in the year of income.\n\nEligible service period is the number of days in the eligible service period.\n\n(1A) A taxpayer is covered by this subsection for a year of income if:\n\n(a) the taxpayer is not a small business entity for the year of income; and\n\n(b) the taxpayer would be a small business entity for the year of income if:\n\n(i) each reference in Subdivision 328‑C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and\n\n(ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to a taxpayer covered by this subsection.\n\n(2) Subsection (1) has effect subject to Division 245 of the Income Tax Assessment Act 1997.\n\n82KZMA  Application of section 82KZMD\n\nOverview\n\n(1) Section 82KZMD sets the amount and timing of deductions for expenditure that a taxpayer incurs in a year of income (the expenditure year), if:\n\n(a) apart from that section, the taxpayer could deduct the expenditure for the expenditure year under:\n\n(i) section 8‑1; or\n\n(ii) section 355‑205 (R&D expenditure) or 355‑480 (earlier year associate R&D expenditure);\n\nof the Income Tax Assessment Act 1997; and\n\n(b) the requirements in subsections (2), (3), (4) and (5) are met.\n\nRequirements for taxpayer\n\n(2) The taxpayer:\n\n(a) must:\n\n(i) carry on a business; or\n\n(ii) be a taxpayer that is not an individual and that does not carry on a business; and\n\n(b) if the taxpayer is a small business entity, or is covered by subsection (2A), for the expenditure year—must, before lodging its return of income for that year or within such further time as the Commissioner allows, choose to apply section 82KZMD to the expenditure.\n\n(2A) A taxpayer is covered by this subsection for the expenditure year if:\n\n(a) the taxpayer is not a small business entity for the expenditure year; and\n\n(b) the taxpayer would be a small business entity for the expenditure year if:\n\n(i) each reference in Subdivision 328‑C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and\n\n(ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to a taxpayer covered by this subsection.\n\n(3) The expenditure must be:\n\n(a) either:\n\n(i) incurred in carrying on a business; or\n\n(ii) incurred otherwise than in carrying on a business by a taxpayer that is not an individual; and\n\n(b) incurred under an agreement (see subsection 82KZL(1); and\n\n(c) incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.\n\nRequirement for expenditure not to be excluded expenditure\n\n(4) The expenditure must not be excluded expenditure (see subsection 82KZL(1)).\n\nRequirement for expenditure not to meet pre‑RBT obligation\n\n(5) The expenditure must not meet a pre‑RBT obligation (see subsection 82KZL(1)).\n\nRelationship with other provisions\n\n(6) Section 82KZMD has effect:\n\n(a) despite section 8‑1 of the Income Tax Assessment Act 1997; and\n\n(b) subject to Division 245 of that Act.\n\n82KZMD  Business expenditure and non‑business expenditure by non‑individual\n\n(2) For each year of income containing all or part of the eligible service period for the expenditure, the taxpayer may deduct the amount worked out using the formula:\n\n![Start formula Expenditure times start fraction Number of days of eligible service period in the year of income over Total number of days of eligible service period end fraction end formula](image.003.png)\n\nNote: This section does not apply to expenditure incurred by a small or medium business entity unless the entity chooses to apply this section to the expenditure: see paragraph 82KZMA(2)(b).\n\n82KZME  Expenditure under some agreements\n\n(1) Section 82KZMF applies to set the amount and timing of deductions for expenditure that a taxpayer incurs in a year of income (the expenditure year) if:\n\n(a) apart from that section, the taxpayer could deduct the expenditure for the expenditure year under:\n\n(i) section 8‑1; or\n\n(ii) section 355‑205 (R&D expenditure) or 355‑480 (earlier year associate R&D expenditure);\n\nof the Income Tax Assessment Act 1997; and\n\n(c) the requirements of subsections (2) and (3) are met.\n\nNote: There are some exceptions: see subsections (5), (7), (8) and (9).\n\nGeneral requirements for expenditure\n\n(2) The expenditure must be incurred:\n\n(a) after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999 under an agreement; and\n\n(b) in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.\n\nRequirements for agreement\n\n(3) There are these requirements for the agreement:\n\n(a) the taxpayer’s allowable deductions for the expenditure year that are attributable to the agreement must exceed the taxpayer’s assessable income (if any) for the expenditure year that is attributable to the agreement; and\n\n(b) the taxpayer does not have day to day control over the operation of the agreement (whether or not the taxpayer has the right to be consulted or give directions); and\n\n(c) at least one of these must be satisfied:\n\n(i) there is more than one participant in the agreement in the same capacity as the taxpayer;\n\n(ii) the person who manages, arranges or promotes the agreement, or an associate of that person, manages, arranges or promotes similar agreements for other taxpayers.\n\nActivities that relate to the agreement\n\n(4) Without affecting the operation of any other section in this Subdivision, an agreement referred to in this section includes all activities that relate to the agreement, including those that give rise to deductions or assessable income.\n\nException 1: certain negatively geared investments\n\n(5) The expenditure must not be:\n\n(a) a premium for building insurance, contents insurance or rent protection insurance; or\n\n(b) interest on money borrowed to acquire:\n\n(i) real property or an interest in real property; or\n\n(ii) shares that are listed for quotation in the official list of an approved stock exchange; or\n\n(iii) units in a trust that has at least 300 beneficiaries and is a widely held unit trust as defined in section 272‑105 in Schedule 2F;\n\nwhere:\n\n(c) the taxpayer has obtained, or can reasonably be expected to obtain, rent, dividends or trust income from the agreement; and\n\n(d) the taxpayer has not obtained and will not obtain any other kind of assessable income from the agreement (except a capital gain or an insurance receipt); and\n\n(e) all aspects of the agreement have been conducted at arm’s length.\n\nException 3: expenditure is excluded expenditure\n\n(7) The expenditure must not be excluded expenditure (see subsection 82KZL(1)).\n\nException 4: expenditure meets a pre‑existing obligation\n\n(8) The expenditure by the taxpayer must not meet a contractual obligation that:\n\n(a) exists under an agreement at or before 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999; and\n\n(b) requires the payment of an amount for the doing of a thing under the agreement; and","sortOrder":1000029},{"sectionNumber":"full-source-retrieval-0031","sectionType":"document_chunk","heading":"Document excerpt 31","content":"(c) requires the payment to be made before the doing of the thing; and\n\n(d) cannot be escaped by unilateral action by the taxpayer.\n\nException 5: agreement to which a product ruling applies\n\n(9) The expenditure must not be under an agreement to which a product ruling applies, describing expenditure under the agreement as being allowable as a deduction.\n\n(10) The product ruling must be made:\n\n(a) on or before 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999; or\n\n(b) in response to an application for a product ruling where:\n\n(i) the application was received by the Commissioner on or before the time specified in paragraph (a); and\n\n(ii) the Commissioner acknowledged receiving the application.\n\n(11) In this section:\n\nproduct ruling means a public ruling made under Part IVAAA of the Taxation Administration Act 1953 about a particular investment product.\n\n82KZMF  Proportional deduction\n\n(1) If this section applies to expenditure incurred by a taxpayer in a year of income:\n\n(a) the taxpayer cannot deduct all of the expenditure for the expenditure year; and\n\n(b) instead, the taxpayer can deduct, for each year of income during which part of the eligible service period for the expenditure occurs, an amount worked out using this formula:\n\n![Start formula Expenditure times start fraction Number of days of eligible service period in the year of income over Total number of days of eligible service period end fraction end formula](image.004.png)\n\n(2) This section has effect:\n\n(a) despite section 8‑1 of the Income Tax Assessment Act 1997; and\n\n(b) subject to Division 245 of the Income Tax Assessment Act 1997.\n\nNote: Deductions under section 355‑205 or 355‑480 of the Income Tax Assessment Act 1997 for R&D expenditure are subject to this section (see subsection 8‑5(2) and section 355‑105 of that Act).\n\n82KZMG  Deductions for certain forestry expenditure\n\n(1) Sections 82KZMD and 82KZMF do not affect the timing of a deduction for expenditure incurred by a taxpayer in a year of income (the expenditure year) to the extent that the requirements of this section are met.\n\nGeneral requirements for expenditure\n\n(2) There are these requirements for the expenditure:\n\n(a) it must be incurred on or after 2 October 2001 and on or before 30 June 2008 under an agreement; and\n\n(b) the eligible service period for the expenditure must be 12 months or shorter and must end on or before the last day of the year of income after the expenditure year; and\n\n(c) it must be incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.\n\nRequirements for agreement\n\n(3) There are these requirements for the agreement:\n\n(a) the agreement must be for planting and tending trees for felling; and\n\n(b) the taxpayer must not have day to day control over the operation of the agreement (whether or not the taxpayer has the right to be consulted or give directions); and\n\n(c) at least one of these must be satisfied:\n\n(i) there is more than one participant in the agreement in the same capacity as the taxpayer;\n\n(ii) the person (the manager) who manages, arranges or promotes the agreement, or an associate of that person, manages, arranges or promotes similar agreements for other taxpayers.\n\nRequirements for expenditure\n\n(4) The expenditure incurred by the taxpayer must be paid for seasonally dependent agronomic activities undertaken by the manager during the establishment period for the relevant planting of trees for felling.\n\nExample: Examples of seasonally dependent agronomic activities include:\n\n- tending the seedlings prior to planting, and planting them;\n- ripping and mounding the site where the planting is to occur;\n- applying fertiliser, herbicide or pesticide in conjunction with the planting.\n\n(5) The establishment period for a particular planting of trees starts on the day when the first seasonally dependent agronomic activity for that planting is done and ends on the later of:\n\n(a) the day when the last seedling is planted as part of that planting, not including replacement of seedlings already planted; and\n\n(b) the day when any fertiliser, herbicide or pesticide is applied to the seedlings in conjunction with that planting.\n\n82KZMGA  Deductions for certain forestry expenditure\n\n(1) A taxpayer cannot deduct expenditure in relation to which the requirements in section 82KZMG (apart from paragraph 82KZMG(2)(a)) are met if:\n\n(a) the taxpayer holds the taxpayer’s interest in the agreement mentioned in section 82KZMG as an initial participant in the agreement; and\n\n(b) a CGT event happens in relation to that interest within 4 years after the end of the year of income in which the taxpayer first incurred expenditure under the agreement; and\n\n(c) the expenditure is incurred on or before 30 June 2008.\n\n(1A) Paragraph (1)(b) does not apply to a CGT event if:\n\n(a) the CGT event happens because of circumstances outside the taxpayer’s control; and\n\nExample: The interest is compulsorily acquired.\n\n(b) when the taxpayer acquired the interest, the taxpayer could not reasonably have foreseen the CGT event happening.\n\n(2) Despite section 170, the Commissioner may amend the taxpayer’s assessment at any time within 2 years after the end of the year of income in which the CGT event happens, for the purpose of giving effect to this section.\n\n82KZMGB  CGT event in relation to interest in 82KZMG agreement\n\n(1) This section applies if:\n\n(a) a taxpayer holds an interest in an agreement mentioned in section 82KZMG as an initial participant in the agreement; and\n\n(b) at least one of these conditions is satisfied:\n\n(i) the taxpayer can deduct or has deducted an amount for a year of income in relation to the interest;\n\n(ii) the condition in subparagraph (i) would be satisfied if section 82KZMGA were disregarded; and\n\n(c) subsection 82KZMG(1) applies to the timing of the deduction (or would apply if section 82KZMGA were disregarded); and\n\n(d) a CGT event happens in relation to the interest, other than a CGT event that happens in respect of thinning.\n\n(2) The taxpayer’s assessable income for the year of income in which the CGT event happens includes:\n\n(a) if, as a result of the CGT event, the taxpayer no longer holds the interest—the market value of the interest (worked out as at the time of the event); or\n\n(b) otherwise—the decrease (if any) in the market value of the interest as a result of the CGT event.\n\n(3) Any amount that the taxpayer actually receives because of the CGT event is not included in the taxpayer’s assessable income (nor is it exempt income).\n\n82KZN  Transfer etc. of rights under agreement\n\nWhere:\n\n(a) under an agreement entered into either before or after the commencement of this section, a taxpayer (in this section called the original taxpayer) incurs expenditure in return for the doing of a thing during a period after the incurring of the expenditure; and\n\n(b) either:\n\n(i) the original taxpayer transfers to another taxpayer (in this section called the recipient taxpayer) all of his or her rights under the agreement in relation to the doing of the thing during the remainder of the period; or\n\n(ii) the agreement is discharged (whether by performance or otherwise) in so far as it relates to the doing of the thing during the remainder of the period;\n\nthe following provisions have effect for the purpose of this Subdivision:\n\n(c) if the whole or part of a deduction under former section 51 of this Act or section 8‑1 of the Income Tax Assessment Act 1997 in respect of the expenditure is, because of this Subdivision, allowable from the assessable income of the original taxpayer of any year of income occurring after the year of income in which the transfer or discharge occurs—that deduction is instead allowable from the assessable income of the year of income in which the transfer, assignment or discharge occurs;\n\n(d) if the recipient taxpayer incurs expenditure in return for the transfer—the recipient taxpayer shall be taken to have incurred, under an agreement entered into at the time of the transfer, so much of that expenditure as is not of a capital, private or domestic nature in return for the doing of the thing during the remainder of the period.\n\n82KZO  Partnership changes where entire interest in agreement rights is not transferred\n\nWhere:\n\n(a) under an agreement entered into after 25 May 1988, a person (in this section called the original person), or the partners in a partnership (in this section called the original partnership), incurs or incur expenditure in return for the doing of a thing during a period after the incurring of the expenditure;\n\n(b) either of the following (in this section called a partnership change) happens:\n\n(i) a partnership is formed or the original partnership is dissolved, or both; or\n\n(ii) the constitution of the original partnership, or the interests of the partners in the original partnership, is or are varied;\n\nwith the result that, after the partnership change:\n\n(iii) a person (in this section called the later person), or the partners in a partnership (in this section called the later partnership), holds or hold all of any rights under the agreement to have the thing done during the period after the partnership change; and\n\n(iv) the original person, or one or more of the partners in the original partnership, has an interest in the rights after the partnership change; and\n\n(c) the whole or part of a deduction under former section 51 of this Act or section 8‑1 of the Income Tax Assessment Act 1997 in respect of the expenditure (which whole or part is in this section called a spread deduction) is, because of the application of this Subdivision, allowable from the assessable income of the original person or the original partnership of the year of income in which the partnership change happens or a subsequent year of income;\n\nthe following provisions have effect:\n\n(d) if a spread deduction is allowable in relation to the year of income in which the partnership change occurs—the entitlement to the deduction shall, for the purposes of this Act but subject to any later application of this section, be apportioned between the original person or original partnership and the later person or later partnership according to the portions of the eligible service period in the year of income (or, if the case requires, of so much of the period as occurs after a partnership change resulting from a previous application of this section) that occur before and after the partnership change;\n\n(e) if a spread deduction relates to a subsequent year of income—the later person or later partnership, instead of the original person or original partnership, shall, for the purposes of this Act but subject to any later application of this section, be entitled to the deduction;\n\n(f) for the purposes of any later application of this section or section 82KZN, the later person or later partnership, instead of the original person or original partnership, shall be taken to have incurred the expenditure under the agreement.\n\nDivision 3A—Convertible notes\n\n82LA  Application of Division\n\n(1) This Division applies only for the purposes of:\n\n(a) calculating an eligible CFC’s attributable income for the purposes of Part X; and\n\n(b) defining convertible note.\n\n(2) A term used in paragraph (1)(a) has the same meaning as it has when used in Part X.\n\n82L  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\nattributable income has the meaning given by Division 7 of Part X.\n\nCFC or controlled foreign company has the meaning given by section 340.\n\nconvertible note includes a note issued by a company that provides, whether in pursuance of or by virtue of a trust deed or otherwise:\n\n(a) that the amount of the loan to the company that is evidenced, acknowledged or created by the note or to which the note relates:\n\n(i) whether with or without interest;\n\n(iii) whether at the option of the holder or owner of the note or of some other person or not;\n\n(iv) whether in whole or in part; or\n\n(v) whether exclusively or otherwise;\n\nis to be or may be converted into shares in the capital of the company or of another company or is to be or may be redeemed, repaid or satisfied by:\n\n(vi) the allotment or transfer of shares in the capital of the company or of some other company, whether to the holder or owner of the note or to some other person;\n\n(vii) the acquisition of such shares, whether by the holder or owner or by some other person, otherwise than as mentioned in subparagraph (vi); or\n\n(viii) application in or towards paying‑up, in whole or in part, the balance unpaid on shares issued or to be issued by the company or by some other company, whether to the holder or owner or to some other person; or\n\n(b) that the holder or owner of the note is to have, or may have, any right or option to have allotted or transferred to him or her or to some other person, or for him or her or some other person otherwise to acquire, shares in the capital of the company or of some other company.\n\nforeign loan means a loan to a company raised outside Australia in a currency other than the currency of Australia.\n\ninstrument includes debenture, bond, certificate, receipt or any other document or writing.\n\nissued includes given and executed, and issue has a corresponding meaning.\n\nloan, in relation to a company, means:\n\n(a) a loan, advance or deposit of money to or with the company;\n\n(b) money subscribed to the company; or\n\n(c) any other form of debt or liability of the company;\n\nwhether secured or unsecured and whenever redeemable, repayable or to be satisfied.\n\nnote means a note or other instrument issued by a company that evidences, acknowledges, creates or relates to a loan to the company.\n\nprescribed stock exchange means an approved stock exchange (within the meaning of the Income Tax Assessment Act 1997) operating in Australia.\n\nqualified person, in relation to the valuing of a share in the capital of a company, means a person registered as a company auditor under a law in force in a State or a Territory, but does not include:\n\n(a) a director, secretary or employee of the company;\n\n(b) a partner, employer or employee of a person referred to in paragraph (a); or\n\n(c) a partner or employee of an employee of a person so referred to.\n\nthe date of offer, in relation to a loan to a company means the earliest date on which, by any relevant prospectus, notice, circular, advertisement or other written invitation, any person was or persons were invited to subscribe to the loan:\n\n(a) in the case of a new loan—by the payment of money to the company; or\n\n(b) in the case of an approved replacement loan—by converting, in whole or in part, an earlier loan, or by converting, in whole or in part, an earlier loan and the payment of money to the company.\n\nthe maturity date, in relation to a loan to which a convertible note applies, means the date by which the whole of the loan is, under the terms applicable to the note, to be repaid, redeemed or satisfied.\n\nthe relevant valuation period, in relation to a share, means:\n\n(a) where neither paragraph (b) nor (c) applies in relation to the share—the period of one month ending on the date that is the valuation date in relation to the share;\n\n(b) where:\n\n(i) the share is included in a class of shares that, during the whole of the period of 2 months ending on the valuation date, was listed for quotation in the official list of a stock exchange that was a prescribed stock exchange during the whole of that period of 2 months, or in the official lists of 2 or more stock exchanges each of which was a prescribed stock exchange during the whole of that period of 2 months; and\n\n(ii) fully paid shares included in that class of shares were not recorded by that stock exchange or by any of those stock exchanges, as the case may be, as having been sold during the period of one month specified in paragraph (a) but were recorded by that stock exchange or by one or more of those stock exchanges, as the case may be, as having been sold during the period of one month immediately preceding the commencement of the period of one month so specified;\n\nthat preceding period of one month; or\n\n(c) where:\n\n(i) the share is included in a class of shares that, during the whole of the period of 3 months ending on the valuation date, was listed for quotation in the official list of a stock exchange that was a prescribed stock exchange during the whole of that period of 3 months, or in the official lists of 2 or more stock exchanges each of which was a prescribed stock exchange during the whole of that period of 3 months; and\n\n(ii) fully paid shares included in that class of shares were not recorded by that stock exchange or by any of those stock exchanges, as the case may be, as having been sold during the period of 2 months ending on the valuation date but were recorded by that stock exchange or by one or more of those stock exchanges, as the case may be, as having been sold during the period of one month immediately preceding the commencement of that period of 2 months;\n\nthat preceding period of one month.\n\nthe valuation date, in relation to a share, means the date that is earlier by 6 weeks than the date that is the date of offer in relation to the loan in respect of which the value of the share is to be ascertained.\n\n(2) Where the combined effect or operation of 2 or more related instruments, whether issued at the same time or not, would have the effect or operation of a convertible note, those instruments shall, for the purposes of this Division, be deemed to be together a convertible note.\n\n(3) Where:\n\n(a) a company issues a note that provides that the amount of the loan to the company that is evidenced, acknowledged or created by the note or to which the note relates:\n\n(i) whether with or without interest;\n\n(iii) whether at the option of the holder or owner of the note or of some other person or not;\n\n(iv) whether in whole or in part; or","sortOrder":1000030},{"sectionNumber":"full-source-retrieval-0032","sectionType":"document_chunk","heading":"Document excerpt 32","content":"(v) whether exclusively or otherwise;\n\nis to be or may be redeemed, repaid or satisfied by the issue, whether by the same company or by another company, of an instrument or a series of instruments; and\n\n(b) that instrument, or any instrument in that series of instruments, is to provide, whether in pursuance of or by virtue of a trust deed or otherwise, as mentioned in paragraph (a) or (b) of the definition of convertible note in subsection (1);\n\nthat note and the instrument, or that note and each of the instruments in the series of instruments, shall, for the purposes of this Division, be deemed to be a convertible note.\n\n(4) For the purposes of this Division, a convertible note issued by a company applies to a loan to a company if it evidences, acknowledges or creates the loan.\n\n(5) A reference in this Division to the terms, or a term, applicable to a convertible note shall be read as including a reference to terms, or a term, that so apply or applies in pursuance of or by virtue of a trust deed or otherwise.\n\n82M  New loans and replacement loans\n\n(1) Where:\n\n(a) a loan to a company is made, and is wholly made, by money being paid to the company at the time when the loan is made; and\n\n(b) the loan is not part of or related to a transaction, or is not one of a series of related transactions, under which the person making the loan is to receive or has received, for the purpose of enabling him or her to make, or of assisting him or her in making, the loan, any money or other property from the company, or from another company or person as a result of arrangements made with that other company or person by the first‑mentioned company;\n\nthe loan shall, for the purposes of this Division, be treated as a new loan.\n\n(2) Where:\n\n(a) a loan to a company is, under subsection (1), to be treated as a new loan for the purposes of this Division;\n\n(b) the loan is not evidenced, acknowledged or created by a convertible note or is not a loan to which a convertible note otherwise applies;\n\n(c) the loan is for a fixed period;\n\n(d) the rate of interest payable in respect of the loan is the same in respect of all periods occurring before the date by which the whole of the loan is to be repaid, redeemed or satisfied; and\n\n(e) the loan is, in whole or in part, converted into another loan to the company or to another company, or the loan is, in whole or in part, converted into a part of another loan to the company or to another company and the remainder of the other loan:\n\n(i) is made by money being paid to the company or other company at the time when the loan is made; and\n\n(ii) would, if it were a separate loan, be a loan that, under subsection (1), is to be treated as a new loan for the purposes of this Division;\n\nthat other loan shall, for the purposes of this Division, be treated as an approved replacement loan.\n\n82P  Bonus share allotments\n\n(1) For the purposes of this section, the making of a bonus share allotment by a company is the allotment by the company of shares (in this section referred to as bonus shares) in the capital of the company (being shares all of which are of the same class as each other) to persons who are the holders of other shares (in this section referred to as qualifying shares) in the capital of the company or in the capital of another company (being shares all of which are of the same class as each other but which are not necessarily of the same class as the bonus shares), being an allotment made to the holders of all shares of the same class as the qualifying shares or an allotment made in pursuance of applications for the allotment of the bonus shares by the holders of the qualifying shares in accordance with an invitation to apply for the allotment of shares given to the holders of the qualifying shares and the holders of all other shares of the same class as the qualifying shares.\n\n(2) Where:\n\n(a) the option to convert that exists under a convertible note is an option to have shares allotted to the holder or owner of the note; and\n\n(b) the terms applicable to the note are such that, if a bonus share allotment is made by the company that issued the note or by another company in respect of qualifying shares that are of the same class as the shares that are to be allotted to the holder or owner of the note upon the exercise of the option to convert, the holder or owner of the note is to have the right to have allotted to him or her shares in the capital of the company or of that other company, as the case may be, of the same class as the bonus shares on terms and conditions that are the same as or correspond with, or are no more favourable to him or her than, the terms and conditions on which bonus shares are allotted to any holder of qualifying shares;\n\nthat right shall, for the purposes of subparagraph 82SA(1)(d)(ii), be deemed to be an approved right relating to the allotting or transfer of bonus shares to the holder or owner of the convertible note.\n\n(3) Where:\n\n(a) the option to convert that exists under a convertible note is an option to have shares transferred to the holder or owner of the note; and\n\n(b) the terms applicable to the note are such that, if a bonus share allotment is made by the company that issued the note or by another company, being an allotment the qualifying shares relating to which include the shares that are to be transferred to the holder or owner of the note upon the exercise of the option to convert, and bonus shares allotted in respect of the qualifying shares to be so transferred are allotted to the holder of those shares on terms and conditions that are the same as or correspond with, or are no more favourable to him or her than, the terms and conditions on which bonus shares are allotted to any other holder of qualifying shares, the holder or owner of the note is to have the right to have the bonus shares allotted to that person transferred to him or her upon the payment by him or her, where a consideration was paid or is payable in respect of the allotment of the bonus shares to the other person, of a consideration not less than that consideration;\n\nthat right shall, for the purposes of subparagraphs 82S(1)(d)(ii) and 82SA(1)(d)(ii), be deemed to be an approved right relating to the allotting or transfer of bonus shares to the holder or owner of the convertible note.\n\n82Q  Classes of shares\n\n(1) Shares in the capital of a company to which there are attached the same rights, including the following rights:\n\n(a) rights in respect of voting;\n\n(b) rights in respect of dividends;\n\n(c) rights in respect of distribution of share capital in consequence of a reduction of share capital;\n\n(d) rights in respect of distribution of the property of the company in the event of the winding up of the company;\n\nconstitute a class of shares for the purposes of this Division, and no other shares in the capital of the company constitute a class of shares for such purposes.\n\n(2) Notwithstanding anything contained in subsection (1), a share in the capital of a company to be allotted upon the exercise of the option to convert given under the terms applicable to a convertible note shall not, for the purposes of this Division, be deemed to be a share of a different class from a share in the capital of the company already allotted by reason only that during the period of one year after the allotment of the first‑mentioned share, any dividend payable in respect of the share will or may be less than any dividend payable in respect of the second‑mentioned share.\n\n82R  Interest on certain convertible notes not to be an allowable deduction\n\n(1) Subject to section 82SA, this section applies to a convertible note issued by a company, not being:\n\n(a) a convertible note issued on or before 15 November 1960; or\n\n(b) a convertible note:\n\n(i) the terms of the issue of which were announced by the company on or before that date; or\n\n(ii) that the company was, in pursuance of an agreement made on or before that date, bound to issue.\n\n(2) Where, in pursuance of the terms upon which any convertible notes were issued by a company, a person was entitled to have a convertible note issued to him or her by that company, the company shall, for the purposes of subsection (1), be deemed to have issued the convertible note to that person at the time when the person first became entitled to have the convertible note issued to him or her.\n\n(3) An outgoing consisting of interest, or a payment in the nature of interest, under a convertible note to which this section applies shall be deemed not to be an allowable deduction from the assessable income of the company.\n\n(4) Where a payment has been made by a person (whether under a guarantee or otherwise) that represents, in effect, a payment of interest under a convertible note to which this section applies and the company has incurred an outgoing by way of making good the first‑mentioned payment to that person, whether by way of indemnification or otherwise, the amount of that outgoing shall, for the purposes of this section, be deemed to be an outgoing consisting of interest under the convertible note.\n\n(5) Section 25‑25 (Borrowing expenses) of the Income Tax Assessment Act 1997 does not apply to the expenditure incurred by the company in borrowing money by means of convertible notes to which this section applies.\n\n82SA  Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976\n\n(1) Subject to the succeeding provisions of this section, section 82R does not apply in relation to a convertible note issued by a company where:\n\n(a) the loan to the company to which the note applies is, under section 82M, to be treated as a new loan or an approved replacement loan for the purposes of this Division;\n\n(b) the loan was made on or after 1 January 1976;\n\n(c) the convertible note was issued before the expiration of 2 months after the loan was made; and\n\n(d) the terms applicable to the convertible note are, at the time the note was issued and at all subsequent times, such that:\n\n(i) an option is given to the holder or owner of the convertible note (in this Division referred to as the option to convert) to have allotted or transferred to him or her shares in the capital of the company or of another company;\n\n(ii) no provision is made for the allotting or transferring of shares in the capital of the company or of another company to the holder or owner of the convertible note except in pursuance of the exercise of the option to convert or except in pursuance of a right that, under section 82P, is an approved right relating to the allotting or transfer of bonus shares to the holder or owner of the note;\n\n(iii) the convertible note would not, but for the option to convert and any right of the kind referred to in subparagraph (ii), be a convertible note;\n\n(iv) the earliest date on which the option to convert may be exercised is a date not later than 2 years after the date of offer;\n\n(v) the latest date on which the option to convert may be exercised is a date not later than the maturity date of the loan or, if the date of offer is more than 10 years earlier than the maturity date, a date not later than 10 years after the date of offer;\n\n(vi) the rate of interest payable in respect of the loan is, subject to subsection (5), the same in respect of all periods occurring before the maturity date of the loan;\n\n(vii) subject to subsection (6), the obligations and rights of the holder or owner of the convertible note (including, but without limiting the generality of the foregoing, obligations and rights with respect to the amount payable on repayment, redemption or satisfaction of the loan and the terms on which shares are to be allotted or transferred in pursuance of the exercise of the option to convert) do not vary in his or her favour by reason that he or she exercises the option, or he, she or the company exercises any other right in relation to the note, at a later rather than at an earlier time after the issue of the note;\n\n(viii) the rights of the holder or owner of the convertible note with respect to the amount payable on repayment, redemption or satisfaction of the loan do not vary according to whether or not he or she exercises the option to convert;\n\n(ix) the shares to be allotted or transferred upon the exercise of the option to convert:\n\n(A) are to be allotted or transferred within 2 months after the exercise of the option;\n\n(B) in the case of shares to be allotted, are, upon payment of the amount payable in respect of the allotment, to be fully paid shares or, in the case of shares to be transferred, are, at the time of transfer, to be fully paid shares; and\n\n(C) are to be shares of the same class as shares in the capital of the company that, not later than 6 weeks before the date that is the date of offer in relation to the loan, had been allotted and were fully paid;\n\n(x) the shares to be allotted or transferred upon the exercise of the option to convert are to be shares with respect to which no provision is made (whether by the memorandum, or memorandum and articles, of the company, or other instrument constituting or defining the constitution of the company, or otherwise) for changing or converting them into shares of another class, except for the purpose of enabling, in accordance with any law relating to companies, the consolidation and division of all or any of the share capital of the company or of another company or the sub‑division of all or any of the shares in the capital of the company or of another company; and\n\n(xi) the amount payable in respect of the allotment or transfer of a share in pursuance of the exercise of the option to convert is to be paid not later than 1 month after the allotment or transfer, and is to be not less than 90% of the amount that, in accordance with section 82T, is the value as at the valuation date of a fully paid share included in the class of shares in which the share to be allotted or transferred will be, or is, included.\n\n(2) Where subsection (1) ceases to have effect in relation to a convertible note by reason of a change in the terms applicable to the note (not being a change resulting from a compromise or arrangement approved by a court), subsection (1) shall be deemed never to have had effect in relation to the note.\n\n(3) Where a note is a convertible note in relation to which subsection (1) has effect and the right to exercise the option to convert relating to the note becomes exercisable by a person other than the holder or owner of the note by reason of an assignment of that right, the assignment shall, for the purposes of this section, be disregarded.\n\n(4) Where, in relation to a convertible note issued by a company, the company or a director of the company does any act or thing for the purpose of, or purposes that include the purpose of, and having the effect of, causing the amount that, for the purposes of subsection (1), is the minimum amount applicable to a share to be allotted or transferred in pursuance of the exercise of the option to convert relating to the note, to be less than it would otherwise have been, subsection (1) does not have effect in relation to the note.\n\n(5) Where, under the terms applicable to a convertible note, the rate of interest payable in respect of the loan to which the note applies is to be varied from time to time (otherwise than with retrospective effect) in accordance with changes, or changes exceeding a specified percentage, in the rate of interest prevailing from time to time:\n\n(a) where the loan is a foreign loan, at a specified place outside Australia in respect of a specified class of transactions; or\n\n(b) where the loan is not a foreign loan, in respect of a specified class of securities issued under an Act;\n\nthe term shall, for the purposes of subparagraph (1)(d)(vi), be deemed not to be a term providing for a variation in the rate of interest payable in respect of the loan.\n\n(6) For the purposes of subparagraph (1)(d)(vii), the obligations and rights of the holder or owner of a convertible note shall not be deemed to vary in a manner referred to in that subparagraph by reason only that any dividend payable in respect of a share in the capital of a company to be allotted upon the exercise of the option to convert relating to the note, being a dividend payable during the period of 1 year after the allotment of the share, will or may vary according to the time when, in relation to the period to which the dividend relates, the option to convert is exercised.\n\n82T  Value of shares\n\n(1) For the purposes of section 82SA, the value of a fully paid share as at the valuation date is:\n\n(a) where:\n\n(i) the share is included in a class of shares that, during the whole of the relevant valuation period, was listed for quotation in the official list of a stock exchange that was a prescribed stock exchange during the whole of that period, or in the official lists of 2 or more stock exchanges each of which was a prescribed stock exchange during the whole of that period; and\n\n(ii) fully paid shares included in that class of shares were recorded by that stock exchange, or by one or more of those stock exchanges, as the case may be, as having been sold during that period;\n\nan amount ascertained by dividing the total consideration paid or payable in respect of those sales by the total number of shares so recorded as having been sold; and","sortOrder":1000031},{"sectionNumber":"full-source-retrieval-0033","sectionType":"document_chunk","heading":"Document excerpt 33","content":"(b) in any other case—the amount that a person who is a qualified person in relation to the valuing of the share certifies that, on a true and fair view of the state of the company’s affairs, would, in respect of a sale at the end of the relevant valuation period between a willing but not anxious seller and a willing but not anxious buyer, be expected to be the consideration paid for the share, on the assumption, in a case where the class of shares in which that share is included was not, at the end of the relevant valuation period, listed for quotation in the official list of a stock exchange that, at that time, was a prescribed stock exchange, that the memorandum, or memorandum and articles, of the company, or other instrument constituting or defining the constitution of the company, satisfied, at that time, such of the requirements of a stock exchange that, at that time, was a prescribed stock exchange as it would have been necessary to satisfy to enable that class of shares to be listed for quotation in the official list of that stock exchange.\n\nDivision 5—Partnerships\n\n90  Interpretation\n\nIn this Division:\n\nexempt income, in relation to a partnership, means the exempt income of the partnership calculated as if the partnership were a taxpayer who was a resident.\n\nnet income, in relation to a partnership, means the assessable income of the partnership, calculated as if the partnership were a taxpayer who was a resident, less all allowable deductions except deductions allowable under section 290‑150 or Division 36 of the Income Tax Assessment Act 1997.\n\nnon‑assessable non‑exempt income, in relation to a partnership, means the non‑assessable non‑exempt income of the partnership calculated as if the partnership were a taxpayer who was a resident.\n\npartnership loss, in relation to a partnership, means the excess (if any) of the allowable deductions, other than deductions allowable under section 290‑150 or Division 36 of the Income Tax Assessment Act 1997, over the assessable income of the partnership calculated as if the partnership were a taxpayer who was a resident.\n\n91  Liability of partnerships\n\nA partnership shall furnish a return of the income of the partnership, but shall not be liable to pay tax thereon.\n\n92  Income and deductions of partner\n\n(1) The assessable income of a partner in a partnership shall include:\n\n(a) so much of the individual interest of the partner in the net income of the partnership of the year of income as is attributable to a period when the partner was a resident; and\n\n(b) so much of the individual interest of the partner in the net income of the partnership of the year of income as is attributable to a period when the partner was not a resident and is also attributable to sources in Australia.\n\n(2) Subject to section 830‑45 of the Income Tax Assessment Act 1997, if a partnership loss is incurred by a partnership in a year of income, there shall be allowable as a deduction to a partner in the partnership:\n\n(a) so much of the individual interest of the partner in the partnership loss as is attributable to a period when the partner was a resident; and\n\n(b) so much of the individual interest of the partner in the partnership loss as is attributable to a period when the partner was not a resident and is also attributable to sources in Australia.\n\n(2AA) However, if:\n\n(a) the partner is a limited partner in a partnership; and\n\n(b) the partnership is a VCLP, an ESVCLP, an AFOF or a VCMP during the year of income;\n\nthe amount allowable under subsection (2), in respect of the year of income, as a deduction must not exceed the amount worked out as follows:\n\nMethod statement\n\nStep 1. Work out the sum of the amounts that the partner has contributed (the partner’s contribution) to the partnership.\n\nStep 2. Subtract the sum of all the amounts (if any) of the partner’s contribution that are repaid to the partner.\n\nStep 3. Subtract the sum of all deductions allowed to the partner for losses of the partnership in previous years of income.\n\nStep 4. Subtract the sum of the amounts of all the debt interests issued by the partner to the extent that they are secured by the partner’s interest in the partnership.\n\nExample: A limited partner contributes $100,000 to a VCLP, having borrowed $80,000. Because the lender values the partner’s interest in the partnership at $70,000, the partner also provides, as additional security, other assets valued at $10,000.\n\nIf none of the partner’s contribution has been repaid and the partner has not been allowed deductions for partnership losses in previous years of income, the amount allowable to the partner for a partnership loss cannot exceed $30,000.\n\n(2A) Subsection (2) does not apply to a partnership loss if the partner’s interest in the partnership at the end of the year of income is:\n\n(a) a segregated exempt asset (as defined in the Income Tax Assessment Act 1997) of a life assurance company; or\n\n(b) a segregated current pension asset (as defined in the Income Tax Assessment Act 1997) of a complying superannuation fund.\n\n(3) The exempt income of a partner in a partnership shall include:\n\n(a) so much of the individual interest of the partner in the exempt income of the partnership of the year of income as is attributable to a period when the partner was a resident; and\n\n(b) so much of the individual interest of the partner in the exempt income of the partnership of the year of income as is attributable to a period when the partner was not a resident and is also attributable to sources in Australia.\n\n(4) The non‑assessable non‑exempt income of a partner in a partnership shall include:\n\n(a) so much of the individual interest of the partner in the non‑assessable non‑exempt income of the partnership of the year of income as is attributable to a period when the partner was a resident; and\n\n(b) so much of the individual interest of the partner in the non‑assessable non‑exempt income of the partnership of the year of income as is attributable to a period when the partner was not a resident and is also attributable to sources in Australia.\n\n92A  Deductions in respect of outstanding subsection 92(2AA) amounts\n\n(1) If:\n\n(a) the partner is a limited partner in a partnership; and\n\n(b) the partnership is a VCLP, an ESVCLP, an AFOF or a VCMP during the year of income; and\n\n(c) the amount allowable under subsection 92(2) as a deduction to the partner for partnership losses incurred by the partnership in the year of income is not reduced because of subsection 92(2AA); and\n\n(d) the partner has an outstanding subsection 92(2AA) amount for the year of income;\n\nthere is allowable as a deduction to the partnership an amount worked out as follows:\n\nMethod statement\n\nStep 1. Subtract the amount allowable under subsection 92(2) as a deduction to the partner for partnership losses incurred by the partnership in the year of income from the amount worked out using the method statement in subsection 92(2AA).\n\nStep 2. If the amount worked out under step 1 is greater than or equal to the outstanding subsection 92(2AA) amount for the year of income, the amount of the deduction allowable under this section is the outstanding subsection 92(2AA) amount.\n\nStep 3. If the amount worked out under step 1 is less than the outstanding subsection 92(2AA) amount for the year of income, the amount of the deduction allowable under this section is the amount worked out under step 1.\n\n(2) The partner has an outstanding subsection 92(2AA) amount for a year of income if:\n\n(a) an amount allowable under subsection 92(2) as a deduction to the partner for partnership losses incurred by the partnership in a previous year of income was reduced because of subsection 92(2AA); and\n\n(b) the difference between:\n\n(i) the sum of all reductions made under subsection 92(2AA) to amounts allowable under subsection 92(2) as deductions to the partner for partnership losses incurred by the partnership in previous years of income; and\n\n(ii) the sum of all amounts allowable under this section, in respect of previous years of income, as deductions to the partner in relation to those reductions;\n\nis greater than zero.\n\nThe amount of that difference is the partner’s outstanding subsection 92(2AA) amount for the year of income.\n\n(3) To avoid doubt, a partner’s outstanding subsection 92(2AA) amount for a year of income cannot form part of a tax loss for the purposes of Division 36 or 160 of the Income Tax Assessment Act 1997.\n\n94  Partner not having control and disposal of share in partnership income\n\n(1) Subject to this section, where:\n\n(a) a share in the net income of a partnership of a year of income is included in the assessable income of a partner in the partnership, not being:\n\n(i) a company;\n\n(ii) a person in the capacity of a trustee; or\n\n(iii) a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership; and\n\n(b) the partnership is so constituted or controlled, or its operations are so conducted, that the partner has not the real and effective control and disposal of that share or of a part of that share;\n\nthis section applies to that share or that part of that share, as the case may be.\n\n(2) Subject to the succeeding provisions of this section, where:\n\n(a) a partnership is so constituted or controlled, or its operations are so conducted, that a partner in the partnership, being a trustee of a trust estate, has not the real and effective control and disposal of his or her share in the net income of the partnership of a year of income or of a part of that share (which share or part of a share, as the case may be, is in this subsection referred to as uncontrolled partnership income); and\n\n(b) in calculating in accordance with section 95 the net income of that trust estate or of any other trust estate, there is included in the assessable income of the trust estate any uncontrolled partnership income;\n\nthen:\n\n(c) if:\n\n(i) a beneficiary, not being a company or a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership, is presently entitled to the whole of the income of the trust estate otherwise than in the capacity of a trustee; or\n\n(ii) there is no part of the net income of the trust estate that is included in the assessable income of a beneficiary in pursuance of section 97 or in respect of which the trustee is assessed and liable to pay tax in pursuance of section 98;\n\nthis section applies to the portion of the net income of the trust estate that was derived from uncontrolled partnership income;\n\n(d) if a beneficiary, not being a company or a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership, is presently entitled to a share of the income of the trust estate otherwise than in the capacity of a trustee, this section applies to so much of that share of the net income of the trust estate as bears to that share the same proportion as the portion of the net income of the trust estate that was derived from uncontrolled partnership income bears to the net income of the trust estate; and\n\n(e) if there is a part of the net income of the trust estate that is not included in the assessable income of a beneficiary in pursuance of section 97 and in respect of which the trustee is not assessed and is not liable to pay tax in pursuance of section 98, this section applies to so much of that part of the net income of the trust estate as bears to that part the same proportion as the portion of the net income of the trust estate that was derived from uncontrolled partnership income bears to the net income of the trust estate.\n\n(5) For the purposes of this section:\n\n(a) where:\n\n(i) the assessable income of a trust estate includes the net income or a share of the net income of another trust estate; and\n\n(ii) the assessable income of the other trust estate by reference to which that net income is calculated included income of a particular class (including an amount that is to be deemed by an application or applications of this paragraph to be income of a particular class);\n\nthe assessable income of the first‑mentioned trust estate shall be deemed to include income of that class of an amount equal to so much of the net income or share of the net income of the other trust estate that is included in the assessable income of the first‑mentioned trust estate as bears to that net income or share of that net income the same proportion as the portion of the net income of the other trust estate that was derived from income of that class bears to the net income of the other trust estate; and\n\n(b) the portion of the net income of a trust estate that is derived from income of a particular class that is included in the assessable income of the trust estate is the amount remaining after deducting from the income of that class that is included in the assessable income of the trust estate:\n\n(i) any prescribed deductions that relate exclusively to that income of that class;\n\n(ii) so much of any other prescribed deductions (other than apportionable deductions) as, in the opinion of the Commissioner, may appropriately be related to that income of that class; and\n\n(iii) the amount that bears to the prescribed deductions (being apportionable deductions) the same proportion as the amount that, but for this subparagraph, would be the portion of the net income of the trust estate that is derived from that income of that class bears to the sum of the net income of the trust estate and those last‑mentioned prescribed deductions.\n\n(6) Where the assessable income of a trust estate includes, or, by virtue of paragraph (5)(a), is to be deemed to include, income of a particular class but the Commissioner is of the opinion that it would be unreasonable to treat each part or share of the net income of the trust estate that is included in the assessable income of a beneficiary, or on or in respect of which the trustee is assessed and liable to pay tax, as including a proportionate part of the portion of the net income of the trust estate that is derived from income of that class, the amount:\n\n(a) that is the amount of a part or share of the net income of the trust estate to which this section applies by virtue of paragraph (2)(d) or (e); or\n\n(b) that is, by virtue of paragraph (5)(a), the amount of the income of that class that is to be deemed to be included in the assessable income of another trust estate;\n\nis, in lieu of the amount that, but for this subsection, would be the amount of that part or share of that net income or the amount of that income of that class, as the case may be, such amount as the Commissioner considers reasonable in the circumstances.\n\n(8) Where the Commissioner is of the opinion that, by reason of special circumstances, it would be unreasonable that this section should apply to any income, this section does not apply to that income.\n\n(8A) In forming an opinion for the purposes of subsection (8) as to whether it is unreasonable that this section should apply in relation to any of the net income of a trust estate, the Commissioner shall take into consideration the extent (if any) to which that net income represents income to which a beneficiary is presently entitled that is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia.\n\n(9) Where the assessable income of a taxpayer, other than a taxpayer in the capacity of a trustee, includes income to which this section applies, the taxpayer shall be assessed and is liable to pay further tax, in accordance with subsection (10A) or (10B), upon the portion (in this section referred to as the eligible portion) of his or her taxable income that is derived from income to which this section applies.\n\n(10) For the purposes of subsection (9), the portion of the taxable income of a taxpayer that is derived from income to which this section applies is the amount remaining after deducting from the income to which this section applies that is included in his or her assessable income:\n\n(a) any deductions allowed or allowable in his or her assessment that relate exclusively to the income to which this section applies that is included in his or her assessable income;\n\n(b) so much of any other deductions allowed or allowable in his or her assessment (other than apportionable deductions) as, in the opinion of the Commissioner, may appropriately be related to the income to which this section applies that is included in his or her assessable income; and\n\n(c) the amount that bears to the apportionable deductions allowed or allowable in his or her assessment the same proportion as the amount that, but for this paragraph, would be the portion of his or her taxable income that is derived from income to which this section applies bears to the sum of his or her taxable income and those apportionable deductions.\n\n(10A) Where Division 392 (Long‑term averaging of primary producers’ tax liability) of the Income Tax Assessment Act 1997 does not apply in relation to the income of a taxpayer of the year of income, the taxpayer is liable to pay further tax upon the eligible portion of his or her taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (9) in respect of the relevant part of the taxable income.","sortOrder":1000032},{"sectionNumber":"full-source-retrieval-0034","sectionType":"document_chunk","heading":"Document excerpt 34","content":"(10B) Where Division 392 (Long‑term averaging of primary producers’ tax liability) of the Income Tax Assessment Act 1997 applies in relation to the income of a taxpayer of the year of income, the taxpayer is liable to pay further tax upon the relevant part of the eligible portion of his or her taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (9) in respect of the relevant part of the taxable income and is, in addition, liable to pay further tax upon the prescribed part of the eligible portion of his or her taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (9) in respect of the prescribed part of the taxable income.\n\n(10C) For the purposes of subsections (10A) and (10B):\n\n(a) the prescribed part of the eligible portion of the taxable income of a taxpayer of a year of income is:\n\n(i) in a case to which subparagraph (ii) does not apply—the sum of:\n\n(A) the amount ascertained by deducting from so much of the assessable primary production income of the taxpayer as is also income to which this section applies so much of the deductions allowable in his or her assessment as constitutes primary production deductions and is also deductible in accordance with subsection (10) from income to which this section applies; and\n\n(B) the amount (if any) ascertained in accordance with the formula ![Start formula start fraction A times B over C end fraction end formula](image.005.png), where:\n\nA  is the amount shown in the following table:\n\n- Value of A for formula\n- Item Taxpayer’s taxable non‑primary production income Value of A\n- 1 Nil Nil\n- 2 Not more than $5,000 (but more than nil) Difference between basic taxable income and taxable primary production income\n- 3 Between $5,000 and $10,000 $10,000 taxable non‑primary production income\n- 4 At least $10,000 Nil\n\nB  is the number of whole dollars in the amount ascertained by deducting from the eligible portion the amount calculated in accordance with sub‑subparagraph (A); and\n\nC  is the number of whole dollars in the amount ascertained by deducting from the taxable income of the taxpayer of the year of income the taxable primary production income of the taxpayer of the year of income; and\n\n(ii) in a case where the taxpayer’s primary production deductions for the year of income exceed the taxpayer’s assessable primary production income for that year—the amount ascertained in accordance with the formula ![Start formula start fraction A times B over C plus D end fraction end formula](image.006.png), where:\n\nA  is the amount shown in the following table:\n\n- Value of A for formula\n- Item Taxpayer’s taxable non‑primary production income Value of A\n- 1 Nil Nil\n- 2 Not more than $5,000 (but more than nil) Basic taxable income\n- 3 Between $5,000 and $10,000 Non‑primary production shade‑out amount worked out under subsection 392‑90(3) of the Income Tax Assessment Act 1997\n- 4 At least $10,000 Nil\n\nB  is the number of whole dollars in the eligible portion.\n\nC  is the number of whole dollars in the taxable income of the taxpayer of the year of income; and\n\nD  is the number of whole dollars in the difference between the taxpayer’s primary production deductions for the year of income and the taxpayer’s assessable primary production income for that year; and\n\n(b) the relevant part of the eligible portion of the taxable income of the taxpayer is the amount ascertained by deducting from the amount of that eligible portion so much of that eligible portion as is the prescribed part of that eligible portion.\n\n(11) Where:\n\n(a) section 98 applies in relation to the net income of a trust estate or a share of that net income; and\n\n(b) this section applies to a portion (in this subsection referred to as the relevant portion) of that net income or of that share of that net income, as the case may be;\n\nthe trustee of the trust estate shall be assessed and is liable to pay further tax, in accordance with subsection (12A) or (12B), upon the relevant portion of that net income or of that share of that net income, as the case may be.\n\n(12) Where:\n\n(a) section 99 applies in relation to the net income of a trust estate or a part of that net income; and\n\n(b) this section applies to a portion (in this section referred to as the eligible trust portion) of that net income or of that part of that net income, as the case may be;\n\nthe trustee of the trust estate shall be assessed and is liable to pay further tax, in accordance with subsection (12A) or (12B), upon the eligible trust portion.\n\n(12A) Where Division 16 does not apply in respect of the net income of a trust estate of which the eligible trust portion is a portion, the trustee is liable to pay further tax upon the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (11) or (12) in respect of the relevant part of the net income of a trust estate.\n\n(12B) Where Division 16 applies in respect of the net income of a trust estate of which the eligible trust portion is a portion, the trustee is liable to pay further tax upon the relevant part of the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (11) or (12) in respect of the relevant part of the net income of a trust estate and is, in addition, liable to pay further tax upon the prescribed part of the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of subsection (11) or (12) in respect of the prescribed part of the net income of a trust estate.\n\n(12C) For the purposes of subsections (12A) and (12B):\n\n(a) the prescribed part of the eligible trust portion in relation to a trust estate in relation to a year of income is:\n\n(i) in a case to which subparagraph (ii) does not apply—the sum of:\n\n(A) the amount ascertained by deducting from so much of the assessable primary production income of the trust estate of the year of income as is also income that was taken into account in determining the amount of the eligible trust portion so much of the deductions allowable in the assessment of the trustee of the trust estate as constitutes relevant primary production deductions and was also deductible in accordance with subsection (5) in determining the amount of the eligible trust portion; and\n\n(B) the amount (if any) ascertained in accordance with the formula ![Start formula start fraction A times B over C end fraction end formula](image.005.png), where:\n\nA  is the amount of the notional net income from primary production of the trust estate of the year of income.\n\nB  is the number of whole dollars in the amount ascertained by deducting from the eligible trust portion the amount calculated in accordance with sub‑subparagraph (A); and\n\nC  is the number of whole dollars in the amount ascertained by deducting from the net income of the trust estate of which the eligible trust portion is a portion the actual net income from primary production of the trust estate of the year of income; and\n\n(ii) in a case where the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate of the year of income exceeds the assessable primary production income of the trust estate of the year of income—the amount ascertained in accordance with the formula ![Start formula start fraction A times B over C plus D end fraction end formula](image.006.png), where:\n\nA  is the amount of the notional net income from primary production of the trust estate of the year of income.\n\nB  is the number of whole dollars in the eligible trust portion.\n\nC  is the number of whole dollars in the net income of the trust estate of which the eligible trust portion is a portion; and\n\nD  is the number of whole dollars in the amount by which the net income of the trust estate of which the eligible trust portion is a portion would have been increased if the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate of the year of income had been equal to the assessable primary production income of the trust estate of the year of income; and\n\n(b) the relevant part of the eligible trust portion in relation to a trust estate is the amount ascertained by deducting from that eligible trust portion so much of that eligible trust portion as is the prescribed part of that eligible trust portion.\n\n(13) In this section:\n\nprescribed deductions, in relation to a trust estate, means the deductions that are allowable in calculating in accordance with section 95 the net income of the trust estate.\n\nshare in the net income of a partnership, in relation to a partner, means:\n\n(a) so much of the individual interest of the partner in the net income of the partnership and of any income derived by the partner from the partnership otherwise than as a partner as is attributable to a period when the partner was a resident; and\n\n(b) so much of the individual interest of the partner in the net income of the partnership and of any income derived by the partner from the partnership otherwise than as a partner as is attributable to a period when the partner was not a resident and is also attributable to sources in Australia.\n\n(14) In this section, actual net income from primary production, assessable primary production income, notional net income from primary production and relevant primary production deductions have the same respective meanings as in section 156.\n\n(15) In this section, the following terms have the same meanings that they have in Division 392 (Long‑term averaging of primary producers’ tax liability) of the Income Tax Assessment Act 1997:\n\n(a) assessable primary production income;\n\n(b) basic taxable income;\n\n(c) non‑primary production shade‑out amount;\n\n(d) primary production deductions;\n\n(e) taxable non‑primary production income;\n\n(f) taxable primary production income.\n\nDivision 5A—Income of certain limited partnerships\n\nSubdivision A—Preliminary\n\n94A  Object\n\nThe object of this Division is to provide for certain limited partnerships to be treated as companies for tax purposes.\n\n94B  Interpretation\n\nIn this Division:\n\nincome tax law means:\n\n(a) this Act (other than this Division and Division 830 of the Income Tax Assessment Act 1997); and\n\n(b) an Act that imposes any tax payable under this Act; and\n\n(c) the Income Tax Rates Act 1986; and\n\n(d) the Taxation Administration Act 1953, so far as it relates to an Act covered by paragraph (a), (b) or (c); and\n\n(e) any other Act, so far as it relates to an Act covered by paragraph (a), (b), (c) or (d); and\n\n(f) regulations under an Act covered by any of the preceding paragraphs.\n\nyear of income means (except in paragraph 94L(b)) the year of income in which 19 August 1992 occurred or a later year of income.\n\n94C  Continuity of limited partnership not affected by changes in composition\n\nFor the purposes of this Division, a change in the composition of a limited partnership does not affect the continuity of the partnership.\n\nSubdivision B—Corporate limited partnerships\n\n94D  Corporate limited partnerships\n\n(1) For the purposes of this Division, a limited partnership is a corporate limited partnership in relation to a year of income of the partnership if:\n\n(a) the year of income is the 1995‑96 year of income or a later year of income; or\n\n(b) the partnership was formed on or after 19 August 1992; or\n\n(c) both:\n\n(i) the partnership was formed before 19 August 1992; and\n\n(ii) the partnership does not pass the continuity of business test set out in section 94E; or\n\n(d) all of the following apply:\n\n(i) the partnership was formed before 19 August 1992;\n\n(ii) a change in the composition of the partnership occurs during the period:\n\n(A) beginning on 19 August 1992; and\n\n(B) ending at the end of the year of income;\n\n(iii) the partners do not elect, in accordance with section 94F, that the partnership is not to be treated as a corporate limited partnership in relation to the year of income.\n\n(2) However, a partnership that is a VCLP, an ESVCLP, an AFOF or a venture capital management partnership cannot be a corporate limited partnership.\n\nNote 1: This subsection can apply without the partnership meeting the applicable registration requirements under the Venture Capital Act 2002. It must be registered under that Act in order to be a VCLP, an ESVCLP or an AFOF, but it is possible for it to remain registered while the requirements are not met.\n\nNote 2: VCLPs, ESVCLPs, AFOFs and VCMPs are taxed as ordinary partnerships under Division 5.\n\nNote 3: If the partnership’s registration as a VCLP, ESVCLP or AFOF is unconditional, some partners’ share in capital gains and losses from CGT events relating to some investments may be disregarded: see Subdivision 118‑F of the Income Tax Assessment Act 1997.\n\n(3) A venture capital management partnership is a limited partnership that:\n\n(a) is a general partner of one or more of the following:\n\n(i) one or more VCLPs;\n\n(ia) one or more ESVCLPs;\n\n(ii) one or more AFOFs; and\n\n(b) only carries on activities that are related to being such a general partner.\n\nA limited partnership ceases to be a venture capital management partnership if it ceases to meet the requirements of paragraphs (a) and (b).\n\nNote: In this Act, the term “venture capital management partnership” is usually abbreviated to “VCMP”.\n\n(4) The place of residence of a VCMP is the place at which the partnership has its central management and control.\n\n(5) A limited partnership that is a foreign hybrid limited partnership in relation to a year of income because of subsection 830‑10(1) of the Income Tax Assessment Act 1997 is not a corporate limited partnership in relation to the year of income.\n\nNote: As result, both the normal partnership provisions and special provisions relating to foreign hybrid limited partnerships will apply to the entity.\n\n(6) If, for the purpose of applying this Act and the Income Tax Assessment Act 1997 in relation to a partner’s interest in a limited partnership, the partnership is a foreign hybrid limited partnership in relation to a year of income because of subsection 830‑10(2) of that Act, the partnership is not a corporate limited partnership in relation to the partner’s interest in relation to the year of income.\n\nNote: As result, both the normal partnership provisions and special provisions relating to foreign hybrid limited partnerships will apply to the entity, but only in relation to the partner’s interest.\n\n94E  Continuity of business test\n\nIn determining whether a limited partnership is a corporate limited partnership in relation to a year of income, the partnership passes the continuity of business test if, and only if:\n\n(a) at all times during the period:\n\n(i) beginning on 19 August 1992; and\n\n(ii) ending at the end of the year of income;\n\nthe partnership carried on the same business as it carried on immediately before the beginning of that period; and\n\n(b) the partnership did not, at any time during that period, derive income from a business of a kind that it did not carry on, or from a transaction of a kind that it had not entered into in the course of its business operations, before that period.\n\n94F  Change in composition of limited partnership—election that partnership not be treated as an eligible limited partnership\n\nAn election referred to in paragraph 94D(1)(d) in relation to a limited partnership and in relation to a year of income has no effect unless:\n\n(a) the partnership passes the continuity of ownership test set out in section 94G; and\n\n(b) the election is made:\n\n(i) within 6 months after the end of the later of the following years of income:\n\n(A) the year of income to which the election relates;\n\n(B) the year of income in which the Taxation Laws Amendment Act (No. 6) 1992 received the Royal Assent; or\n\n(ii) within such further period as the Commissioner allows.\n\n94G  Continuity of ownership test\n\nIn determining whether a limited partnership is a corporate limited partnership in relation to a year of income, the partnership passes the continuity of ownership test if, and only if:\n\n(a) at all times during the period:\n\n(i) beginning on 19 August 1992; and\n\n(ii) ending at the end of the year of income;\n\nmore than 50% of the interests in the partnership were held by persons who, immediately before that period, held more than 50% of the interests in the partnership; or\n\n(b) the condition set out in paragraph (a) is not satisfied only because of the acquisition during so much of that period as occurred before 1 July 1993 of interests in the partnership, where the acquisitions are in response to, and in accordance with the terms of:\n\n(i) a prospectus, offer or invitation issued before 19 August 1992; or\n\n(ii) if that prospectus, offer or invitation was varied before 19 August 1992—that prospectus, offer or invitation as so varied.\n\nSubdivision C—Corporate tax modifications applicable to corporate limited partnerships\n\n94H  Corporate tax modifications applicable to corporate limited partnerships\n\nIf a partnership is a corporate limited partnership in relation to a year of income, the income tax law has effect, in relation to the partnership and in relation to the year of income, subject to the changes set out in the following provisions of this Subdivision.\n\n94J  Company includes corporate limited partnership\n\nA reference in the income tax law (other than the definitions of dividend, and resident or resident of Australia, in section 6 of this Act and other than Division 355 of the Income Tax Assessment Act 1997) to a company or to a body corporate includes a reference to the partnership.\n\n94K  Partnership does not include corporate limited partnership\n\nA reference in the income tax law to a partnership does not include a reference to the partnership.","sortOrder":1000033},{"sectionNumber":"full-source-retrieval-0035","sectionType":"document_chunk","heading":"Document excerpt 35","content":"94L  Dividend includes distribution of corporate limited partnership\n\nA reference in the income tax law (other than subsection 44(1A) of this Act) to a dividend or to a dividend within the meaning of section 6:\n\n(a) includes a reference to a distribution made by the partnership, whether in money or in other property, to a partner in the partnership; and\n\n(b) does not include a reference to a distribution to the extent to which the distribution is attributable to profits or gains arising during a year of income in relation to which the partnership was not a corporate limited partnership.\n\n94M  Drawings etc. deemed to be dividends paid out of profits\n\n(1) If the partnership pays or credits an amount to a partner in the partnership:\n\n(a) against the profits or anticipated profits of the partnership; or\n\n(b) otherwise in anticipation of the profits of the partnership;\n\n(whether or not the amount of the profits or anticipated profits is ascertainable), the amount paid or credited is taken, for the purposes of the income tax law, to be a dividend paid by the partnership to the partner out of profits derived by the partnership.\n\n(2) If the partnership makes a subsequent distribution, the Commissioner must take such steps (if any) as are necessary to ensure that the partner is not subject to double taxation.\n\n94N  Private company does not include corporate limited partnership\n\nA reference in the income tax law to a private company in relation to the year of income does not include a reference to the partnership.\n\nNote: Division 7A (Distributions to entities connected with a private company) applies to certain corporate limited partnerships in the same way as it applies to private companies: see section 109BB.\n\n94P  Share includes interest in corporate limited partnership\n\nA reference in the income tax law to a share includes a reference to an interest in the partnership.\n\n94Q  Shareholder includes partner in corporate limited partnership\n\nA reference in the income tax law to a shareholder includes a reference to a partner in the partnership.\n\n94R  Liquidator may include partner in corporate limited partnership\n\nFor the purposes of the income tax law:\n\n(a) a reference to the liquidator of the partnership includes a reference to a partner in the partnership who carries out the winding‑up of the partnership; and\n\n(b) a reference to distributions made by a liquidator in the course of winding up the partnership includes a reference to distributions made by such a partner to himself or herself in the course of winding‑up the partnership.\n\n94S  Continuity of corporate limited partnership not affected by changes in composition\n\nFor the purposes of the income tax law, a change in the composition of the partnership does not affect the continuity of the partnership.\n\n94T  Residence of corporate limited partnership\n\n(1) For the purposes of the income tax law, the partnership is:\n\n(a) a resident; and\n\n(b) a resident within the meaning of section 6; and\n\n(c) a resident of Australia; and\n\n(d) a resident of Australia within the meaning of section 6;\n\nif and only if:\n\n(e) the partnership was formed in Australia; or\n\n(f) either:\n\n(i) the partnership carries on business in Australia; or\n\n(ii) the partnership’s central management and control is in Australia.\n\n(2) In determining whether the partnership carries on business in Australia for the purposes of subparagraph (1)(f)(i), if, for the year of income, the partnership is an IMR entity (within the meaning of the Income Tax Assessment Act 1997, but disregarding paragraph 842‑220(a) of that Act), disregard business that:\n\n(a) is carried on by the partnership (either by itself directly or by another entity on its behalf); and\n\n(b) solely relates to IMR financial arrangements (within the meaning of that Act).\n\n94U  Incorporation\n\nFor the purposes of the income tax law, the partnership is taken to have been incorporated:\n\n(a) in the place where it was formed; and\n\n(b) under a law in force in that place.\n\n94V  Obligations and offences\n\n(1) The application of the income tax law to the partnership as if the partnership were a company is subject to the following changes:\n\n(a) obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners;\n\n(b) the partners are jointly and severally liable to pay any amount that would be payable by the partnership;\n\n(c) any offence against the income tax law that would otherwise be committed by the partnership is taken to have been committed by each of the partners.\n\n(2) In a prosecution of a person for an offence that the person is taken to have committed because of paragraph (1)(c), it is a defence if the person proves that the person:\n\n(a) did not aid, abet, counsel or procure the relevant act or omission; and\n\n(b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the person).\n\n94X  Modification of loss provisions\n\nSubdivisions 165‑A and 165‑B of the Income Tax Assessment Act 1997 apply in relation to the partnership as if the provisions relating to voting power had not been enacted.\n\nDivision 6—Trust income\n\n95AAA  Simplified outline of the relationship between this Division, Division 6E and Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997\n\nThe following is a simplified outline of the relationship between this Division, Division 6E and Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997.\n\nThis Division sets out the basic income tax treatment of the net income of the trust estate. Generally:\n\n(a) it has the result of assessing beneficiaries on a share of the net income of the trust estate based on their present entitlement to a share of the income of the trust estate; and\n\n(b) it has the result of assessing the trustee directly on any residual net income; and\n\n(c) as a collection mechanism, it has the result of assessing the trustee in respect of some beneficiaries, such as non‑residents or those under a legal disability.\n\nIf the trust estate has capital gains, franked distributions or franking credits, this basic treatment is modified as described below.\n\nDivision 6E modifies the operation of this Division for the purpose of excluding amounts relevant to capital gains, franked distributions and franking credits from the calculations of assessable amounts under sections 97, 98, 99, 99A and 100.\n\nDivision 6E does not modify the operation of this Division (or any other provision of this Act) for any other purpose. For example:\n\n(a) it does not modify the operation of this Division for the purposes of applying section 100A; and\n\n(b) it does not modify amounts taxed in the hands of the trustee under Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997.\n\nSubdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997 provide the corresponding taxation treatment for those capital gains, franked distributions and franking credits. Specifically:\n\n(a) Subdivision 115‑C of that Act has the effect that an amount corresponding to each of those capital gains is taxed in the hands of the beneficiaries of the trust (as a capital gain) and, if necessary, assessed to the trustee.\n\n(b) Subdivision 207‑B of that Act has the effect that an amount corresponding to each of those franked distributions is taxed in the hands of the beneficiaries of the trust and, if necessary, the trustee. It also has the effect that the entity in whose hands those distributions are taxed can take advantage of the relevant amount of related franking credits.\n\n95AAB  Adjustments under Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997—references in this Act to assessable income under section 97, 98A or 100\n\n(1) Subsection (2) applies if an amount is included in the assessable income of a beneficiary of a trust estate because of Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997.\n\n(2) For the purposes of a provision of this Act (other than a provision mentioned in subsection (3)), treat the amount as being included in the beneficiary’s assessable income in relation to the net income of the trust estate under section 97, 98A or 100 (as the case requires).\n\n(3) The provisions are as follows:\n\n(a) sections 97, 98A (other than subsection 98A(2)) and 100 (other than subsections 100(2) and (3));\n\n(b) sections 98, 99 and 99A;\n\n(c) Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997.\n\n(4) To avoid doubt, subsection (2) applies despite subsection 6(1AA).\n\n95AAC  Adjustments under Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997—references in this Act to liabilities under section 98, 99 or 99A\n\n(1) Subsection (2) applies if an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 in respect of the beneficiary is increased because of Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997.\n\n(2) For the purposes of a provision of this Act (other than a provision mentioned in subsection (5)), treat the amount of the increase as being an amount in respect of which the trustee is liable to be assessed (and pay tax) under section 98 in respect of the beneficiary’s interest in or share of the net income of the trust estate.\n\n(3) Subsection (4) applies if an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 99 or 99A is increased because of Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997.\n\n(4) For the purposes of a provision of this Act (other than a provision mentioned in subsection (5)), treat the amount of the increase as being an amount in respect of which the trustee is liable to be assessed (and pay tax) under section 99 or 99A in respect of the net income of the trust estate.\n\n(5) The provisions are as follows:\n\n(a) sections 97, 98A (other than subsection 98A(2)) and 100 (other than subsections 100(2) and (3));\n\n(b) sections 98, 99 and 99A;\n\n(c) Subdivisions 115‑C and 207‑B of the Income Tax Assessment Act 1997.\n\n(6) To avoid doubt, subsections (2) and (4) apply despite subsection 6(1AA).\n\n95AAD  Division does not apply in relation to AMIT\n\nThis Division does not apply in relation to a trust estate that is an AMIT.\n\n95  Interpretation\n\n(1) In this Division:\n\nadjusted Division 6 percentage, of an entity that is a beneficiary or trustee of a trust estate, means the entity’s Division 6 percentage of the income of the trust estate calculated on the assumption that the amount of a capital gain or franked distribution to which any beneficiary or the trustee of the trust estate is specifically entitled were disregarded in working out the income of the trust estate.\n\nadjusted net income, in relation to a trust estate, has the meaning given by subsection 100AB(4).\n\nDivision 6 percentage:\n\n(a) a beneficiary of a trust estate has a Division 6 percentage of the income of the trust estate equal to the share (expressed as a percentage) of the income of the trust estate to which the beneficiary is presently entitled; and\n\n(b) the trustee of a trust estate has a Division 6 percentage of the income of the trust estate equal to the share (expressed as a percentage) of the income of the trust estate to which no beneficiary is presently entitled.\n\nHowever, if the income of a trust estate is nil:\n\n(c) a beneficiary of a trust estate has a Division 6 percentage of the income of the trust estate of 0%; and\n\n(d) the trustee of a trust estate has a Division 6 percentage of the income of the trust estate of 100%.\n\nexempt income, in relation to a trust estate, means the exempt income of the trust estate calculated as if the trustee were a taxpayer who was a resident.\n\nNote: See also Division 54 of the Income Tax Assessment Act 1997 (in particular, the provisions in section 54‑70 about trusts), which provides a tax exemption for certain payments under structured settlements and structured orders.\n\nnet income, in relation to a trust estate, means the total assessable income of the trust estate calculated under this Act as if the trustee were a taxpayer in respect of that income and were a resident, less all allowable deductions, except deductions under Division 393 of the Income Tax Assessment Act 1997 (Farm management deposits) and except also, in respect of any beneficiary who has no beneficial interest in the corpus of the trust estate, or in respect of any life tenant, the deductions allowable under Division 36 of the Income Tax Assessment Act 1997 in respect of such of the tax losses of previous years as are required to be met out of corpus.\n\nA trust may be required to work out its net income in a special way by Division 266 or 267 in Schedule 2F to this Act or Division 275 of the Income Tax Assessment Act 1997.\n\nnon‑assessable non‑exempt income, in relation to a trust estate, means the non‑assessable non‑exempt income of the trust estate calculated as if the trustee were a taxpayer who was a resident.\n\nspecifically entitled has the same meaning as in the Income Tax Assessment Act 1997.\n\n(2) For the purposes of this Division, a trust estate shall be taken to be a resident trust estate in relation to a year of income if:\n\n(a) a trustee of the trust estate was a resident at any time during the year of income; or\n\n(b) the central management and control of the trust estate was in Australia at any time during the year of income.\n\n(3) In this Division, a trust estate that is not a resident trust estate in relation to a year of income is referred to as a non‑resident trust estate in relation to that year of income.\n\n95AB  Modifications for special disability trusts\n\n(1) This Division applies with the modifications set out in this section in relation to a year of income in relation to a trust estate that is a special disability trust at the end of the year of income.\n\n(2) Treat the principal beneficiary of the trust estate as being presently entitled to all of the income of the trust estate of the year of income.\n\n(3) If the principal beneficiary of the trust estate is a resident of Australia at the end of the year of income treat that person as being under a legal disability throughout the year of income.\n\n(4) If there is no income of the trust estate assume that:\n\n(a) there is income of the trust estate of the year of income; and\n\n(b) the principal beneficiary of the trust estate is presently entitled to all of the income of the trust estate of the year of income.\n\n(5) If the amount to be deducted under subsection 100(2) from the income tax assessed against the principal beneficiary is greater than the amount of the income tax assessed against the principal beneficiary, the Commissioner must pay to the principal beneficiary an amount equal to the difference between those 2 amounts.\n\nNote: The tax offset is subject to the refundable tax offset rules: see section 67‑23 of the Income Tax Assessment Act 1997.\n\n95A  Special provisions relating to present entitlement\n\n(1) For the purposes of this Act, where a beneficiary of a trust estate is presently entitled to any income of the trust estate, the beneficiary shall be taken to continue to be presently entitled to that income notwithstanding that the income is paid to, or applied for the benefit of, the beneficiary.\n\n(2) For the purposes of this Act, where a beneficiary has a vested and indefeasible interest in any of the income of a trust estate but is not presently entitled to that income, the beneficiary shall be deemed to be presently entitled to that income of the trust estate.\n\n95B  Certain beneficiaries deemed not to be under legal disability\n\nFor the purposes of this Act, a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate in the capacity of a trustee of another trust estate shall, in respect of his or her present entitlement to that share, be deemed not to be under a legal disability.\n\n96  Trustees\n\nExcept as provided in this Act, a trustee shall not be liable as trustee to pay income tax upon the income of the trust estate.\n\n97  Beneficiary not under any legal disability\n\n(1) Subject to Division 6D, where a beneficiary of a trust estate who is not under any legal disability is presently entitled to a share of the income of the trust estate:\n\n(a) the assessable income of the beneficiary shall include:\n\n(i) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(ii) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia; and\n\n(b) the exempt income of the beneficiary shall include:\n\n(i) so much of the individual interest of the beneficiary in the exempt income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(ii) so much of the individual interest of the beneficiary in the exempt income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia;\n\nexcept to the extent to which the exempt income to which that individual interest relates was taken into account in calculating the net income of the trust estate; and\n\n(c) the non‑assessable non‑exempt income of the beneficiary shall include:\n\n(i) so much of the individual interest of the beneficiary in the non‑assessable non‑exempt income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(ii) so much of the individual interest of the beneficiary in the non‑assessable non‑exempt income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.","sortOrder":1000034},{"sectionNumber":"full-source-retrieval-0036","sectionType":"document_chunk","heading":"Document excerpt 36","content":"(2) A reference in this section to income of a trust estate to which a beneficiary is presently entitled shall be read as not including a reference to income of a trust estate:\n\n(a) to which a beneficiary is deemed to be presently entitled by virtue of the operation of subsection 95A(2) where the beneficiary:\n\n(i) is a natural person;\n\n(ii) is a resident at the end of the year of income;\n\n(iii) is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate; and\n\n(iv) is not a beneficiary to whom subsection 97A(1) or (1A) applies in relation to the year of income; or\n\n(b) to which a beneficiary is presently entitled where the beneficiary:\n\n(i) is a non‑resident at the end of the year of income;\n\n(ii) is not a beneficiary to whom subsection (3) of this section or subsection 97A(1) or (1A) applies in relation to the year of income; and\n\n(iii) is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate.\n\n(3) Where:\n\n(a) a beneficiary of a trust estate is presently entitled to a share of the income of the trust estate;\n\n(b) the beneficiary is a non‑resident at the end of the year of income; and\n\n(c) the beneficiary is:\n\n(i) a body, association, fund or organization the income of which is exempt from tax by virtue of the operation of Subdivision 50‑A or section 51‑5, 51‑10 or 51‑30 of the Income Tax Assessment Act 1997; or\n\n(ii) an organization the income of which is exempt from tax by virtue of a regulation in force under the  International Organisations (Privileges and Immunities) Act 1963;\n\nthat beneficiary is, for the purposes of the application of this Division in relation to that beneficiary in relation to that year of income, a beneficiary to whom this subsection applies.\n\n97A  Beneficiaries who are owners of farm management deposits\n\n(1) Where a beneficiary who is under a legal disability:\n\n(a) is presently entitled to a share of the income of a trust estate derived during a year of income of the beneficiary; and\n\n(b) is the owner of a farm management deposit made during the year of income;\n\nthis Division applies in relation to the beneficiary in relation to the year of income as if the beneficiary were not under any legal disability.\n\n(1A) Where a beneficiary who is deemed by subsection 95A(2) to be presently entitled to any income of a trust estate derived during a year of income of the beneficiary:\n\n(a) is not under a legal disability; and\n\n(b) is the owner of a farm management deposit made during the year of income;\n\nthe beneficiary is, for the purposes of the application of this Division in relation to that beneficiary in relation to that year of income, a beneficiary to whom this subsection applies.\n\nNote: This section applies to certain beneficiaries as if they were individuals who are carrying on a primary production business: see subsections 393‑25(3), (4), (5) and (6) of the Income Tax Assessment Act 1997.\n\n98  Liability of trustee\n\n(1) Where a beneficiary of a trust estate who is under a legal disability is presently entitled to a share of the income of the trust estate, the trustee of the trust estate shall be assessed and liable to pay tax in respect of:\n\n(a) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(b) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia;\n\nas if it were the income of an individual and were not subject to any deduction.\n\n(2) Where a beneficiary of a trust estate:\n\n(a) is deemed to be presently entitled to a share of the income of the trust estate of a year of income by virtue of the operation of subsection 95A(2);\n\n(aa) is a natural person and is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate;\n\n(b) is not a beneficiary to whom subsection 97A(1) or (1A) applies in relation to the year of income; and\n\n(c) is not under a legal disability;\n\nthe trustee of the trust estate shall be assessed and liable to pay tax in respect of:\n\n(d) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(e) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia;\n\nas if it were the income of an individual and were not subject to any deduction.\n\n(2A) If:\n\n(a) a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate:\n\n(i) is a non‑resident at the end of the year of income; and\n\n(ii) is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate; and\n\n(iii) is not a beneficiary to whom section 97A applies in relation to the year of income; and\n\n(iv) is not a beneficiary to whom subsection 97(3) applies; and\n\n(b) the trustee of the trust estate is not assessed and is not liable to pay tax under subsection (1) or (2) in respect of any part of that share of the net income of the trust estate;\n\nsubsection (3) applies to the trustee in respect of:\n\n(c) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(d) so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.\n\n(3) A trustee to whom this subsection applies in respect of an amount of net income is to be assessed and is liable to pay tax:\n\n(a) if the beneficiary is not a company—in respect of the amount of net income as if it were the income of an individual and were not subject to any deduction; or\n\n(b) if the beneficiary is a company—in respect of the amount of net income at the rate declared by the Parliament for the purposes of this paragraph.\n\nNote: If the trust estate’s net income includes a net capital gain, and the beneficiary is a company, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n(4) If:\n\n(a) a beneficiary of a trust estate (the first trust estate) who is presently entitled to a share of the income of the first trust estate:\n\n(i) is, in respect of that share of the income of the first trust estate, a beneficiary in the capacity of a trustee of another trust estate; and\n\n(ii) is not a beneficiary to whom subsection 97(3) applies; and\n\n(b) a trustee of the other trust estate is a non‑resident at the end of the year of income;\n\nthe trustee of the first trust estate is to be assessed and is liable to pay tax in respect of so much of that share of the net income of the first trust estate as is attributable to sources in Australia at the rate declared by the Parliament for the purposes of this subsection.\n\nNote: If the trust estate’s net income includes a net capital gain, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n98A  Non‑resident beneficiaries assessable in respect of certain income\n\n(1) Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of subsection 98(3), the assessable income of the beneficiary who is presently entitled to that share of the income of the trust estate shall include:\n\n(a) so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and\n\n(b) so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.\n\n(2) Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of subsection 98(3):\n\n(a) there shall be deducted from the income tax assessed against the beneficiary the amount (in this subsection referred to as the relevant amount) of the tax paid by the trustee in respect of the beneficiary’s interest in the net income of the trust estate; and\n\n(b) if the relevant amount is greater than the amount of the income tax assessed against the beneficiary—the Commissioner shall pay to the beneficiary an amount equal to the difference between those 2 amounts.\n\nNote: See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the entity. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the entity owes to the Commonwealth.\n\n(3) If a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate:\n\n(a) is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate; and\n\n(b) is a non‑resident at the end of the year of income;\n\nthe assessable income of the beneficiary includes so much of the individual interest of the beneficiary in the net income of the trust estate as is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and is liable to pay tax under subsection 98(4).\n\n(4) To the extent that subsection (3) includes an amount in the assessable income of a beneficiary of a trust estate, the amount is not included by subsection (1) or section 100.\n\n98B  Deduction from beneficiary’s tax\n\n(1) This section applies to a beneficiary of a trust estate for a year of income if the assessable income of the beneficiary of the year of income includes an amount covered by subsection (2).\n\n(2) This subsection covers an amount (the assessable amount) if:\n\n(a) the amount is included in the assessable income of the beneficiary under one of the following:\n\n(i) section 97;\n\n(ii) subsection 98A(3);\n\n(iii) section 100; and\n\n(b) the amount does not represent income of the trust estate to which the beneficiary is presently entitled in the capacity of a trustee of another trust estate; and\n\n(c) the amount is reasonably attributable to:\n\n(i) an amount (the taxed net income) in respect of which the trustee of another trust estate is assessed and liable to pay tax (the subsection 98(4) tax) under subsection 98(4); or\n\n(ii) an amount (the taxed component) in respect of which the trustee of an AMIT is assessed and liable to pay tax (the paragraph 276‑105(2)(c) tax) because of paragraph 276‑105(2)(c) of the Income Tax Assessment Act 1997.\n\n(3) A proportion of the subsection 98(4) tax or of the paragraph 276‑105(2)(c) tax (as applicable) is to be deducted from the income tax assessed against the beneficiary of the year of income. That proportion is the same as the proportion of the taxed net income or of the taxed component (as applicable) that gave rise to the assessable amount.\n\nNote: To work out the proportion of the taxed net income that gives rise to assessable income for a beneficiary of another trust estate, you would have regard to the share of the income of each interposed trust estate to which a beneficiary (including a beneficiary in the capacity of a trustee) is presently entitled.\n\nExample: The P Trust has two non‑resident trustee beneficiaries, the trustees of the S Trust and the H Trust. Each trustee is presently entitled to a 1/2 share of the income of the P Trust. The net income of the P Trust is $100,000. The trustee of the P Trust pays tax of $22,500 under subsection 98(4) in respect of the trustee of the S Trust’s interest and $22,500 under subsection 98(4) in respect of the trustee of the H Trust’s interest.\n\nThe S Trust has a non‑resident beneficiary, G, who is presently entitled to a 1/3 share of the income of the S Trust. The net income of the S Trust is $30,000. Subsection 98A(3) includes $10,000 in G’s assessable income.\n\nThe taxed net income of the P trust is $50,000. The proportion of that taxed net income that gave rise to the $10,000 being included in G’s assessable income is 1/3.This is because G had a 1/3 share of the income of the S Trust. $7,500 (1/3 x $22,500) is deducted from the income tax assessed against G.\n\nIf section 97, subsection 98A(3) or section 100 also includes amounts in the assessable income of any beneficiaries of the H Trust, each of those beneficiaries also works out the amount of the deduction against the income tax assessed against them in the same way.\n\n(4) If the amount to be deducted under subsection (3) is greater than the amount of the income tax assessed against the beneficiary, the Commissioner must pay to the beneficiary an amount equal to the difference between those 2 amounts.\n\nNote: See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the entity. Division 3A of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the entity owes to the Commonwealth.\n\n99  Certain trust income to be taxed as income of an individual\n\n(1) This section applies in relation to a trust estate in relation to a year of income only if section 99A does not apply in relation to that trust estate in relation to that year of income.\n\n(2) Where there is no part of the net income of a resident trust estate:\n\n(a) that is included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee of the trust estate is assessed and liable to pay tax in pursuance of section 98; or\n\n(c) that represents income to which a beneficiary is presently entitled that is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on the net income of the trust estate as if it were the income of an individual who was a resident and were not subject to any deduction.\n\n(3) Where there is a part of the net income of a resident trust estate:\n\n(a) that is not included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee is not assessed and is not liable to pay tax in pursuance of section 98; and\n\n(c) that does not represent income to which a beneficiary is presently entitled that is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on that part of the net income of the trust estate as if it were the income of an individual who was a resident and were not subject to any deduction.\n\n(4) Where there is no part of the net income of a trust estate that is not a resident trust estate:\n\n(a) that is included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee of the trust estate is assessed and liable to pay tax in pursuance of section 98; or\n\n(c) that is attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on the net income of the trust estate as if it were the income of an individual and were not subject to any deduction.\n\n(5) Where there is a part of the net income of a trust estate that is not a resident trust estate:\n\n(a) that is attributable to sources in Australia;\n\n(b) that is not included in the assessable income of a beneficiary of the trust estate in pursuance of section 97; and\n\n(c) in respect of which the trustee of the trust estate is not assessed and is not liable to pay tax in pursuance of section 98;\n\nthe trustee shall be assessed and is liable to pay tax on that part of the net income of the trust estate as if it were the income of an individual and were not subject to any deduction.\n\n99A  Certain trust income to be taxed at special rate\n\n(2) This section does not apply in relation to a trust estate in relation to a year of income, being a trust estate:\n\n(a) that resulted from:\n\n(i) a will, a codicil or an order of a court that varied or modified the provisions of a will or a codicil; or\n\n(ii) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate;\n\n(b) that consists of the property of a person who has become bankrupt, being property that has vested in The Official Receiver in Bankruptcy, or in a registered trustee, under the Bankruptcy Act 1966;\n\n(c) that is administered under Part XI of the Bankruptcy Act 1966; or\n\n(d) that consists of property of a kind referred to in paragraph 102AG(2)(c);\n\nif the Commissioner is of the opinion that it would be unreasonable that this section should apply in relation to that trust estate in relation to that year of income.\n\n(3) In forming an opinion for the purposes of subsection (2):\n\n(a) the Commissioner shall have regard to the circumstances in which and the conditions, if any, upon which, at any time, property (including money) was acquired by or lent to the trust estate, income was derived by the trust estate, benefits were conferred on the trust estate or special rights or privileges were conferred on or attached to property of the trust estate, whether or not the rights or privileges have been exercised;\n\n(b) if a person who has, at any time, directly or indirectly:\n\n(i) transferred or lent any property (including money) to, or conferred any benefits on, the trust estate; or","sortOrder":1000035},{"sectionNumber":"full-source-retrieval-0037","sectionType":"document_chunk","heading":"Document excerpt 37","content":"(ii) conferred or attached any special right or privilege, or done any act or thing, either alone or together with another person or persons, that has resulted in the conferring or attaching of any special right or privilege, on or to property of the trust estate whether or not the right or privilege has been exercised;\n\nhas not, at any time, directly or indirectly:\n\n(iii) transferred or lent any property (including money) to, or conferred any benefits on, another trust estate; or\n\n(iv) conferred or attached any special right or privilege, or done any act or thing, either alone or together with another person or persons, that has resulted in the conferring or attaching of any special right or privilege, on or to property of another trust estate, whether or not the right or privilege has been exercised;\n\nthe Commissioner shall have regard to that fact; and\n\n(c) the Commissioner shall have regard to such other matters, if any, as he or she thinks fit.\n\n(3A) For the purposes of the application of paragraph (3)(a) in relation to a trust estate of the kind referred to in paragraph (2)(a), a reference in that first‑mentioned paragraph to the trust estate shall be read as including a reference to the person as a result of whose death the trust estate arose.\n\n(4) Where there is no part of the net income of a resident trust estate:\n\n(a) that is included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee of the trust estate is assessed and liable to pay tax in pursuance of section 98; or\n\n(c) that represents income to which a beneficiary is presently entitled that is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on the net income of the trust estate at the rate declared by the Parliament for the purposes of this section.\n\nNote: If the trust estate’s net income includes a net capital gain, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n(4A) Where there is a part of the net income of a resident trust estate:\n\n(a) that is not included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee is not assessed and is not liable to pay tax in pursuance of section 98; and\n\n(c) that does not represent income to which a beneficiary is presently entitled that is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on that part of the net income of the trust estate at the rate declared by the Parliament for the purposes of this section.\n\nNote: If the trust estate’s net income includes a net capital gain, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n(4B) Where there is no part of the net income of a trust estate that is not a resident trust estate:\n\n(a) that is included in the assessable income of a beneficiary of the trust estate in pursuance of section 97;\n\n(b) in respect of which the trustee of the trust estate is assessed and liable to pay tax in pursuance of section 98; or\n\n(c) that is attributable to sources out of Australia;\n\nthe trustee shall be assessed and is liable to pay tax on the net income of the trust estate at the rate declared by the Parliament for the purposes of this section.\n\nNote: If the trust estate’s net income includes a net capital gain, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n(4C) Where there is a part of the net income of a trust estate that is not a resident trust estate:\n\n(a) that is attributable to sources in Australia;\n\n(b) that is not included in the assessable income of a beneficiary of the trust estate in pursuance of section 97; and\n\n(c) in respect of which the trustee of the trust estate is not assessed and is not liable to pay tax in pursuance of section 98;\n\nthe trustee shall be assessed and is liable to pay tax on that part of the net income of the trust estate at the rate declared by the Parliament for the purposes of this section.\n\nNote: If the trust estate’s net income includes a net capital gain, Subdivision 115‑C of the Income Tax Assessment Act 1997 affects the assessment of the trustee.\n\n99B  Receipt of trust income not previously subject to tax\n\n(1) Where, at any time during a year of income, an amount, being property of a trust estate, is paid to, or applied for the benefit of, a beneficiary of the trust estate who was a resident at any time during the year of income, the assessable income of the beneficiary of the year of income shall, subject to subsection (2), include that amount.\n\n(2) The amount that, but for this subsection, would be included in the assessable income of a beneficiary of a trust estate under subsection (1) by reason that an amount, being property of the trust estate, was paid to, or applied for the benefit of, the beneficiary shall be reduced by so much (if any) of the amount, as represents:\n\n(a) corpus of the trust estate (except to the extent to which it is attributable to amounts derived by the trust estate that, if they had been derived by a taxpayer being a resident, would have been included in the assessable income of that taxpayer of a year of income);\n\n(b) an amount that, if it had been derived by a taxpayer being a resident, would not have been included in the assessable income of that taxpayer of a year of income;\n\n(ba) an amount that is non‑assessable non‑exempt income of the beneficiary because of section 802‑17 of the Income Tax Assessment Act 1997;\n\n(c) an amount:\n\n(i) that is or has been included in the assessable income of the beneficiary in pursuance of section 97; or\n\n(ii) in respect of which the trustee of the trust estate is or has been assessed and liable to pay tax in pursuance of section 98, 99 or 99A; or\n\n(iii) that is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and is liable to pay tax under subsection 98(4);\n\n(d) an amount that is or has been included in the assessable income of any taxpayer (other than a company) under section 102AAZD; or\n\n(e) if the beneficiary is a company—an amount that is or has been included in the assessable income of the beneficiary under section 102AAZD.\n\n(2A) An amount that is not included in a beneficiary’s assessable income because of paragraph (2)(d) or (e) is not assessable income and is not exempt income.\n\n(3) In paragraphs (2)(d) and (e):\n\ncompany means a company other than a company in the capacity of a trustee.\n\n99C  Determining whether property is applied for benefit of beneficiary\n\n(1) In determining for the purposes of section 99B whether any amount has been applied for the benefit of a beneficiary of a trust estate, regard shall be had to all benefits that have accrued at any time to the beneficiary (whether or not the beneficiary had rights at law or in equity in or to those benefits) as a result of the derivation of, or in relation to, that amount, irrespective of the nature or form of the benefits.\n\n(2) Without limiting the generality of subsection (1), an amount shall be taken, for the purposes of section 99B, to have been applied for the benefit of a beneficiary if:\n\n(a) whether by re‑investment, accumulation, capitalization or otherwise, and whether directly or indirectly, the amount has been so dealt with that it will, at a future time, and whether in the form of income or not, enure for the benefit of the beneficiary;\n\n(b) the derivation of the amount has operated to increase the value to the beneficiary of any property or rights of any kind held by or for the benefit of the beneficiary;\n\n(c) the beneficiary has received or become entitled to receive any benefit (including a loan or a repayment, in whole or in part, of a loan, or any other payment of any kind) provided directly or indirectly out of that amount or out of property or money that was available for the purpose by reason of the derivation of the amount;\n\n(d) the beneficiary has power, by means of the exercise by the beneficiary of any power of appointment or revocation or otherwise, to obtain, whether with or without the consent of any other person, the beneficial enjoyment of the amount; or\n\n(e) the beneficiary has directly or indirectly assigned to another person his or her interest in the amount or is able, in any manner whatsoever, and whether directly or indirectly, to control the application of that interest.\n\n99D  Refund of tax to non‑resident beneficiary\n\n(1) Where:\n\n(a) a trustee of a trust estate has been assessed and was liable to pay tax in pursuance of subsection 99(2) or (3) or subsection 99A(4) or (4A) in respect of the net income or a part of the net income of the trust estate of a year of income (in this subsection referred to as the relevant year of income), being the year of income that commenced on 1 July 1978 or a subsequent year of income;\n\n(b) the amount (in this subsection referred to as the relevant tax amount) of the tax so assessed in respect of that net income or that part of that net income has been paid;\n\n(c) the trustee of the trust estate has, in accordance with the terms of the trust, paid an amount (in this subsection referred to as the distributed amount) of the income of the trust estate of the relevant year of income to a beneficiary of the trust estate;\n\n(d) before the expiration of 60 days after the date on which the payment was made, or within such further period as the Commissioner allows, the beneficiary, by writing signed by or on behalf of the beneficiary, makes an application to the Commissioner for a refund under this section in relation to the distributed amount; and\n\n(e) the beneficiary satisfies the Commissioner that the whole or a part (which whole or part, as the case may be, is in this subsection referred to as the non‑Australian distributed amount) of the distributed amount:\n\n(i) is attributable to a period when the beneficiary was not a resident and is also attributable to sources out of Australia;\n\n(ii) was taken into account in calculating the net income of the trust estate of the relevant year of income; and\n\n(iii) is not income that, by the operation of section 100A, is deemed not to have been paid to or applied for the benefit of the beneficiary or to be income to which the beneficiary is not presently entitled;\n\nthe Commissioner shall, subject to subsection (2), refund to the beneficiary so much (if any) of the relevant tax amount as is attributable to the non‑Australian distributed amount, reduced by so much of any refund or credit to which the trustee is or was entitled in respect of the relevant tax amount as is attributable to the non‑Australian distributed amount.\n\n(2) The Commissioner may refuse to make a refund of tax in relation to an amount paid to a beneficiary of a trust estate if the Commissioner considers that the whole or a part of that amount was paid to the beneficiary by the trustee for the purpose or for purposes that included the purpose of enabling the beneficiary to become entitled to a refund of tax under this section in relation to that amount.\n\n99E  Later trust not taxed on income already taxed under subsection 98(4)\n\nSections 98, 99 and 99A do not apply to so much of the net income of a trust estate of a year of income as is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and is liable to pay tax under subsection 98(4).\n\n99G  Amounts covered by withholding requirement\n\nSubsection 98(4) does not apply to so much of the net income of a trust estate as represents income to which a beneficiary is presently entitled and gives rise to an amount from which an entity is required to withhold an amount under Subdivision 12‑H in Schedule 1 to the Taxation Administration Act 1953.\n\n99GA  Amounts covered by sovereign immunity exemption\n\nSubsection 98(3) does not apply to so much of the net income of a trust estate as represents income to which a beneficiary is presently entitled and gives rise to an amount that is non‑assessable non‑exempt income because of:\n\n(a) Division 880 of the Income Tax Assessment Act 1997; or\n\n(b) Division 880 of the Income Tax (Transitional Provisions) Act 1997.\n\n99H  Late payments\n\n(1) This section applies if:\n\n(a) a beneficiary of a trust estate that is a managed investment trust is presently entitled to a share of the income of the trust estate of a year of income; and\n\n(b) the beneficiary is a non‑resident at the end of the year of income; and\n\n(c) all or part of that share of the net income of the trust estate (the late amount) has not been paid to the beneficiary by the end of the period applicable under subsection 12‑405(4) in Schedule 1 to the Taxation Administration Act 1953; and\n\nNote: That subsection requires payments to be made before the end of 3 months after the end of the relevant year of income or within a longer period allowed by the Commissioner.\n\n(d) if the late amount had been paid to the beneficiary within that period, the payment would have been a fund payment made by the trustee of the managed investment trust.\n\n(2) This Division applies as if that portion of the beneficiary’s income that represents the late amount were income to which no beneficiary was presently entitled.\n\n(3) In working out the net income of the trust estate for the year of income for the purposes of subsection (1), disregard these amounts (excluded amounts):\n\n(a) a dividend (as defined in Division 11A of Part III) that is subject to, or exempted from, a requirement to withhold under Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953;\n\n(b) interest (as so defined) that is subject to, or exempted from, such a requirement;\n\n(c) a royalty that is subject to, or exempted from, such a requirement;\n\n(d) a capital gain or capital loss from a CGT event that happens in relation to a CGT asset that is not taxable Australian property;\n\n(e) amounts that are not from a source in Australia;\n\nand disregard deductions relating to excluded amounts.\n\n100  Beneficiary assessable in respect of certain trust income\n\n(1) The assessable income of any beneficiary who:\n\n(a) is under a legal disability or is deemed to be presently entitled to any of the income of a trust estate by virtue of the operation of subsection 95A(2); and\n\n(b) is a beneficiary in more than one trust estate or derives income from any other source;\n\nshall include:\n\n(c) so much of the individual interest of the beneficiary in the net income of the trust estate or of each of the trust estates as is attributable to a period when the beneficiary was a resident; and\n\n(d) so much of the individual interest of the beneficiary in the net income of the trust estate or of each of the trust estates as is attributable to a period when the beneficiary was not a resident and is also attributed to sources in Australia.\n\nNote: An amount is not included in assessable income under this section to the extent that subsection 98A(3) already includes it: see subsection 98A(4).\n\n(1AA) If an amount is included in the assessable income of a beneficiary of a trust estate because of Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997, for the purposes of paragraph (1)(b), treat the beneficiary as deriving income from another source.\n\n(1A) If:\n\n(a) a beneficiary in a trust estate is under a legal disability or is deemed to be presently entitled to any of the income of the trust estate by virtue of the operation of subsection 95A(2); and\n\n(b) the beneficiary is not a beneficiary in any other trust estate and does not derive income from any other source; and\n\n(c) the beneficiary would receive a refund of tax offsets under Division 67 of the Income Tax Assessment Act 1997 for a particular year of income if the following amounts were included in the assessable income of the beneficiary for that year:\n\n(i) so much of the individual interest of the beneficiary in the net income of the trust estate for that year as is attributable to a period when the beneficiary was a resident;\n\n(ii) so much of the individual interest of the beneficiary in the net income of the trust estate for that year as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia;\n\nthen those amounts are included in the assessable income of the beneficiary for that year.\n\n(1B) If a beneficiary in a trust estate who is under a legal disability or is deemed to be presently entitled to any of the income of the trust estate by virtue of the operation of subsection 95A(2):\n\n(a) is a resident at the end of the year of income; and\n\n(b) is not a beneficiary in any other trust estate and does not derive income from any other source;\n\nthe assessable income of the beneficiary includes so much of the individual interest of the beneficiary in the net income of the trust estate as is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and is liable to pay tax under subsection 98(4).\n\nNote 2: A credit is available under section 98B for an appropriate part of the subsection 98(4) tax.\n\nNote 3: An amount is not included in assessable income under this section to the extent that subsection 98A(3) already includes it: see subsection 98A(4).\n\n(1C) If a beneficiary in a trust estate who is under a legal disability or is deemed to be presently entitled to any of the income of the trust estate by virtue of the operation of subsection 95A(2):\n\n(a) is a resident at the end of the year of income; and\n\n(b) is not a beneficiary in any other trust estate and does not derive income from any other source;","sortOrder":1000036},{"sectionNumber":"full-source-retrieval-0038","sectionType":"document_chunk","heading":"Document excerpt 38","content":"the assessable income of the beneficiary includes so much of the individual interest of the beneficiary in the net income of the trust estate as is represented by or reasonably attributable to a payment from which an entity was required to withhold an amount under Subdivision 12‑H in Schedule 1 to the Taxation Administration Act 1953.\n\nNote: A credit is available under section 18‑50 in Schedule 1 to the Taxation Administration Act 1953 for an appropriate part of the amount withheld.\n\n(2) There shall be deducted from the income tax assessed against a beneficiary to whom subsection (1) or (1A) applies (or a beneficiary under a legal disability whose assessable income is increased as a result of Subdivision 115‑C or 207‑B of the Income Tax Assessment Act 1997) the tax paid or payable by any trustee in respect of that beneficiary’s interest in the net income of the trust estate.\n\n(3) However, an amount of tax is not to be deducted under subsection (2) from the income tax assessed against a beneficiary to the extent that the amount is deducted under section 98B from the income tax assessed against the beneficiary.\n\n100AA  Failure to pay or notify present entitlement of exempt entity\n\n(1) Subsection (3) applies if:\n\n(a) an exempt entity is presently entitled to an amount of the income of a trust estate; and\n\n(b) the exempt entity is not an exempt Australian government agency (within the meaning of the Income Tax Assessment Act 1997); and\n\n(c) at the end of 2 months after the end of the relevant income year, the trustee has failed to notify the exempt entity in writing of the present entitlement.\n\n(2) For the purposes of this section, treat the trustee as giving the exempt entity notice in writing of the present entitlement at a time to the extent that the trustee pays the exempt entity the amount of the present entitlement at that time.\n\n(3) For the purposes of this Act, treat the exempt entity as not being presently entitled, and having never been presently entitled, to the amount mentioned in paragraph (1)(a) of the income of the trust estate, to the extent that the trustee failed to notify the exempt entity of that amount as mentioned in paragraph (1)(c).\n\n(4) However, subsection (3) does not apply if the Commissioner decides that the failure mentioned in paragraph (1)(c) of the trustee should be disregarded.\n\n(5) In making a decision under subsection (4) (or refusing to make such a decision), the Commissioner must have regard to the following:\n\n(a) the circumstances that led to the failure mentioned in paragraph (1)(c);\n\n(b) the extent to which the trustee has taken action to try to correct the failure and if so, how quickly that action was taken;\n\n(c) whether this section has operated previously in relation to the trustee, and if so, the circumstances in which this occurred;\n\n(d) any other matters that the Commissioner considers relevant.\n\n(6) If subsection (3) applies, for the purposes of any application of section 99A in relation to the trust estate in relation to the relevant year of income, treat the trust estate as a resident trust estate.\n\n(7) This section does not apply in relation to a trust estate that is a managed investment trust (within the meaning of the Income Tax Assessment Act 1997) in relation to a year of income.\n\n100AB  Adjusted Division 6 percentage exceeding benchmark percentage: present entitlement of exempt entity\n\n(1) Subsection (2) applies if:\n\n(a) an exempt entity is presently entitled to an amount of the income of a trust estate; and\n\n(b) the exempt entity is not an exempt Australian government agency (within the meaning of the Income Tax Assessment Act 1997); and\n\n(c) the exempt entity’s adjusted Division 6 percentage of the income of the trust estate exceeds the benchmark percentage determined under subsection (3).\n\n(2) Subject to subsection 100AA(3), for the purposes of this Act, treat the exempt entity as not being presently entitled, and having never been presently entitled, to the amount of the income of the trust estate mentioned in paragraph (1)(a) of this section, to the extent that ensures that the exempt entity’s adjusted Division 6 percentage of the income of the trust estate equals the benchmark percentage determined under subsection (3) of this section.\n\n(3) Determine the benchmark percentage by working out the following fraction (expressed as a percentage):\n\n![Start formula start fraction The amount to which the exempt entity is presently entitled from the trust estate, to the extent that the amount forms part of the trust estate's adjusted net income for the year of income over The trust estate's adjusted net income for the year of income end formula end fraction](image.007.png)\n\n(4) A trust estate’s adjusted net income for a year of income is its net income for that year of income, with the following adjustments:\n\n(a) firstly, in determining that net income, disregard any capital gain or franked distribution to the extent to which a beneficiary of the trust estate or the trustee is specifically entitled to that gain or distribution;\n\n(b) next, in determining the net capital gain (if any) of the trust for the year of income, disregard steps 3 and 4 of the method statement in subsection 102‑5(1) (CGT discount and small business concessions);\n\n(c) next, reduce that net income by amounts (if any) that do not represent net accretions of value to the trust estate in that year of income (other than amounts included in that net income under Part IVA).\n\n(5) Subsection (2) does not apply in relation to a trust estate in relation to a year of income if the Commissioner is of the opinion that it would be unreasonable that the subsection should apply in relation to that trust estate in relation to that year of income.\n\n(6) In forming an opinion for the purposes of subsection (5), the Commissioner must consider the following matters:\n\n(a) the circumstances that led to the exempt entity’s adjusted Division 6 percentage exceeding the benchmark percentage determined under subsection (3);\n\n(b) the extent to which the exempt entity’s adjusted Division 6 percentage exceeds that benchmark percentage;\n\n(c) the extent to which the exempt entity actually received distributions from the trust estate in respect of the year of income;\n\n(d) the extent to which other beneficiaries of the trust estate were entitled to receive distributions of, or otherwise benefit from, amounts representing the adjusted net income of the trust estate;\n\n(e) any other matters that the Commissioner considers relevant.\n\n(7) If subsection (2) applies, for the purposes of any application of section 99A in relation to the trust estate in relation to the relevant year of income, treat the trust estate as a resident trust estate.\n\n(8) This section does not apply in relation to a trust estate that is a managed investment trust (within the meaning of the Income Tax Assessment Act 1997) in relation to a year of income.\n\n100A  Present entitlement arising from reimbursement agreement\n\n(1) Where:\n\n(a) apart from this section, a beneficiary of a trust estate who is not under any legal disability is presently entitled to a share of the income of the trust estate; and\n\n(b) the present entitlement of the beneficiary to that share or to a part of that share of the income of the trust estate (which share or part, as the case may be, is in this subsection referred to as the relevant trust income) arose out of a reimbursement agreement or arose by reason of any act, transaction or circumstance that occurred in connection with, or as a result of, a reimbursement agreement;\n\nthe beneficiary shall, for the purposes of this Act, be deemed not to be, and never to have been, presently entitled to the relevant trust income.\n\n(2) Where:\n\n(a) apart from this section, a beneficiary of a trust estate who is not under any legal disability would, by reason that income of the trust estate was paid to, or applied for the benefit of, the beneficiary, be deemed to be presently entitled to income of the trust estate; and\n\n(b) that income or a part of that income (which income or part, as the case may be, is in this subsection referred to as the relevant trust income) was paid to, or applied for the benefit of, the beneficiary as a result of a reimbursement agreement or as a result of any act, transaction or circumstance that occurred in connection with, or as a result of, a reimbursement agreement;\n\nthe relevant trust income shall, for the purposes of this Act, be deemed not to have been paid to, or applied for the benefit of, the beneficiary.\n\n(3) In the preceding provisions of this section:\n\n(a) a reference to income of a trust estate to which a beneficiary is, apart from this section, presently entitled shall be read as not including a reference to:\n\n(i) income of the trust estate to which the beneficiary is presently entitled in the capacity of a trustee of another trust estate, being income that was paid to, or applied for the benefit of, the beneficiary before 6 March 1980; or\n\n(ii) income that was paid to, or applied for the benefit of, the beneficiary before 12 June 1978; and\n\n(b) a reference to income of a trust estate that was paid to, or applied for the benefit of, a beneficiary of the trust estate shall be read as not including a reference to:\n\n(i) income of the trust estate that, before 6 March 1980, was paid to, or applied for the benefit of, the beneficiary in the capacity of a trustee of another trust estate; or\n\n(ii) income of the trust estate that was paid to, or applied for the benefit of, the beneficiary before 12 June 1978.\n\n(3A) Where:\n\n(a) apart from this section, a beneficiary (in this subsection referred to as the trustee beneficiary) of a trust estate is presently entitled to a share of the income of the trust estate in the capacity of a trustee of another trust estate (in this subsection referred to as the interposed trust estate);\n\n(b) apart from this subsection, the trustee beneficiary would, by virtue of subsection (1), be deemed not to be, and never to have been, presently entitled to that share or a part of that share of the income of the first‑mentioned trust estate (which share or part is in this subsection referred to as the relevant trust income); and\n\n(c) apart from this section, a beneficiary of the interposed trust estate is or was, or beneficiaries of the interposed trust estate are or were, presently entitled, or deemed to be presently entitled, to any income of the interposed trust estate (in this subsection referred to as the distributable trust income) that is attributable to the relevant trust income;\n\nsubsection (1) does not apply, and shall be deemed never to have applied, in relation to the trustee beneficiary, in relation to any part of the relevant trust income to which the distributable trust income is attributable.\n\n(3B) Where:\n\n(a) apart from this section, a beneficiary (in this subsection referred to as the trustee beneficiary) of a trust estate would, by reason that income of the trust estate was paid to, or applied for the benefit of, the trustee beneficiary, be deemed to be presently entitled to income of the trust estate in the capacity of a trustee of another trust estate (in this subsection referred to as the interposed trust estate);\n\n(b) apart from this subsection, that income or a part of that income (which income or part is in this subsection referred to as the relevant trust income) would, by virtue of subsection (2), be deemed not to have been paid to, or applied for the benefit of, the trustee beneficiary; and\n\n(c) apart from this section, a beneficiary of the interposed trust estate is or was, or beneficiaries of the interposed trust estate are or were, presently entitled, or deemed to be presently entitled, to any income of the interposed trust estate (in this subsection referred to as the distributable trust income) that is attributable to the relevant trust income;\n\nsubsection (2) does not apply, and shall be deemed never to have applied, in relation to the trustee beneficiary, in relation to any part of the relevant trust income to which the distributable trust income is attributable.\n\n(3C) A reference in paragraph (3A)(c) or (3B)(c) to a beneficiary of a trust estate shall be read as not including a reference to a beneficiary who is under a legal disability.\n\n(4) Where subsection (1) or (2) applies in relation to any income of a trust estate of a year of income:\n\n(a) in the application of this Division in relation to the trust estate in relation to the year of income, section 99A shall be read as if subsections (2), (3) and (3A) of that section were omitted; and\n\n(b) for the purposes of any application of section 99A in relation to the trust estate in relation to the year of income, the trust estate shall be deemed to be a resident trust estate.\n\n(5) For the purposes of subsection (1), but without limiting the generality of that subsection, where:\n\n(a) a reimbursement agreement was entered into at or after the time when a person became a beneficiary of a trust estate (whether the person became a beneficiary of the trust estate before or after the commencement of this section); and\n\n(b) the amount (in this subsection referred to as the increased amount) of the share of the income of the trust estate to which the beneficiary is presently entitled exceeds the amount (in this subsection referred to as the original amount) of the income of the trust estate to which the beneficiary would have been, or could reasonably be expected to have been, presently entitled if the reimbursement agreement had not been entered into or if an act, transaction or circumstance that occurred in connection with, or as a result of, the reimbursement agreement had not occurred;\n\nthe present entitlement of the beneficiary to so much of the increased amount as exceeds the original amount shall be taken to have arisen out of the reimbursement agreement.\n\n(6) For the purposes of subsection (2), but without limiting the generality of that subsection, where:\n\n(a) a reimbursement agreement was entered into at or after the time when a person became a beneficiary of a trust estate (whether the person became a beneficiary of the trust estate before or after the commencement of this section); and\n\n(b) income of the trust estate was paid to, or applied for the benefit of, the beneficiary and the amount (in this subsection referred to as the increased amount) of that income exceeds the amount (in this subsection referred to as the original amount) that would have been, or could reasonably be expected to have been, paid to, or applied for the benefit of, the beneficiary if the reimbursement agreement had not been entered into or if an act, transaction or circumstance that occurred in connection with, or as a result of, the reimbursement agreement had not occurred;\n\nso much of the increased amount as exceeds the original amount shall be taken to be income of the trust estate that was paid to, or applied for the benefit of, the beneficiary as a result of the reimbursement agreement.\n\n(6A) Where:\n\n(a) subsection (1) or (2) applies, or would but for subsection (3A) or (3B) apply, in relation to a beneficiary of a trust estate in relation to a reimbursement agreement in relation to any income of the trust estate; and\n\n(b) as part of, under or in connection with the reimbursement agreement, the beneficiary incurred or incurs a loss or outgoing after 5 March 1980 in respect of which a deduction has been allowed or would, but for this subsection, be allowable;\n\nthen, notwithstanding any other provision of this Act, a deduction shall be deemed not to have been, or not to be, allowable, as the case may be, in respect of that loss or outgoing.\n\n(6B) Where subsection (6A) deems a deduction not to have been, or not to be, allowable in respect of a loss or outgoing incurred by a taxpayer in the acquisition of property that, for the purposes of the application of this Act and the Income Tax Assessment Act 1997 in relation to the taxpayer is or was trading stock, then, notwithstanding any other provision of this Act or that Act, the cost or cost price of that property, for the purposes of the application of Subdivision B of Division 2 of Part III of this Act or Division 70 (Trading stock) or 385 (Primary production) of the Income Tax Assessment Act 1997 in relation to that property in relation to the taxpayer, shall be taken to be, and at all times to have been, nil.\n\n(7) Subject to subsection (8), a reference in this section, in relation to a beneficiary of a trust estate, to a reimbursement agreement shall be read as a reference to an agreement, whether entered into before or after the commencement of this section, that provides for the payment of money or the transfer of property to, or the provision of services or other benefits for, a person or persons other than the beneficiary or the beneficiary and another person or other persons.\n\n(8) A reference in subsection (7) to an agreement shall be read as not including a reference to an agreement that was not entered into for the purpose, or for purposes that included the purpose, of securing that a person who, if the agreement had not been entered into, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the agreement had not been entered into.\n\n(9) For the purposes of subsection (8), an agreement shall be taken to have been entered into for a particular purpose, or for purposes that included a particular purpose, if any of the parties to the agreement entered into the agreement for that purpose, or for purposes that included that purpose, as the case may be.","sortOrder":1000037},{"sectionNumber":"full-source-retrieval-0039","sectionType":"document_chunk","heading":"Document excerpt 39","content":"(10) A reference in subsection (7) to the payment of money to a person or persons shall be read as including a reference to the payment of money to a person or persons by way of loan.\n\n(11) A reference in this section to a person shall be read as including a reference to a person in the capacity of a trustee.\n\n(12) For the purposes of this section, an agreement that provides for a person to release, abandon, fail to demand payment of or postpone payment of, a debt owed by another person shall be deemed to be an agreement that provides for the payment of money to that other person.\n\n(13) In this section:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings, but does not include an agreement, arrangement or understanding entered into in the course of ordinary family or commercial dealing.\n\nNote: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining family relationships for the purposes of the definition of agreement.\n\nproperty includes a chose in action and also includes an estate, interest, right or power, whether at law or in equity, in or over property.\n\n101  Discretionary trusts\n\nFor the purposes of this Act, where a trustee has a discretion to pay or apply income of a trust estate to or for the benefit of specified beneficiaries, a beneficiary in whose favour the trustee exercises the trustee’s discretion shall be deemed to be presently entitled to the amount paid to the beneficiary or applied for the beneficiary’s benefit by the trustee in the exercise of that discretion.\n\n101A  Income of deceased received after death\n\n(1) Where in the year of income, the trustee of the estate of a deceased person receives any amount which would have been assessable income in the hands of the deceased person if it had been received by him or her during his or her lifetime, that amount shall be included in the assessable income of that year of the trust estate and shall be deemed to be income to which no beneficiary is presently entitled.\n\n(2) Subsection (1) does not apply in relation to an amount received by the trustee of the estate of a deceased person to the extent to which, if it had been received by the deceased person during his or her lifetime, it would have been included in the assessable income of that person by virtue of section 83‑10 or 83‑80 of the Income Tax Assessment Act 1997.\n\n(3) To avoid doubt, if in the year of income an amount is included in the assessable income of a deceased taxpayer under Division 82 or 302 of the Income Tax Assessment Act 1997 in respect of a payment received by the trustee of the estate of the deceased taxpayer, that amount shall be included in the assessable income of that year of income of the trust estate.\n\n(4) This section does not apply in relation to any amount received by the trustee of the estate of a deceased person if the amount is a farm management deposit, of which the deceased person was the owner, that has become repayable.\n\n102  Revocable trusts\n\n(1) Where a person has created a trust in respect of any income or property (including money) and:\n\n(a) the person has power, whenever exercisable, to revoke or alter the trusts so as to acquire a beneficial interest in the income derived by the trustee during the year of income, or the property producing that income, or any part of that income or property; or\n\n(b) income is, under that trust, in the year of income, payable to or accumulated for, or applicable for the benefit of a child or children of that person who is or are under the age of 18 years;\n\nthe Commissioner may assess the trustee to pay income tax, under this section, and the trustee shall be liable to pay the tax so assessed.\n\n(2) The amount of the tax payable in pursuance of this section shall be the amount by which the tax actually payable on the person’s own taxable income by the person who created the trust is less than the tax which would have been payable by the person if he or she had received, in addition to any other income derived by the person, so much of the net income of the trust estate as:\n\n(a) is attributable to the property in which he or she has power to acquire the beneficial interest;\n\n(b) represents the income, or the part of the income, in which he or she has power to acquire the beneficial interest; or\n\n(c) is payable to or accumulated for, or applicable for the benefit of, a child or children of that person who is or are under the age of 18 years.\n\n(2A) Where any property the subject of a trust has been converted into other property, this section shall apply in the same way as if the trust had originally been created in respect of that other property.\n\n(2B) In the application of subsection (2) in determining the amount of tax that is payable by a trustee of a trust estate in pursuance of this section, the reference in that subsection to the net income of the trust estate shall be read as a reference to that net income reduced by:\n\n(a) so much (if any) of that net income as is attributable to a period when the person who created the trust was not a resident and is also attributable to sources out of Australia; and\n\n(b) so much (if any) of that net income as is not covered by paragraph (a) and represents an amount included in the assessable income of any taxpayer under section 102AAZD.\n\n(3) Where this section is applied to the assessment of the income of a trust estate or part thereof derived in the year of income, no beneficiary shall be assessed in his or her individual capacity in respect of his or her individual interest in the income or part to which this section has been so applied, and the trustee shall not be assessed in respect of that income or part otherwise than under this section.\n\nDivision 6AAA—Special provisions relating to non‑resident trust estates etc.\n\nSubdivision A—Preliminary\n\n102AAA  Object of Division\n\nThe object of this Division is to set out rules relating to the following:\n\n(a) the payment of interest on distributions from certain non‑resident trust estates (Subdivision B);\n\n(b) the winding‑up of certain non‑resident trust estates in existence on 12 April 1989 (Subdivision C);\n\n(c) an accruals system of taxation of certain non‑resident trust estates (Subdivision D).\n\n102AAB  Interpretation\n\nIn this Division, unless the contrary intention appears:\n\n1 July 1990 net worth, in relation to a trust estate, means the market value, as at the beginning of 1 July 1990, of the assets of the trust estate, reduced by the liabilities of the trust estate as at the beginning of that day.\n\naccounts has the same meaning as in Part X.\n\nactual transfer, in relation to property or services, means a transfer of the property or services other than a transfer that is taken to have been made because of subsection 102AAK(1), (2), (5), (6), (8), (10) or (11).\n\narm’s length amount, in relation to an actual transfer of property or services to a trust estate, means the amount that the trustee could reasonably be expected to have been required to pay to obtain the property or the services concerned from the transferor under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction.\n\nassociate has the same meaning as in Part X.\n\nattributable income, in relation to a trust estate, has the meaning given by section 102AAU.\n\nattributable taxpayer has the meaning given by section 102AAT.\n\nattribution account payment has the same meaning as in Part X.\n\nattribution debit has the same meaning as in Part X.\n\nAustralian entity has the same meaning as in Part X.\n\nAustralian trust has the same meaning as in Part X.\n\nbase interest rate for a day has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\nCFC has the same meaning as in Part X.\n\ncontrolled foreign trust has the same meaning as in Part X.\n\nde facto relationship means:\n\n(a) a relationship between 2 persons (whether of the same sex or different sexes) that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or\n\n(b) a relationship between 2 persons (whether of the same sex or different sexes) who, although not legally married to each other, live with each other on a genuine domestic basis in a relationship as a couple.\n\ndepreciation provision means:\n\n(a) any provision of Division 40 of the Income Tax Assessment Act 1997 (other than Subdivision 40‑E); or\n\n(b) any provision of Division 43 of that Act.\n\ndesignated concession income has the same meaning as in Part X.\n\ndiscretionary trust estate means a trust estate where:\n\n(a) both of the following conditions are satisfied:\n\n(i) a person (who may include the trustee) is empowered (either unconditionally or on the fulfilment of a condition) to exercise any power of appointment or other discretion;\n\n(ii) the exercise of the power or discretion, or the failure to exercise the power or discretion, has the effect of determining, to any extent, either or both of the following:\n\n(A) the identities of those who may benefit under the trust;\n\n(B) how beneficiaries are to benefit, as between themselves, under the trust; or\n\n(b) one or more of the beneficiaries under the trust have a contingent or defeasible interest in some or all of the corpus or income of the trust estate; or\n\n(c) the trustee of another trust estate, being a trust estate where both of the conditions in paragraph (a) are satisfied, benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the first‑mentioned trust estate.\n\neligible designated concession income has the same meaning as in Part X.\n\nentity means any of the following:\n\n(a) a company;\n\n(b) a partnership;\n\n(c) a person in the capacity of trustee;\n\n(d) any other person.\n\nexempt income, in relation to a trust estate, means the exempt income of the trust estate calculated as if the trustee were a taxpayer who was a resident.\n\nIP time means 7.30 p.m., by standard time in the Australian Capital Territory, on 12 April 1989.\n\nlisted country has the same meaning as in Part X.\n\nlisted country trust estate has the meaning given by section 102AAE.\n\nnet income, in relation to a trust estate, in relation to a year of income, means:\n\n(b) if the trust estate is a public trading trust in relation to the year of income—the net income (within the meaning of Division 6C) of the public trading trust of the year of income; or\n\n(c) in any other case—the net income (within the meaning of Division 6) of the trust estate.\n\nnon‑attributable year of income, in relation to a trust estate, means a non‑resident year of income of the trust estate where no amount calculated by reference to the attributable income of the trust estate of that year of income is included in the assessable income of any taxpayer under subsection 102AAZD(1).\n\nnon‑discretionary trust estate means a trust estate other than a discretionary trust estate.\n\nnon‑resident family trust has the meaning given by section 102AAH.\n\nnon‑resident trust estate (except in section 102AAA), in relation to a year of income, means a trust estate that is not a resident trust estate in relation to the year of income.\n\nnon‑resident year of income, in relation to a trust estate, means a year of income in relation to which the trust estate is a non‑resident trust estate.\n\nprofits includes gains, whether of an income or capital nature.\n\nproperty includes money.\n\npublic trading trust, in relation to a year of income, means a unit trust that is a public trading trust in relation to the year of income for the purposes of Division 6C.\n\npublic unit trust has the meaning given by section 102AAF.\n\nresident trust estate, in relation to a year of income, means:\n\n(a) a resident trust estate in relation to the year of income within the meaning of Division 6; or\n\n(b) a unit trust that is a public trading trust, in relation to the year of income; or\n\n(c) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the year of income.\n\nscheme means:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a benefit, right, privilege, service or facility that is, or is to be, provided under:\n\n(a) an arrangement for or in relation to:\n\n(i) the performance of work (including work of a professional nature), whether with or without the provision of property; or\n\n(ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or\n\n(iii) the conferring of benefits, rights or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or\n\n(b) a contract of insurance; or\n\n(c) an arrangement for or in relation to the lending of money.\n\nsubject to tax has the same meaning as in Part X.\n\ntax accounting period has the same meaning as in Part X.\n\ntax law, in relation to a listed country or an unlisted country, has the same meaning as in Part X.\n\ntax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\ntransfer:\n\n(a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise) or provide; and\n\n(b) in relation to services—includes allow, confer, give, grant, perform or provide.\n\ntrust estate, in relation to a transfer of property or services, means the trust estate or, as the case requires, the trustee of the trust estate.\n\nunderlying transfer, in relation to a transfer of property or services to a trust estate, means:\n\n(a) if that transfer was an actual transfer—the actual transfer; or\n\n(b) if that transfer was taken to have been made because of subsection 102AAK(1)—the actual transfer referred to in that subsection; or\n\n(c) if that transfer was taken to have been made because of subsection 102AAK(2)—the actual transfer referred to in paragraph 102AAK(2)(d); or\n\n(d) if that transfer was taken to have been made because of subsection 102AAK(5)—the actual transfer referred to in paragraph 102AAK(5)(b); or\n\n(e) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to an actual transfer—the actual transfer; or\n\n(f) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to a transfer that was taken to have been made because of subsection 102AAK(1)—the actual transfer referred to in subsection 102AAK(1); or\n\n(g) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to a transfer that was taken to have been made because of subsection 102AAK(5)—the actual transfer referred to in paragraph 102AAK(5)(b); or\n\n(h) if that transfer was taken to have been made because of subsection 102AAK(10)—the actual transfer referred to in paragraph 102AAK(10)(b); or\n\n(j) if that transfer was taken to have been made because of one or more applications of subsection 102AAK(11) to an actual transfer—the actual transfer; or\n\n(k) if that transfer was taken to have been made because of one or more applications of subsection 102AAK(11) to a transfer (in this paragraph called the deemed transfer) that was taken to have been made because of subsection 102AAK(1), (2), (5), (6), (8) or (10)—the actual transfer that, under a preceding paragraph of this definition, is the underlying transfer in relation to the deemed transfer.\n\nunderlying transferor, in relation to a transfer of property or services to a trust estate, means the entity who made the underlying transfer concerned.\n\nunlisted country has the same meaning as in Part X.\n\nweighted statutory interest rate, in relation to a year of income, means:\n\n(a) if there is only one base interest rate in relation to the year of income—that rate; or\n\n(b) if there are 2 or more base interest rates in relation to the year of income—the weighted average of the base rates for the year of income.\n\n102AAC  Each listed country and unlisted country to be treated as a separate foreign country\n\nFor the purposes of the application of section 6AB to this Division, each listed country and each unlisted country is to be treated as a separate foreign country.\n\n102AAD  Subject to tax—application of subsection 324(2)\n\nSubsection 324(2) applies in relation to this Division in a corresponding way to the way in which it applies in relation to Part X.\n\n102AAE  Listed country trust estates\n\n(1) For the purposes of this Division, a trust estate is taken to be a listed country trust estate in relation to a year of income if, and only if, either of the following paragraphs applies to each item of income or profit derived by the trust estate in the year of income:\n\n(a) the income or profit is either:\n\n(i) subject to tax in a listed country in a tax accounting period ending before the end of the year of income or commencing during the year of income; or\n\n(ii) designated concession income in relation to any listed country;\n\n(b) both of the following conditions are satisfied:\n\n(i) a part of the income or profit is either:\n\n(A) subject to tax in a listed country in a tax accounting period ending before the end of the year of income or commencing during the year of income; or\n\n(B) designated concession income in relation to any listed country;","sortOrder":1000038},{"sectionNumber":"full-source-retrieval-0040","sectionType":"document_chunk","heading":"Document excerpt 40","content":"(ii) the remaining part, or each of the remaining parts, of the income or profit:\n\n(A) is subject to tax in another listed country or in different listed countries, as the case may be, in a tax accounting period ending before the end of the year of income or commencing during the year of income; or\n\n(B) is designated concession income in relation to any listed country.\n\n(2) For the purposes of the application of subparagraph (1)(b)(ii) to a trust estate, if a particular part of an item of income or profit (which part is in this subsection called the item part) derived by the trust estate is included, or would apart from Subdivision 50‑A or section 51‑5, 51‑10 or 51‑30 of the Income Tax Assessment Act 1997 be included, in the assessable income of the trust estate of a year of income (in this subsection called the trust’s year of income) and one of the following paragraphs applies:\n\n(a) both of the following conditions are satisfied:\n\n(i) the trustee of the trust estate is liable to be assessed and pay tax under section 98, 99 or 99A in respect of a part of, or a share in, the net income of the trust estate of the trust’s year of income;\n\n(ii) the whole or a part of the part or share of the net income is attributable to the item part;\n\n(b) all of the following conditions are satisfied:\n\n(i) an amount is included in the assessable income of another taxpayer of the trust’s year of income or the next following year of income (which taxpayer is in this subsection called the actual taxpayer) under subsection 92(1) or section 97, 98A or 100;\n\n(ii) the actual taxpayer is:\n\n(A) a company or a natural person (other than a company or a natural person in the capacity of a trustee); or\n\n(B) the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the year of income concerned; or\n\n(D) the trustee of a public trading trust in relation to the year of income concerned; or\n\n(E) the trustee of a trust estate who is liable to be assessed and pay tax under section 98, 99 or 99A in respect of a part of, or a share in, the net income of a trust estate;\n\n(iii) if sub‑subparagraph (ii)(A), (B), (C) or (D) applies—the whole or a part of the amount so included in the actual taxpayer’s assessable income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the item part;\n\n(iv) if sub‑subparagraph (ii)(E) applies—the whole or a part of the part or share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the item part;\n\n(c) both of the following conditions are satisfied:\n\n(i) trustee beneficiary non‑disclosure tax is payable under Division 6D on the whole or part (the net income amount) of a share of the net income of the trust estate of the trust’s year of income;\n\n(ii) the whole or part of the net income amount is attributable to the item part;\n\nthe item part is to be treated as if it were subject to tax in a listed country in a tax accounting period ending before the end of the trust’s year of income.\n\n(3) For the purposes of this section, where a part of a particular item of income or profits derived by an entity would, if it were a separate item of income or profits, be taken to be subject to tax in a listed country in a particular tax accounting period, that part is taken to be subject to tax in that listed country in that tax accounting period.\n\n102AAF  Public unit trusts\n\n(1) Subject to this section, for the purposes of this Division, a unit trust is a public unit trust at all times during a year of income if either of the following conditions are satisfied:\n\n(a) at any time during the year of income:\n\n(i) any of the units in the unit trust were listed for quotation in the official list of a stock exchange in Australia or elsewhere; or\n\n(ii) any of the units in the unit trust were offered to the public;\n\n(b) at all times during the year of income, the units in the unit trust were held by not fewer than 50 persons.\n\n(2) In determining whether a unit trust is a public unit trust at all times during a year of income for the purposes of this Division, subsections 102P(3) to (9) (inclusive) and (11) apply as if:\n\n(a) a reference in those subsections to Division 6C were a reference to this Division; and\n\n(b) a reference in those subsections to subsection 102P(1) were a reference to subsection (1) of this section; and\n\n(c) a reference in those subsections to a public unit trust in relation to a year of income were a reference to a public unit trust at all times during a year of income.\n\n(3) In determining whether a unit trust (in this subsection called the first unit trust) is a public unit trust at all times during a year of income for the purposes of this Division, the following provisions have effect:\n\n(a) the following entities are taken to be one person:\n\n(i) an entity, whether or not it holds units in the first unit trust; and\n\n(ii) the entity or entities who are the associate or associates of the entity;\n\n(b) where any units in the first unit trust are held by the trustee of another trust that, apart from this paragraph, is a public unit trust at all times during the year of income—a person who has a beneficial interest in property of that other trust that consists of those units is taken to hold those units;\n\n(c) where any units in the first unit trust are held by the trustee of another trust that:\n\n(i) apart from paragraph (b); or\n\n(ii) by virtue of the application of paragraph (b);\n\nis a public unit trust at all times during the year of income—a person who has a beneficial interest in the property of that other trust that consists of those units (whether or not that beneficial interest is taken to be held by virtue of the application of this paragraph) is taken to hold those units.\n\n102AAG  When entity is in a position to control a trust estate\n\n(1) For the purposes of this Division, an entity is taken to be in a position to control a trust estate if, and only if:\n\n(a) a group in relation to the entity had the power by means of the exercise by the group of any power of appointment or revocation or otherwise, to obtain, with or without the consent of any other entity, the beneficial enjoyment of the corpus or income of the trust estate; or\n\n(b) a group in relation to the entity was able in any manner whatsoever, whether directly or indirectly, to control the application of the corpus or income of the trust estate; or\n\n(c) a group in relation to the entity was capable under a scheme of gaining the enjoyment or the control referred to in paragraph (a) or (b); or\n\n(d) a trustee of the trust estate was accustomed or under an obligation (whether formally or informally) or might reasonably be expected to act in accordance with the directions, instructions or wishes of a group in relation to the entity; or\n\n(e) a group in relation to the entity was able to remove or appoint the trustee, or any of the trustees, of the trust estate.\n\n(2) In subsection (1), a reference to a group in relation to an entity is a reference to:\n\n(a) the entity acting alone; or\n\n(b) an associate of the entity acting alone; or\n\n(c) the entity and one or more associates of the entity acting together; or\n\n(d) 2 or more associates of the entity acting together.\n\n102AAH  Non‑resident family trusts\n\n(1) Subject to subsections (4) and (5), for the purposes of this Division, a trust estate is a non‑resident family trust in relation to a natural person at a particular time if, and only if, at that time:\n\n(a) the trust estate is either:\n\n(i) a post‑marital or post‑relationship family trust in relation to the natural person; or\n\n(ii) a family relief trust in relation to the natural person; and\n\n(b) the trust is constituted by:\n\n(i) a deed of trust or other instrument; or\n\n(ii) an order or declaration of a court.\n\n(2) For the purposes of this section, a trust estate is a post‑marital or post‑relationship family trust in relation to a natural person at a particular time if:\n\n(a) either of the following conditions is satisfied:\n\n(i) the trust was created pursuant to:\n\n(A) a decree or order of dissolution or annulment of marriage, being a dissolution or annulment that, because of the Family Law Act 1975, has effect, or continues to have effect in Australia or is recognised as valid in Australia; or\n\n(B) a decree or order of judicial separation or a similar decree or order;\n\n(ii) the trust was created in consequence of the break‑down of a de facto relationship; and\n\n(b) at that time, the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust (which persons are in subsections (4) and (5) called the primary potential beneficiaries) are natural persons who:\n\n(i) are non‑residents at that time; and\n\n(ii) are covered by any of the following categories:\n\n(A) the spouse or former spouse of the natural person;\n\n(B) a child of the natural person;\n\n(C) a child of the former spouse of the natural person, being a child who was such a child at a time when the former spouse was the spouse of the natural person;\n\n(D) a child of the spouse of the natural person.\n\n(3) For the purposes of this section, a trust estate is a family relief trust in relation to a natural person at a particular time (in this subsection called the test time) if:\n\n(a) the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust (which persons are in subsections (4) and (5) called the primary potential beneficiaries) are natural persons who:\n\n(i) are identified by name in the trust deed or instrument, or in the court order or declaration, constituting the trust; and\n\n(ii) are non‑residents at that time; and\n\n(iii) are covered by any of the following categories:\n\n(A) the spouse or former spouse of the natural person;\n\n(B) a parent of the natural person or of the natural person’s spouse or former spouse;\n\n(C) a child of the natural person or of the natural person’s spouse or former spouse;\n\n(D) a grandparent of the natural person;\n\n(E) a grandchild of the natural person;\n\n(F) a brother or sister of the natural person or of the natural person’s spouse or former spouse;\n\n(G) a child of a brother or sister mentioned in sub‑subparagraph (F); and\n\n(b) the trust was established, and is operated, for the relief of persons who are in necessitous circumstances; and\n\n(c) any of the following conditions is satisfied:\n\n(i) at the test time, the assets of the trust are not excessive having regard to the requirements, or likely requirements, of the primary potential beneficiaries;\n\n(ii) no transfers of property or services to the trust estate were made during the period (in this paragraph called the test period) commencing at the IP time and ending at the test time;\n\n(iii) immediately after each transfer of property or services to the trust estate made during the test period, the assets of the trust were not excessive having regard to the requirements, or likely requirements, of the beneficiaries at the time of the transfer.\n\nNote: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining relationships for the purposes of subparagraph (3)(a)(iii).\n\n(4) Subsection (1) does not prevent a trust estate from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of a particular primary potential beneficiary at that time, one or more natural persons (which persons are in subsection (5) called the secondary potential beneficiaries) who:\n\n(a) are non‑residents at that time; and\n\n(b) are children of the primary potential beneficiary;\n\nwould benefit, or be capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.\n\n(5) Subsections (1) and (4) do not prevent a trust estate from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of all of the primary potential beneficiaries and all of the secondary potential beneficiaries at that time, there are one or more deductible gift recipients covered by an item in any of the tables in Subdivision 30‑B of the Income Tax Assessment Act 1997, or item 2 of the table in section 30‑15 of that Act, that would benefit, or be capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.\n\n(6) For the purposes of this section, if, at a particular time, an entity holds an interest in, or right to benefit under, a trust that is dependent on the death of one or more natural persons, then, the entity is taken to be an entity who, in the event of the death of that natural person or those natural persons immediately after that time, would benefit under the trust.\n\n(7) A reference in this section to a natural person does not include a reference to a natural person in the capacity of a trustee.\n\n102AAJ  Transfer of property or services\n\n(1) A reference in this Division to the transfer of property or services to a trust estate includes a reference to the transfer of such property or services by way of the creation of the trust estate.\n\n(2) For the purposes of this Division, where an entity acquires property that did not previously exist, the property is taken to have existed immediately before the acquisition and to have been transferred by the entity who created the property.\n\n(3) For the purposes of this Division, property or services are taken to have been transferred to an entity if the property or services have been applied for the benefit of, or in accordance with the directions of, the entity.\n\n(4) Without limiting the generality of subsection (3), a reference in that subsection to the application of property or services for the benefit of an entity includes a reference to the application of property or services in the discharge, in whole or in part, of a debt due by the entity.\n\n(5) Unless the contrary intention appears, a reference in this Division to a transfer of property or services includes a reference to a transfer made before the commencement of this Division.\n\n(6) A reference in this Division to a transfer of property or services made before the IP time includes a reference to a transfer made at the IP time.\n\n102AAK  Deemed transfers of property or services to trust estate\n\n(1) For the purposes of this Division, where an entity (in this subsection called the prime entity) causes another entity to actually transfer property or services to a trust estate, the prime entity is taken to have transferred the property or services (instead of the other entity).\n\n(2) For the purposes of this Division, where:\n\n(a) the trustee of a trust estate issues units in the trust to an entity (in this subsection called the first entity) in the first entity’s capacity as a manager, underwriter or dealer in relation to the marketing or placement of the units; and\n\n(b) in the course of the marketing or placement of the units, the units are disposed of by the first entity to another entity (in this subsection called the second entity); and\n\n(c) at a particular time (in this subsection called the second entity’s transfer time), the second entity transfers property or services to the first entity as consideration for the acquisition of the units; and\n\n(d) the first entity has actually transferred, or actually transfers, property or services (in this subsection called the original property or services) to the trust estate for the sole purpose of acquiring the units;\n\nthe second entity is taken to have transferred the original property or services (instead of the first entity) at the second entity’s transfer time.\n\n(3) A reference in subsection (2) to a unit in a trust estate is a reference to an interest (however described) in any of the income or property of the trust estate.\n\n(4) Subsections (1) and (2) do not limit the operation of subsection (5).\n\n(5) Where, under a scheme:\n\n(a) an entity (in this subsection called the scheme entity) actually transfers property or services to another entity; and\n\n(b) property or services are actually transferred to a trust estate at a particular time otherwise than by the scheme entity;\n\nthe Commissioner may, for the purposes of this Division, treat the property or services mentioned in paragraph (b) as having been transferred by the scheme entity to the trust estate (instead of by any other entity) at that time to such extent as the Commissioner considers reasonable.\n\n(6) For the purposes of this Division, if (apart from subsections (8), (10) and (11)) an entity, being a partnership, transfers property or services to a trust estate at a particular time:\n\n(a) each partner in the partnership is taken to have transferred a part of the property or services to the trust estate at that time; and\n\n(b) the market value of the part transferred by a particular partner is calculated using the formula:\n\n![Start formula Market value times Partner's interest end formula](image.008.png)\n\nwhere:\n\nMarket value means the market value, immediately before the transfer, of the property or services transferred by the partnership.\n\nPartner’s interest means:\n\n(i) the partner’s percentage interest in the profits of the partnership as at that time; or\n\n(ii) the partner’s percentage interest in the property of the partnership as at that time;\n\nor, if they are different, whichever is the higher.\n\n(7) Nothing in paragraph (6)(a) affects the application of this Division to the transfer made by the partnership concerned.\n\n(8) For the purposes of this Division, if:","sortOrder":1000039},{"sectionNumber":"full-source-retrieval-0041","sectionType":"document_chunk","heading":"Document excerpt 41","content":"(a) apart from this subsection, subsections (6), (10) and (11), an entity being the trustee of a trust estate (in this subsection called the transferor trust estate) transfers property or services (in this subsection called the transferred property or services) to another trust estate (in this subsection called the transferee trust estate) at a particular time (in this subsection called the transfer time); and\n\n(b) the transferor trust estate was an Australian trust, or a controlled foreign trust, at the transfer time; and\n\n(c) the transferor trust estate was a discretionary trust estate at the transfer time; and\n\n(d) apart from this subsection, subsections (6), (10) and (11), one or more other entities transferred property or services to the transferor trust estate at or before the transfer time;\n\neach of those other entities is taken to have transferred the transferred property or services to the transferee trust estate at the transfer time.\n\n(9) Nothing in subsection (8) affects the application of this Division to the transfer mentioned in paragraph (8)(a).\n\n(10) For the purposes of this Division, where:\n\n(a) any of the following subparagraphs applies:\n\n(i) any of the following events occurs in relation to a company (which company is in this subsection called the transferor):\n\n(A) the company passes a resolution for its winding‑up;\n\n(B) an order is made for the winding‑up of the company;\n\n(C) any similar event;\n\n(ii) a partnership (in this subsection also called the transferor) ceases to exist for the purposes of this Act;\n\n(iii) either of the following sub‑subparagraphs applies in relation to the trustee of a trust estate (in this subsection also called the transferor):\n\n(A) the trust estate commences to be wound‑up;\n\n(B) the trust estate ceases to exist for the purposes of this Act; and\n\n(b) an actual transfer of property or services is made to a trust estate (in this subsection called the transferee) as a consequence of the transferor being wound‑up or ceasing to exist;\n\nthe transferor is taken to have transferred to the transferee the property or services concerned.\n\n(11) For the purposes of this Division, where:\n\n(a) the following subparagraphs apply to an entity (in this subsection called the defunct entity):\n\n(i) the defunct entity is a company, a partnership or the trustee of a trust estate;\n\n(ii) the defunct entity transferred property or services to a trust estate (including a transfer that was taken to have been made because of another application or other applications of this subsection) at a particular time;\n\n(iii) if the defunct entity is a company—any of the following events occurs:\n\n(A) the company passes a resolution for its winding‑up;\n\n(B) an order is made for the winding‑up of the company;\n\n(C) any similar event;\n\n(iv) if the defunct entity is a partnership—the partnership ceases to exist for the purposes of this Act;\n\n(v) if the defunct entity is a trustee of a trust estate—either of the following sub‑subparagraphs applies:\n\n(A) the trust estate commences to be wound‑up;\n\n(B) the trust estate ceases to exist for the purposes of this Act; and\n\n(b) the Commissioner is satisfied that another entity (in this subsection called the successor entity) has benefited or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting (either directly or indirectly through one or more interposed companies, partnerships or trusts) by, or as a result of:\n\n(i) a transfer of property or services made by the defunct entity; or\n\n(ii) a transfer of property or services made as a consequence of the defunct entity being wound‑up or ceasing to exist; and\n\n(c) the Commissioner is of the opinion that it is appropriate to apply this subsection to the successor entity;\n\nthe assessable income of the successor entity of the year of income in which the event, or the earliest event, mentioned in subparagraph (a)(iii), (iv) or (v) occurred and of each subsequent year of income is to be determined as if the successor entity had transferred to the trust estate mentioned in subparagraph (a)(ii), at the time mentioned in that subparagraph:\n\n(d) the whole of the property or services mentioned in that subparagraph; or\n\n(e) if the Commissioner thinks it appropriate—a part of the property or services referred to in that subparagraph.\n\n102AAL  Division not to apply to transfers by trustees of deceased estates\n\nA reference in this Division to a transfer of property or services to a trust estate does not include a reference to a transfer made by the trustee of the estate of a deceased person under:\n\n(a) the terms of the deceased person’s will or codicil; or\n\n(b) an order of a court that varied or modified the provisions of the deceased person’s will or codicil;\n\nunless:\n\n(c) the transfer was made in or as the result of the exercise (by the trustee or any other person) of a power of appointment or any other discretion; or\n\n(d) under subsection 102AAK(1), the property or services are taken to have been transferred by an entity other than the trustee, instead of by the trustee; or\n\n(e) under subsection 102AAK(5), the Commissioner treats the property or services as having been (to any extent) transferred by an entity other than the trustee, instead of by the trustee.\n\nSubdivision B—Payment of interest by taxpayer on distributions from certain non‑resident trust estates\n\n102AAM  Payment of interest by taxpayer on distributions from certain non‑resident trust estates\n\n(1) For the purposes of this section, if:\n\n(a) an amount is included in the assessable income of a taxpayer of a year of income (which year of income is in this section called the current year of income), being the year of income commencing on 1 July 1990 or a subsequent year of income, under section 99B in relation to a trust estate; and\n\n(b) the whole or a part of the amount so included in the taxpayer’s assessable income (which whole or part is in this section called the distributed amount) is attributable to:\n\n(i) if the trust estate was a listed country trust estate in relation to a particular non‑resident year of income of the trust estate (in this section called the non‑resident trust’s year of income)—so much of the income and profits of the trust estate of the non‑resident trust’s year of income as represents eligible designated concession income in relation to any listed country in relation to the non‑resident trust’s year of income; or\n\n(ii) if the trust estate was not a listed country trust estate in relation to a particular non‑resident year of income of the trust estate (in this section also called the non‑resident trust’s year of income)—so much of the income and profits of the trust estate of the non‑resident trust’s year of income as has not been subject to tax in any listed country in a tax accounting period:\n\n(A) ending before the end of the non‑resident trust’s year of income; or\n\n(B) commencing during the non‑resident trust’s year of income;\n\nthen:\n\n(c) the distributed amount is the distributed amount of the non‑resident trust’s year of income; and\n\n(d) the taxpayer is the original taxpayer in relation to the distributed amount of the non‑resident trust’s year of income.\n\n(1A) For the purposes of subsection (1), unless the contrary is established by the taxpayer:\n\n(a) a distributed amount in relation to a listed country trust estate in relation to a non‑resident trust’s year of income is taken to be wholly attributable to income and profits of the trust estate of that year of income that represent eligible designated concession income in relation to a listed country; and\n\n(b) a distributed amount in relation to a trust estate that was not a listed country trust estate in relation to a non‑resident trust’s year of income is taken to be wholly attributable to income and profits of the trust estate of that year of income that have not been subject to tax in any listed country in a tax accounting period.\n\n(1B) This section does not apply to a distributed amount that is attributable to income or profits of the estate of a deceased person if the amount was paid to, or applied for the benefit of, the taxpayer within 3 years after the death of that person.\n\n(1C) This section does not apply to a distributed amount that was included in the assessable income of a taxpayer of a year of income under section 99B in relation to a trust estate if, at all times during the year of income, the trust:\n\n(a) was a public unit trust; and\n\n(b) was not a controlled foreign trust.\n\n(2) Subject to this section, if the original taxpayer in relation to the distributed amount of the non‑resident trust’s year of income is:\n\n(a) a company or a natural person (other than a company or a natural person in the capacity of a trustee); or\n\n(c) the trustee of a public trading trust in relation to the current year of income; or\n\n(d) the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the current year of income;\n\nthe taxpayer is liable to pay interest to the Commissioner in respect of the distributed amount of the non‑resident trust’s year of income, calculated under subsection (5), on the amount calculated using the formula:\n\n![Start formula open bracket Distributed amount times Applicable rate of tax close bracket minus FITO end formula](image.009.png)\n\nwhere:\n\nDistributed amount means the distributed amount of the non‑resident trust’s year of income.\n\nApplicable rate of tax has the meaning given by subsection (10).\n\nFITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the taxpayer is entitled as is attributable to the distributed amount of the non‑resident trust’s year of income.\n\n(3) Subject to this section, if:\n\n(a) the original taxpayer in relation to the distributed amount of the non‑resident trust’s year of income is the trustee of a trust estate who is liable to be assessed and pay tax under section 98, 99 or 99A in respect of a part of, or a share in, the net income of the trust estate; and\n\n(b) the whole or a part (which whole or part is in this subsection called the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income) of the part or share of the net income is attributable to the distributed amount of the non‑resident trust’s year of income;\n\nthe taxpayer is liable to pay interest to the Commissioner in respect of the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income, calculated under subsection (5), on the amount calculated using the formula:\n\n![Start formula open bracket Taxpayer’s portion of the distributed amount times Applicable rate of tax close bracket minus FITO end formula](image.010.png)\n\nwhere:\n\nTaxpayer’s portion of the distributed amount means the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income.\n\nApplicable rate of tax has the meaning given by subsection (10).\n\nFITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the taxpayer is entitled as is attributable to the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income.\n\n(4) Subject to this section, if:\n\n(a) the original taxpayer in relation to the distributed amount of the non‑resident trust’s year of income is the trustee of a trust estate or a partnership; and\n\n(b) the following conditions are satisfied in relation to another taxpayer (in this subsection called the actual taxpayer):\n\n(i) an amount is included in the assessable income of the actual taxpayer of a year of income under subsection 92(1) or section 97, 98A or 100;\n\n(ii) the actual taxpayer is:\n\n(A) a company or a natural person (other than a company or a natural person in the capacity of a trustee); or\n\n(B) the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the year of income; or\n\n(D) the trustee of a public trading trust in relation to the year of income; or\n\n(E) the trustee of a trust estate who is liable to be assessed and pay tax under section 98, 99 or 99A in respect of a part of, or a share in, the net income of a trust estate;\n\n(iii) if sub‑subparagraph (ii)(A), (B), (C) or (D) applies—the whole or a part of the amount so included in the actual taxpayer’s assessable income (which whole or part is in this subsection called the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the distributed amount of the non‑resident trust’s year of income;\n\n(iv) if sub‑subparagraph (ii)(E) applies—the whole or a part (which whole or part is in this subsection also called the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income) of the part or share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the distributed amount of the non‑resident trust’s year of income;\n\nthe actual taxpayer is liable to pay interest to the Commissioner in respect of the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income, calculated under subsection (5), on the amount calculated using the formula:\n\n![Start formula open bracket Taxpayer’s portion of the distributed amount times Applicable rate of tax close bracket minus FITO end formula](image.010.png)\n\nwhere:\n\nTaxpayer’s portion of the distributed amount means the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income.\n\nApplicable rate of tax has the meaning given by subsection (10).\n\nFITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the taxpayer is entitled as is attributable to the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income.\n\n(4A) If:\n\n(a) paragraph 102UK(2)(b) or 102UM(2)(b) has the effect that the whole or a part of a share of the net income of a trust estate (the first trust estate) is not included in the assessable income of the trustee of another trust estate (the second trust estate); and\n\n(b) the whole or the part of the share (which whole or part is in this subsection called the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the distributed amount of the non‑resident trust’s year of income; and\n\n(c) if paragraph 102UK(2)(b) or 102UM(2)(b) were ignored, the second trust estate would be an interposed trust mentioned in applying subparagraph (4)(b)(iii) or (iv) of this section; and\n\n(d) this subsection does not also apply to the trustee of a trust interposed between the first trust estate and the non‑resident trust;\n\nthe trustee of the first trust estate is liable to pay interest to the Commissioner in respect of the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income, calculated under subsection (5), on the amount calculated using the formula:\n\n![Start formula open bracket Taxpayer’s portion of the distributed amount times Applicable rate of tax close bracket minus FITO end formula](image.011.png)\n\nwhere:\n\napplicable rate of tax has the meaning given by subsection (10).\n\nFITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the trustee of the first trust would be entitled, in respect of the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income, if the taxpayer’s portion of the distributed amount of the non‑resident trust’s income were an amount in respect of which the trustee were liable to be assessed and to pay tax under section 99A.\n\ntaxpayer’s portion of the distributed amount means the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income.\n\n(5) Interest payable by a taxpayer under this section is to be calculated:\n\n(a) in respect of the period commencing at whichever of the following times is the latest:\n\n(i) the beginning of the first year of income of the taxpayer that begins after the end of the non‑resident trust’s year of income;\n\n(ii) the beginning of the year of income of the taxpayer commencing on 1 July 1990;\n\n(iii) if the taxpayer is a natural person (other than a natural person in the capacity of a trustee) who first commenced to be a resident of Australia at a time (in this subparagraph called the first residence time) on or after 1 July 1990—the beginning of the year of income of the taxpayer next following the year of income of the taxpayer in which the first residence time occurred;\n\nand ending at the end of the assessment year of income; and\n\n(b) at the base interest rate.\n\n(6) Where the assessable income of a taxpayer of a year of income includes one or more of the following amounts in relation to one or more non‑resident years of income of a particular trust estate (which amounts are in this subsection called the principal amounts):\n\n(a) the distributed amount of the non‑resident trust’s year of income;\n\n(b) the taxpayer’s portion of the distributed amount of the non‑resident trust’s year of income;\n\nthe aggregate of the interest payable by the taxpayer in respect of the principal amounts is not to exceed the difference between:\n\n(c) the aggregate of the principal amounts; and","sortOrder":1000040},{"sectionNumber":"full-source-retrieval-0042","sectionType":"document_chunk","heading":"Document excerpt 42","content":"(d) so much of the tax payable in respect of the year of income as is attributable to the aggregate of the principal amounts (ignoring any tax offset under Part 3‑6 of the Income Tax Assessment Act 1997).\n\n(7) For the purposes of this section, the extent to which an amount (in this subsection called the section 99B amount) included in the assessable income of a taxpayer of a year of income under section 99B in relation to a trust estate is attributable to an amount (in this subsection called the trust amount) covered by subparagraph (1)(b)(i) or (ii) is to be determined in accordance with the following paragraphs:\n\n(a) in all cases—distributions of income and profits of the trust estate are to be taken to have been made in the following order:\n\n(i) first, from income and profits of the earliest non‑resident year of income;\n\n(ii) then, successively from income and profits of successive subsequent years of income;\n\n(b) if subparagraph (1)(b)(i) applies—the extent to which the amount (in this paragraph called the adjusted section 99B amount), being so much of the section 99B amount as is attributable to the income and profits of the trust estate of the non‑resident trust’s year of income, represents eligible designated concession income in relation to any listed country in relation to the non‑resident trust’s year of income is calculated using the formula:\n\n![Start formula Adjusted section 99B amount times start fraction Eligible designated concession income over Total income end fraction end formula](image.012.png)\n\nwhere:\n\nAdjusted section 99B amount means the adjusted section 99B amount.\n\nEligible designated concession income means the number of dollars in the amount, being so much of the income and profits of the trust estate of the non‑resident trust’s year of income as represents eligible designated concession income in relation to any listed country in relation to the non‑resident trust’s year of income.\n\nTotal income means the number of dollars in the income and profits of the trust estate of the non‑resident trust’s year of income.\n\n(c) if subparagraph (1)(b)(ii) applies—the extent to which the amount (in this paragraph called the adjusted section 99B amount), being so much of the section 99B amount as is attributable to the income and profits of the trust estate of the non‑resident trust’s year of income, represents income and profits that have not been subject to tax in a listed country in a tax accounting period mentioned in that subparagraph is calculated using the formula:\n\n![Start formula Adjusted section 99B amount times start fraction Untaxed income over Total income end fraction end formula](image.013.png)\n\nwhere:\n\nAdjusted section 99B amount means the adjusted section 99B amount.\n\nUntaxed income means the number of dollars in the amount, being so much of the income and profits of the trust estate of the non‑resident trust’s year of income as is not subject to tax in any listed country in a tax accounting period mentioned in that subparagraph.\n\nTotal income means the number of dollars in the income and profits of the trust estate of the non‑resident trust’s year of income.\n\n(8) For the purposes of subsection (7), an amount of income or profits of a trust estate is to be taken to be distributed if the amount is paid to, or applied for the benefit of (within the meaning of section 99B), a beneficiary of the trust estate.\n\n(9) Where, apart from this subsection, the amount of interest that would be payable under this section by a taxpayer in respect of the distributed amount of a non‑resident trust’s year of income, or in respect of the taxpayer’s portion of the distributed amount of a non‑resident trust’s year of income, is less than 50 cents, interest is not payable by the taxpayer under this section.\n\n(10) For the purposes of this section, the applicable rate of tax in relation to a taxpayer is:\n\n(a) if the taxpayer is a company (other than a company in the capacity of a trustee)—the corporate tax rate for the year of tax to which the assessment year of income relates; or\n\n(b) in any other case—the maximum rate specified in the table in Part I of Schedule 7 of the Income Tax Rates Act 1986 that applies for the assessment year of income.\n\n(10A) Paragraph (10)(b) has effect as if the maximum rate specified as mentioned in that paragraph was increased by 2 percentage points for assessment years of income that correspond to the temporary budget repair levy years (within the meaning of section 4‑11 of the Income Tax (Transitional Provisions) Act 1997).\n\n(11) For the purposes of the application of this section to a taxpayer, the assessment year of income is:\n\n(a) if subsection (2) or (3) applies—the current year of income; or\n\n(b) if subsection (4) applies—the year of income referred to in subparagraph (4)(b)(i).\n\n(12) For a taxpayer who is not a full self‑assessment taxpayer for the assessment year of income, the Commissioner must make an assessment of the interest payable by the taxpayer under this section.\n\n(13A) If:\n\n(a) a taxpayer is a full self‑assessment taxpayer for the assessment year of income; and\n\n(b) the taxpayer lodges a return for that year;\n\nthen:\n\n(c) the Commissioner is taken to have made an assessment of the interest payable by the taxpayer under this section for the year, equal to the amount specified in the return as the interest so payable; and\n\nNote: If any interest is so payable, the return must specify the amount: see section 161AA.\n\n(d) the assessment is taken to have been made on the day on which the return is lodged; and\n\n(e) the return is taken to be a notice of that assessment given to the taxpayer by the Commissioner on that day.\n\n102AAN  Collection etc. of interest\n\nSections 170, 172, 174, 254 and 255 of this Act, and Division 5 of the Income Tax Assessment Act 1997 (How to work out when to pay your income tax), apply to interest payable under section 102AAM in the same way as they apply to income tax.\n\nSubdivision D—Accruals system of taxation of certain non‑resident trust estates\n\n102AAS  Object of Subdivision\n\nThe object of this Subdivision is to set out rules relating to the following:\n\n(a) the determination of attributable taxpayer status (section 102AAT);\n\n(b) the calculation of the attributable income of a trust estate (sections 102AAU to 102AAZC (inclusive));\n\n(c) the inclusion of amounts in assessable income (sections 102AAZD, 102AAZE and 102AAZF);\n\n(d) the keeping of associated records (section 102AAZG).\n\n102AAT  Accruals system of taxation—attributable taxpayer\n\n(1) Subject to this Division, for the purposes of this Division, an entity is an attributable taxpayer in relation to a year of income of the entity (which year of income is in this section called the entity’s current year of income) and in relation to a particular trust estate if, and only if:\n\n(a) either of the following subparagraphs applies:\n\n(i) all of the following conditions are satisfied:\n\n(A) the trust estate was a discretionary trust estate at any time during the entity’s current year of income;\n\n(B) the trust estate was not a public unit trust at all times during the entity’s current year of income;\n\n(C) the entity has transferred property or services to the trust estate at a time (in this subparagraph called the transfer time) before or during the entity’s current year of income;\n\n(D) if the underlying transfer was made in the course of carrying on a business—it is not the case that, at or about the time of the underlying transfer, identical or similar property or services were transferred by the underlying transferor in the ordinary course of business to ordinary clients or customers under arm’s length transactions and in similar circumstances and subject to identical or similar terms and conditions as those that applied in relation to the underlying transfer of the property or services concerned;\n\n(E) if the underlying transfer was made under an arm’s length transaction otherwise than in the course of carrying on a business—the entity was in a position, at any time after the transfer time and before the end of the entity’s current year of income, to control the trust estate;\n\n(F) if the transfer was made before the IP time and the trust estate was in existence, and was a discretionary trust estate, at the IP time—the entity was in a position, at any time after the IP time and before the end of the entity’s current year of income, to control the trust estate;\n\n(ii) all of the following conditions are satisfied:\n\n(A) the trust estate was a non‑discretionary trust estate, or a public unit trust, at all times during the entity’s current year of income when the trust estate was in existence;\n\n(B) the entity has transferred property or services to the trust estate after the IP time and before or during the entity’s current year of income;\n\n(C) the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer;\n\n(D) it is not the case that the sole purpose of the underlying transfer was the acquisition of units in the trust estate where the parties to the underlying transfer were at arm’s length with each other in relation to the underlying transfer and the trust estate was a public unit trust at all times during the entity’s current year of income when the trust estate was in existence; and\n\n(b) if the entity is a natural person (other than a natural person in the capacity of a trustee):\n\n(i) if:\n\n(A) the natural person first commenced to be a resident of Australia at a time (in this subparagraph called the first residence time) after the IP time and before the end of the entity’s current year of income; and\n\n(B) the transfer, or each of the transfers, covered by paragraph (a) was made before the first residence time;\n\nthe trust estate was not a non‑resident family trust in relation to the natural person at all times:\n\n(C) after the beginning of the first year of income of the natural person after the first residence time; and\n\n(D) before the end of the entity’s current year of income;\n\nwhen the trust estate was in existence; or\n\n(ii) in any other case—the trust estate was not a non‑resident family trust in relation to the natural person at all times after the beginning of the year of income of the taxpayer commencing on 1 July 1990 and before the end of the entity’s current year of income when the trust estate was in existence; and\n\n(c) it is not the case that:\n\n(i) the entity is a natural person (other than a natural person in the capacity of a trustee) who first commenced to be a resident of Australia at a time (in this paragraph called the first residence time) after the IP time and before the end of the entity’s current year of income; and\n\n(ii) the transfer was made before the first residence time; and\n\n(iii) the entity was not in a position to control the trust estate at any time during the period:\n\n(A) commencing at the beginning of the first year of income of the entity after the first residence time; and\n\n(B) ending at the end of the entity’s current year of income.\n\n(2) For the purposes of this section, if:\n\n(a) an entity (in this subsection called the transferor) being a partnership is an attributable taxpayer in relation to the entity’s current year of income and in relation to a particular trust estate (in this subsection called the transferee trust estate) because of one or more transfers (being actual transfers or transfers taken to have been made because of subsection 102AAK(1), (2) or (5)) of property or services made by the transferor to the transferee trust estate; or\n\n(b) an entity (in this subsection also called the transferor) being a trust estate is an attributable taxpayer in relation to the entity’s current year of income and in relation to another trust estate (in this subsection also called the transferee trust estate) because of one or more transfers (being actual transfers or transfers taken to have been made because of subsection 102AAK(1), (2) or (5)) of property or services made by the transferor to the transferee trust estate;\n\nthe question whether any other entity is an attributable taxpayer in relation to the same year of income and in relation to the transferee trust estate is to be determined as if:\n\n(c) if paragraph (a) applies—subsection 102AAK(6) did not apply in relation to any of the transfers mentioned in that paragraph; or\n\n(d) if paragraph (b) applies—subsection 102AAK(8) did not apply in relation to any of the transfers mentioned in that paragraph.\n\n(3) If:\n\n(a) apart from this subsection, an entity, being a natural person (other than a natural person in the capacity of a trustee), is not an attributable taxpayer in relation to the entity’s current year of income and in relation to a trust estate; and\n\n(b) apart from paragraph (1)(b), the entity would have been such an attributable taxpayer; and\n\n(c) apart from subparagraph 102AAH(2)(b)(i) or (3)(a)(ii), the trust estate was not a non‑resident family trust in relation to the natural person at some time after the entity’s current year of income when the natural person was alive and the trust estate was in existence;\n\nthe following provisions have effect:\n\n(d) subsection (1) has effect as if paragraph (1)(b) had applied;\n\n(e) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n(4) If:\n\n(a) apart from this subsection, an entity is not an attributable taxpayer in relation to the entity’s current year of income and in relation to a trust estate; and\n\n(b) apart from sub‑subparagraph (1)(a)(i)(E) or (F) or paragraph (1)(c), the entity would have been such an attributable taxpayer; and\n\n(c) the entity was in a position to control the trust estate at some time after the entity’s current year of income when the trust estate was in existence;\n\nthe following provisions have effect:\n\n(d) subsection (1) has effect as if sub‑subparagraph (1)(a)(i)(E) or (F) or paragraph (1)(c), as the case may be, had applied;\n\n(e) section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to this subsection.\n\n102AAU  Attributable income of a trust estate\n\n(1) Subject to this Subdivision, the attributable income of a non‑resident trust estate of a year of income is:\n\n(a) if the non‑resident trust estate is not a listed country trust estate in relation to the year of income—the net income of the non‑resident trust estate of the year of income; or\n\n(b) if the non‑resident trust estate is a listed country trust estate in relation to the year of income—the amount that would have been the net income of the non‑resident trust estate of the year of income if the exempt income of the trust estate included all income and profits of the trust estate, other than eligible designated concession income in relation to any listed country in relation to the year of income;\n\nreduced by:\n\n(c) so much (if any) of the amount covered by paragraph (a) or (b) as represents:\n\n(i) an amount:\n\n(A) that is or has been included in the assessable income of a beneficiary under section 97; or\n\n(B) in respect of which the trustee of the non‑resident trust estate is or has been assessed and liable to pay tax under section 98, 99 or 99A; or\n\n(C) on which trustee beneficiary non‑disclosure tax is payable under Division 6D; or\n\n(ii) an amount:\n\n(A) that is paid to a beneficiary, being a resident of a listed country, during the period of 13 months commencing at the beginning of the year of income; and\n\n(B) subject to tax in a listed country in a tax accounting period ending before the end of the year of income or commencing during the year of income; or\n\n(iii) an amount that consists of, or is attributable to, the franked part of a distribution, or the part of a distribution that has been franked with an exempting credit; or\n\n(v) if an amount is or has been included in the assessable income of any taxpayer under section 102AAZD because the taxpayer is an attributable taxpayer in relation to any year of income (in this subparagraph called the taxpayer’s year of income) and in relation to a trust estate other than the non‑resident trust estate—so much of an amount paid to the trustee of the non‑resident trust estate as represents the attributable income of that other trust estate of the taxpayer’s year of income; or\n\n(vii) if:\n\n(A) an attribution account payment is made to the trustee of the trust estate during the year of income; and\n\n(B) the making of the attribution account payment gives rise to an attribution debit, in relation to any taxpayer, for the entity making the payment;\n\nthe amount of the attribution debit; or\n\n(viii) an amount of income or profits of the trust estate:\n\n(A) that is subject to tax in any listed country in a tax accounting period ending before the end of the year of income or commencing during the year of income; and\n\n(B) that is not eligible designated concession income in relation to any listed country in relation to the year of income; and\n\n(d) so much of any foreign tax or Australian tax paid by the trustee or a beneficiary as is attributable to so much of the amount covered by paragraph (a) or (b), as the case requires, as remains after the reduction or reductions covered by paragraph (c).\n\n(2) The attributable income of a resident trust estate of a year of income is 0.\n\n(3) For the purposes of sub‑subparagraph (1)(c)(ii)(A), a beneficiary is to be taken to be a resident of a listed country if, and only if, the beneficiary is treated as a resident of the listed country for the purposes of the tax law of the listed country.\n\n(4) If the tax law of a listed country adopts some criterion other than treatment as a resident as the criterion for applying a worldwide source tax base to a beneficiary, then, subsection (3) has effect, in relation to that tax law, as if that criterion were the same as treatment as a resident of the listed country for the purposes of that tax law.","sortOrder":1000041},{"sectionNumber":"full-source-retrieval-0043","sectionType":"document_chunk","heading":"Document excerpt 43","content":"(5) For the purposes of this section, where, because of section 101, a beneficiary is presently entitled to a particular amount, the amount is taken to have been paid to the beneficiary.\n\n(6) For the purposes of this section, the extent to which an amount referred to in subparagraph (1)(c)(i) or (ii) (in this subsection called the taxed amount) represents the amount covered by paragraph (1)(b) (in this subsection called the listed country trust amount) is calculated using the formula:\n\n![Start formula Taxed amount times start fraction Listed country trust amount over Net income end fraction end formula](image.014.png)\n\nwhere:\n\nListed country trust amount means the number of dollars in the listed country trust amount.\n\nTaxed amount means the taxed amount.\n\nNet income means the number of dollars in the net income of the non‑resident trust estate concerned of the year of income concerned.\n\n102AAV  Double tax agreements to be disregarded\n\nIn calculating the attributable income of a trust estate, the International Tax Agreements Act 1953 is to be disregarded, except for the purpose of references in this Act to that Act.\n\n102AAW  Certain provisions to be disregarded in calculating attributable income\n\n(1) For the purpose of applying this Act in calculating the attributable income of a trust estate, sections 23AI, 128D, 456, 457, and 459A of this Act and section 802‑15 of the Income Tax Assessment Act 1997 are to be disregarded.\n\n(2) For the purpose of applying this Act in calculating the attributable income of a trust estate:\n\n(aa) Division 230 of the Income Tax Assessment Act 1997; and\n\n(a) Division 974 of the Income Tax Assessment Act 1997; and\n\n(b) the operation of any provision of this Act to the extent to which that operation depends on an expression whose meaning is given by a Division mentioned in paragraph (aa) or (a);\n\nare to be disregarded.\n\n102AAY  Modified application of trading stock provisions\n\nWhen applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of the trust estate, Division 70 of the Income Tax Assessment Act 1997 has effect as if the cost of the item of trading stock were the value to be taken into account at the start of the year of income.\n\n102AAZ  Modified application of depreciation provisions\n\n(1) For the purpose of determining the attributable income of a trust estate of a year of income (in this section called the attributable year of income), where property has been held by the trustee of the trust estate in a non‑attributable year of income before the attributable year of income, then, in relation to the application of a depreciation provision to the property, subsection (2) applies.\n\n(2) Such amount as the Commissioner considers appropriate to take account of the holding of the property as mentioned in subsection (1) is, under the depreciation provision:\n\n(a) an allowable deduction to the trustee of the trust estate; or\n\n(b) included in the assessable income of the trust estate;\n\nas the case requires, for the attributable year of income in substitution for any amount that would otherwise be so included or allowable.\n\n(4) For the purpose of exercising the Commissioner’s power under subsection (2) in relation to deductions allowable under Division 40 of the Income Tax Assessment Act 1997, the Commissioner must assume that the property was used by the trustee of the trust estate during any non‑attributable year of income wholly and exclusively for a taxable purpose (within the meaning of that Division).\n\n102AAZB  General modifications—CGT\n\nFor the purposes of applying this Act in calculating the attributable income of a trust estate, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT) apply as if:\n\n(a) sections 118‑12 (about assets used to produce non‑assessable income) and 855‑50 (about a trust becoming a resident trust) were disregarded; and\n\n(b) the trust estate were a resident trust for CGT purposes.\n\n102AAZBA  Modified application of CGT—effect of certain changes of residence\n\nFor the purposes of applying this Act in calculating the attributable income of a trust estate of a year of income (in this section called the attributable income year), where:\n\n(a) disregarding the assumption in paragraph 102AAZB(b), at any time (in this section called the residence‑change time) during the attributable income year or an earlier year of income, the trust estate ceased to be a resident trust for CGT purposes and became a non‑resident trust estate; and\n\n(b) the trust estate owned a CGT asset at the residence‑change time; and\n\n(c) a CGT event happens in relation to the asset during the attributable income year; and\n\n(d) section 104‑170 of the Income Tax Assessment Act 1997 (CGT event I2) applies to the asset in respect of the change of residence for the purposes of the application of this Act apart from this Subdivision;\n\nthen sections 411 to 414 (inclusive) apply to the asset as if:\n\n(e) those sections had effect for the purposes of calculating attributable income under this Subdivision instead of Part X; and\n\n(f) any reference in those sections to an eligible CFC were a reference to the trust estate; and\n\n(g) any reference in those sections to a commencing day asset were a reference to the asset; and\n\n(h) any reference in those sections relating to the eligible CFC’s commencing day or the day following the eligible CFC’s commencing day were a reference relating respectively to the residence‑change time or a time immediately after the residence‑change time; and\n\n(j) subsections 412(2) and (3), and paragraphs 414(3)(b) and (4)(b), referred only to the market value of the asset concerned.\n\n102AAZC  Modified application of loss provisions—pre‑1990‑91 losses\n\nIn calculating the attributable income of a trust estate of a year of income, no deductions are allowable under Division 36 of the Income Tax Assessment Act 1997 in respect of tax losses of a year of income earlier than the year of income commencing on 1 July 1990.\n\n102AAZD  Assessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services\n\n(1) Subject to section 102AAZE and to this section, if:\n\n(a) an entity is an attributable taxpayer:\n\n(i) in relation to the year of income of the taxpayer commencing on 1 July 1990 (which year of income is in this section called the taxpayer’s current year of income) or in relation to a subsequent year of income of the taxpayer (which year of income is in this section also called the taxpayer’s current year of income); and\n\n(ii) in relation to a trust estate; and\n\n(b) any part of a non‑resident year of income of the trust estate occurs during the taxpayer’s current year of income; and\n\n(c) the taxpayer is a resident at any time during the taxpayer’s current year of income;\n\nthe assessable income of the taxpayer of the taxpayer’s current year of income includes:\n\n(d) if the taxpayer is a resident at all times during the taxpayer’s current year of income—the whole of the notional attributable income of the trust estate of the taxpayer’s current year of income; or\n\n(e) if the taxpayer is a resident for only part of the taxpayer’s current year of income—the amount calculated using the formula:\n\n![Start formula Notional attributable income times start fraction Days in residency period over Days in year of income end fraction end formula](image.015.png)\n\nwhere:\n\nNotional attributable income means the notional attributable income of the trust estate of the taxpayer’s current year of income.\n\nDays in residency period means the number of whole days during the taxpayer’s current year of income when the taxpayer was a resident.\n\nDays in year of income means the number of whole days in the taxpayer’s current year of income.\n\n(2) A reference in subsection (1) to the notional attributable income of the trust estate of the taxpayer’s current year of income is a reference to:\n\n(a) if there is a year of income of the trust estate that begins at the same time as the beginning of the taxpayer’s current year of income—the attributable income of the trust estate of that year of income; or\n\n(b) in any other case—the amount obtained:\n\n(i) by calculating, for each year of income of the trust estate (in this paragraph called the trust’s year of income) any part of which occurs during the taxpayer’s current year of income, the amount calculated using the formula:\n\n![Start formula Attributable income times start fraction Days in overlapping period over Days in trust’s year of income end fraction end formula](image.016.png)\n\nwhere:\n\nAttributable income means the attributable income of the trust estate of the trust’s year of income.\n\nDays in overlapping period means the number of whole days in the trust’s year of income that occurred during the taxpayer’s current year of income.\n\nDays in trust’s year of income means the number of whole days in the trust’s year of income; and\n\n(ii) by adding together the amounts calculated under subparagraph (i).\n\n(3) If:\n\n(a) an amount is included in the assessable income of an attributable taxpayer of the taxpayer’s current year of income under subsection (1); and\n\n(b) before or during the taxpayer’s current year of income, one or more entities other than the taxpayer have transferred property or services to the trust estate concerned; and\n\n(c) the taxpayer gives to the Commissioner, in accordance with the approved form, such information in connection with the operation of this Division as is required by the form to be set out;\n\nthe Commissioner may reduce the amount included in the taxpayer’s assessable income of the taxpayer’s current year of income under subsection (1) having regard to:\n\n(d) the extent to which the attributable income of the trust estate is, in the opinion of the Commissioner, attributable to property or services transferred by the taxpayer; and\n\n(e) such other matters as the Commissioner considers relevant.\n\n(4) If:\n\n(a) apart from this subsection, an amount would be included in the assessable income of an attributable taxpayer of the taxpayer’s current year of income under subsection (1) in relation to a particular trust estate; and\n\n(b) the taxpayer could not reasonably be expected to obtain the information required to determine the attributable income of the trust estate;\n\nthe following provisions have effect:\n\n(c) no amount is to be included in the assessable income of the taxpayer of the taxpayer’s current year of income under subsection (1) in relation to the trust estate;\n\n(d) the assessable income of the taxpayer of the taxpayer’s current year of income includes the amount obtained:\n\n(i) if any of the transfers that were taken into account in determining whether the taxpayer was an attributable taxpayer in relation to the taxpayer’s current year of income and in relation to the trust estate were made by the taxpayer to the trust estate after the IP time—by calculating, for each such transfer, the amount calculated using the formula:\n\n![Start formula Adjusted value of the transfer times open bracket Weighted statutory interest rate plus 5% close bracket end formula](image.017.png)\n\nwhere:\n\nAdjusted value of the transfer has the meaning given by subsection (5).\n\nWeighted statutory interest rate means the weighted statutory interest rate in relation to the taxpayer’s current year of income; and\n\n(ii) if any of the transfers that were taken into account in determining whether the taxpayer was an attributable taxpayer in relation to the taxpayer’s current year of income and in relation to the trust estate were made by the taxpayer to the trust estate before the IP time—the amount calculated using the formula:\n\n![Start formula Adjusted net worth of trust estate times open bracket Weighted statutory interest rate plus 5% close bracket end formula](image.018.png)\n\nwhere:\n\nAdjusted net worth of trust estate has the meaning given by subsection (6).\n\nWeighted statutory interest rate means the weighted statutory interest rate in relation to the taxpayer’s current year of income; and\n\n(iii) by adding together the amounts calculated under subparagraphs (i) and (ii).\n\n(5) For the purposes of subsection (4), the adjusted value of a transfer of property or services made by an attributable taxpayer to a trust estate is:\n\n(a) if the transfer occurred during the taxpayer’s current year of income—the amount calculated using the formula:\n\n![Start formula Market value of transferred property or services times start fraction Days after transfer over Days in year of income end fraction end formula](image.019.png)\n\nwhere:\n\nMarket value of transferred property or services means the market value, immediately before the transfer, of the property or services.\n\nDays after transfer means the number of whole days in the taxpayer’s current year of income after the day on which the transfer took place.\n\nDays in year of income means the number of whole days in the taxpayer’s current year of income; or\n\n(b) if the transfer of the property or services occurred before the taxpayer’s current year of income—the sum of:\n\n(i) the market value, immediately before the transfer, of the property or services; and\n\n(ii) the amount obtained:\n\n(A) by calculating, in respect of the transfer, for each year of income preceding the taxpayer’s current year of income, the amount ascertained using the formula in subparagraph (4)(d)(i); and\n\n(B) by adding together the amounts calculated under sub‑subparagraph (A).\n\n(6) For the purposes of the application of subsection (4) in relation to a transfer of property or services made by an attributable taxpayer to a trust estate, the adjusted net worth of the trust estate is:\n\n(a) if the taxpayer’s current year of income is the year of income commencing on 1 July 1990—the 1 July 1990 net worth of the trust estate; or\n\n(b) in any other case—the sum of:\n\n(i) the 1 July 1990 net worth of the trust estate; and\n\n(ii) the amount obtained:\n\n(A) by calculating, in respect of the transfer, for each year of income preceding the taxpayer’s current year of income, the amount ascertained using the formula in subparagraph (4)(d)(ii); and\n\n(B) by adding together the amounts calculated under sub‑subparagraph (A).\n\n(7) If:\n\n(a) subsection (4) applies to an attributable taxpayer in relation to the taxpayer’s current year of income; and\n\n(b) any of the transfers taken into account in determining whether the taxpayer was an attributable taxpayer in relation to the taxpayer’s year of income and in relation to the trust estate concerned were made before the IP time; and\n\n(c) the taxpayer gives to the Commissioner, in accordance with the approved form, such information in connection with the operation of this Division as is required by the form to be set out;\n\nthe Commissioner may reduce the amount included in the taxpayer’s assessable income of the taxpayer’s current year of income under subsection (4) having regard to:\n\n(d) the extent to which the market value, as at the beginning of the taxpayer’s current year of income, of the assets of the trust estate is, in the opinion of the Commissioner, attributable to property or services transferred by the taxpayer before the IP time; and\n\n(e) such other matters as the Commissioner considers relevant.\n\n102AAZE  Accruals system of taxation does not apply to small amounts\n\nAn amount is not to be included in the assessable income of the taxpayer of a year of income under section 102AAZD in relation to a trust estate that is a listed country trust estate in relation to the year of income if the amount obtained by:\n\n(a) identifying each trust estate in relation to which the taxpayer is an attributable taxpayer in relation to the year of income; and\n\n(b) calculating the attributable income of the year of income of each such trust estate; and\n\n(c) adding the amounts calculated under paragraph (b);\n\ndoes not exceed the lesser of the following amounts:\n\n(d) $20,000;\n\n(e) 10% of the total of the net incomes of each of those trust estates of the year of income.\n\n102AAZF  Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution\n\nSection 460 applies to an amount included in the assessable income of a taxpayer under section 102AAZD in a corresponding way to the way in which section 460 applies to an amount included in the assessable income of a taxpayer under section 456 or 457 and, for the purposes of that corresponding application, references in sections 336, 338 and 460 to a Part X Australian resident are to be read as references to a resident within the meaning of section 6.\n\n102AAZG  Keeping of records\n\n(1) Subject to this section, a person who is an attributable taxpayer:\n\n(a) in relation to the year of income of the person commencing on 1 July 1990 or in relation to a subsequent year of income of the person; and\n\n(b) in relation to a particular trust estate;\n\nmust keep records (in Australia or elsewhere) containing particulars of:\n\n(c) the acts, transactions and other circumstances that resulted in the person being an attributable taxpayer in relation to that year of income and in relation to that trust estate; and\n\n(d) except where subsection 102AAZD(4) applies in relation to the trust estate and in relation to the year of income of the person—the basis of the calculation of the attributable income of the trust estate for each year of income of the trust estate any part of which occurred during the year of income of the person; and\n\n(e) the basis of the calculation of the amounts (including nil amounts) included in the assessable income of the person of the year of income of the person under section 102AAZD.\n\nNote: There is an administrative penalty if you do not keep or retain records as required by this section: see section 288‑25 in Schedule 1 to the Taxation Administration Act 1953.\n\n(2) A person who contravenes subsection(1) commits an offence punishable on conviction by a fine not exceeding 30 penalty units.","sortOrder":1000042},{"sectionNumber":"full-source-retrieval-0044","sectionType":"document_chunk","heading":"Document excerpt 44","content":"Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.\n\n(2A) An offence under subsection (2) is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.\n\n(3) A person who is required by this section to keep records must:\n\n(a) keep the records in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and\n\n(b) keep the records so as to enable the person’s liability under this Act to be readily ascertained.\n\n(4) This section does not require a person to keep a record of information if:\n\n(a) the person did not know, and had no reasonable grounds to suspect, that the person was an attributable taxpayer of the kind mentioned in subsection (1); or\n\n(b) the person did not know that, and made all reasonable efforts to ascertain whether, the person was an attributable taxpayer as mentioned in subsection (1); or\n\n(c) the person did not know, and made all reasonable efforts to obtain, the information.\n\nNote: A defendant bears an evidential burden in relation to the matters in subsection (4), see subsection 13.3(3) of the Criminal Code.\n\n(5) Subject to subsections (6) and (7), the following provisions apply to a partnership as if the partnership were a person:\n\n(a) subsections (1) to (4) (inclusive) of this section;\n\n(b) subsections 262A(4) and (5), in so far as those subsections apply to records kept under or for the purposes of this section;\n\n(c) Part III of the Taxation Administration Act 1953, in so far as that Part of that Act relates to the provisions covered by paragraph (a) or (b) of this subsection.\n\n(6) Where, by virtue of subsection (5), an offence is taken to have been committed by a partnership, that offence is taken to have been committed by each of the partners.\n\n(7) In a prosecution of a person for an offence by virtue of subsection (6), it is a defence if the person proves that the person:\n\n(a) did not aid, abet, counsel or procure the act or omission by virtue of which the offence was taken to have been committed; and\n\n(b) was not in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, an act or omission by virtue of which the offence is taken to have been committed.\n\nNote 1: The defence under subsection (7) does not apply in relation to offences under Part 2.4 of the Criminal Code.\n\nNote 2: A defendant bears a legal burden in relation to the matters in subsection (7), see section 13.4 of the Criminal Code.\n\nDivision 6AA—Income of certain children\n\n102AA  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\nagreement means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\noccupation includes any office, employment, trade, business, profession, vocation or calling, but does not include a course of education at a school, college, university or similar institution.\n\nproperty means property whether real or personal, and includes money.\n\n(2) In this Division:\n\n(a) a reference to the derivation by a person of assessable income shall be read as including a reference to the inclusion of an amount in the assessable income of the person; and\n\n(b) a reference to the derivation by a person of any assessable income from particular property shall be read as including a reference to the inclusion of an amount in the assessable income of the person in respect of that property.\n\n(3) In this Division, a reference to the share of a beneficiary of the net income of a trust estate shall be read as a reference to a share of the beneficiary of the net income of a trust estate:\n\n(a) that is included in the assessable income of the beneficiary under section 97 or 100; or\n\n(b) in respect of which the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98.\n\n(4) A reference in this Division to income that is derived from particular property shall be read as including a reference to income that is derived from property that, in the opinion of the Commissioner, represents that property.\n\n102AB  Application of Division\n\nThis Division applies in relation to the year of income that commenced on 1 July 1979 and in relation to all subsequent years of income.\n\n102AC  Persons to whom Division applies\n\n(1) For the purposes of this Division, a person is a prescribed person in relation to a year of income if:\n\n(a) the person is less than 18 years of age on the last day of the year of income; and\n\n(b) the person is not an excepted person in relation to the year of income.\n\n(2) Subject to this section, a person (in this subsection referred to as the minor) is an excepted person in relation to a year of income for the purposes of this Division if, and only if:\n\n(b) the minor was engaged in a full‑time occupation on the last day of the year of income;\n\n(c) the minor is a person:\n\n(i) in respect of whom a carer allowance under the Social Security Act 1991 was payable in respect of a period that included the last day of the year of income; or\n\n(ii) to whom a disability support pension under that Act was payable in respect of a period that included the last day of the year of income; or\n\n(d) the Commissioner:\n\n(i) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is:\n\n(A) a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991; or\n\n(B) a person who has a continuing inability to work within the meaning of Part 2.3 of the  Social Security Act 1991 or is permanently blind; and\n\n(ii) is satisfied that, on the last day of the year of income, the minor was a person of the kind mentioned in sub‑subparagraph (i)(A) or (B);\n\n(da) the minor is the principal beneficiary of a special disability trust;\n\n(e) a double orphan pension was payable in respect of the minor under the Social Security Act 1991 in respect of a period that included the last day of the year of income;\n\n(f) but for section 1003 of the Social Security Act 1991, a double orphan pension would have been payable in respect of the minor under that Act in respect of a period that included the last day of the year of income; or\n\n(g) the Commissioner:\n\n(i) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is a person who, by reason of a permanent disability, is unlikely to be able to engage in a full‑time occupation; and\n\n(ii) is satisfied that, on the last day of the year of income, the minor was such a person.\n\n(3) Where:\n\n(a) a double orphan pension was payable, or would, but for section 1003 of the Social Security Act 1991, have been payable, in respect of a person under that Act in respect of a period during a year of income, being a period that included the last day of the year of income; and\n\n(b) during the whole of the period referred to in paragraph (a), the person was wholly or substantially dependent for support on a relative or relatives of the person;\n\nthat person shall not be taken by virtue of paragraph (2)(e) or (f) to be an excepted person in relation to the year of income.\n\n(4) Where:\n\n(a) the Commissioner is of the opinion that, during a period during a year of income, being a period that included the last day of the year of income, a person was a person who, by reason of a permanent disability, was unlikely to be able to engage in a full‑time occupation; and\n\n(b) during the whole of the period referred to in paragraph (a), the person was wholly or substantially dependent for support on a relative or relatives of the person;\n\nthat person shall not be taken, by virtue of paragraph (2)(g), to be an excepted person in relation to the year of income.\n\n(5) For the purposes of subsections (3) and (4), a person shall be taken to have been wholly or substantially dependent for support on a relative or relatives of the person during any period during which that person resided with a relative or relatives of the person unless the contrary is established to the satisfaction of the Commissioner.\n\n(6) Subject to this section, a person shall be taken, for the purposes of subsection (2), to have been engaged in a full‑time occupation on the last day of a year of income if, and only if:\n\n(a) the person was, on the last day of the year of income, a person engaged in a full‑time occupation; or\n\n(b) in a case to which paragraph (a) does not apply—the person was engaged in a full‑time occupation during the year of income for a period of not less than 3 months or for periods the aggregate of which is not less than 3 months.\n\n(7) Where:\n\n(a) during a period during a year of income, a person was engaged in a full‑time occupation; and\n\n(b) during the year of income and after the expiration of that period, the person was engaged in a course of full‑time education at a school, college, university or similar institution;\n\nno regard shall be had to that period in determining whether the person is to be taken, by virtue of paragraph (6)(b), to have been engaged in a full‑time occupation on the last day of the year of income.\n\n(8) A person shall not be taken to have been engaged in a full‑time occupation on the last day of a year of income unless the Commissioner is satisfied that, on that day:\n\n(a) the person had the intention of engaging in a full‑time occupation or full‑time occupations during the whole or a substantial part of the next succeeding year of income; and\n\n(b) the person did not have the intention of engaging in a course of full‑time education at a school, college, university or similar institution at any time during the next succeeding year of income.\n\n102AD  Taxable income to which Division applies\n\nThe eligible taxable income of a year of income of a person who is a prescribed person in relation to the year of income is the amount (if any) remaining after deducting from the eligible assessable income of the person of the year of income:\n\n(a) any deductions allowable to the person in relation to the year of income that relate exclusively to that eligible assessable income;\n\n(b) so much of any other deductions (other than apportionable deductions) allowable to the person in relation to the year of income as, in the opinion of the Commissioner, may appropriately be related to that eligible assessable income; and\n\n(c) the amount that bears to the apportionable deductions allowable to the person in relation to the year of income the same proportion as the amount that, but for this paragraph, would be the eligible taxable income of the person of the year of income bears to the sum of:\n\n(i) the taxable income of the person of the year of income; and\n\n(ii) the apportionable deductions allowable to the person in relation to the year of income.\n\n102AE  Eligible assessable income\n\n(1) For the purposes of this Division, the eligible assessable income of a year of income of a person is so much of the assessable income of the person of the year of income as is not excepted assessable income.\n\n(2) Subject to this section, an amount included in the assessable income of a person (in this subsection referred to as the minor) is excepted assessable income to the extent to which the amount:\n\n(a) is employment income or business income;\n\n(b) is derived by the minor from the investment of any property transferred to the minor:\n\n(i) by way of, or in satisfaction of a claim for, damages in respect of:\n\n(A) loss by the minor of parental support; or\n\n(B) personal injury to the minor, any disease suffered by the minor or any impairment of the minor’s physical or mental condition;\n\n(ii) pursuant to any law relating to worker’s compensation;\n\n(iii) pursuant to any law relating to the payment of compensation in respect of criminal injuries;\n\n(iv) directly as the result of the death of another person and under the terms of a life assurance policy;\n\n(v) directly as the result of the death of another person and out of a provident, benefit, superannuation or retirement fund;\n\n(vi) directly as the result of the death of another person by an employer of the deceased person;\n\n(vii) out of a public fund established and maintained exclusively for the relief of persons in necessitous circumstances; or\n\n(viii) as the result of a family breakdown (see section 102AGA);\n\n(c) is derived by the minor from the investment of any property:\n\n(i) that devolved upon the minor from the estate of a deceased person;\n\n(ii) that was transferred to the minor by another person out of property that devolved upon that other person from the estate of a deceased person and was so transferred within 3 years after the date of the death of the deceased person; or\n\n(iii) that was acquired by the minor as the beneficial owner of a verifiable prize in a legally authorized and conducted lottery;\n\n(d) not being business income, is included in the assessable income of the minor under section 92;\n\n(e) is included in the assessable income of the minor under section 97 or 100; or\n\n(f) is derived by the minor from the investment of any property that, in the opinion of the Commissioner, represents accumulations of:\n\n(i) excepted assessable income derived by the minor during a year of income in relation to which this Division applies;\n\n(ii) assessable income derived by the minor during a year of income in relation to which this Division does not apply, being assessable income that would, in the opinion of the Commissioner, have been excepted assessable income if this Division were applicable in relation to the year of income during which the assessable income was derived; or\n\n(iii) exempt income derived by the minor to which subparagraph (i) or (ii) would, in the opinion of the Commissioner, apply if that exempt income had been assessable income.\n\n(3) A reference in paragraph (2)(d) to an amount (not being business income) that is included in the assessable income of a person under section 92 in respect of the individual interest of the person in the net income of a partnership shall be read as a reference to so much of an amount so included in that assessable income as, in the opinion of the Commissioner, is attributable to so much of the assessable income of the partnership as would, in the opinion of the Commissioner, have been excepted assessable income if the assessable income of the partnership had been derived by that person.\n\n(4) A reference in paragraph (2)(e) to an amount included in the assessable income of a person under section 97 or 100 shall be read as not including a reference to any part to which this Division applies of an amount included in that assessable income under either of those sections.\n\n(5) Subject to subsections (6) and (7), a reference in paragraph (2)(a), in relation to a person (in this subsection referred to as the minor), to business income shall, in relation to any business income derived by the minor during a year of income from the carrying on of a business, be read as a reference to:\n\n(a) in a case where during the year of income, the business was carried on by the minor either alone or in partnership with another person who was, or other persons each of whom was, under the age of 18 years on the first day of the year of income—so much of that business income as the Commissioner considers fair and reasonable having regard to:\n\n(i) the extent to which, during the year of income, the minor had the real and effective conduct and control of the business and participated in the operations and activities of the business;\n\n(ii) the extent to which the minor had the real and effective control over the disposal of income derived by the minor from the business during the year of income;\n\n(iii) the extent to which the capital of the business consisted of property contributed by the minor, being property the income from which would, in the opinion of the Commissioner, be excepted assessable income in relation to the minor; and\n\n(iv) such other matters (if any) as the Commissioner thinks fit; and\n\n(b) in any other case—the amount that, in the opinion of the Commissioner, is reasonable remuneration by way of salary or wages for any services rendered by the minor during the year of income in the production of assessable income of the business increased by such amount (if any) as, in the opinion of the Commissioner, is reasonable, having regard to the extent to which the capital of the business consisted of property contributed by the minor the income from which would, in the opinion of the Commissioner, be excepted assessable income in relation to the minor.\n\n(6) Subject to subsection (7), if any 2 or more parties to:\n\n(a) the derivation of the excepted assessable income mentioned in subsection (2); or\n\n(b) any act or transaction directly or indirectly connected with the derivation of that excepted assessable income;\n\nwere not dealing with each other at arm’s length in relation to the derivation, or in relation to the act or transaction, the excepted assessable income is only so much (if any) of that income as would have been derived if they had been dealing with each other at arm’s length in relation to the derivation, or in relation to the act or transaction.\n\n(7) Subsection (2) does not apply in relation to assessable income derived by a person directly or indirectly under or as a result of an agreement that was entered into or carried out by any person (whether before or after the commencement of this subsection) for the purpose, or for purposes that included the purpose, of securing that that assessable income would not be eligible assessable income.\n\n(8) In determining whether subsection (7) applies in relation to an agreement, no regard shall be had to a purpose that is a merely incidental purpose.\n\n(9) Where:","sortOrder":1000043},{"sectionNumber":"full-source-retrieval-0045","sectionType":"document_chunk","heading":"Document excerpt 45","content":"(a) any assessable income is derived by a person from the investment of any property transferred to the person by way of, or in satisfaction of a claim for, damages in respect of:\n\n(i) loss by the person of parental support; or\n\n(ii) personal injury to the person, any disease suffered by the person or any impairment of the person’s physical or mental condition; and\n\n(b) that property was transferred to that person otherwise than in pursuance of an order of a court;\n\nparagraph (2)(b) applies only to so much (if any) of that assessable income as the Commissioner considers fair and reasonable.\n\n(10) Where:\n\n(a) the assessable income of a person (in this subsection referred to as the minor) of a year of income:\n\n(i) includes an amount derived by the minor from property that:\n\n(A) was transferred to the minor by another person out of property that devolved upon that other person from the estate of a deceased person; and\n\n(B) was so transferred within 3 years after the date of the death of the deceased person;\n\nbut does not include any amount that:\n\n(C) was derived by the minor from property that devolved upon the minor from the estate of that deceased person; or\n\n(D) is included in the assessable income of the minor under section 97 or 100 in respect of the share of the minor of the net income of a trust estate that resulted from a will or codicil of that deceased person, an order of a court that varied or modified the provisions of a will or codicil of that deceased person, a partial intestacy of that deceased person or an order of a court that varied or modified the application, in relation to the estate of that deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate; or\n\n(ii) includes an amount derived by the minor from property that:\n\n(A) was transferred to the minor by another person out of property that devolved upon that other person from the estate of a deceased person; and\n\n(B) was so transferred within 3 years after the date of death of the deceased person;\n\nand also includes an amount or amounts to which sub‑subparagraph (i)(C) or (D) applies; and\n\n(b) the amount to which subparagraph (a)(i) applies or the sum of the amounts to which subparagraph (a)(ii) applies, as the case may be, exceeds the amount that, in the opinion of the Commissioner, would have been included in the assessable income of the minor of the year of income in respect of an amount or amounts derived by the minor from property that, in the opinion of the Commissioner, would have devolved upon or for the benefit of the minor from the estate of that deceased person if that deceased person had died intestate;\n\nthe amount of the assessable income of the minor of the year of income that would, apart from this subsection, have been excepted assessable income by virtue of subparagraph (2)(c)(ii) shall be reduced by the amount of that excess.\n\n102AF  Employment income and business income\n\n(1) A reference in this Division to employment income is to be read as a reference to:\n\n(a) work and income support related withholding payments and benefits; and\n\n(b) payments made for services rendered or to be rendered; and\n\n(c) compensation, sickness or accident payments:\n\n(i) made to an individual because of the individual’s or another’s incapacity for work; and\n\n(ii) calculated at a periodical rate.\n\n(3) In this Division, a reference, in relation to a person in relation to a year of income, to business income shall be read as a reference to income derived by the person during the year of income from carrying on of a business either alone or together with another person or other persons.\n\n102AG  Trust income to which Division applies\n\n(1) Where a beneficiary of a trust estate is a prescribed person in relation to a year of income, this Division applies to so much of the share of the beneficiary of the net income of the trust estate of the year of income as, in the opinion of the Commissioner, is attributable to assessable income of the trust estate that is not, in relation to that beneficiary, excepted trust income.\n\n(2) Subject to this section, an amount included in the assessable income of a trust estate is excepted trust income in relation to a beneficiary of the trust estate to the extent to which the amount:\n\n(a) is assessable income, of a kind covered by subsection (2AA), of a trust estate that resulted from:\n\n(i) a will, codicil or an order of a court that varied or modified the provisions of a will or codicil; or\n\n(ii) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate;\n\n(b) is employment income;\n\n(c) is derived by the trustee of the trust estate from the investment of any property transferred to the trustee for the benefit of the beneficiary:\n\n(i) by way of, or in satisfaction of a claim for, damages in respect of:\n\n(A) loss by the beneficiary of parental support; or\n\n(B) personal injury to the beneficiary, any disease suffered by the beneficiary or any impairment of the beneficiary’s physical or mental condition;\n\n(ii) pursuant to any law relating to worker’s compensation;\n\n(iii) pursuant to any law relating to the payment of compensation in respect of criminal injuries;\n\n(iv) directly as the result of the death of a person and under the terms of a policy of life insurance;\n\n(v) directly as the result of the death of a person and out of a provident, benefit, superannuation or retirement fund;\n\n(vi) directly as the result of the death of a person by an employer of the deceased person;\n\n(vii) out of a public fund established and maintained exclusively for the relief of persons in necessitous circumstances; or\n\n(viii) as the result of a family breakdown (see section 102AGA);\n\n(d) is derived by the trustee of the trust estate from the investment of any property:\n\n(i) that devolved for the benefit of the beneficiary from the estate of a deceased person;\n\n(ii) that was transferred to the trustee for the benefit of the beneficiary by another person out of property that devolved upon that other person from the estate of a deceased person and was so transferred within 3 years after the date of the death of the deceased person; or\n\n(iii) being a verifiable prize in a legally authorized and conducted lottery and being a prize of which the beneficiary is the beneficial owner; or\n\n(e) is derived by the trustee of the trust estate from the investment of any property that, in the opinion of the Commissioner, represents accumulations of:\n\n(i) assessable income derived by the trustee during a year of income in relation to which this Division applies, being assessable income that, in relation to the beneficiary, is excepted trust income;\n\n(ii) assessable income derived by the trustee during a year of income in relation to which this Division does not apply, being assessable income that would, in the opinion of the Commissioner, have been excepted trust income in relation to the beneficiary if this Division were applicable in relation to the year of income during which the assessable income was derived; or\n\n(iii) exempt income derived by the trustee to which subparagraph (i) or (ii) would, in the opinion of the Commissioner, apply if that exempt income had been assessable income.\n\n(2AA) For the purposes of paragraph (2)(a), assessable income of a trust estate is of a kind covered by this subsection if:\n\n(a) the assessable income is derived by the trustee of the trust estate from property; and\n\n(b) the property satisfies any of the following requirements:\n\n(i) the property was transferred to the trustee of the trust estate to benefit the beneficiary from the estate of the deceased person concerned, as a result of the will, codicil, intestacy or order of a court mentioned in paragraph (2)(a);\n\n(ii) the property represents accumulations of income or capital from property that satisfies the requirement in subparagraph (i);\n\n(iii) the property represents accumulations of income or capital from property that satisfies the requirement in subparagraph (ii), or (because of a previous operation of this subparagraph) the requirement in this subparagraph.\n\n(2A) Paragraph (2)(c) or subparagraph (2)(d)(ii) does not apply unless the beneficiary of the trust concerned will, under the terms of the trust, acquire the trust property (other than as a trustee) when the trust ends.\n\n(3) Subject to subsection (4), if any 2 or more parties to:\n\n(a) the derivation of the excepted trust income mentioned in subsection (2); or\n\n(b) any act or transaction directly or indirectly connected with the derivation of that excepted trust income;\n\nwere not dealing with each other at arm’s length in relation to the derivation, or in relation to the act or transaction, the excepted trust income is only so much (if any) of that income as would have been derived if they had been dealing with each other at arm’s length in relation to the derivation, or in relation to the act or transaction.\n\n(4) Subsection (2) does not apply in relation to assessable income derived by a trustee directly or indirectly under or as a result of an agreement that was entered into or carried out by any person (whether before or after the commencement of this subsection) for the purpose, or for purposes that included the purpose, of securing that that assessable income would be excepted trust income.\n\n(5) In determining whether subsection (4) applies in relation to an agreement, no regard shall be had to a purpose that is a merely incidental purpose.\n\n(5A) In the application of paragraph 102AF(1)(b) for the purposes of the application of paragraph (2)(b) of this section in relation to a beneficiary of a trust estate, payments made for services rendered or to be rendered shall not be taken to be employment income unless the services are rendered or to be rendered by the beneficiary.\n\n(6) Where:\n\n(a) any assessable income is derived by a trustee of a trust estate from the investment of any property transferred to the trustee for the benefit of a beneficiary of the trust estate by way of, or in satisfaction of a claim for, damages in respect of:\n\n(i) loss by the beneficiary of parental support; or\n\n(ii) personal injury to the beneficiary, any disease suffered by the beneficiary or any impairment of the beneficiary’s physical or mental condition; and\n\n(b) that property was transferred to the trustee otherwise than in pursuance of an order of a court;\n\nparagraph (2)(c) applies only to so much (if any) of that assessable income as the Commissioner considers fair and reasonable.\n\n(7) Where:\n\n(a) any assessable income is derived by a trustee of a trust estate from the investment of any property transferred to the trustee for the benefit of a beneficiary of the trust estate by another person out of property that devolved upon that other person from the estate of a deceased person and was so transferred to the trustee within 3 years after the date of death of the deceased person; and\n\n(b) the amount referred to in paragraph (a) or, if the assessable income of that beneficiary of the year of income includes any amount that:\n\n(i) was derived by the beneficiary from property that was transferred to the beneficiary by another person out of property that devolved upon that other person from the estate of that deceased person and was so transferred within 3 years after the date of death of that deceased person;\n\n(ii) was derived by the beneficiary from property that devolved upon the beneficiary from the estate of that deceased person; or\n\n(iii) is included in that assessable income under section 97 or 100 in respect of the share of that beneficiary of the net income of another trust estate, being a trust estate that resulted from a will or codicil of that deceased person, an order of a court that varied or modified the provisions of a will or codicil of that deceased person, a partial intestacy of that deceased person or an order of a court that varied or modified the application, in relation to the estate of that deceased person, of the provisions of the law relating to the distribution of estates of persons who die intestate;\n\nthe sum of the amount referred to in paragraph (a) and the amount or amounts applicable by virtue of subparagraphs (i), (ii) and (iii) of this paragraph, exceeds the amount that, in the opinion of the Commissioner, would have been included in the assessable income of the beneficiary of the year of income in respect of an amount or amounts derived by the beneficiary from property that, in the opinion of the Commissioner, would have devolved directly upon that beneficiary if that deceased person had died intestate;\n\nthe amount of the assessable income of the trust estate that would, apart from this subsection, have been excepted trust income in relation to that beneficiary by virtue of subparagraph (2)(d)(ii) shall be reduced by the amount of that excess.\n\n(8) For the purposes of this section, where:\n\n(a) any property is transferred to the trustee of a trust estate; and\n\n(b) the trustee has a discretion to pay or apply the income derived from that property to or for the benefit of specified beneficiaries or beneficiaries included in a specified class of beneficiaries;\n\nthat property shall be taken to have been transferred to the trustee for the benefit of each of those specified beneficiaries or for each of the beneficiaries in that specified class of beneficiaries, as the case may be.\n\n102AGA  Transfer of property as the result of a family breakdown\n\n(1) For the purposes of subparagraph 102AE(2)(b)(viii) or 102AG(2)(c)(viii), the transfer of property (the subject property) by a person (the transferor):\n\n(a) to the minor mentioned in subparagraph 102AE(2)(b)(viii); or\n\n(b) to the trustee mentioned in subparagraph 102AG(2)(c)(viii) for the benefit of the beneficiary mentioned in that subparagraph;\n\nis as the result of a family breakdown if the requirements of subsection (2) or (3) of this section are met.\n\n(2) The transfer will be as the result of a family breakdown if:\n\n(a) a person ceases to live with another person as the spouse of that person; and\n\n(b) at least one of the persons:\n\n(i) is the parent; or\n\n(iv) has legal custody or guardianship;\n\nof the minor or the beneficiary; and\n\n(c) an order, determination or assessment of a court, person or body (whether or not in Australia) is made wholly or partly because the person has ceased to live as the spouse of the other person; and\n\n(d) the effect of the order, determination or assessment is that a person (whether one of the spouses, the transferor or any other person) becomes subject to a legal obligation to maintain, transfer property to, or do some other thing for the benefit of, the minor or beneficiary or one of the spouses; and\n\n(e) the transferor transfers the subject property to the minor, or to the trustee for the benefit of the beneficiary, in giving effect to the legal obligation (including in discharging the legal obligation if it falls on someone else, and whether or not the legal obligation could have been given effect in some other way).\n\n(3) The transfer will also be as a result of a family breakdown if:\n\n(a) when the minor or beneficiary is born, his or her parents are not living together as spouses; and\n\n(b) an order, determination or assessment of a court, person or body (whether or not in Australia) is made wholly or partly because the parents are not living together as mentioned in paragraph (a); and\n\n(c) the effect of the order, determination or assessment is that a person (whether one of the parents, the transferor or any other person) becomes subject to a legal obligation to maintain, transfer property to, or do some other thing for the benefit of, the minor or beneficiary or one of the parents of the minor or beneficiary; and\n\n(d) the transferor transfers the subject property to the minor, or to the trustee for the benefit of the beneficiary, in giving effect to the legal obligation (including in discharging the legal obligation if it falls on someone else, and whether or not the legal obligation could have been given effect in some other way).\n\nDivision 6A—Alienation of income\n\n102A  Interpretation\n\n(1) In this Division:\n\nassociate, in relation to a person, means any person who is an associate, within the meaning of section 318, in relation to the person.\n\ninterest, in relation to property, means any legal or equitable estate or interest in the property.\n\nproperty means any property whether real or personal.\n\nright to receive income from property means a right to have income that will or may be derived from property paid to, or applied or accumulated for the benefit of, the person owning the right.\n\nthe prescribed date, in relation to a person who transfers to another person a right to receive income from property, means the day preceding the seventh anniversary of the date on which income from the property is first paid to, or applied or accumulated for the benefit of, the other person by reason of the transfer.\n\n(2) A reference in this Division to a transfer of an interest in property or of a right to receive income from property shall be read as a reference to any such transfer, whether made for valuable consideration or not.\n\n(3) For the purposes of this Division, any income that will or may be derived by a trust estate from a business carried on by the trustee of the trust estate shall be deemed to be income that will or may be derived from property.\n\n(4) For the purposes of this Division:\n\n(a) where a person:\n\n(i) declares that he or she holds a right to receive income from property upon trust for another person; or\n\n(ii) transfers such a right to a trustee to be held upon trust for another person;\n\nthe right shall be deemed to be transferred to that other person; and\n\n(b) where a person:","sortOrder":1000044},{"sectionNumber":"full-source-retrieval-0046","sectionType":"document_chunk","heading":"Document excerpt 46","content":"(i) declares that he or she holds a right to receive income from property upon trust for 2 or more other persons in succession; or\n\n(ii) transfers such a right to, or to a trustee to be held upon trust for, 2 or more other persons in succession;\n\nthe right shall be deemed to be separately transferred to each of those other persons for the respective periods for which the right is held upon trust for, or transferred to, those persons.\n\n(5) Where an interest in property or a right to receive income from property is transferred by 2 or more persons jointly, each of those persons shall, for the purposes of this Division, be deemed to have transferred an interest in that property or a right to receive income from that property, as the case may be.\n\n(6) In this Division, unless the contrary intention appears:\n\n(a) a reference to the arm’s length consideration in respect of a transfer of a right to receive income from property is a reference to the consideration that might reasonably be expected to have been received or receivable in respect of the transfer if the right had been transferred under an agreement between independent parties dealing at arm’s length with each other in relation to the agreement and transfer; and\n\n(b) a reference to the amount of consideration is, in a case where consideration is paid or given otherwise than in cash, a reference to the money value of the consideration.\n\n102B  Certain income transferred for short periods to be included in assessable income of transferor\n\n(1) Subject to this section, where a right to receive income from property is transferred, otherwise than by a will or codicil, by a person (in this subsection referred to as the transferor) to an associate of the transferor for a period that will, or may for any reason other than the death of any person or the associate becoming under a legal disability, terminate before the prescribed date, any income that:\n\n(a) is derived from the property;\n\n(b) is paid to, or applied or accumulated for the benefit of:\n\n(i) the associate; or\n\n(ii) any other associate of the transferor to whom a right to receive income from the property has been transferred (whether by the first‑mentioned associate or any other person) after the first‑mentioned transfer; and\n\n(c) would, if the first‑mentioned transfer had not been made, have been included in the assessable income of the transferor;\n\nshall be treated for the purposes of this Act as if the first‑mentioned transfer had not been made.\n\n(2) Subsection (1) (other than subparagraph (1)(b)(ii)) does not apply in relation to a transfer of a right to receive income from property where:\n\n(a) the right was not a right that arose from the ownership by the transferor of an interest in the property;\n\n(b) the right arose from the ownership by the transferor of an interest in the property and, before or at the time of the first‑mentioned transfer, the transferor transferred that interest to the transferee or another person; or\n\n(c) consideration has been received or is receivable in respect of the transfer and the amount of that consideration is not less than the arm’s length consideration in respect of the transfer.\n\n(3) Where, on a particular day, a person who has transferred to another person a right to receive income from property:\n\n(a) in any case—transfers to the other person or to a third person an interest in the property, being the interest from the ownership of which by the transferor the right arose;\n\n(b) in the case of a natural person—dies; or\n\n(c) in the case of a company—ceases to exist;\n\nsubsection (1) (other than subparagraph (1)(b)(ii)) does not apply, in relation to the transfer of the right to receive income, in relation to income that is derived from the property after that day.\n\n(4) Subsection (1) does not apply in relation to income derived by a person in pursuance of a transfer to that person of a right to receive income from property where, by reason of subsection 51‑50(3) of the Income Tax Assessment Act 1997, the income so derived by the person is not exempt from tax under section 51‑30 of that Act.\n\n(4A) Where:\n\n(a) subsection (1) (other than subparagraph (1)(b)(ii)) applies in relation to a transfer by a person of a right to receive income from property; and\n\n(b) consideration has been received or is receivable in respect of the transfer;\n\nthen, notwithstanding any other provision of this Act (other than a provision of Part IVA), the amount of the consideration shall not be included in the assessable income of the person of a year of income.\n\n(5) Nothing in any other provision of this Act prevents the amendment of an assessment at any time for the purpose of excluding from the assessable income of a person income that is, by virtue of subsection (1), to be included in the assessable income of another person.\n\n(6) Where there is excluded from the assessable income of a person an amount that, in pursuance of subsection (1) was previously treated as assessable income of that person, nothing in any other provision of this Act prevents the amendment of any assessment at any time to give effect to the inclusion in the assessable income of another person of an amount that, in pursuance of that subsection, was treated as not being so included for the purposes of the assessment.\n\n102C  Effect of certain transfers of rights to receive income from property\n\nWhere:\n\n(a) any income is paid to, or applied or accumulated for the benefit of, a person (in this section referred to as the transferee) by reason of the transfer to the person of a right to receive income from property; and\n\n(b) the income so paid, applied or accumulated is, by virtue of section 102B, to be included in the assessable income of another person (in this section referred to as the transferor);\n\nthen:\n\n(c) for the purposes of the application of this Act other than this Division in relation to the transferor, an amount equal to the income so paid, applied or accumulated:\n\n(i) shall be deemed to have been paid by the transferor to the transferee at the time at which the income was paid to, or applied or accumulated for the benefit of, the transferee; and\n\n(ii) shall be deemed to have been so paid for the purpose for which the right was transferred; and\n\n(d) where, if the right had not been transferred, but the transferor had paid to the transferee, at the time at which the income was so paid to, or applied or accumulated for the benefit of, the transferee and for the purpose for which the right was transferred, an amount (in this paragraph referred to as the notional amount) equal to the amount of the income so paid, applied or accumulated, the notional amount or a part of the notional amount would have been included in the assessable income of the transferee—there shall be included in that assessable income an amount equal to the notional amount or that part of the notional amount, as the case may be.\n\n102CA  Consideration in respect of transfer to be included in assessable income of transferor in certain cases\n\n(1) Subject to this section, where:\n\n(a) a right to receive income from property is transferred, otherwise than by a will or codicil, by a person to another person;\n\n(b) consideration has been received or is receivable in respect of the transfer; and\n\n(c) immediately after the transfer, subsection 102B(1) (other than subparagraph 102B(1)(b)(ii)) does not apply in relation to the transfer;\n\nthe assessable income of the transferor of the year of income in which the right is transferred shall include the amount of the consideration.\n\n(2) Subsection (1) does not apply in relation to a transfer of a right to receive income from property where:\n\n(a) the right was not a right that arose from the ownership by the transferor of an interest in the property; or\n\n(b) the right arose from the ownership by the transferor of an interest in the property and, before or at the time of the first‑mentioned transfer, the transferor transferred that interest to the transferee; or\n\n(c) the right is, or is part of, a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997).\n\n(3) Where, by reason of subsection 51‑50(3) of the Income Tax Assessment Act 1997, income derived by a person pursuant to a transfer to the person of a right to receive income from property is not exempt from tax under section 51‑30 of that Act, subsection (1) does not apply in relation to the transfer.\n\nDivision 6C—Income of certain public trading trusts\n\n102M  Interpretation\n\nIn this Division, unless the contrary intention appears:\n\narrangement has the same meaning as in the Income Tax Assessment Act 1997.\n\neligible investment business means one or more of:\n\n(a) investing in land for the purpose, or primarily for the purpose, of deriving rent; or\n\n(b) investing or trading in any or all of the following:\n\n(i) secured or unsecured loans (including deposits with a bank or other financial institution);\n\n(ii) bonds, debentures, stock or other securities;\n\n(iii) shares in a company, including shares in a foreign hybrid company (as defined in the Income Tax Assessment Act 1997);\n\n(iv) units in a unit trust;\n\n(v) futures contracts;\n\n(vi) forward contracts;\n\n(vii) interest rate swap contracts;\n\n(viii) currency swap contracts;\n\n(ix) forward exchange rate contracts;\n\n(x) forward interest rate contracts;\n\n(xi) life assurance policies;\n\n(xii) a right or option in respect of such a loan, security, share, unit, contract or policy;\n\n(xiii) any similar financial instruments; or\n\n(c) investing or trading in financial instruments (not covered by paragraph (b)) that arise under financial arrangements, other than arrangements excepted by section 102MA.\n\nexcluded rent means rent worked out by reference to the profits or receipts of an entity that uses any of the relevant land under an arrangement that is designed to result in the transfer of all, or substantially all, of what would otherwise be the profits of the entity to another party to the arrangement.\n\nfinancial arrangement has the same meaning as in the Income Tax Assessment Act 1997.\n\nland includes an interest in land and fixtures on land.\n\nnet income, in relation to a public trading trust, means the total assessable income of the trust calculated under this Act as if the trustee were a taxpayer in respect of that income and were a resident, less all allowable deductions.\n\nA public trading trust may be required to work out its net income   in a special way by Division 266 or 267 in Schedule 2F.\n\nprescribed trust estate means a trust estate that is, or has been, a public trading trust in relation to any year of income.\n\nproperty includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.\n\nrelevant year of income means the year of income that commenced on 1 July 1985 or a subsequent year of income.\n\ntrading business means a business that does not consist wholly of eligible investment business.\n\nunit, in relation to a prescribed trust estate, includes a beneficial interest, however described, in any of the income or property of the trust estate.\n\nunitholder, in relation to a prescribed trust estate, means the holder of a unit or units in the prescribed trust estate.\n\nunit trust dividend means:\n\n(a) any distribution made by the trustee of a prescribed trust estate, whether in money or in other property, to a unitholder; and\n\n(b) any amount credited by the trustee of a prescribed trust estate to a unitholder as a unitholder;\n\nbut does not include:\n\n(c) money paid or credited, or property distributed, by the trustee of a prescribed trust estate to the extent to which the money or property is attributable to profits arising during a year of income in relation to which the prescribed trust estate was not a public trading trust; or\n\n(d) money paid or credited, or property distributed, by the trustee of a prescribed trust estate in respect of the cancellation, extinguishment or redemption of a unit to the extent to which:\n\n(i) the money paid or credited or the property distributed represents money paid to, or property transferred to, the trustee for the purpose of the creation or issue of that unit; and\n\n(ii) the amount of the money paid or credited or the value of the property distributed, as the case may be, does not exceed the amount of the money paid to the trustee, or the value, at the time of transfer, of the property transferred to the trustee, for the purpose of the creation or issue of that unit.\n\n102MA  Arrangements not covered\n\n(1) For the purposes of paragraph (c) of the definition of eligible investment business in section 102M, the excepted arrangements are those specified in this section.\n\nNote: This section does not affect an arrangement that satisfies paragraph (a) or (b) of that definition.\n\nLeasing or property arrangement\n\n(2) A right or obligation arising under:\n\n(b) an arrangement to which Division 240 of the Income Tax Assessment Act 1997 (about arrangements treated as a sale and loan) applies; or\n\n(ba) an arrangement to which Division 242 (about leases of luxury cars) of the Income Tax Assessment Act 1997 applies; or\n\n(c) a financial arrangement in the form of a loan that is taken to exist by subsection 250‑155(1) of the Income Tax Assessment Act 1997; or\n\n(d) an arrangement that, in substance or effect, depends on the use of a specific asset that is:\n\n(i) real property; or\n\n(ii) goods or a personal chattel (other than money or a money equivalent); or\n\n(iii) intellectual property;\n\nand gives a right to control the use of the asset; or\n\n(e) an arrangement that is a licence to use:\n\n(i) real property; or\n\n(ii) goods or a personal chattel (other than money or a money equivalent); or\n\n(iii) intellectual property.\n\nInterest in partnership or trust estate\n\n(3) A right carried by an interest in a partnership or a trust estate, or an obligation that corresponds to such a right, if:\n\n(a) there is only one class of interest in the partnership or trust estate; or\n\n(b) the interest is an equity interest in the partnership or trust estate; or\n\n(c) for a right or obligation relating to a trust estate—the trust estate is managed by a funds manager or custodian, or a responsible entity (as defined in the Corporations Act 2001) of a registered scheme (as so defined).\n\nGeneral insurance policies\n\n(4) A right or obligation under a general insurance policy.\n\nGuarantees and indemnities\n\n(5) A right or obligation under a guarantee or indemnity unless:\n\n(a) the financial arrangement is one where:\n\n(i) its value changes in response to changes in a specified variable or variables (such as an interest rate, foreign exchange rate, credit rating, index or commodity or financial instrument price); and\n\n(ii) there is no requirement for a net investment, or there is such a requirement but the net investment is smaller than would be required for other types of financial arrangement that would be expected to have a similar response to changes in market factors; or\n\n(b) the guarantee or indemnity is given or entered into in relation to a financial arrangement.\n\nSuperannuation and pension income\n\n(6) A right to receive, or an obligation to provide, a financial benefit (as defined in the Income Tax Assessment Act 1997) if the right or obligation arises from a person’s membership of a superannuation or pension scheme.\n\nRetirement village arrangements\n\n(7) A right or obligation arising under:\n\n(a) a contract that gives rise to a right to occupy residential premises in a retirement village (as defined in the A New Tax System (Goods and Services Tax) Act 1999); or\n\n(b) a contract under which a resident of such a retirement village is provided with general or personal services in the retirement village.\n\n102MB  Investing in land\n\nMoveable property\n\n(1) For the purposes of this Division, investments in moveable property, being property that is:\n\n(a) incidental to and relevant to the renting of land; and\n\n(b) customarily supplied or provided in connection with the renting of land; and\n\n(c) ancillary to the ownership and use of land;\n\nare taken to be investments in land.\n\nSafe harbour rule\n\n(2) For the purposes of this Division, an entity’s investments in land are taken to be for the purpose, or primarily for the purpose, of deriving rent during a year of income if:\n\n(a) each of those investments is for purposes (other than the purpose of trading) that include a purpose of deriving rent; and\n\n(b) at least 75% of the gross revenue from those investments for the year of income consists of rent (except excluded rent); and\n\n(c) none of the remaining gross revenue from those investments for the year of income is:\n\n(i) excluded rent; or\n\n(ii) from the carrying on of a business that is not incidental and relevant to the renting of the land.\n\n(3) In working out the gross revenue referred to in paragraph (2)(b), payments for the provision of services that:\n\n(a) are incidental to and relevant to the renting of land; and\n\n(b) are ancillary to the ownership and use of the land;\n\nare taken to be rent derived from the land.\n\nExample: Payments as reimbursement for expenses incurred by the lessor in providing security services for a shopping centre would be covered by this subsection.\n\n(4) In working out the gross revenue referred to in subsection (2), disregard any capital gains and capital losses from a CGT event arising from a disposal or other realisation of ownership of land.\n\nMeaning of entity\n\n(5) In this section:\n\nentity has the same meaning as in the Income Tax Assessment Act 1997.\n\n102MC  When trading business not carried on","sortOrder":1000045},{"sectionNumber":"full-source-retrieval-0047","sectionType":"document_chunk","heading":"Document excerpt 47","content":"A trustee of a unit trust that would, apart from this section, carry on a trading business at a time during a year of income is taken for the purposes of this Division not to carry on a trading business at a time during that year if, for that year, not more than 2% of the gross revenue of the trustee (as trustee of the unit trust) was income from things other than eligible investment business (except from the carrying on of a business that is not incidental and relevant to the eligible investment business).\n\n102MD  Exempt institution that is eligible for a refund not treated as exempt entity\n\nFor the purposes of this Division, treat an entity as not being an exempt entity if:\n\n(a) the entity is an exempt institution that is eligible for a refund (within the meaning of the Income Tax Assessment Act 1997); or\n\n(b) the entity is treated as such an exempt institution that is eligible for a refund.\n\nExample: The Future Fund Board is treated as an exempt institution that is eligible for a refund for the purposes of the Income Tax Assessment Act 1997 (see section 84B of the Future Fund Act 2006).\n\n102N  Trading trusts\n\n(1) For the purposes of this Division, a unit trust is a trading trust in relation to a year of income if, at any time during the year of income, the trustee:\n\n(a) carried on a trading business; or\n\n(b) controlled, or was able to control, directly or indirectly, the affairs or operations of another person in respect of the carrying on by that other person of a trading business.\n\n(2) Despite paragraph (1)(b), a unit trust is not a trading trust only because it has acquired ownership interests (including a controlling interest) in, or controls:\n\n(a) a foreign entity whose business, when considered together with the businesses of entities that the foreign entity controls or is able to control, directly or indirectly, consists primarily of investing in land outside Australia for the purpose, or primarily for the purpose, of deriving rent; or\n\n(b) a foreign entity controlled, or able to be controlled, directly or indirectly, by an entity covered by paragraph (a).\n\n(3) In this section:\n\nentity has the same meaning as in the Income Tax Assessment Act 1997.\n\n102NA  Certain interposed trusts not trading trusts\n\n(1) A unit trust is not a trading trust for the purposes of this Division in relation to a year of income if:\n\n(a) the trust is an interposed trust in relation to a scheme for reorganising the affairs of stapled entities referred to in Subdivision 124‑Q of the Income Tax Assessment Act 1997 in relation to the year of income or an earlier year of income; and\n\n(b) a roll‑over was obtained by any entity under that Subdivision of that Act in relation to the scheme for the year of income or that earlier year of income; and\n\n(c) the condition in subsection (2) is satisfied.\n\n(2) The trustee of the trust must not, at any time during the year of income:\n\n(a) carry on a trading business; or\n\n(b) control, or be able to control, directly or indirectly, the affairs or operations of another entity that carries on a trading business, other than:\n\n(i) a company that was, before the scheme was completed, one of the stapled entities referred to in Subdivision 124‑Q of the Income Tax Assessment Act 1997; or\n\n(ii) a subsidiary of one of those stapled entities that is a company, or an entity that is controlled or able to be controlled, directly or indirectly, by that company; or\n\n(iii) a trust whose trustee was, before the scheme was completed, assessed and liable to pay tax under this Division (or under former Division 6B, before its repeal by the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 and that was, before the scheme was completed, one of those stapled entities; or\n\n(iv) an entity that is controlled or able to be controlled, directly or indirectly, by the trust referred to in subparagraph (iii);\n\nin relation to the year of income or an earlier year of income.\n\n(3) In this section:\n\nentity has the same meaning as in the Income Tax Assessment Act 1997.\n\n102P  Public unit trusts\n\n(1) For the purposes of this Division, but subject to the succeeding provisions of this section, a unit trust is a public unit trust in relation to a year of income if, at any time during the year of income:\n\n(a) any of the units in the unit trust were listed for quotation in the official list of a stock exchange in Australia or elsewhere;\n\n(b) any of the units in the unit trust were offered to the public; or\n\n(c) the units in the unit trust were held by not fewer than 50 persons.\n\n(2) For the purposes of this Division, but subject to the succeeding provisions of this section, a unit trust is also a public unit trust in relation to a year of income if:\n\n(a) at any time during the year of income, an exempt entity or exempt entities held, or had the right to acquire or become the holder or holders of, a unit or units in the unit trust that entitled the holder or holders to not less than 20% of:\n\n(i) the beneficial interests in the income of the unit trust; or\n\n(ii) the beneficial interests in the property of the unit trust;\n\n(b) not less than 20% of the total of money paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders was paid or credited to an exempt entity or exempt entities; or\n\n(c) by reason of:\n\n(i) any provision in the instrument by which the trust was created, or any contract agreement or instrument authorising the variation or abrogation of the rights attaching to any of the units in the unit trust or relating to the conversion, cancellation, extinguishment or redemption of any such units;\n\n(ii) any contract, agreement, option or instrument under which a person has power to acquire a unit or units in the unit trust; or\n\n(iii) any power, authority or discretion in a person in relation to the rights attaching to any of the units in the unit trust;\n\nthe rights attaching to any of the units in the unit trust were, at any time during the year of income, capable of being varied or abrogated in such a manner (notwithstanding that they were not in fact varied or abrogated in that manner) that:\n\n(iv) units in the unit trust that entitled the holder or holders to not less than 20% of:\n\n(A) the beneficial interests in the income of the unit trust; or\n\n(B) the beneficial interests in the property of the unit trust;\n\nwould have been held by an exempt entity or exempt entities;\n\n(v) not less than 20% of the total of money paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders would have been paid or credited to an exempt entity or exempt entities; or\n\n(vi) in the case where no money was paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders—if money had been so paid or credited by the trustee of the unit trust during the year of income, not less than 20% of the amount of that money would have been paid or credited to an exempt entity or exempt entities.\n\n(3) A unit trust shall not be taken to be a public unit trust in relation to a year of income by reason that units in the unit trust were offered to the public at any time during the year of income if the Commissioner is of the opinion that any of those units were offered to the public for the purpose, or for purposes that included the purpose, of enabling the unit trust to be treated as a public unit trust for the purposes of this Division in relation to the year of income.\n\n(4) Subject to subsection (5), a unit trust that, but for this subsection and subsection (7), would be a public unit trust in relation to a year of income by virtue only of subsection (1) shall be deemed not to be a public unit trust in relation to the year of income if, at any time during the year of income, one person or persons not more than 20 in number held, or had the right to acquire or become the holder or holders of, a unit or units in the unit trust that entitled the holder or holders thereof to not less than 75% of:\n\n(a) the beneficial interests in the income of the unit trust; or\n\n(b) the beneficial interests in the property of the unit trust.\n\n(5) Subject to subsection (7), where by virtue of subsection (4), a unit trust would, but for this subsection, be deemed not to be a public unit trust in relation to a year of income by reason that, at any time during the year of income, one person or persons not more than 20 in number held, or had the right to acquire or become the holder or holders of, the unit or units referred to in subsection (4) and the Commissioner is of the opinion that, having regard to:\n\n(a) the length of the period or the aggregate of the lengths of the periods in the year of income during which one person or persons not more than 20 in number held, or had the right to acquire or become the holder or holders of, the unit or units referred to in subsection (4); and\n\n(b) any other matters that the Commissioner considers relevant;\n\nit is reasonable that the unit trust should be treated as a public unit trust in relation to the year of income, the unit trust shall be deemed to be a public unit trust in relation to the year of income.\n\n(6) For the purposes of subsections (4) and (5), a person (in this subsection referred to as the transferee) to whom a right to acquire or become the holder of a unit in a unit trust is granted or transferred shall be deemed not to have such a right if the Commissioner is of the opinion, having regard to the financial circumstances of the transferee and to any other matters that the Commissioner considers relevant, that it was not intended by the person who granted or transferred the right to the transferee that the right would be exercised by the transferee.\n\n(7) Subject to subsection (8), a unit trust that, but for this subsection, would be a public unit trust in relation to a year of income by virtue only of subsection (1), shall be deemed not to be a public unit trust in relation to that year of income if:\n\n(a) not less than 75% of the total of money paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders was paid or credited to one person or persons not more than 20 in number; or\n\n(b) by reason of:\n\n(i) any provision in the instrument by which the trust was created, or any contract, agreement or instrument authorising the variation or abrogation of the rights attaching to any of the units in the unit trust or relating to the conversion, cancellation, extinguishment or redemption of any such units;\n\n(ii) any contract, agreement, option or instrument under which a person has power to acquire a unit or units in the unit trust; or\n\n(iii) any power, authority or discretion in a person in relation to the rights attaching to any of the units in the unit trust;\n\nthe rights attaching to any of the units in the unit trust were, at any time during the year of income, capable of being varied or abrogated in such a manner (notwithstanding that they were not in fact varied or abrogated in that manner) that:\n\n(iv) units in the unit trust that entitled the holder or holders thereof to not less than 75% of:\n\n(A) the beneficial interests in the income of the unit trust; or\n\n(B) the beneficial interests in the property of the unit trust;\n\nwould have been held by one person or persons not more than 20 in number;\n\n(v) not less than 75% of the total of money paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders would have been paid or credited to one person or persons not more than 20 in number; or\n\n(vi) in the case where no money was paid or credited by the trustee of the unit trust during the year of income to unitholders as unitholders—if money had been so paid or credited by the trustee of the unit trust during the year of income, not less than 75% of the amount of that money would have been paid or credited to one person or persons not more than 20 in number.\n\n(8) A unit trust shall not be deemed by subsection (7) not to be a public unit trust in relation to a year of income by reason that rights attaching to any of the units in the unit trust were, at any time during the year of income, capable of being varied in the manner mentioned in paragraph (7)(b) if the Commissioner is of the opinion that the person or persons who were able to vary the rights in that manner intended not to vary the rights in that manner during the year of income.\n\n(9) For the purposes of subsections (1) and (3), units in a unit trust shall be taken to be offered to the public if and only if:\n\n(a) an offer is made to the public or to a section of the public to subscribe for or purchase the units; or\n\n(b) an invitation is issued to the public or to a section of the public to make offers to subscribe for or purchase the units.\n\n(10) For the purposes of this section, where any units in a unit trust (except a foreign entity to which subsection 102N(2) applies) are held by the trustee of another trust estate, a person who has a beneficial interest in property of that other trust estate that consists of those units (whether or not that beneficial interest is deemed to be held by virtue of the application of this subsection) shall be deemed to hold those units.\n\n(10A) Subsection (10) does not apply in relation to units in a unit trust that are held by the trustee of another trust estate if the other trust estate is a complying superannuation entity (within the meaning of the Income Tax Assessment Act 1997).\n\n(11) For the purposes of this section, a distribution of property of a unit trust to a unitholder shall be taken to be a payment of money to the unitholder of an amount equal to the value of the property.\n\n(12) For the purposes of this section:\n\n(a) a person, whether or not he or she holds units in the unit trust concerned;\n\n(b) his or her relatives; and\n\n(c) in relation to any units in respect of which they are such nominees, his or her nominees and the nominees of any of his or her relatives;\n\nshall be deemed to be one person.\n\n102Q  Resident unit trusts\n\nFor the purposes of this Division, a unit trust is a resident unit trust in relation to a year of income if, at any time during the year of income:\n\n(a) either of the following conditions was satisfied:\n\n(i) any property of the unit trust was situated in Australia;\n\n(ii) the trustee of the unit trust carried on business in Australia; and\n\n(b) either of the following conditions was satisfied:\n\n(i) the central management and control of the unit trust was in Australia;\n\n(ii) a person who was a resident or persons who were residents held more than 50% of:\n\n(A) the beneficial interests in the income of the unit trust; or\n\n(B) the beneficial interests in the property of the unit trust.\n\n102R  Public trading trusts\n\n(1) A unit trust is a public trading trust in relation to a relevant year of income if:\n\n(a) where the relevant year of income is the year of income that commenced on 1 July 1985, the year of income commencing on 1 July 1986 or the year of income commencing on 1 July 1987:\n\n(i) the unit trust was established after 19 September 1985;\n\n(ii) the unit trust is a public unit trust in relation to the relevant year of income;\n\n(iii) the unit trust is a trading trust in relation to the relevant year of income;\n\n(iv) either of the following conditions is satisfied:\n\n(A) the unit trust is a resident unit trust in relation to the relevant year of income;\n\n(B) the unit trust was a public trading trust in relation to a year of income preceding the relevant year of income; or\n\n(b) where the relevant year of income is the year of income commencing on 1 July 1988 or a subsequent year of income:\n\n(i) the unit trust is a public unit trust in relation to the relevant year of income;\n\n(ii) the unit trust is a trading trust in relation to the relevant year of income;\n\n(iii) either of the following conditions is satisfied:\n\n(A) the unit trust is a resident unit trust in relation to the relevant year of income;\n\n(B) the unit trust was a public trading trust in relation to a year of income preceding the relevant year of income.\n\n(2) Where:\n\n(a) a unit trust would, but for this subsection, be a unit trust established on or before 19 September 1985;\n\n(b) the unit trust was not a trading trust on 19 September 1985; and\n\n(c) the unit trust became a trading trust on a day after 19 September 1985;\n\nthe unit trust shall be taken, for the purposes of this section, to have been established after 19 September 1985.\n\n(3) For the purposes of subsection (2), a unit trust is a trading trust on a particular day if, on that day, the trustee:\n\n(a) carries on a trading business; or\n\n(b) controls or is able to control, directly or indirectly, the affairs or operations of another person in respect of the carrying on by that other person of a trading business.\n\n(4) Where:\n\n(a) a unit trust would, but for this subsection, be a unit trust established on or before 19 September 1985;\n\n(b) if the year of income in which 19 September 1985 occurred had ended on that date, the unit trust would not have been a public unit trust in relation to that year of income; and\n\n(c) the Commissioner is satisfied that, at no time on or before that date, was it the intention of the trustee of the unit trust that the unit trust would become a public unit trust in relation to a year of income;\n\nthe unit trust shall be taken, for the purposes of this section, to have been established after 19 September 1985.\n\n(5) In determining whether a unit trust is a public trading trust under this section, disregard any interest that the trust has that is disregarded under subsection 275‑10(4A) of the Income Tax Assessment Act 1997.\n\n102S  Taxation of net income of public trading trust","sortOrder":1000046},{"sectionNumber":"full-source-retrieval-0048","sectionType":"document_chunk","heading":"Document excerpt 48","content":"The trustee of a unit trust that is a public trading trust in relation to a relevant year of income shall be assessed and is liable to pay tax on the net income of the public trading trust of the relevant year of income at the rate declared by the Parliament for the purposes of this section.\n\n102T  Modified application of Act in relation to certain unit trusts\n\n(1) For the purpose of the application of this Act in relation to the imposition, assessment and collection of tax in respect of:\n\n(a) the net income of a public trading trust; and\n\n(b) the income or assessable income of a unitholder in a prescribed trust estate;\n\nthe following provisions of this section have effect.\n\nNote: Under Subdivision 713‑C of the Income Tax Assessment Act 1997, this Act applies differently in relation to a public trading trust that chooses to form a consolidated group.\n\n(3) For the purposes of the application of sections 46A and 46B in accordance with subsection (2), the Commissioner may be satisfied, in relation to a unit trust dividend, that a transaction, operation, undertaking, scheme or arrangement was by way of dividend stripping or similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping if the Commissioner would have been satisfied, had the unit trust dividend been a dividend paid by a company, that the transaction, operation, undertaking, scheme or arrangement would have been a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping or, as the case requires, would have been similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping.\n\n(6) For the purposes of the application of the definition of year of income in subsection 6(1), the reference in that definition to a company (except a company in the capacity of a trustee) shall be read as including a reference to a public trading trust or, as the context requires, to the trustee of a public trading trust.\n\n(7) A reference in the definition of person in subsection 6(1) to a company shall be read as including a reference to a public trading trust or, as the context requires, to the trustee of a public trading trust.\n\n(8) The reference in section 158 to the taxable income of a company except income in respect of which it is assessable as trustee shall be read as including a reference to the net income of a public trading trust.\n\n(9) A reference in section 355‑35 of the Income Tax Assessment Act 1997 to a body corporate is to be read as including a reference to a body corporate acting in its capacity as trustee of a public trading trust.\n\n(11) A reference in subsection 44(1) or section 128B of this Act, in subsection 840‑805(3) of the Income Tax Assessment Act 1997, in Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953 (except section 12‑225) or in subsection 12‑390(10) in that Schedule, to a company or to a company that is a resident shall be read as including a reference to a prescribed trust estate or, as the context requires, to the trustee of a prescribed trust estate.\n\n(12) A reference in the definition of paid in subsection 6(1) or 44(1), or in section 128A or 128B, of this Act, or in Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953 (except section 12‑225), to a dividend shall be read as including a reference to a unit trust dividend.\n\n(13A) Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953 applies in respect of units in a prescribed trust estate in the same way as it applies in respect of shares.\n\n(14) A reference in subsection 44(1) to a shareholder in relation to a company shall be read as including a reference to a unitholder in a prescribed trust estate.\n\n(16) A reference in section 6B, Division 6 or subsection 128A(3) or 157(3) of this Act, Division 275 or Subdivision 840‑M of the Income Tax Assessment Act 1997 or Subdivision 12‑H in Schedule 1 to the Taxation Administration Act 1953 to a trust estate or to a trustee shall be read as not including a reference to a trust estate that is a public trading trust or to the trustee of a public trading trust, as the case may be.\n\n(19) For the purposes of subsection 44(1), a unit trust dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate shall, to the extent to which the unit trust dividend is attributable to profits derived by the trustee, be taken to be paid out of those profits.\n\n(20) For the purposes of section 128B, a unit trust dividend paid to a unitholder in a prescribed trust estate shall be deemed to be income derived by the unitholder at the time at which the unit trust dividend is paid.\n\nNon‑unit dividend\n\n(21) Subsections (2), (3), (4) and (20) apply as if references in those subsections to a unit trust dividend included a reference to a non‑unit dividend.\n\n(22) For the purposes of subsection 44(1), a non‑unit dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate is taken, to the extent to which the non‑unit dividend is attributable to a source in Australia, to be derived from a source in Australia.\n\n(22A) For the purposes of subsection 44(1), a non‑unit dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate is taken, to the extent to which the non‑unit dividend is attributable to a source outside Australia, to be derived from a source outside Australia.\n\n(23) If a provision of this Act that applies to a dividend:\n\n(a) is taken under this section to apply to a unit trust dividend; and\n\n(b) applies to a non‑share dividend in the same way as it applies to a dividend;\n\nthat provision also applies to a non‑unit dividend in the same way as it applies to a dividend.\n\nNon‑unit equity interest\n\n(24) If a provision of this Act that applies to a share:\n\n(a) is taken under this section to apply to a unit in a prescribed trust estate; and\n\n(b) applies to a non‑share equity interest in a company in the same way as it applies to a share;\n\nthat provision also applies to a non‑unit equity interest in a prescribed trust estate in the same way as it applies to a share.\n\nEquity holder\n\n(25) Subsections (1), (2), (18) and (20) apply as if references in those subsections to a unitholder included a reference to an equity holder who is not a unitholder.\n\n(26) If a provision of this Act that applies to a shareholder:\n\n(a) is taken because of this section to apply to a unitholder in a prescribed trust estate; and\n\n(b) applies to an equity holder in a company who is not a shareholder in the same way as it applies to a shareholder;\n\nthat provision also applies to an equity holder in a prescribed trust estate who is not a unitholder in the same way as it applies to a shareholder.\n\nDefinitions\n\n(27) In this section:\n\nequity holder in a prescribed trust estate means the holder of an equity interest in the prescribed trust estate.\n\nequity interest in a prescribed trust estate means:\n\n(a) a unit in the prescribed trust estate; or\n\n(b) any other interest that would be an equity interest in the prescribed trust estate if references in Division 974 of the Income Tax Assessment Act 1997 to a company included references to a prescribed trust estate or, as the context requires, to the trustee of a prescribed trust estate.\n\nnon‑unit dividend means a unit trust distribution that is not a unit trust dividend.\n\nnon‑unit equity interest in a prescribed trust estate means an equity interest in the prescribed trust estate that is not a unit in the prescribed trust estate.\n\nunit trust distribution means a distribution, or an amount credited, that would be a unit trust dividend if references in the definition of unit trust dividend in section 102M to a unitholder were references to an equity holder.\n\nDivision 6D—Provisions relating to certain closely held trusts\n\nSubdivision A—Overview\n\n102UA  What this Division is about\n\n(1) The main purpose of this Division is to ensure that the trustee of a closely held trust with one or more trustee beneficiaries that are presently entitled to a share of the income or of a tax‑preferred amount of the trust advises the Commissioner soon after the end of the year of income of certain details about those trustee beneficiaries. This will allow the Commissioner to check whether the assessable income of the trustee beneficiaries includes the correct share of net income, and whether the net assets of the trustee beneficiaries reflect the receipt of the tax‑preferred amounts.\n\n(2) To achieve this purpose, the Division:\n\n(a) provides for the trustee to correctly identify the trustee beneficiaries within a specified period after the end of the year of income; and\n\n(b) if the trustee fails to do so, provides for taxation at a penalty rate (in the case of net income) or offences under the Taxation Administration Act 1953 (in the case of tax‑preferred amounts).\n\n(3) This Division also provides that, where the trustee of the closely held trust becomes presently entitled to an amount that is reasonably attributable to the whole or a part of the share of the net income of the closely held trust, there will also be taxation at a penalty rate.\n\nSubdivision B—Interpretation\n\n102UB  Definitions—general\n\nIn this Division:\n\nclosely held trust has the meaning given by subsection 102UC(1).\n\ncorrect TB statement has the meaning given by section 102UG.\n\npresent entitlement has a meaning affected by section 102UJ.\n\ntax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\ntax‑preferred amount has the meaning given by section 102UI.\n\nTB statement period has the meaning given by section 102UH.\n\ntrustee beneficiary has the meaning given by section 102UD.\n\ntrustee beneficiary non‑disclosure tax means tax payable under paragraph 102UK(2)(a) or 102UM(2)(a).\n\nuntaxed part, of a share of the net income of a closely held trust, has the meaning given by section 102UE.\n\n102UC  Closely held trust\n\n(1) A closely held trust is:\n\n(a) a trust where an individual has, or up to 20 individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to a 75% or greater share of the income, or a 75% or greater share of the capital, of the trust; or\n\n(b) a discretionary trust;\n\nexcept where the trust is an excluded trust.\n\nTrustees of discretionary trusts treated as individuals\n\n(2) For the purposes of paragraph (1)(a), if:\n\n(a) a trustee of a discretionary trust holds a fixed entitlement to a share of the income or capital of the trust mentioned in that paragraph directly or indirectly; and\n\n(b) no person holds that fixed entitlement directly or indirectly through the discretionary trust;\n\nthe trustee is taken to hold that fixed entitlement directly or indirectly as an individual and for the individual’s own benefit.\n\nIndividuals treated as single individual\n\n(3) For the purposes of paragraph (1)(a), all of the following are taken to be a single individual:\n\n(a) an individual, whether or not the individual holds fixed entitlements directly in the trust mentioned in that paragraph;\n\n(b) the individual’s relatives;\n\n(c) in relation to any fixed entitlements in respect of which other individuals are nominees of the individual or of the individual’s relatives—those other individuals.\n\nDefinitions\n\n(4) In this section:\n\ndiscretionary trust means a trust that is not a fixed trust within the meaning of section 272‑65 in Schedule 2F.\n\nexcluded trust means:\n\n(a) a trust to which paragraph (b), (c) or (d) of the definition of excepted trust in section 272‑100 in Schedule 2F applies; or\n\n(b) a unit trust whose units are listed on the stock market operated by ASX Limited.\n\nfixed entitlement has the meaning given by sections 272‑5, 272‑10, 272‑15 and 272‑40 in Schedule 2F.\n\nindirectly has the meaning given by section 272‑20 in Schedule 2F.\n\n102UD  Trustee beneficiary\n\nA person is a trustee beneficiary of a closely held trust if the person is a beneficiary of the trust in the capacity of trustee of another trust.\n\n102UE  Meaning of untaxed part\n\n(1) The untaxed part of a share of the net income of a closely held trust is so much of that share as is not covered by subsection (2).\n\n(2) The share of the net income of the closely held trust is covered by this subsection to the extent that:\n\n(a) the trustee of the closely held trust is assessed and liable to pay tax under subsection 98(4) in respect of the share; or\n\n(b) the share is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and liable to pay tax under subsection 98(4); or\n\n(c) the share is represented by or reasonably attributable to an amount from which an entity was required to withhold an amount under Subdivision 12‑H in Schedule 1 to the Taxation Administration Act 1953; or\n\n(d) the share is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate was liable to pay trustee beneficiary non‑disclosure tax.\n\n102UG  Correct TB statement\n\nShare of net income case\n\n(1) This section applies if a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97 and the share comprises or includes an untaxed part.\n\nTax‑preferred amount case\n\n(2) This section also applies if a trustee beneficiary of a closely held trust is presently entitled at the end of a year of income to a share of a tax‑preferred amount of the trust.\n\nCorrect TB statement\n\n(3) If this section applies, the trustee of the closely held trust makes a correct TB statement about the share if the trustee correctly states, in the approved form:\n\n(a) if the trustee beneficiary is a resident at the end of the year of income:\n\n(i) the name and tax file number of the trustee beneficiary; and\n\n(ii) the amount of the untaxed part of the share or the amount of the share of the tax‑preferred amount; and\n\n(b) if the trustee beneficiary is a non‑resident at the end of the year of income:\n\n(i) the name and address of the trustee beneficiary; and\n\n(ii) the amount of the untaxed part of the share or the amount of the share of the tax‑preferred amount.\n\nNote: If a closely held trust has multiple trustee beneficiaries, the requirements in subsection (3) will have to be met for each of them for the trustee of the closely held trust to avoid paying any trustee beneficiary non‑disclosure tax.\n\n102UH  TB statement period\n\nThe TB statement period, for the trustee of a trust in relation to a year of income, is the period from the end of the year of income until the end of:\n\n(a) the period within which the trustee is required to give to the Commissioner the trust’s return of income for the year of income; or\n\n(b) such further period as the Commissioner allows.\n\n102UI  Tax‑preferred amount\n\nThe expression “tax‑preferred amount” of a trust means:\n\n(a) income of the trust that is not included in its assessable income in working out its net income; or\n\n(b) capital of the trust.\n\n102UJ  Extended concept of present entitlement to capital of a trust\n\nFor the purposes of this Division, section 95A applies in relation to capital of a trust in the same way as it applies to income of the trust.\n\nSubdivision C—Trustee beneficiary non‑disclosure tax on share of net income\n\n102UK  Trustee beneficiary non‑disclosure tax where no correct TB statement\n\n(1) Subject to subsection (2A), this section applies if:\n\n(a) a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97; and\n\n(b) the share comprises or includes an untaxed part; and\n\n(c) the trustee of the closely held trust is not covered by a determination under subsection (1A) for the year of income; and\n\n(ca) the closely held trust is none of the following:\n\n(i) a family trust (within the meaning of section 272‑75 in Schedule 2F);\n\n(ii) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272‑85 in Schedule 2F;\n\n(iii) a trust covered by subsection 272‑90(5) in Schedule 2F; and\n\n(d) during the TB statement period in relation to the year of income, the trustee of the closely held trust does not make and give to the Commissioner a correct TB statement about the share.\n\nDetermination that a class of trustees is not required to give a correct TB statement\n\n(1A) The Commissioner may, by legislative instrument, determine that a specified class of trustees is not required to make a correct TB statement for a year of income.\n\n(1B) A determination under subsection (1A):\n\n(a) may be expressed to be subject to conditions; and\n\n(b) may be for one or more years of income.\n\nConsequences of section applying\n\n(2) If this section applies:\n\n(a) either:\n\n(i) if the trustee of the closely held trust is the only person in the trustee group (see subsection (3))—the trustee is liable to pay tax; or\n\n(ii) if the trustee of the closely held trust is not the only person in the trustee group—the persons in the trustee group are jointly and severally liable to pay tax;\n\nas imposed by the Taxation (Trustee Beneficiary Non‑disclosure Tax) Act (No. 1) 2007, on the untaxed part; and\n\n(b) except for the purposes of sections 99, 99A and 99B and this Division, the untaxed part is not included in the assessable income of the trustee beneficiary under section 97.\n\nNote: Provisions dealing with the payment etc. of the tax under paragraph (a) (known as trustee beneficiary non‑disclosure tax) are set out in Subdivision D.\n\nAmendment of incorrect statement\n\n(2A) If:\n\n(a) during the TB statement period in relation to a year of income, the trustee of a closely held trust makes and gives to the Commissioner a statement, that the trustee believes on reasonable grounds is a correct TB statement, about a share of the net income of the trust; and","sortOrder":1000047},{"sectionNumber":"full-source-retrieval-0049","sectionType":"document_chunk","heading":"Document excerpt 49","content":"(b) the statement is not a correct TB statement about the share, with the result that, apart from this subsection, this section applies; and\n\n(c) either:\n\n(i) the trustee could not reasonably have foreseen the event that caused the statement not to be a correct TB statement; or\n\n(ii) the statement is not a correct TB statement because of an inadvertent error; and\n\n(d) either:\n\n(i) before any trustee beneficiary non‑disclosure tax becomes due and payable on the untaxed part as a result of this section applying; or\n\n(ii) before the end of 4 years after any such tax becomes due and payable;\n\nthe trustee advises the Commissioner in writing of any change that is necessary to make the statement a correct TB statement about the share;\n\nthis section does not apply, and is taken never to have applied, to the untaxed part.\n\nTrustee group\n\n(3) The trustee group consists of the following:\n\n(a) the trustee of the closely held trust;\n\n(b) if the trustee of the closely held trust is a company—the directors of the company.\n\n102UL  Exclusion of directors of closely held trust from liability to pay tax\n\n(1) This section applies if a director of a company that is the trustee of the closely held trust is included in the trustee group under section 102UK.\n\nDirector not taking part in statement decision because of illness or other good reason\n\n(2) If, because of illness or for some other good reason, the director did not take part in any decision not to make the correct TB statement, the director is not included in the trustee group.\n\nDirector otherwise not taking part in statement decision\n\n(3) If:\n\n(a) the director did not take part in any decision not to make the correct TB statement; and\n\n(b) either:\n\n(i) the director was not aware of the proposal to make such a decision; or\n\n(ii) the director was aware and took reasonable steps to prevent the making of the decision;\n\nthe director is not included in the trustee group.\n\nDirector taking part in statement decision\n\n(4) If:\n\n(a) the director took part in any decision not to make a correct TB statement; and\n\n(b) the director voted against, or otherwise disagreed with the decision; and\n\n(c) the director took reasonable steps to ensure that a correct TB statement would be made;\n\nthe director is not included in the trustee group.\n\nWhere no statement decision\n\n(5) If:\n\n(a) no decision was made not to make a correct TB statement; and\n\n(b) either:\n\n(i) the director, because of illness or for some other good reason, was not involved in the management of the company during the TB statement period in relation to the year of income; or\n\n(ii) the director took reasonable steps to ensure that a correct TB statement would be made;\n\nthe director is not included in the trustee group.\n\n102UM  Trustee beneficiary non‑disclosure tax where share is distributed to trustee of closely held trust\n\n(1) This section applies if:\n\n(a) a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97; and\n\n(b) the trustee of the closely held trust becomes presently entitled to an amount that is reasonably attributable to the whole or a part of the untaxed part of the share; and\n\n(c) trustee beneficiary non‑disclosure tax is not payable by the trustee of the closely held trust on the untaxed part under paragraph 102UK(2)(a).\n\nConsequences of section applying\n\n(2) If this section applies:\n\n(a) either:\n\n(i) if the trustee of the closely held trust is the only person in the trustee group (see subsection (3))—the trustee is liable to pay tax; or\n\n(ii) if the trustee of the closely held trust is not the only person in the trustee group—the persons in the trustee group are jointly and severally liable to pay tax;\n\nas imposed by the Taxation (Trustee Beneficiary Non‑disclosure Tax) Act (No. 2) 2007, on the whole or that part of the untaxed part; and\n\n(b) except for the purposes of sections 99, 99A and 99B and this Division, the whole or that part of the untaxed part is not included in the assessable income of the trustee beneficiary under section 97.\n\nNote: Provisions dealing with the payment etc. of the tax under paragraph (a) (known as trustee beneficiary non‑disclosure tax) are set out in Subdivision D.\n\nTrustee group\n\n(3) The trustee group consists of the following:\n\n(a) the trustee of the closely held trust;\n\n(b) if the trustee of the closely held trust is a company—the directors of the company.\n\nSubdivision D—Payment etc. of trustee beneficiary non‑disclosure tax\n\n102UN  Amount of trustee beneficiary non‑disclosure tax reduced by notional tax offset\n\n(1) This section applies to trustee beneficiary non‑disclosure tax that a trustee group would otherwise be liable to pay on the whole or part of a share of the net income of a closely held trust.\n\n(2) The amount of the trustee beneficiary non‑disclosure tax is reduced by the amount of any tax offset to which the trustee of the closely held trust would be entitled in an assessment under section 99A if it were assumed that the trustee were assessed and liable to pay tax under that section on the whole or the part of the share of the net income.\n\n102UO  Payment of trustee beneficiary non‑disclosure tax\n\nDue date\n\n(1) Trustee beneficiary non‑disclosure tax is due and payable at the end of:\n\n(a) 21 days after the TB statement period concerned ends; or\n\n(b) such later day as the Commissioner, in special circumstances, allows.\n\nDebt due\n\n(2) Trustee beneficiary non‑disclosure tax, when it becomes due and payable, is a debt due to the Commonwealth and payable to the Commissioner.\n\n(3) Any unpaid trustee beneficiary non‑disclosure tax may be sued for and recovered in a court of competent jurisdiction by the Commissioner suing in his or her official name.\n\nApplication\n\n(4) Subsections (2) and (3) do not apply in relation to any trustee beneficiary non‑disclosure tax that becomes due and payable on or after 1 July 2000.\n\nNote: For provisions about collection and recovery of trustee beneficiary non‑disclosure tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n102UP  Late payment of trustee beneficiary non‑disclosure tax\n\nIf any of the trustee beneficiary non‑disclosure tax which a person is liable to pay remains unpaid 60 days after the day by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n\n(a) started at the beginning of the 60th day after the day by which the trustee beneficiary non‑disclosure tax was due to be paid; and\n\n(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n\n(i) the trustee beneficiary non‑disclosure tax;\n\n(ii) general interest charge on any of the trustee beneficiary non‑disclosure tax.\n\nNote: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n102UR  Notice of liability\n\n(1) The Commissioner may give a person or persons, by post or otherwise, a notice specifying:\n\n(a) the amount of any trustee beneficiary non‑disclosure tax that the Commissioner has ascertained is payable by the person or persons; and\n\n(b) the day on which that tax became or will become due and payable.\n\nEffect of notice on liability etc.\n\n(2) The amount of the liability of a person or persons to trustee beneficiary non‑disclosure tax, and the due date for payment of the tax, are not dependent on, or in any way affected by, the giving of a notice.\n\nAmendment of notice\n\n(3) The Commissioner may at any time amend a notice. An amended notice is a notice for the purposes of this section.\n\nInconsistency between notices\n\n(4) If there is an inconsistency between notices that relate to the same subject matter, the later notice prevails to the extent of the inconsistency.\n\nObjections\n\n(5) A person who is or persons who are dissatisfied with a notice made in relation to the person or persons may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n102URA  Request for notice of liability\n\n(1) A person or persons may make a written request to the Commissioner to be given a notice under subsection 102UR(1) in respect of specified circumstances in which trustee beneficiary non‑disclosure tax may be payable.\n\nCompliance with request\n\n(2) The Commissioner must, subject to subsection (3) of this section, comply with the request.\n\nFurther information\n\n(3) If the Commissioner considers that the notice cannot be given unless the person or persons give the Commissioner further information, the Commissioner must request the person or persons to give the Commissioner the information.\n\nFailure to give information\n\n(4) If the person or persons do not give the information, the Commissioner is not required to comply with the request to give the notice.\n\n102USA  Recovery of trustee beneficiary non‑disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee\n\n(1) This section applies if the requirements in subsections (2) and (3) are satisfied.\n\nRequirement for payment of trustee beneficiary non‑disclosure tax\n\n(2) A requirement for this section to apply is that:\n\n(a) the trustee of a closely held trust does not make a correct TB statement about a share of the net income of the trust of a year of income during the TB statement period in relation to the year of income; and\n\n(b) as a result, the trustee becomes liable, or the persons in the trustee group become jointly and severally liable, under section 102UK to pay trustee beneficiary non‑disclosure tax; and\n\n(c) the trustee or any of the persons in the trustee group pays an amount (the recoverable amount), being some or all of the tax or any general interest charge under section 102UP in relation to the tax.\n\nRequirement for refusal etc. to provide information or for incorrect statement\n\n(3) A requirement for this section to apply is that:\n\n(a) either:\n\n(i) the trustee of the closely held trust was unable to make a correct TB statement about the share of the net income during the TB statement period because the trustee beneficiary in whose assessable income the share is included under section 97, when requested to do so, refused or failed to give information to the trustee; or\n\n(ii) the trustee of the closely held trust purported to make a correct TB statement about the share of the net income during the TB statement period but the statement was not a correct TB statement because it contained incorrect information given to the trustee of the closely held trust by the trustee beneficiary in whose assessable income the share is included under section 97, and the trustee honestly believed on reasonable grounds that the information was correct; and\n\n(b) the trustee of the closely held trust distributed to the trustee beneficiary an amount representing some or all of the share of the net income without withholding an amount under section 254 in respect of the recoverable amount.\n\nConsequences of section applying\n\n(4) If this section applies, the trustee or the person in the trustee group mentioned in paragraph (2)(c) may, in a court of competent jurisdiction, sue for the recoverable amount and recover it from the trustee beneficiary.\n\nSubdivision E—Making correct TB statement about trustee beneficiaries of tax‑preferred amounts\n\n102UT  Requirement to make correct TB statement about trustee beneficiaries of tax‑preferred amounts\n\n(1) If, at the end of a year of income:\n\n(a) a trustee beneficiary of a closely held trust is presently entitled to a share of a tax‑preferred amount of the trust; and\n\n(b) the trustee of the closely held trust is not covered by a determination under subsection 102UK(1A) for the year of income; and\n\n(c) the closely held trust is none of the following:\n\n(i) a family trust (within the meaning of section 272‑75 in Schedule 2F);\n\n(ii) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272‑85 in Schedule 2F;\n\n(iii) a trust covered by subsection 272‑90(5) in Schedule 2F;\n\nthe trustee of the closely held trust must, during the TB statement period, make and send to the Commissioner a correct TB statement covering the share.\n\n(2) For the purposes of the Taxation Administration Act 1953, if the trustee contravenes the requirement in subsection (1) of this section to make and send a statement to the Commissioner, then, subject to subsection (3) of this section, the trustee commits an offence against section 8C of that Act.\n\n(3) The trustee does not commit an offence against section 8C of the Taxation Administration Act 1953 as a result of a contravention of the requirement if:\n\n(a) the trustee did not know all the information required to be included in the statement; and\n\n(b) the trustee had taken reasonable steps to ascertain the information that he or she did not know; and\n\n(c) if the trustee did know some of the information, he or she included it in a statement that he or she sent to the Commissioner during the TB statement period.\n\n(4) The only burden of proof that the trustee bears in respect of subsection (3) is the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter in question existed.\n\nSubdivision F—Special provisions about tax file numbers\n\n102UU  Trustee beneficiary may quote tax file number to trustee of closely held trust\n\nA trustee beneficiary in respect of:\n\n(a) a share of the net income of a closely held trust for a year of income that is included in the assessable income of the trustee beneficiary of the trust under section 97; or\n\n(b) a share of a tax‑preferred amount of a closely held trust to which the trustee beneficiary of the trust is presently entitled at the end of a year of income;\n\nmay quote his or her tax file number to the trustee of the closely held trust in connection with that trustee making a correct TB statement about that share.\n\nNote: Section 8WA of the Taxation Administration Act 1953 makes it an offence for a person to require or request another person to quote the other person’s tax file number unless provision is made by a taxation law for the other person to quote the number.\n\n102UV  Trustee of closely held trust may record etc. tax file number\n\n(1) This section applies if a trustee beneficiary in respect of:\n\n(a) a share of the net income of a closely held trust for a year of income that is included in the assessable income of the trustee beneficiary of the trust under section 97; or\n\n(b) a share of a tax‑preferred amount of a closely held trust to which the trustee beneficiary of the trust is presently entitled at the end of a year of income;\n\nquotes his or her tax file number to the trustee of the closely held trust in connection with that trustee making a correct TB statement about that share.\n\n(2) Section 8WB of the Taxation Administration Act 1953 does not prohibit the trustee of the closely held trust from:\n\n(a) recording the tax file number or maintaining such a record; or\n\n(b) using the tax file number in a manner connecting it with the identity of the trustee beneficiary; or\n\n(c) divulging or communicating the tax file number to a third person;\n\nin connection with that trustee making a correct TB statement about that share.\n\nDivision 6E—Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits\n\n102UW  Application of Division\n\nThis Division applies if:\n\n(a) the net income of a trust estate exceeds nil; and\n\n(b) any of the following things are taken into account in working out the net income of the trust estate:\n\n(i) a capital gain (to the extent that an amount of the capital gain remained after applying steps 1 to 4 of the method statement in subsection 102‑5(1) of the Income Tax Assessment Act 1997);\n\n(ii) a franked distribution (to the extent that an amount of the franked distribution remained after reducing it by deductions that were directly relevant to it);\n\n(iii) a franking credit.\n\n102UX  Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits\n\n(1) Make the assumptions in the following subsections for the purposes of working out in accordance with Division 6 an amount:\n\n(a) included in the assessable income of a beneficiary of a trust estate under section 97, 98A or 100; or\n\n(b) in respect of which a trustee of a trust estate is liable to pay tax under section 98, in relation to a beneficiary of the trust estate; or\n\n(c) in respect of which a trustee of a trust estate is liable to pay tax under section 99 or 99A.\n\nNote: Those assumptions are made only for the purposes of working out the amounts mentioned in paragraphs (a), (b) and (c). They are not made for any other purposes (for example, determining the income of a trust estate, the net income of a trust estate, or the amount of a present entitlement of a beneficiary of a trust estate to the income of the trust estate).\n\n(2) Assume that the income of the trust estate were equal to the Division 6E income of the trust estate.\n\n(3) Assume that the net income of the trust estate were equal to the Division 6E net income of the trust estate.\n\n(4) Assume that the amount of a present entitlement of a beneficiary of the trust estate to the income of the trust estate were equal to the amount of the beneficiary’s Division 6E present entitlement to the income of the trust estate.\n\n102UY  Interpretation\n\n(1) Expressions used in this Division have the same meaning as in Division 6.\n\n(2) The Division 6E income, of the trust estate, is the income of the trust estate worked out on the assumption that amounts attributable to the things mentioned in paragraph 102UW(b) were disregarded. The Division 6E income of the trust estate cannot be less than nil.","sortOrder":1000048},{"sectionNumber":"full-source-retrieval-0050","sectionType":"document_chunk","heading":"Document excerpt 50","content":"(3) The Division 6E net income, of the trust estate, is the net income of the trust estate worked out on the assumption that the things mentioned in paragraph 102UW(b) were disregarded. The Division 6E net income of the trust estate cannot be less than nil.\n\n(4) A beneficiary of the trust estate has an amount of a Division 6E present entitlement to the income of the trust estate that is equal to the amount of the beneficiary’s present entitlement to the income of the trust estate, decreased by:\n\n(a) for each capital gain taken into account as mentioned in paragraph 102UW(b)—so much of the beneficiary’s share of the capital gain as was included in the income of the trust estate; and\n\n(b) for each franked distribution taken into account as mentioned in paragraph 102UW(b)—so much of the beneficiary’s share of the franked distribution as was included in the income of the trust estate.\n\n(5) The following expressions in this Division have the same meaning as in the Income Tax Assessment Act 1997:\n\n(a) share of a capital gain (see section 115‑227 of that Act);\n\n(b) share of a franked distribution (see section 207‑55 of that Act).\n\nDivision 7—Private companies\n\n102V  Application of Division to non‑share dividends\n\n(1) This Division:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(2) Subsection (1) does not apply to section 103A.\n\n103  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\nthe relevant holding company or holding companies, in relation to another company in relation to a year of income of that other company, means:\n\n(a) if the other company would, apart from subsection 103A(4D), be a subsidiary of a public company for the purposes of section 103A in relation to that year of income by virtue of subsection 103A(4)—the public company or public companies referred to in paragraph 103A(4)(a); or\n\n(b) if the other company would, apart from subsection 103A(4D), be a subsidiary of a public company for the purposes of section 103A in relation to that year of income by virtue of subsection 103A(4B)—the listed company or listed companies referred to in paragraphs 103A(4B)(a) and (b).\n\n(2) For the purposes of this Division, a person is the nominee of another person in relation to shares if that first‑mentioned person may be required to exercise his or her voting power in relation to those shares at the direction of, or holds those shares directly or indirectly on behalf of or for the benefit of, that second‑mentioned person.\n\n(3) For the purposes of this Division, shares in a company shall be deemed to be held indirectly on behalf of or for the benefit of a person (not being a private company, trustee or partnership) if, in the event of the payment of a dividend on those shares, that person would, otherwise than as a shareholder of the company, receive the whole or a part of that dividend if there were successive distributions of the relative parts of that dividend to and by each of any private companies, trustees or partnerships interposed between the company paying the dividend and that person.\n\n(4) For the purposes of this Division, a company shall be taken to have been a listed company during a period that was included in a year of income of another company (in this subsection referred to as the relevant year of income) where:\n\n(a) if the period was included in the year of income of the first‑mentioned company (in this subsection referred to as the corresponding year of income) that corresponded with the relevant year of income—the first‑mentioned company was by virtue of paragraph 103A(2)(a), a public company for the purposes of subsection 103A(1) in relation to the corresponding year of income; or\n\n(b) if the period was included in the year of income of the first‑mentioned company that immediately preceded or immediately followed the corresponding year of income—the first‑mentioned company was, by virtue of paragraph 103A(2)(a), a public company for the purposes of subsection 103A(1) in relation to that preceding or following year of income, as the case may be.\n\n(5) A reference in this Division to a right, power, option, agreement or instrument shall be read as including a reference to a right, power, option, agreement or instrument that is not enforceable by legal proceedings whether or not it was intended to be so enforceable.\n\n(6) For the purposes of this Division, an arrangement or understanding, whether formal or informal and whether express or implied, shall be deemed to be an agreement.\n\n103A  Private companies\n\n(1) For the purposes of this Division, a company is a private company in relation to the year of income if the company is not a public company in relation to the year of income.\n\n(2) For the purposes of subsection (1), a company is, subject to the succeeding provisions of this section, a public company in relation to the year of income if:\n\n(a) shares in the company, not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits, were listed for quotation in the official list of a stock exchange, being a stock exchange in Australia or elsewhere, as at the last day of the year of income;\n\n(b) at all times during the year of income, the company was a co‑operative company as defined by section 117;\n\n(c) the company has not, at any time since its formation, been carried on for the purposes of profit or gain to its individual members and was, at all times during the year of income, prohibited by the terms of its constituent document from making any distribution, whether in money, property or otherwise, to its members or to relatives of its members; or\n\n(d) the company is:\n\n(i) a mutual life assurance company;\n\n(ii) a friendly society dispensary;\n\n(iii) a body constituted by a law of the Commonwealth or of a State or Territory and established for public purposes, not being a company within the meaning of the law in force in a State or Territory relating to companies;\n\n(iv) a company in which a Government or a body referred to in subparagraph (iii) had a controlling interest on the last day of the year of income; or\n\n(v) in relation to the year of income, a subsidiary of a public company.\n\n(3) Subject to subsection (5), a company is not, by virtue of paragraph (2)(a) or (b), a public company for the purposes of subsection (1) in relation to the year of income where:\n\n(a) at any time during the year of income, one person or persons not more than 20 in number held, or had the right to acquire or become the holder or holders of, shares representing not less than three‑quarters of the value of the shares in the company, other than shares entitled to a fixed rate of dividend only;\n\n(b) at any time during the year of income, not less than three‑quarters of the voting power in the company was capable of being exercised by one person or by persons not more than 20 in number;\n\n(c) not less than three‑quarters of:\n\n(i) the amount of any dividend paid by the company during the year of income; or\n\n(ii) if more than one dividend was paid by the company during the year of income—the total amount of all the dividends paid by the company during the year of income;\n\nwas paid to one person or to persons not more than 20 in number; or\n\n(d) a dividend was not paid by the company during the year of income but the Commissioner is of the opinion that, if a dividend had been paid by the company at any time during the year of income, not less than three‑quarters of the amount of that dividend would have been paid to one person or to persons not more than 20 in number.\n\n(3A) Subject to subsection (3B), a company shall not be taken for the purposes of subsection (1) to be a public company in relation to a year of income by reason that a body constituted and established as mentioned in subparagraph (2)(d)(iii) (in this subsection referred to as the public body) had a controlling interest in the company on the last day of the year of income if:\n\n(a) by reason of:\n\n(i) any of the provisions contained in the constituent document of the company as in force on the last day of the year of income; or\n\n(ii) any right, power, option or agreement in existence on the last day of the year of income that related to the management or conduct of the affairs of the company, including any right, power, option or agreement that related to the issue, allotment or redemption of shares, or the grant, withdrawal or variation of rights in respect of shares;\n\nthe exercise by the public body of any right or power in connexion with the company (being a right or power relating to the exercise by the public body of a controlling interest in the company), whether on the last day of the year of income or at any later time, could have been prevented;\n\n(b) rights or powers of the public body in connexion with the company were exercised during the year of income otherwise than for the benefit of the public body or were not exercised in circumstances where it might reasonably have been expected that they would have been exercised;\n\n(c) any shares in the company that were held by the public body on the last day of the year of income were acquired by the public body for no consideration or for a consideration that, in the ordinary course of commercial dealing, would be considered inadequate;\n\n(d) in pursuance of any agreement entered into before the end of the year of income, the public body agreed to dispose of all or any of the shares in the company that were held by the public body on the last day of the year of income, being a disposal that was to take place at any time after the last day of the year of income;\n\n(e) a dividend was paid by the company at a time during the year of income when the public body had a controlling interest in the company, and less than one‑half of the amount of that dividend was paid to the public body; or\n\n(f) a dividend was not paid by the company at a time during the year of income when the public body had a controlling interest in the company but the Commissioner is of the opinion that, if a dividend had been paid by the company at such a time, less than one‑half of the amount of the dividend would have been paid to the public body.\n\n(3B) Subsection (3A) does not apply in relation to a company in relation to a year of income if the Commissioner is satisfied that no shares in the company that were held by the public body referred to in that subsection on the last day of the year of income were allotted or transferred to the public body for the purpose, or for purposes that included the purpose, of enabling the company to be treated as a public company in relation to the year of income for the purposes of subsection (1), or in pursuance of an agreement entered into, or a course of conduct engaged in, for the purpose, or for purposes that included the purpose, of enabling the company to be so treated.\n\n(3C) Paragraph (3A)(c) does not apply to an acquisition that is taken by section 70‑30 or 70‑110 of the Income Tax Assessment Act 1997 to have occurred.\n\n(4) Subject to subsection (4D), a company is, for the purposes of this section, a subsidiary of a public company in relation to the year of income if:\n\n(a) at all times during the year of income all the shares in the first‑mentioned company were beneficially owned by a company which, or companies each of which, is a public company for the purposes of subsection (1) in relation to the year of income of that company (in this subsection referred to as the corresponding year of income) that corresponds with the first‑mentioned year of income but which is not, or none of which is:\n\n(i) a company to which paragraph (2)(c) applies in relation to the corresponding year of income; or\n\n(ii) a subsidiary of a public company for the purposes of this section in relation to the corresponding year of income by reason of subsection (4B);\n\n(b) the corresponding year of income, or each of the corresponding years of income, referred to in paragraph (a) ended on the same day as the year of income first‑mentioned in that paragraph;\n\n(c) at no time during the year of income was a person or were 2 or more persons in a position to affect rights of the relevant holding company or holding companies in connexion with the first‑mentioned company so as to prevent the relevant holding company or holding companies from exercising for its or their own benefit the whole of the voting power in the first‑mentioned company or from receiving for its or their own benefit the whole of any dividends that might be paid by the first‑mentioned company or of any distribution that might be made of capital of the first‑mentioned company; and\n\n(d) no agreement was entered into before or during the year of income by virtue of which a person or 2 or more persons would be in a position after the year of income so to affect rights of the relevant holding company or holding companies in connexion with the first‑mentioned company.\n\n(4A) For the purposes of paragraphs 4(c) and (d), a person shall be taken to have been, or to be, in a position at a particular time to affect any rights of the relevant holding company or holding companies in connexion with the company first‑mentioned in subsection (4) (in this subsection referred to as the first‑mentioned company) if at that time that person had or has a right, power or option (whether by virtue of any provision in the constituent document of the first‑mentioned company or by virtue of any agreement or instrument or otherwise) to acquire those rights or to do an act or thing that would prevent the relevant holding company or holding companies from exercising those rights for its or their own benefit or receiving any benefits accruing by reason of those rights.\n\n(4B) Subject to subsection (4D), a company that is not, by virtue of subsection (4), a subsidiary of a public company for the purposes of this section in relation to the year of income is, for the purposes of this section, a subsidiary of a public company in relation to the year of income if:\n\n(a) at all times during the year of income the voting power in the first‑mentioned company was controlled, or was capable of being controlled, by a listed company or listed companies, either directly or through one or more companies, trustees or partnerships interposed between the first‑mentioned company and the listed company or listed companies;\n\n(b) at all times during the year of income a listed company or listed companies had a right to receive, either directly or through one or more companies, trustees or partnerships interposed between the first‑mentioned company and the listed company or listed companies, more than one‑half of any dividends that might be paid by the first‑mentioned company and more than one‑half of any distribution that might be made of capital of the first‑mentioned company;\n\n(c) at no time during the year of income was a person or were 2 or more persons in a position to affect rights of the listed company or listed companies in connexion with the first‑mentioned company so as to prevent the listed company or listed companies from exercising for its or their own benefit control of the voting power in the first‑mentioned company or from receiving for its or their own benefit more than one‑half of any dividends that might be paid by the first‑mentioned company or of any distribution that might be made of capital of the first‑mentioned company; and\n\n(d) no agreement was entered into before or during the year of income by virtue of which a person or 2 or more persons would be in a position after the year of income so to affect rights of the listed company or listed companies in connexion with the first‑mentioned company.\n\n(4C) For the purposes of paragraphs (4B)(c) and (d), a person shall be taken to have been, or to be, in a position at a particular time to affect any rights of a listed company or listed companies in connexion with another company if at that time that person had, or has, a right, power or option (whether by virtue of any provision in the constituent document of the other company or of any company interposed between the listed company or listed companies and the other company or by virtue of any agreement or instrument or otherwise) to acquire those rights or to do an act or thing that would prevent the listed company or listed companies from exercising those rights for its or their own benefit or receiving any benefits accruing by reason of those rights.\n\n(4D) A company (in this subsection and subsection (4E) referred to as the company concerned) that would, apart from this subsection, be a subsidiary of a public company for the purposes of this section in relation to the year of income shall be deemed, for the purposes of this section, not to be a subsidiary of a public company in relation to the year of income if the Commissioner is satisfied that:\n\n(a) where the company concerned would, apart from this subsection, be such a subsidiary in relation to the year of income by virtue of subsection (4)—the affairs of the company concerned were managed or conducted in the year of income in the interests of persons other than the relevant holding company or holding companies; or\n\n(b) where the company concerned would, apart from this subsection, be such a subsidiary in relation to the year of income by virtue of subsection (4B)—the affairs of the company concerned were managed or conducted in the year of income without proper regard to the interests of the relevant holding company or holding companies.\n\n(4E) In considering whether the affairs of the company concerned were managed or conducted in the year of income as mentioned in subsection (4D), the Commissioner shall have regard to:","sortOrder":1000049},{"sectionNumber":"full-source-retrieval-0051","sectionType":"document_chunk","heading":"Document excerpt 51","content":"(a) the circumstances in which the relevant holding company or holding companies acquired a direct or indirect beneficial interest or interests in shares in the company concerned (whether the interest was, or the interests were, acquired before or during the year of income) and, in particular, whether those circumstances were capable of explanation by reference to ordinary commercial dealing;\n\n(b) the provisions of the constituent document of the company concerned as in force during the year of income that related to the management or conduct of the affairs of that company, including the provisions of the constituent document that related to the appointment or removal of directors, the issue, allotment or redemption of shares, the grant, withdrawal or variation of rights in respect of shares, the payment of dividends and the investment or other application of moneys of that company;\n\n(c) the nature and extent of any right, power, option or agreement in existence during the year of income that related to the management or conduct of the affairs of the company concerned, including any right, power, option or agreement that related to the appointment or removal of directors, the issue, allotment or redemption of shares, the grant, withdrawal or variation of rights in respect of shares, the payment of dividends and the investment or other application of moneys of that company;\n\n(d) whether rights of the relevant holding company or holding companies in connexion with the company concerned were exercised during the year of income otherwise than for the benefit of the relevant holding company or holding companies or were not exercised in circumstances where it might reasonably have been expected that they would have been exercised;\n\n(e) the nature and source of the income derived by the company concerned during the year of income and whether the derivation by that company of that income was capable of explanation by reference to ordinary commercial dealing;\n\n(f) the manner in which the moneys of the company concerned were applied during the year of income and, in particular, whether they were lent to, or invested or otherwise made available for the use or benefit of, a person or persons other than the relevant holding company or holding companies and, if any such moneys were so lent, invested or made available:\n\n(i) the terms and conditions upon which the moneys were so lent, invested or made available;\n\n(ii) whether the lending, investment or making available of those moneys was capable of explanation by reference to ordinary commercial dealing; and\n\n(iii) the connexion (if any) between that person or those persons, the directors of the company concerned and the directors of, or the beneficial owners of the shares in, the company from which the company concerned received dividends before or during the year of income;\n\n(g) the respective amounts of any dividends in respect of shares in the company concerned that were paid during the year of income or might reasonably be expected to be paid after that year by that company and the circumstances in which those dividends were, or might be expected to be, paid; and\n\n(h) any other relevant matters.\n\n(5) Where a company would not, under the preceding provisions of this section, be a public company for the purposes of subsection (1) in relation to the year of income but the Commissioner is of the opinion that, having regard to:\n\n(a) the number of persons who were, at any time during the year of income, capable of controlling the company and whether any of those persons was a public company;\n\n(b) the market value of the shares issued by the company before the end of the year of income;\n\n(c) the number of persons who beneficially owned shares in the company at the end of the year of income; and\n\n(d) any other matters that the Commissioner thinks relevant;\n\nit is reasonable that the company should be treated as a public company for the purposes of subsection (1) in relation to the year of income, the company shall be deemed to be a public company for those purposes in relation to the year of income.\n\n(5A) The Commissioner may, under subsection (5), form an opinion that it is reasonable that a company should be treated as a public company for the purposes of subsection (1) in relation to a year of income notwithstanding that the forming of such an opinion by the Commissioner would impose on the company a liability to pay a greater amount of income tax than the company would otherwise be liable to pay.\n\n(6) Notwithstanding anything in the preceding provisions of this section, the Commissioner may treat a company as not being, by virtue of paragraph (2)(a) or (b), a public company for the purposes of subsection (1) in relation to the year of income if the Commissioner is of the opinion that, by reason of:\n\n(a) any provisions in the company’s constituent document, or in any contract, agreement or instrument, authorizing the variation or abrogation of the voting rights or rights to dividends in respect of any shares in the company or relating to the conversion, exchange or redemption of any such shares;\n\n(b) any contract, agreement, option or instrument under which a person has power to acquire shares in the company; or\n\n(c) any power or authority in a person in relation to the voting rights or rights to dividends in respect of any shares in the company;\n\nthe voting rights or rights to dividends in respect of any shares in the company were, at any time during the year of income, capable of being varied or abrogated in such a manner (notwithstanding that they were not in fact varied or abrogated in that manner) that:\n\n(d) not less than three‑quarters of the voting power in the company would have been capable of being exercised by one person or by persons not more than 20 in number;\n\n(e) not less than three‑quarters of:\n\n(i) the amount of any dividend paid by the company during the year of income; or\n\n(ii) if more than one dividend was paid by the company during the year of income—the total amount of all the dividends paid by the company during the year of income;\n\nwould have been paid to one person or to persons not more than 20 in number; or\n\n(f) in the case where the company did not pay a dividend during the year of income—if a dividend had been paid by the company at any time during the year of income, not less than three‑quarters of the amount of that dividend would have been paid to one person or to persons not more than 20 in number.\n\n(7) For the purposes of this section:\n\n(a) a person, whether or not he or she holds shares in the company concerned;\n\n(b) his or her relatives; and\n\n(c) in relation to any shares in respect of which they are such nominees, his or her nominees and the nominees of any of his or her relatives;\n\nshall be deemed to be one person.\n\n109  Excessive payments to shareholders, directors and associates deemed to be dividends\n\n(1) If a private company pays or credits to an associated person an amount (in this subsection called the excessive amount) that is, or purports to be:\n\n(a) remuneration for services rendered by the associated person; or\n\n(b) an allowance, gratuity or compensation in consequence of the retirement of the associated person from an office or employment held by the associated person in the company, or upon the termination of any such office or employment;\n\nso much (if any) of the excessive amount as exceeds an amount that, in the opinion of the Commissioner, is reasonable:\n\n(c) is not an allowable deduction; and\n\n(d) shall, for the purposes of this Act other than Division 11A of Part III, be deemed to be a dividend paid by the company:\n\n(i) to the associated person as a shareholder in the company;\n\n(ii) out of profits derived by the company; and\n\n(iii) on the last day of the year of income of the company in which the excessive payment or credit is made.\n\nNote: This section does not apply to an amount if the amount is paid to a CGT concession stakeholder under subsection 152‑325(1) of the Income Tax Assessment Act 1997 (see subsection 152‑325(11)).\n\n(2) For the purposes of this section:\n\n(a) a transfer of property shall be deemed to be the payment of an amount equal to the value of the property; and\n\n(b) a reference to an associated person, in relation to a company, is a reference to:\n\n(i) a person who is, or has been, a shareholder in, or director of, the company; or\n\n(ii) a person who is an associate, within the meaning of section 318, of a person who is, or has been, a shareholder in, or director of, the company.\n\nDivision 7A—Distributions to entities connected with a private company\n\nSubdivision A—Overview of this Division\n\n109B  Simplified outline of this Division\n\nThe following is a simplified outline of this Division:\n\nThis Division treats 3 kinds of amounts as dividends paid by a private company:\n\n• amounts paid by the company to a shareholder or shareholder’s associate (see section 109C);\n\n• amounts lent by the company to a shareholder or shareholder’s associate (see sections 109D and 109E);\n\n• amounts of debts owed by a shareholder or shareholder’s associate to the company that the company forgives (see section 109F).\n\nThis treatment makes the amounts assessable income of the shareholder or associate (under section 44).\n\nHowever, some payments, loans and forgiven debts are not treated as dividends. (See Subdivisions C and D.) Also, this Division does not apply to demerger dividends. (See Subdivision DA.)\n\nAn amount may be treated as a dividend even if it is paid or lent by the company to the shareholder or associate through one or more interposed entities. (See Subdivision E.)\n\nAn amount may also be included in the assessable income of a shareholder or shareholder’s associate if:\n\n(a) a company has an unpaid present entitlement to income of a trust; and\n\n(b) the trustee makes a payment or loan to, or forgives a debt of, the shareholder or associate.\n\n(See Subdivisions EA and EB.)\n\nIf the total of the amounts is more than the company’s distributable surplus, only the part of the total equal to the distributable surplus is treated as dividends. (See section 109Y.)\n\nThis Division applies to non‑share equity interests and non‑share dividends in the same way it applies to shares and dividends.\n\nSubdivision AA—Application of Division\n\n109BA  Application of Division to non‑share dividends\n\nThis Division:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n109BB  Application of Division to closely‑held corporate limited partnerships\n\nThis Division applies to a corporate limited partnership in relation to a year of income in the same way as it applies to a private company in relation to a year of income, if, any time during the year of income:\n\n(a) the partnership has fewer than 50 members; or\n\n(b) any entity has, directly or indirectly, and for the entity’s own benefit, an entitlement to a 75% or greater share of the income or capital of the partnership.\n\nExample: Michael has an entitlement to an 80% share of the income of 2 fixed trusts. The 2 fixed trusts have, between them, an entitlement to 100% of the income of a corporate limited partnership. For the purposes of paragraph (b), Michael has, indirectly, and for his own benefit, an entitlement to a 75% or greater share of the income of the partnership.\n\n109BC  Application of Division to non‑resident companies\n\n(1) This Division applies, in relation to a payment, loan or debt forgiveness, in relation to a private company that is a non‑resident as if:\n\n(a) references in this Division to a year of income of the company were references to a tax accounting period in relation to the company in relation to a foreign tax imposed by a tax law of:\n\n(i) if the company is a resident of only one foreign country—that foreign country; or\n\n(ii) otherwise—the foreign country to which subsection (2) applies; and\n\n(b) references in this Division to the lodgment day for the year of income were references to the due date for lodgment of the company’s return of income for the tax accounting period under that tax law.\n\n(2) For the purposes of subparagraph (1)(a)(ii), this subsection applies to a foreign country (the relevant country) if:\n\n(a) the company is a resident of the relevant country; and\n\n(b) of all the tax accounting periods:\n\n(i) in relation to the company in relation to the foreign taxes imposed by the tax laws of the foreign countries of which the company is resident; and\n\n(ii) during which the payment, loan or debt forgiveness is made;\n\nthe tax accounting period under the tax law of the relevant country ends first; and\n\n(c) if more than one of the tax accounting periods mentioned in paragraph (b) end first—the due date for lodgment of the company’s return of income for the tax accounting period under the tax law of the relevant country is not later than the due date for lodgment for any of the other tax accounting periods that end first.\n\n(3) In this section:\n\ntax accounting period has the meaning given by section 317.\n\ntax law has the meaning given by section 317.\n\nNote: Section 109L prevents amounts from being included in assessable income under this Division if the amounts are included in, or excluded from, assessable income under another provision of this Act, such as the rules relating to CFCs and FIFs.\n\nSubdivision B—Private company payments, loans and debt forgiveness are treated as dividends\n\n109C  Payments treated as dividends\n\nWhen private company is taken to pay a dividend\n\n(1) A private company is taken to pay a dividend to an entity at the end of the private company’s year of income if the private company pays an amount to the entity during the year and either:\n\n(a) the payment is made when the entity is a shareholder in the private company or an associate of such a shareholder; or\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the payment is made because the entity has been such a shareholder or associate at some time.\n\nNote 1: Some payments do not give rise to dividends under Subdivision D. This section also does not give rise to a dividend if the amount is paid to a CGT concession stakeholder under subsection 152‑325(1) of the Income Tax Assessment Act 1997 (see subsection 152‑325(11)).\n\nNote 2: A private company is treated as making a payment to a shareholder or shareholder’s associate if an interposed entity makes a payment to the shareholder or associate. See Subdivision E.\n\nAmount of dividend\n\n(2) The dividend is taken to equal the amount paid, subject to section 109Y.\n\nNote: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company’s distributable surplus.\n\nWhat is a payment to an entity?\n\n(3) In this Division, payment to an entity means:\n\n(a) a payment to the extent that it is to the entity, on behalf of the entity or for the benefit of the entity; and\n\n(b) a credit of an amount to the extent that it is:\n\n(i) to the entity; or\n\n(ii) on behalf of the entity; or\n\n(iii) for the benefit of the entity; and\n\n(c) a transfer of property to the entity.\n\nNote: See also section 109CA (Payment includes provision of asset).\n\nLoans are not payments\n\n(3A) However, a loan to an entity is not a payment to the entity.\n\nNote: Payments converted to loans before the private company’s lodgment day are treated as loans (see subsection 109D(4A)).\n\nValue of payment by transfer of property\n\n(4) The amount of a payment consisting of a transfer of property is the amount that would have been paid for the transfer by parties dealing at arm’s length less any consideration given by the transferee for the transfer. (The amount of a payment is nil if the consideration given by the transferee equals or exceeds the amount that would have been paid at arm’s length for the transfer.)\n\n109CA  Payment includes provision of asset\n\n(1) In this Division, payment to an entity includes the provision of an asset for use by the entity.\n\nNote: This includes provision under a lease or licence.\n\nExample: Yacht builder Mainbrace Enterprises Pty Ltd owns a yacht for the purpose of sales demonstrations. With the private company’s permission, one of its shareholders uses the yacht on weekends. The company has made a payment to the shareholder, unless one of the exceptions to subsection (1) applies.\n\n(2) The time the payment is made is the time the entity first:\n\n(a) uses the asset with the permission of the provider of the asset; or\n\n(b) has a right to use the asset (whether alone or together with other entities), at a time when the provider of the asset does not have a right:\n\n(i) to use the asset; or\n\n(ii) to provide the asset for use by another entity.\n\nExample: Paragraph (a) could apply if a shareholder were driving a company car with the company’s permission. Paragraph (b) could apply if the shareholder had the car parked at his or her house or at another place of his or her choosing.\n\n(3) However, if the use or right continues into another income year of the entity, treat the provision of the asset for use in the other income year as being a separate payment made at the start of that year.\n\nExceptions\n\n(4) Subsection (1) does not apply if the provision of the asset would, if done in respect of the employment of an employee, be a minor benefit under section 58P of the Fringe Benefits Tax Assessment Act 1986.\n\n(5) Subsection (1) does not apply to the extent that, if the entity had incurred and paid expenditure in respect of the provision of the asset, a once‑only deduction would have been allowable to the entity in respect of the expenditure, ignoring Divisions 28 (Car expenses) and 900 (Substantiation rules) of the Income Tax Assessment Act 1997.\n\n(6) Subsection (1) does not apply to the provision of a dwelling, if:","sortOrder":1000050},{"sectionNumber":"full-source-retrieval-0052","sectionType":"document_chunk","heading":"Document excerpt 52","content":"(a) the entity, or an associate of the entity, carries on a business; and\n\n(b) the entity or associate:\n\n(i) uses; or\n\n(ii) is granted or has a lease, licence or other right to use;\n\nland, water or a building for the purpose of carrying on the business; and\n\n(c) the provision of the dwelling to the entity is connected with that use or with that lease, licence or other right.\n\nNote: For the meaning of land, see section 2B of the Acts Interpretation Act 1901.\n\n(7) Subsection (1) does not apply to the provision of a dwelling, if:\n\n(a) the dwelling is the main residence of the entity; and\n\n(b) the provider of the dwelling is a private company; and\n\n(c) the private company acquired the dwelling before 1 July 2009; and\n\n(d) the private company would meet the conditions in section 165‑12 of the Income Tax Assessment Act 1997 (which is about the company maintaining the same owners) if, despite subsection 165‑12(1), the ownership test period were the period:\n\n(i) starting on the start of 1 July 2009; and\n\n(ii) ending at the time of payment, worked out under subsection (2) of this section.\n\n(7A) Subsection (1) does not apply to the provision of a dwelling to the entity if:\n\n(a) the dwelling is a flat or home unit that is part of a complex of 2 or more flats or home units; and\n\n(b) the provider of the dwelling is a company that owns a legal or equitable interest in the land on which the complex is erected; and\n\n(c) there is more than one share in the company, and each share (whether singly or as part of a parcel of shares) gives the relevant shareholder the right to occupy a flat or home unit in the complex; and\n\n(d) each flat or home unit in the complex is covered by a share, or a parcel of shares, in the company; and\n\n(e) the dwelling is provided to the entity because a shareholder holds such a share, or parcel of shares; and\n\n(f) the company does not have legal or equitable interests in any assets other than legal or equitable interests in:\n\n(i) the complex, and the land on which it is erected; and\n\n(ii) any related land and buildings; and\n\n(iii) any related plant, machinery, equipment, furniture or fittings; and\n\n(iv) any assets relating to the matters mentioned in paragraph (g); and\n\n(g) the assessable income of the company is derived predominantly from:\n\n(i) managing and maintaining the complex (including the assets mentioned in subparagraphs (f)(i), (ii) and (iii)); and\n\n(ii) interest and dividends relating to income derived from managing and maintaining the complex (including the assets mentioned in those subparagraphs).\n\n(7B) Subsection (7A) does not apply in a case to which Subdivision E (about interposed entities) applies, if the company mentioned in that subsection is interposed between:\n\n(a) a private company; and\n\n(b) a shareholder, or an associate of a shareholder, of the private company.\n\n(8) Section 118‑120 of the Income Tax Assessment Act 1997 (Extension to adjacent land) applies in relation to subsections (6) to (7A) of this section in the same way as it applies in relation to Subdivision 118‑B of that Act.\n\n(9) Subsection (1) does not apply if the provision of the asset to the entity is a transfer of property to the entity.\n\nNote: For transfers of property, see paragraph 109C(3)(c).\n\nValue of payment\n\n(10) Subject to subsection (11), the amount of the payment is:\n\n(a) the amount that would have been paid for the provision of the asset by the parties dealing at arm’s length; less\n\n(b) any consideration given for the provision of the asset by the entity.\n\n(11) The amount of the payment is nil if the consideration given by the entity equals or exceeds the amount that would have been paid at arm’s length for the provision of the asset.\n\n109D  Loans treated as dividends\n\nLoans treated as dividends in year of making\n\n(1) A private company is taken to pay a dividend to an entity at the end of one of the private company’s years of income (the current year) if:\n\n(a) the private company makes a loan to the entity during the current year; and\n\n(b) the loan is not fully repaid before the lodgment day for the current year; and\n\n(c) Subdivision D does not prevent the private company from being taken to pay a dividend because of the loan at the end of the current year; and\n\n(d) either:\n\n(i) the entity is a shareholder in the private company, or an associate of such a shareholder, when the loan is made; or\n\n(ii) a reasonable person would conclude (having regard to all the circumstances) that the loan is made because the entity has been such a shareholder or associate at some time.\n\nNote 1: Some repayments cannot be counted for the purpose of this subsection. See section 109R.\n\nNote 2: A private company is treated as making a loan to a shareholder or shareholder’s associate if an interposed entity makes a loan to the shareholder or associate. See Subdivision E.\n\nAmount of dividend\n\n(1AA) The amount of the dividend taken under subsection (1) to have been paid is the amount of the loan that has not been repaid before the lodgment day for the current year, subject to section 109Y.\n\nNote: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company’s distributable surplus.\n\nLoans treated as dividends in year following that of making\n\n(1A) A private company is taken to pay a dividend to an entity at the end of the private company’s year of income (the current year) if:\n\n(a) the private company made a loan to the entity during the previous year of income; and\n\n(b) it made the loan in the course of a winding‑up of the private company by a liquidator; and\n\n(c) the loan is not fully repaid by the end of the current year; and\n\n(d) either:\n\n(i) the entity is a shareholder in the private company, or an associate of such a shareholder, when the loan is made; or\n\n(ii) a reasonable person would conclude (having regard to all the circumstances) that the loan is made because the entity has been such a shareholder or associate at some time.\n\nSubdivision D (other than section 109R) does not apply to loans covered by this subsection.\n\nAmount of dividend\n\n(2) The amount of the dividend taken under subsection (1A) to have been paid is the amount of the loan that has not been repaid at the end of the current year, subject to section 109Y.\n\nNote: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company’s distributable surplus.\n\nWhat is a loan?\n\n(3) In this Division, loan includes:\n\n(a) an advance of money; and\n\n(b) a provision of credit or any other form of financial accommodation; and\n\n(c) a payment of an amount for, on account of, on behalf of or at the request of, an entity, if there is an express or implied obligation to repay the amount; and\n\n(d) a transaction (whatever its terms or form) which in substance effects a loan of money.\n\nIn which year of income is a loan made?\n\n(4) For the purposes of this Division, a loan is made to an entity at the time the amount of the loan is paid to the entity by way of loan or anything described in subsection (3) is done in relation to the entity.\n\nPayment converted to loan before lodgment day\n\n(4A) If:\n\n(a) a private company makes a payment to an entity at a time in a year of income; and\n\n(b) the payment is converted to a loan before the end of the private company’s lodgment day for the year of income;\n\nfor the purposes of this Division, treat the events mentioned in paragraphs (a) and (b) as the private company making a loan to the entity at the time mentioned in paragraph (a).\n\nLoans made before 4 December 1997\n\n(5) If the terms of a loan made before 4 December 1997 are varied on or after that day by extending the term of the loan or increasing its amount, this Division applies to the loan as if it were made on the new terms when the variation occurred.\n\nWhen is the lodgment day?\n\n(6) In this Division, the lodgment day for a private company’s year of income is the earlier of:\n\n(a) the due date for lodgment of the private company’s return of income for the year of income; and\n\n(b) the date of lodgment of the private company’s return of income for the year of income.\n\nNote: For the lodgment day for a private company that is a non‑resident, see section 109BC.\n\n109E  Amalgamated loan from a previous year treated as dividend if minimum repayment not made\n\nAmalgamated loan treated as dividend in first year in which payment is less than minimum yearly repayment\n\n(1) A private company is taken to pay a dividend to an entity at the end of one of the private company’s years of income (the current year) if:\n\n(a) the private company made an amalgamated loan to the entity in an earlier year of income; and\n\n(b) the amalgamated loan is not repaid at the end of the current year; and\n\n(c) the amount (if any) paid to the private company during the current year in relation to the amalgamated loan falls short of the minimum yearly repayment of the amalgamated loan worked out under subsection (5) for the current year; and\n\n(d) section 109Q does not apply in relation to the current year.\n\nNote: The amalgamated loan does not give rise to a dividend for that year if the minimum yearly repayment is not made and the entity satisfies the Commissioner that treating the loan as a dividend would cause hardship. See section 109Q.\n\nAmount of dividend\n\n(2) The amount of the dividend is taken to be the amount of the shortfall mentioned in paragraph (1)(c), subject to section 109Y.\n\nNote: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company’s distributable surplus.\n\nWhat is an amalgamated loan?\n\n(3) For the purposes of this Division, a private company is taken to make a loan (the amalgamated loan) to a single entity during a year of income if the private company makes one or more loans (constituent loans) to the entity during the year, each of which:\n\n(a) is not fully repaid before the lodgment day for the year; and\n\n(b) would cause the company to be taken under section 109D to pay a dividend to the entity at the end of the year, apart from section 109N; and\n\n(c) has the same maximum term for the purposes of that section.\n\nThe amount of the amalgamated loan is the sum of the amounts of the constituent loans that have not been repaid before the lodgment day for the year of income in which the amalgamated loan is made.\n\n(3A) Subsection (3B) applies if:\n\n(a) a private company is taken to have made an amalgamated loan (the old amalgamated loan) during a year of income (the original year of income); and\n\n(b) the maximum term of the old amalgamated loan under subsection 109N(3) was 7 years; and\n\n(c) in a later year of income (the later year of income):\n\n(i) a constituent loan taken account of by the old amalgamated loan becomes secured by a mortgage over real property; and\n\n(ii) the term of the constituent loan is extended; and\n\n(d) as a result of the mortgage, the maximum term of the constituent loan under subsection 109N(3) is 25 years; and\n\n(e) the term of the constituent loan after the extension (including the period before the extension during which the constituent loan was in existence) does not exceed 25 years.\n\n(3B) For the purposes of this Division in relation to the later year of income and subsequent years of income:\n\n(a) treat the constituent loan as a new amalgamated loan that takes account of that constituent loan; and\n\n(b) treat the new amalgamated loan as having been made just before the start of the later year of income; and\n\n(c) treat the amount of the new amalgamated loan just before the start of the later year of income as the amount of the constituent loan that had not been repaid at that time; and\n\n(d) unless paragraph (e) applies—reduce the amount of the old amalgamated loan just before the start of the later year of income by the amount of the new amalgamated loan at that time; and\n\n(e) if the constituent loan was the only constituent loan taken account of by the old amalgamated loan—disregard the old amalgamated loan.\n\nPayments in relation to constituent loans treated as payments in relation to amalgamated loan\n\n(4) For the purposes of this Division, a payment to the private company in relation to a constituent loan in a year of income after the one in which the constituent loan was made is taken to be a payment in relation to the amalgamated loan that takes account of the constituent loan.\n\nMinimum yearly repayment\n\n(5) The minimum yearly repayment of an amalgamated loan for a year of income is the amount worked out using the formula in subsection (6). However, the minimum yearly repayment of an amalgamated loan for a year of income is the amount worked out under the regulations, if they provide for working it out.\n\nFormula for minimum yearly repayment\n\n(6) The formula for the minimum yearly repayment for a year of income is:\n\n![A formula for working out the minimum yearly repayment of an amalgamated loan for a year of income ](image.020.png)\n\nwhere:\n\ncurrent year’s benchmark interest rate is the benchmark interest rate for the year of income for which the minimum yearly repayment is being worked out.\n\nremaining term is the difference between:\n\n(a) the number of years in the longest term of any of the constituent loans that the amalgamated loan takes account of; and\n\n(b) the number of years between the end of the private company’s year of income in which the loan was made and the end of the private company’s year of income before the year of income for which the minimum yearly repayment is being worked out;\n\nrounded up to the next higher whole number if the difference is not already a whole number.\n\nNote: Section 109R provides that certain payments relating to a loan are not to be taken into account for the purposes of working out the minimum yearly repayment.\n\nBenchmark interest rate used to work out how much of a payment relating to amalgamated loan is a repayment\n\n(7) Work out the amount of an amalgamated loan repaid by the end of a year of income on the basis that interest is payable on the balance of the loan from time to time in a year of income at a rate equal to the benchmark interest rate for the year of income.\n\n109F  Forgiven debts treated as dividends\n\nForgiven debt treated as dividend\n\n(1) A private company is taken to pay a dividend to an entity at the end of the private company’s year of income if all or part of a debt the entity owed the private company is forgiven in that year and either:\n\n(a) the amount is forgiven when the entity is a shareholder in the private company, or an associate of such a shareholder; or\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the amount is forgiven because the entity has been such a shareholder or associate at some time.\n\nNote: In some cases forgiving a debt does not give rise to a dividend. See section 109G.\n\nAmount of dividend\n\n(2) The amount of the dividend equals the amount of debt forgiven, subject to section 109Y.\n\nNote: Section 109Y limits the total amount of dividends taken to have been paid by a private company under this Division to the company’s distributable surplus.\n\nWhen is a debt forgiven?\n\n(3) An amount of a debt is forgiven for the purposes of this Division if and when the amount would be forgiven under section 245‑35 or 245‑37 of the Income Tax Assessment Act 1997, assuming the amount were a debt to which Subdivisions 245‑C to 245‑G of that Act apply.\n\nNote: Division 245 of the Income Tax Assessment Act 1997 applies to forgiveness of certain commercial debts.\n\nDischarge of debt by transfer of property is not forgiveness\n\n(4) Despite subsection (3), an amount of debt is not forgiven for the purposes of this Division if the obligation to pay the amount is discharged by a payment to the creditor consisting of a transfer of property.\n\nNote: Subsection 109C(4) explains how to work out the value of a payment consisting of a transfer of property.\n\nDebt forgiveness by debt parking\n\n(5) An amount of debt an entity (the debtor) owes a private company is also forgiven for the purposes of this Division if:\n\n(a) the private company assigns the right to receive payment of the amount to another entity (the new creditor) who is either:\n\n(i) an associate of the debtor; or\n\n(ii) a party to an arrangement with the debtor about the assignment; and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the new creditor will not exercise the assigned right.\n\nDebt forgiveness by failure to rely on obligation to pay\n\n(6) An amount of debt an entity (the debtor) owes a private company is also forgiven for the purposes of this Division if a reasonable person would conclude (having regard to all the circumstances) that the private company will not insist on the entity paying the amount or rely on the entity’s obligation to pay the amount. (The amount is forgiven when a reasonable person would first reach that conclusion.)\n\nForgiveness of amalgamated loan debt\n\n(7) If a private company forgives an amount of debt resulting from a constituent loan taken into account in working out the amount of an amalgamated loan under subsection 109E(3), the private company is taken to forgive the same amount of the debt resulting from the amalgamated loan.\n\nThis section operates on only the earliest debt forgiveness\n\n(8) If the same debt is forgiven for the purposes of this Division at different times under different provisions of this section, this section operates on the first forgiveness only.","sortOrder":1000051},{"sectionNumber":"full-source-retrieval-0053","sectionType":"document_chunk","heading":"Document excerpt 53","content":"Example: Subsection (3) of this section provides that a debt is forgiven if it has not been paid by the time a statute of limitations prevents recovery of the debt. (It does this by applying paragraph 245‑35(b) of the Income Tax Assessment Act 1997.) The debt might already have been forgiven under subsection (6) of this section (because a reasonable person would have concluded earlier that the private company was not going to insist on payment). This section would apply to the forgiveness under subsection (6) but not the forgiveness under subsection (3).\n\nSubdivision C—Forgiven debts that are not treated as dividends\n\n109G  Debt forgiveness that does not give rise to a dividend\n\nForgiveness of debt owed by company generally not treated as dividend\n\n(1) A private company is not taken under this Division to pay a dividend because a debt owed to it by another company is forgiven.\n\nNote: This does not apply to a debt owed by a company as trustee. (See section 109ZE.)\n\nForgiveness of debts under Bankruptcy Act not treated as dividends\n\n(2) A private company is not taken under this Division to pay a dividend because a debt is forgiven because the debtor becomes a bankrupt or because of Part X of the Bankruptcy Act 1966.\n\nForgiveness of loan debt does not give rise to dividend if loan gives rise to dividend under section 109D\n\n(3) A private company is not taken under section 109F to pay a dividend at the end of a year of income because of the forgiveness of an amount of a debt resulting from a loan if, because of the loan, the private company is taken:\n\n(a) under section 109D to pay a dividend at the end of that year or an earlier one; or\n\n(b) under former subsection 108(1) to pay a dividend on the last day of that year or an earlier one.\n\nReduced dividend for forgiveness of loan debt if loan causes dividend under section 109E\n\n(3A) Subsection (3B) applies if:\n\n(a) a private company is taken under section 109F to pay a dividend at the end of a year of income because of the forgiveness of an amount of a debt resulting from a loan; and\n\n(b) the private company is taken under section 109E to pay a dividend at the end of an earlier year of income in relation to the loan.\n\n(3B) The amount of the dividend mentioned in paragraph (3A)(a) is reduced by the amount of the dividend mentioned in paragraph (3A)(b) (but not below zero).\n\nNote: There may be more than one reduction under this subsection if the private company has been taken under section 109E to pay more than one dividend in relation to the loan.\n\nCommissioner may treat forgiveness as not giving rise to dividend\n\n(4) A private company is not taken under this Division to pay a dividend because of the forgiveness of a debt owed by an entity if the Commissioner is satisfied that:\n\n(a) the debt was forgiven because payment of the debt would have caused the entity undue hardship; and\n\n(b) when the entity incurred the debt, the entity had the capacity to pay the debt; and\n\n(c) the entity lost the ability to pay the debt in the foreseeable future as a result of circumstances beyond the entity’s control.\n\nSubdivision D—Payments and loans that are not treated as dividends\n\n109H  Simplified outline of this Subdivision\n\nThe following is a simplified outline of this Subdivision:\n\nThis Subdivision sets out rules about payments and loans that are not treated as dividends.\n\nThe following sorts of payments are not treated as dividends:\n\n• payments of genuine debts (section 109J);\n\n• payments to other companies (section 109K);\n\n• payments that are otherwise assessable or that are specifically excluded from assessable income (section 109L).\n\nThe following sorts of loans are not treated as dividends:\n\n• loans to other companies (section 109K);\n\n• loans that are otherwise assessable (section 109L);\n\n• loans made in the ordinary course of business on ordinary commercial terms (section 109M);\n\n• loans that meet criteria for minimum interest rate and maximum term (section 109N);\n\n• certain loans and distributions by liquidators (section 109NA);\n\n• loans that are for the purpose of funding the purchase of certain ESS interests under an employee share scheme (section 109NB).\n\nAn amalgamated loan may not be treated as a dividend if the Commissioner is satisfied that doing so would cause undue hardship. (See section 109Q.)\n\nThis Subdivision also provides for some loan repayments and interest payments to private companies to be disregarded if they are made with the intention of borrowing a similar amount from a private company later. (See section 109R.)\n\n109J  Payments discharging pecuniary obligations not treated as dividends\n\nA private company is not taken under section 109C to pay a dividend because of the payment of an amount, to the extent that the payment:\n\n(a) discharges an obligation of the private company to pay money to the entity; and\n\n(b) is not more than would have been required to discharge the obligation had the private company and entity been dealing with each other at arm’s length.\n\n109K  Inter‑company payments and loans not treated as dividends\n\nA private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan the private company makes to another company.\n\nNote: This does not apply to a payment or loan to a company in its capacity as trustee. (See section 109ZE.)\n\n109L  Certain payments and loans not treated as dividends\n\n(1) A private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan the private company makes to an entity, to the extent that the payment or loan would be included in the entity’s assessable income apart from this Division (as it operates in conjunction with section 44).\n\n(2) In addition, a private company is not taken under section 109C or 109D to pay a dividend because of a payment or loan that the private company made to an entity to the extent that a provision of this Act (other than this Division) has the effect that the payment or loan is not included in the entity’s assessable income even though it would otherwise be included.\n\n109M  Loans made in the ordinary course of business on arm’s length terms not treated as dividends\n\nA private company is not taken under section 109D to pay a dividend because of a loan made:\n\n(a) in the ordinary course of the private company’s business; and\n\n(b) on the usual terms on which the private company makes similar loans to parties at arm’s length.\n\n109N  Loans meeting criteria for minimum interest rate and maximum term not treated as dividends\n\nCriteria\n\n(1) A private company that makes a loan to an entity in one of the private company’s years of income is not taken under section 109D to pay a dividend at the end of the year of income because of the loan if, before the lodgment day for the year of income:\n\n(a) the agreement that the loan was made under is in writing; and\n\n(b) the rate of interest payable on the loan for years of income after the year in which the loan is made equals or exceeds the benchmark interest rate for the year; and\n\n(c) the term of the loan does not exceed the term (the maximum term) for that kind of loan worked out under subsection (3).\n\nBenchmark interest rate\n\n(2) The benchmark interest rate for the year of income is the Indicator Lending Rates—Bank variable housing loans interest rate last published by the Reserve Bank of Australia before the start of the year of income. However, the benchmark interest rate is the rate worked out under the regulations, if they provide for working it out.\n\nMaximum term\n\n(3) The maximum term is:\n\n(a) 25 years for a loan if:\n\n(i) 100% of the value of the loan is secured by a mortgage over real property that has been registered in accordance with a law of a State or Territory; and\n\n(ii) when the loan is first made, the market value of that real property (less the amounts of any other liabilities secured over that property in priority to the loan) is at least 110% of the amount of the loan; and\n\n(b) 7 years for any other loan.\n\nHowever, the maximum term for a loan is the period worked out under the regulations, if they provide for working out the maximum term for that kind of loan.\n\n(3A) Reduce the maximum term under paragraph (3)(a) for a loan (the new loan) in accordance with subsection (3B) if:\n\n(a) the new loan results from the refinancing of another loan (the old loan); and\n\n(b) the maximum term of the old loan under subsection (3) was 7 years; and\n\n(c) the maximum term of the new loan under subsection (3) is 25 years (disregarding this subsection).\n\n(3B) The amount of the reduction is equal to the length of the period:\n\n(a) starting when the old loan was made; and\n\n(b) ending when the old loan was refinanced.\n\n(3C) Reduce the maximum term under paragraph (3)(b) for a loan (the new loan) in accordance with subsection (3D) if:\n\n(a) the new loan results from the refinancing of another loan (the old loan); and\n\n(b) the maximum term of the old loan under subsection (3) was 25 years; and\n\n(c) the maximum term of the new loan under subsection (3) is 7 years (disregarding this subsection); and\n\n(d) the length of the period:\n\n(i) starting when the old loan was made; and\n\n(ii) ending when the old loan was refinanced;\n\nexceeds 18 years.\n\n(3D) The amount of the reduction is the excess mentioned in paragraph (3C)(d).\n\nRegulations may adopt rate as published from time to time\n\n(4) Regulations made for the purposes of subsection (2) may apply, adopt or incorporate a rate published in an instrument after they are made or take effect, or a rate contained in an instrument from time to time despite any other Act.\n\n109NA  Certain liquidator’s distributions and loans not treated as dividends\n\nA private company is not taken under section 109C or subsection 109D(1) to pay a dividend because of a distribution or loan made in the course of the winding‑up of the company by a liquidator.\n\nNote: However, if such a loan is not fully repaid by the end of the following year of income, the company will be taken to have paid a dividend under subsection 109D(1A).\n\n109NB  Loans to purchase shares under employee share schemes not treated as dividends\n\nA private company is not taken under section 109D to pay a dividend because of a loan made solely for the purpose of enabling the shareholder, or an associate of the shareholder, to acquire an ESS interest under an employee share scheme (within the meaning of the Income Tax Assessment Act 1997) to which:\n\n(a) Subdivision 83A‑B, and the provisions referred to in paragraphs 83A‑33(1)(a) to (c), of that Act apply; or\n\n(aa) Subdivision 83A‑B, and the provisions referred to in paragraphs 83A‑35(1)(a) and (b), of that Act apply; or\n\n(b) Subdivision 83A‑C of that Act applies.\n\n109P  Amalgamated loans not treated as dividends in the year they are made\n\nA private company is not taken under section 109D to pay a dividend because of an amalgamated loan it makes.\n\nNote: A shortfall in a minimum yearly repayment of an amalgamated loan may be treated as a dividend under section 109E.\n\n109Q  Commissioner may allow amalgamated loan not to be treated as dividend\n\n(1) A private company is not taken under section 109E to pay a dividend at the end of one of its years of income (the current year) because of an amalgamated loan to an entity if:\n\n(a) the amount paid to the private company by the entity in the current year in relation to the loan is less than the minimum yearly repayment of the loan for the current year worked out under subsection 109E(5); and\n\n(b) the entity satisfies the Commissioner that:\n\n(i) that amount was less than the minimum yearly repayment because of circumstances beyond the entity’s control; and\n\n(ii) the entity would suffer undue hardship if the private company were taken under section 109E to pay a dividend to the entity at the end of the current year because of the loan.\n\n(2) In deciding whether he or she is satisfied, the Commissioner must consider:\n\n(a) the entity’s capacity, at the end of the year of income in which the amalgamated loan was made, to repay the loan; and\n\n(b) any circumstances that have reduced the entity’s capacity to repay the loan; and\n\n(c) whether the entity took all reasonable steps to make payments relating to the amalgamated loan during the current year equal to the minimum yearly repayment of the loan for the current year; and\n\n(d) whether the entity has made payments relating to the loan as soon as possible after the current year equalling the difference between:\n\n(i) the minimum yearly repayment for the current year; and\n\n(ii) the amount of payments made during the current year relating to the loan.\n\n109R  Some payments relating to loans not taken into account\n\n(1) This section provides for some payments to a private company in relation to a loan the private company made to an entity not to be taken into account for the purpose of working out:\n\n(a) how much of the loan has been repaid for the purposes of sections 109D and 109E (which treat amounts of loans that have not been repaid as dividends); or\n\n(b) the minimum yearly repayment for the loan under subsection 109E(5).\n\n(2) A payment must not be taken into account if:\n\n(a) a reasonable person would conclude (having regard to all the circumstances) that, when the payment was made, the entity intended to obtain a loan or loans from the private company of a total amount similar to, or larger than, the payment; or\n\n(b) both of the following subparagraphs apply:\n\n(i) the entity obtained, before the payment was made, a loan or loans from the private company of a total amount similar to, or larger than, the amount of the payment;\n\n(ii) a reasonable person would conclude (having regard to all the circumstances) that the entity obtained the loan or loans in order to make the payment.\n\n(3) Subsection (2) does not apply to a payment made by setting off against an amount payable in relation to the loan:\n\n(a) a dividend payable by the private company to the entity; or\n\n(b) work and income support related withholding payments and benefits payable by the private company to the entity; or\n\n(ba) payments covered by section 12‑55 in Schedule 1 to the Taxation Administration Act 1953; or\n\n(c) if the entity has transferred property to the private company—an amount equalling the difference between:\n\n(i) the amount that a party at arm’s length from the entity would have paid for the transfer of the property to the party; and\n\n(ii) the amount that the private company has already paid the entity (by way of set‑off or otherwise) for the transfer.\n\n(4) Nor does subsection (2) apply to a payment made on behalf of the entity (the borrower) by another entity paying to the private company an amount that:\n\n(a) is payable by the other entity to the borrower; and\n\n(b) is assessable income of the borrower for the year of income in which the payment was made or an earlier year of income.\n\n(5) Subsection (2) does not apply to a payment if:\n\n(a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and\n\n(b) the entity to which the old loan was made has another loan (the primary loan) from another entity; and\n\n(c) the old loan becomes subordinated to the primary loan; and\n\n(d) the refinancing of the old loan mentioned in paragraph (a) took place in connection with that subordination; and\n\n(e) that subordination arose as a result of circumstances beyond the control of the entity to which the old loan was made; and\n\n(f) the entity to which the old loan was made and the other entity dealt with each other at arm’s length in relation to that subordination; and\n\n(g) the private company and the other entity dealt with each other at arm’s length in relation to that subordination.\n\n(6) Subsection (2) does not apply to a payment if:\n\n(a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and\n\n(b) the refinancing results in another loan (the new loan); and\n\n(c) the maximum term of the old loan under subsection 109N(3) was 7 years; and\n\n(d) the maximum term of the new loan under subsection 109N(3) is 25 years (reduced in accordance with subsection 109N(3B)).\n\n(7) Subsection (2) does not apply to a payment if:\n\n(a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and\n\n(b) the refinancing results in another loan (the new loan); and\n\n(c) the maximum term of the old loan under subsection 109N(3) was 25 years; and\n\n(d) the maximum term of the new loan under subsection 109N(3) is:\n\n(i) unless subparagraph (ii) applies—7 years; or\n\n(ii) if subsection 109N(3D) applies—7 years reduced in accordance with that subsection.\n\nSubdivision DA—Demerger dividends not treated as dividends\n\n109RA  Demerger dividends not treated as dividends\n\nThis Division does not apply to a demerger dividend to which section 45B does not apply.\n\nSubdivision DB—Other exceptions\n\n109RB  Commissioner may disregard operation of Division or allow dividend to be franked\n\n(1) The Commissioner may make a decision under subsection (2) if:\n\n(a) this Division (disregarding this section) operates with the result that:\n\n(i) a private company is taken to pay a particular dividend to a particular entity (the recipient) under this Division; or\n\n(ii) a particular amount is included, as if it were a dividend, in the assessable income of a particular entity (also the recipient) in relation to a private company under Subdivision EA; and\n\n(b) the result mentioned in paragraph (a) arises because of an honest mistake or inadvertent omission by any of the following entities:\n\n(i) the recipient;\n\n(ii) the private company;\n\n(iii) any other entity whose conduct contributed to that result.\n\n(2) The Commissioner may decide in writing that:\n\n(a) the result mentioned in paragraph (1)(a) should be disregarded (see subsection (4)); or\n\n(b) the dividend mentioned in subparagraph (1)(a)(i) may be franked in accordance with Part 3‑6 of the Income Tax Assessment Act 1997 (see subsection (6)).","sortOrder":1000052},{"sectionNumber":"full-source-retrieval-0054","sectionType":"document_chunk","heading":"Document excerpt 54","content":"(3) In making a decision under subsection (2) (or refusing to make such a decision), the Commissioner must have regard to the following:\n\n(a) the circumstances that led to the mistake or omission mentioned in paragraph (1)(b);\n\n(b) the extent to which any of the entities mentioned in paragraph (1)(b) have taken action to try to correct the mistake or omission and if so, how quickly that action was taken;\n\n(c) whether this Division has operated previously in relation to any of the entities mentioned in paragraph (1)(b), and if so, the circumstances in which this occurred;\n\n(d) any other matters that the Commissioner considers relevant.\n\n(4) The Commissioner may make a decision under subsection (2) subject to any of the following kinds of condition:\n\n(a) a condition that the recipient or another entity must make specified payments to the private company or another entity within a specified time;\n\n(b) a condition that a specified requirement in this Division must be met within a specified time.\n\n(5) This Division is taken not to operate with the result mentioned in paragraph (1)(a) if:\n\n(a) the Commissioner makes a decision under paragraph (2)(a); and\n\n(b) if the Commissioner makes the decision subject to a condition under subsection (4)—the condition is satisfied.\n\n(6) If the Commissioner makes a decision under paragraph (2)(b), subparagraph 202‑45(g)(i) of the Income Tax Assessment Act 1997 does not make the dividend mentioned in subparagraph (1)(a)(i) unfrankable.\n\n(7) Despite subsection 33(3A) of the Acts Interpretation Act 1901, each decision made under subsection (2) must relate only to one amount that would (disregarding this section):\n\n(a) be taken to be a dividend paid by the private company; or\n\n(b) be included, as if it were a dividend, in the assessable income of an entity.\n\n109RC  Dividend may be franked if taken to be paid because of family law obligation\n\n(1) This section applies if a dividend is taken to be paid under this Division because of a family law obligation.\n\n(2) Subparagraph 202‑45(g)(i) of the Income Tax Assessment Act 1997 does not make the amount of the dividend unfrankable.\n\n(3) The dividend can be franked in accordance with Part 3‑6 of the Income Tax Assessment Act 1997 only if:\n\n(a) the dividend is franked at the private company’s benchmark franking percentage for the franking period in which the dividend is taken to be paid; or\n\n(b) if the private company does not have a benchmark franking percentage for the period—the dividend is franked at a franking percentage of 100%.\n\n(4) For the purposes of subsection (3), if the recipient of the dividend is not a member of the private company for the purposes of Part 3‑6 of the Income Tax Assessment Act 1997, treat that recipient as such a member.\n\n109RD  Commissioner may extend period for repayments of amalgamated loan\n\n(1) The Commissioner may make a decision under subsection (2) if:\n\n(a) section 109E operates with the result that a private company is taken to pay a particular dividend to a particular entity (the recipient); and\n\n(b) the shortfall mentioned in paragraph 109E(1)(c) arises because the recipient is unable to pay the private company the minimum yearly repayment mentioned in that paragraph because of circumstances beyond the recipient’s control.\n\n(2) The Commissioner may decide in writing that the result mentioned in paragraph (1)(a) should be disregarded (see subsection (4)) if the recipient pays the private company the amount of the shortfall within a specified time.\n\n(3) In making a decision under subsection (2) (or refusing to make such a decision), the Commissioner must have regard to the following:\n\n(a) the nature of the circumstances mentioned in paragraph (1)(b);\n\n(b) any other matters that the Commissioner considers relevant.\n\n(4) This Division is taken not to operate with the result mentioned in paragraph (1)(a) if:\n\n(a) the Commissioner makes a decision under subsection (2); and\n\n(b) the recipient pays the private company the amount of the shortfall within the specified time.\n\n(5) Despite subsection 33(3A) of the Acts Interpretation Act 1901, each decision made under subsection (2) must relate only to one amount that would be taken to be a dividend paid by the private company (disregarding this section).\n\nSubdivision E—Payments and loans through interposed entities\n\n109S  Simplified outline of this Subdivision\n\nThe following is a simplified outline of this Subdivision:\n\nThis Subdivision allows a private company to be taken under Subdivision B to pay a dividend to an entity (the target entity) if an entity interposed between the private company and the target entity makes a payment or loan to the target entity under an arrangement involving the private company.\n\nThis result is achieved by treating the private company as making a payment or loan of an amount determined by the Commissioner to the target entity (according to whether the interposed entity made a payment or loan to the target entity). (See sections 109V (for payments) and 109W (for loans).)\n\nThe arrangement must involve the private company and one or more interposed entities in making payments or loans or giving loan guarantees for the purpose of the target entity receiving a payment or loan from an interposed entity. (See sections 109T, 109U and 109UA.)\n\nIf the target entity repays a fraction of the loan made by the interposed entity, the target entity is treated as repaying the same fraction of the loan taken to have been made by the private company. (See subsection 109W(3).)\n\nSome provisions that prevent payments or loans from giving rise to dividends do not apply to payments or loans this Subdivision treats a private company as making. (See section 109X.)\n\n109T  Payments and loans by a private company to an entity through one or more interposed entities\n\n(1) This Division operates as if a private company makes a payment or loan to an entity (the target entity) as described in section 109V or 109W if:\n\n(a) the private company makes a payment or loan to another entity (the first interposed entity) that is interposed between the private company and the target entity; and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the private company made the payment or loan solely or mainly as part of an arrangement involving a payment or loan to the target entity; and\n\n(c) either:\n\n(i) the first interposed entity makes a payment or loan to the target entity; or\n\n(ii) another entity interposed between the private company and the target entity makes a payment or loan to the target entity.\n\nThis section operates regardless of certain factors\n\n(2) For the purposes of this section, it does not matter:\n\n(a) whether the interposed entity made the payment or loan to the target entity before, after or at the same time as the first interposed entity received the payment or loan from the private company; or\n\n(b) whether or not the interposed entity paid or lent the target entity the same amount as the private company paid or lent the first interposed entity.\n\nThis section does not operate if the payment or loan to the first interposed entity is treated as a dividend\n\n(3) This Division does not operate as described in subsection (1) (and sections 109V and 109W) if the private company is taken under Subdivision B (as it applies apart from this Subdivision) to pay a dividend as a result of the payment or loan to the first interposed entity.\n\n109U  Payments and loans through interposed entities relying on guarantees\n\n(1) This Division operates as if a private company makes a payment to an entity (the target entity) as described in section 109V if:\n\n(a) during a year of income the private company guarantees a loan made by another entity (the first interposed entity); and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the private company gave the guarantee solely or mainly as part of an arrangement involving a payment or loan to the target entity; and\n\n(c) either:\n\n(i) the first interposed entity that is a private company makes a loan to the target entity; or\n\n(ii) another entity that is a private company interposed between the private company and the target entity makes a payment or loan to the target entity; and\n\n(d) the amount of the payment or the loan is greater than the amount worked out using the formula:\n\n![Start formula Distributable surplus minus Subsection 109Y(3) amount end formula](image.021.png)\n\n(2) The amount of the payment from the private company to the target entity (as worked out under section 109V) is to be reduced by the amount worked out using the formula:\n\n![Start formula Distributable surplus minus Subsection 109Y(3) amount end formula](image.021.png)\n\n(3) In the formulas in paragraph (1)(d) and subsection (2):\n\ndistributable surplus means the distributable surplus (worked out under subsection 109Y(2)) for the interposed entity that made the payment or loan to the target entity for the year of income.\n\nsubsection 109Y(3) amount means the total of any amounts calculated under subsection 109Y(3) in relation to that interposed entity for the year of income (apart from as a result of the operation of this section).\n\nThis section operates regardless of certain factors\n\n(4) For the purposes of this section, it does not matter:\n\n(a) whether the interposed entity made the payment or loan to the target entity before, after or at the same time as the first interposed entity received the guarantee from the private company; or\n\n(b) whether or not the interposed entity paid or lent the target entity the same amount as the private company guaranteed.\n\n109UA  Certain liabilities under guarantees treated as payments\n\n(1) Section 109T operates as if one entity (the first entity) makes a payment to a second entity if the first entity guarantees a loan the second entity makes to a third entity (the target entity) and, as a result of the guarantee, the first entity has a liability (other than a contingent liability) to make a payment to the second entity.\n\nExample: A private company guarantees a loan that a bank makes to a shareholder in the private company and the shareholder defaults on the loan. As a result, the company has a presently existing liability to make a payment to the bank. Section 109T operates as if the private company had made a payment to the bank, so the company is treated by section 109V as making a payment to the shareholder (because the bank is interposed between company and shareholder).\n\n(2) The amount of the payment (as worked out under section 109V) is to be reduced by any amount treated as a dividend as a result of the operation of section 109U in relation to the payment or loan made by the interposed entity to the target entity.\n\n(3) A private company is not taken under this Division to pay a dividend because of the operation of subsection (1) in relation to a guarantee if the Commissioner is satisfied that:\n\n(a) the target entity would suffer undue hardship if the private company were taken to pay a dividend to the entity because of the liability; and\n\n(b) when the target entity entered into the loan, the entity had the capacity to pay the loan.\n\n(4) This section does not the limit the operation of section 109T.\n\n(5) Subsection (1) does not apply if:\n\n(a) as a result of the first entity’s liability mentioned in that subsection, the target entity has a liability (other than a contingent liability) to make a payment to the first entity; and\n\n(b) because of section 109N, the liability to make a payment to the first entity is not treated under this Division as giving rise to a dividend paid to the first entity.\n\n109V  Amount of private company’s payment to target entity through one or more interposed entities\n\nPrivate company taken to pay if target entity is paid\n\n(1) If the target entity is paid an amount by the interposed entity, this Division operates as if the private company had paid the amount (if any) determined by the Commissioner to the target entity when the interposed entity paid the target entity.\n\nDetermining the amount of the private company’s payment\n\n(2) In determining the amount of the payment the private company is taken to have made, the Commissioner must take account of:\n\n(a) the amount the interposed entity paid the target entity; and\n\n(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by the private company or any of the interposed entities for anything (assuming that the consideration payable equals that for similar transactions at arm’s length).\n\n109W  Private company’s loan to target entity through one or more interposed entities\n\nPrivate company taken to lend if target entity receives loan\n\n(1) If the target entity is lent an amount by the interposed entity, this Division operates as if the private company had made a loan (the notional loan) of the amount (if any) determined by the Commissioner to the target entity when the interposed entity made the loan to the target entity.\n\nNote: Subsection 109D(4) specifies the time at which a loan is made.\n\nHow big is the notional loan?\n\n(2) In determining the amount of the notional loan, the Commissioner must take account of:\n\n(a) the amount the interposed entity lent the target entity; and\n\n(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by the private company or any of the interposed entities for anything (assuming that the consideration payable equals that for similar transactions at arm’s length).\n\nNotional repayments of notional loan\n\n(3) When working out whether the private company is taken under section 109D to pay a dividend as a result of the notional loan, and the amount of any such dividend, assume that the target entity repays an amount of the notional loan equal to the amount worked out using the formula:\n\n![Start formula Repayment made by target entity to lender times start fraction Amount of notional loan over Amount actually lent to target entity end fraction end formula](image.022.png)\n\nwhere:\n\namount actually lent to target entity is the amount the interposed entity lent to the target entity.\n\nrepayment made by target entity to lender is the amount of any repayment made by the target entity of the loan the interposed entity made to the target entity.\n\n109X  Operation of Subdivision D in relation to payment or loan\n\nPayment or loan not affected by being made through interposed entity\n\n(1) Despite sections 109K and 109L, a private company may be taken under section 109C or 109D to pay a dividend as a result of this Subdivision treating the private company as making a payment or loan to an entity (the target entity), even if:\n\n(a) the private company is treated that way because it makes a payment or loan to an entity that is a company interposed between the private company and the target entity; or\n\n(b) some or all of the amount paid or lent by a private company to an entity interposed between the private company and the target entity is included in the interposed entity’s assessable income for a year of income.\n\n(2) Subsections (3) and (4) apply if a notional loan arises under section 109W because an entity interposed between the private company and the target entity makes a loan (the actual loan) to the target entity.\n\n(3) For the purposes of section 109N, treat the agreement under which the actual loan was made as the agreement under which the notional loan was made.\n\n(4) For the purposes of section 109E:\n\n(a) treat the notional loan as an amalgamated loan from the private company to the target entity; and\n\n(b) treat the amount of the notional loan worked out under subsection 109W(1) as the amount of the amalgamated loan; and\n\n(c) treat the agreement under which the actual loan was made as the agreement under which the amalgamated loan was made; and\n\n(d) treat repayments by the target entity of the amount of the notional loan worked out under subsection 109W(3) as payments by the target entity to the private company in relation to the amalgamated loan.\n\nSubdivision EA—Unpaid present entitlements\n\n109XA  Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement\n\nPayments\n\n(1) Section 109XB applies if:\n\n(a) a trustee makes a payment (including a payment through an interposed entity as described in section 109XF) to a shareholder or an associate of a shareholder of a private company (except a shareholder or associate that is a company) (the actual transaction); and\n\n(b) the payment is a discharge of or a reduction in a present entitlement of the shareholder or associate that is wholly or partly attributable to an amount that is an unrealised gain; and\n\n(c) either:\n\n(i) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place; or\n\n(ii) the company becomes presently entitled to an amount from the net income of the trust estate after the actual transaction takes place, but before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place, and the whole of the amount has not been paid to the company before the earlier of those dates.\n\nNote: For entitlements through interposed trusts, see section 109XI.\n\nLoan repayments\n\n(1A) Disregard paragraph (1)(b) if:\n\n(a) subsection (1) has previously applied because the trustee made a payment (the original transaction) to the shareholder, or to an associate of the shareholder, during a previous year of income; and","sortOrder":1000053},{"sectionNumber":"full-source-retrieval-0055","sectionType":"document_chunk","heading":"Document excerpt 55","content":"(b) the shareholder, or an associate of the shareholder, makes a loan or loans to the trustee on or after 1 July 2009; and\n\n(c) either:\n\n(i) a reasonable person would conclude (having regard to all the circumstances) that at the time the original transaction took place the shareholder, or an associate of the shareholder, intended to make the loan or loans to the trustee; or\n\n(ii) the shareholder, or an associate of the shareholder, made the loan or loans to the trustee before the time the original transaction took place and a reasonable person would conclude (having regard to all the circumstances) that the trustee obtained the loan or loans in order to make the payment; and\n\n(d) the actual transaction is applied to repay all or a part of the loan or loans.\n\n(1B) For the purposes of applying section 109XB in a case covered by subsections (1) and (1A) of this section, disregard section 109J (Payments discharging pecuniary obligations not treated as dividends).\n\nLoans\n\n(2) Section 109XB applies if:\n\n(a) a trustee makes a loan (including a loan through an interposed entity as described in section 109XG) to a shareholder or an associate of a shareholder of a private company (except a shareholder or associate that is a company) (the actual transaction); and\n\n(b) either:\n\n(i) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place; or\n\n(ii) the company becomes presently entitled to an amount from the net income of the trust estate after the actual transaction takes place, but before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place, and the whole of the amount has not been paid to the company before the earlier of those dates.\n\nNote: For entitlements through interposed trusts, see section 109XI.\n\nForgiven debts\n\n(3) Section 109XB applies if:\n\n(a) all or part of a debt owed to a trustee by a shareholder or an associate of a shareholder of a private company is forgiven (except where the shareholder or associate is a company) (the actual transaction); and\n\n(b) either:\n\n(i) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place; or\n\n(ii) the company becomes presently entitled to an amount from the net income of the trust estate after the actual transaction takes place, but before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place, and the whole of the amount has not been paid to the company before the earlier of those dates.\n\nNote: For entitlements through interposed trusts, see section 109XI.\n\nAmount involved in the actual transaction\n\n(4) The amount involved in the actual transaction is the lesser of:\n\n(a) the amount actually involved in the actual transaction; and\n\n(b) the amount worked out using the formula:\n\n![Start formula Unpaid present entitlement minus Previous transactions end formula](image.023.png)\n\nwhere:\n\nprevious transactions means the sum of:\n\n(a) the amounts that, because of previous applications of section 109UB (as in force before the commencement of this section) have been taken to be loans; and\n\n(b) the amounts that, because of previous applications of this Subdivision, have been included in an entity’s assessable income;\n\nin relation to the unpaid present entitlement.\n\nunpaid present entitlement means:\n\n(a) in a case mentioned in subparagraph (1)(c)(i), (2)(b)(i) or (3)(b)(i)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph; and\n\n(b) in a case mentioned in subparagraph (1)(c)(ii), (2)(b)(ii) or (3)(b)(ii)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph.\n\nThe amount of the actual transaction where the entitlement is only partly attributable to an unrealised gain\n\n(5) For the purposes of subsection (4), where the actual transaction was a payment and that payment was only partly attributable to an amount that is an unrealised gain, the amount of the actual transaction is taken to be the amount of the payment that was attributable to the amount that is the unrealised gain.\n\nCreation of a present entitlement is not a payment\n\n(6) The creation of a present entitlement to the capital or income of a trust estate is not, of itself, a payment for the purposes of this Subdivision.\n\nMeaning of unrealised gain\n\n(7) In this section:\n\nunrealised gain, in relation to a trust estate and an actual payment, means any unrealised gain, whether of a capital or income nature, but does not include an unrealised gain to the extent that it has been or would be included in the assessable income of the trust, apart from this Division, for:\n\n(a) a year of income before the year in which the actual payment was made; or\n\n(b) the year of income in which the actual payment was made; or\n\n(c) the year of income following the year in which the actual payment was made.\n\n109XB  Amounts included in assessable income\n\n(1) An amount is included, as if it were a dividend paid by the company at the end of the year of income of the company in which the actual transaction took place, in the assessable income of the shareholder or associate referred to in subsection 109XA(1), (2) or (3) if:\n\n(a) had the actual transaction been done by a private company (the notional company); and\n\n(b) had the shareholder or associate been a shareholder of the notional company at the time the actual transaction took place;\n\nan amount (the Division 7A amount) would have been included in the shareholder’s or associate’s assessable income because of a provision of this Division outside this Subdivision.\n\n(2) Subject to section 109Y, the amount that is included under subsection (1) is the Division 7A amount.\n\nNote: There are some modifications of this Division for the purposes of working out the Division 7A amount: see section 109XC.\n\n109XC  Modifications\n\nModifications for this Subdivision only\n\n(1) The modifications in this section have effect for the purposes of the operation of this Subdivision.\n\nGeneral modifications\n\n(2) This Division (but not this Subdivision) applies to an actual transaction done by a trustee of a trust estate with these modifications:\n\n(a) a reference (except in section 109Y) to an amount paid to a private company has effect as a reference to an amount paid to the trustee; and\n\n(b) a reference to a year of income of a private company has effect as a reference to the corresponding year of income of the trust estate; and\n\n(c) a reference to the ordinary course of a private company’s business has effect as a reference to the ordinary course of the trust estate’s business.\n\nModified operation of section 109J\n\n(4) Section 109J does not apply to a payment to the extent that it is a discharge of or a reduction in a present entitlement.\n\nModified operation of section 109R\n\n(6) For the purposes of applying section 109R to an actual transaction:\n\n(a) a reference in that section to obtaining a loan from a private company has effect as a reference to obtaining a loan from the trustee; and\n\n(b) a reference in that section to property transferred to a private company has effect as a reference to property transferred to the trustee; and\n\n(c) a reference in that section to an amount paid by a private company for a transfer of property has effect as a reference to an amount paid by the trustee for a transfer of property.\n\nModified operation of section 109Y\n\n(7) Section 109Y applies to the Division 7A amount in this way:\n\n(a) assume that the private company referred to in subsection 109XA(1), (2) or (3) had been taken to have paid a dividend to the shareholder or associate referred to in that subsection equal to the Division 7A amount; and\n\n(b) assume that the dividend was taken to have been paid at the end of the year of income of the company in which the actual transaction took place; and\n\n(c) a reference in that section to a private company’s distributable surplus has effect as a reference to the distributable surplus of the private company referred to in paragraph (a).\n\nCertain provisions do not apply\n\n(8) Subsection 109D(1A), sections 109K, 109NA and 109NB and paragraph 109R(3)(a) do not apply to an actual transaction.\n\n109XD  Forgiveness of loan debt does not give rise to assessable income if loan gives rise to assessable income\n\nAn amount is not included in the assessable income for a year of income of the shareholder or associate referred to in subsection 109XA(3) because of the forgiveness of an amount of a debt resulting from a loan if, because of the loan, an amount was included in the assessable income of the shareholder or associate under section 109XB (or former section 109UB) in that or an earlier year of income.\n\nSubdivision EB—Unpaid present entitlements—interposed entities\n\n109XE  Simplified outline of this Subdivision\n\nThe following is a simplified outline of this Subdivision:\n\nPayments and loans\n\nThis Subdivision allows an amount to be included in an entity’s (the target entity’s) assessable income under Subdivision EA if an entity interposed between a trustee and the target entity makes a payment or loan to the target entity under an arrangement involving the trustee.\n\nThis result is achieved by treating the trustee as making a payment or loan of an amount determined by the Commissioner to the target entity.\n\nThe arrangement must involve the trustee and one or more interposed entities in making payments or loans for the purpose of the target entity receiving a payment or loan from an interposed entity.\n\nIf the target entity repays a fraction of the loan made by the interposed entity, the target entity is treated as repaying the same fraction of the loan taken to have been made by the trustee.\n\nSome provisions that prevent payments or loans from giving rise to assessable income do not apply to payments or loans this Subdivision treats a trustee as making.\n\nPresent entitlements\n\nThis Subdivision similarly allows an amount to be included in an entity’s assessable income under Subdivision EA if a private company is or becomes presently entitled to an amount from the net income of a trust estate interposed between the private company and another trust estate (the target trust) under an arrangement involving the target trust.\n\n109XF  Payments through interposed entities\n\n(1) For the purposes of paragraphs 109XA(1)(a) and (1A)(a), a trustee is taken to have made a payment to a shareholder, or to an associate of a shareholder, (the target entity) of a private company if:\n\n(a) the trustee makes a payment or loan to another entity (the first interposed entity) that is interposed between:\n\n(i) the trustee; and\n\n(ii) the target entity; and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the trustee made the payment or loan solely or mainly as part of an arrangement involving a payment to the target entity; and\n\n(c) either:\n\n(i) the first interposed entity makes a payment to the target entity; or\n\n(ii) another entity interposed between the trustee and the target entity makes a payment to the target entity.\n\n(2) For the purposes of this section, it does not matter:\n\n(a) whether the interposed entity made the payment to the target entity before, after or at the same time as the first interposed entity received the payment or loan from the trustee; or\n\n(b) whether or not the interposed entity paid the target entity the same amount as the trustee paid or lent the first interposed entity.\n\n(3) Treat the reference in paragraph 109XA(1)(b) to a payment as being a reference to the payment to the target entity mentioned in paragraph (1)(c) of this section.\n\n109XG  Loans through interposed entities\n\nLoans by a trustee through interposed entities\n\n(1) For the purposes of paragraph 109XA(2)(a), a trustee is taken to have made a loan (the notional loan) to a shareholder, or to an associate of a shareholder, (the target entity) of a private company if:\n\n(a) the trustee makes a payment or loan to another entity (the first interposed entity) that is interposed between:\n\n(i) the trustee; and\n\n(ii) the target entity; and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the trustee made the payment or loan solely or mainly as part of an arrangement involving a loan to the target entity; and\n\n(c) either:\n\n(i) the first interposed entity makes a loan to the target entity; or\n\n(ii) another entity interposed between the trustee and the target entity makes a loan to the target entity.\n\n(2) For the purposes of this section, it does not matter:\n\n(a) whether the interposed entity made the loan to the target entity before, after or at the same time as the first interposed entity received the payment or loan from the trustee; or\n\n(b) whether or not the interposed entity lent the target entity the same amount as the trustee paid or lent the first interposed entity.\n\nNotional loans\n\n(3) When working out whether an amount is included in the assessable income of the target entity under section 109XB as a result of the notional loan under subsection (1) of this section, and the amount included in assessable income, assume that the target entity repays an amount of the notional loan equal to the amount worked out using the formula:\n\n![Start formula Repayment made by target entity to lender times start fraction Amount of notional loan over Amount actually lent to target entity end fraction end formula](image.024.png)\n\nwhere:\n\namount actually lent to target entity is the amount the interposed entity lent to the target entity.\n\nrepayment made by target entity to lender is the amount of any repayment made by the target entity of the loan the interposed entity made to the target entity.\n\n(4) For the purposes of section 109E (Amalgamated loan from a previous year treated as dividend if minimum repayment not made):\n\n(a) treat the notional loan as an amalgamated loan from the private company to the target entity; and\n\n(b) treat the amount of the notional loan worked out under section 109XH as the amount of the amalgamated loan; and\n\n(c) treat the agreement under which the actual loan was made as the agreement under which the amalgamated loan was made; and\n\n(d) treat repayments by the target entity of the amount of the notional loan worked out under subsection (3) of this section as payments by the target entity to the private company in relation to the amalgamated loan.\n\n(5) For the purposes of section 109N (about certain loans not being treated as dividends), treat the agreement under which the actual loan was made as the agreement under which the notional loan was made.\n\n109XH  Amount and timing of payment or loan through interposed entities\n\nAmount of payment or loan\n\n(1) The amount the trustee is taken under section 109XF or 109XG to have paid or lent the target entity is the amount (if any) determined by the Commissioner.\n\n(2) In determining the amount of the payment or loan, the Commissioner must take account of:\n\n(a) the amount the interposed entity paid or lent the target entity; and\n\n(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the target entity by:\n\n(i) the trustee; or\n\n(ii) any of the interposed entities;\n\nfor anything (assuming that the consideration payable equals that for similar transactions at arm’s length).\n\n(3) The total of the amounts determined under subsection (1) for payments and loans in relation to which section 109XB applies because of the same present entitlement mentioned in paragraph 109XA(1)(c), (2)(b) or (3)(b) must not exceed the unpaid present entitlement mentioned in subsection 109XA(4).\n\nTiming of payment or loan\n\n(4) The trustee is taken under section 109XF or 109XG to have made the payment or loan at the time the interposed entity made the payment or loan mentioned in paragraph 109XF(1)(c) or 109XG(1)(c) to the target entity.\n\n109XI  Entitlements to trust income through interposed trusts\n\nEntitlements through interposed trusts\n\n(1) For the purposes of paragraphs 109XA(1)(c), (2)(b) and (3)(b), a private company is taken to be or to become entitled to an amount from the net income of a trust estate (the target trust) if:\n\n(a) the company is or becomes presently entitled to an amount from the net income of another trust estate (the first interposed trust) that is interposed between the target trust and the company; and\n\n(b) a reasonable person would conclude (having regard to all the circumstances) that the company is or becomes so entitled solely or mainly as part of an arrangement involving an entitlement to an amount from the target trust; and\n\n(c) either:\n\n(i) the first interposed trust is or becomes presently entitled to an amount from the net income of the target trust; or\n\n(ii) another trust interposed between the target trust and the company is or becomes presently entitled to an amount from the net income of the target trust.\n\nThis section operates regardless of certain factors\n\n(2) For the purposes of this section, it does not matter:","sortOrder":1000054},{"sectionNumber":"full-source-retrieval-0056","sectionType":"document_chunk","heading":"Document excerpt 56","content":"(a) whether the company became or becomes entitled to the amount from the net income of the first interposed trust before, after or at the same time as the interposed trust became or becomes presently entitled to an amount from the net income of the target trust; or\n\n(b) whether or not the company became presently entitled to the same amount as the amount to which the interposed trust become entitled.\n\nThis section does not operate to the extent Subdivision EA would otherwise apply\n\n(3) Subsection (1) does not apply to the extent that an amount is included in the assessable income of a shareholder, or an associate of a shareholder, of the company under Subdivision EA (as it applies apart from this section) as a result of the present entitlement of any interposed trust.\n\nAmount of entitlement\n\n(4) The amount the private company is taken to be or to become entitled to from the net income of the target trust is the amount (if any) determined by the Commissioner.\n\n(5) The total amount determined under subsection (4) for present entitlements to which that subsection applies because of the same present entitlement to an amount from the net income of the target trust mentioned in paragraph (1)(c) must not exceed that amount.\n\n(6) In determining the amount of the entitlement, the Commissioner must take account of:\n\n(a) the amount the private company is or becomes entitled to from the net income of the first interposed trust; and\n\n(b) how much (if any) of that amount the Commissioner believes represented consideration payable to the private company by:\n\n(i) the target trust; or\n\n(ii) any of the interposed trusts;\n\nfor anything (assuming that the consideration payable equals that for similar transactions at arm’s length).\n\nTiming of entitlement\n\n(7) The company is taken to be or to become entitled to the amount from the net income of the target trust at the time the company is or becomes entitled to the amount from the net income of the first interposed trust mentioned in paragraph (1)(a).\n\nSubdivision F—General rules applying to all amounts treated as dividends\n\n109Y  Proportional reduction of dividends so they do not exceed distributable surplus\n\nReduction of amounts of dividends\n\n(1) If, apart from this section, the sum of all the dividends a private company is taken under this Division to pay at the end of the year of income would be more than the company’s distributable surplus for that year, the amount of each of those dividends is the amount worked out under subsection (3).\n\nDistributable surplus\n\n(2) A private company’s distributable surplus for its year of income is the amount worked out using the formula:\n\n![Start formula Net assets plus Division 7A amounts minus Non commercial loans minus Paid-up share value minus Repayments of non-commercial loans end formula](image.025.png)\n\nwhere:\n\nDivision 7A amounts is the total of any amounts the company is taken under section 109C or 109F to have paid as dividends in the year of income apart from this section.\n\nnet assets means the amount (if any), at the end of the company’s year of income, by which the company’s assets (according to the company’s accounting records) exceed the sum of:\n\n(a) the present legal obligations of the company to persons other than the company; and\n\n(b) the following provisions (according to the company’s accounting records):\n\n(i) provisions for depreciation;\n\n(ii) provisions for annual leave and long service leave;\n\n(iii) provisions for amortisation of intellectual property and trade marks;\n\n(iv) other provisions prescribed under regulations made for the purposes of this subparagraph.\n\nIf the Commissioner considers that the company’s accounting records significantly undervalue or overvalue its assets or undervalue or overvalue its provisions, the Commissioner may substitute a value that the Commissioner considers is appropriate.\n\nnon‑commercial loans means the total of:\n\n(a) any amounts that:\n\n(i) the company is taken under former section 108, or section 109D or 109E, to have paid as dividends in earlier years of income; and\n\n(ii) are shown as assets in the company’s accounting records at the end of year of income; and\n\n(b) any amounts that are included in the assessable income of shareholders, or associates of shareholders, of the company under section 109XB as if the amounts were dividends paid by the company in earlier years of income.\n\nNote: The total amount worked out under paragraph (b) might be reduced under subsection (2A).\n\npaid‑up share value is the paid‑up share capital of the company at the end of its year of income.\n\nrepayments of non‑commercial loans means the total of:\n\n(a) any repayments to the company of loans or amounts that have been taken by former section 108, or section 109D or 109E, to be dividends; and\n\n(b) amounts set off against loans that have been taken by former section 108, or section 109D or 109E, to be dividends, other than such amounts that are set off as a result of:\n\n(i) a dividend (being a later dividend for the purposes of section 109ZC or a subsequent dividend for the purposes of former subsection 108(2)) being paid by the company to the extent of the unfranked part of the dividend; or\n\n(ii) a loan, or a part of a loan, being forgiven.\n\n(2A) Reduce the total of the amounts worked out under paragraph (b) of the definition of non‑commercial loans in subsection (2) by the total of the unfranked parts of any dividends:\n\n(a) that are distributed by the company; and\n\n(b) to which section 109ZCA applies.\n\n(3) The amount of a dividend that a private company is taken under this Division to pay is worked out using the formula:\n\n![Start formula Provisional dividend times start fraction Distributable surplus for year of income over Total of provisional dividends end fraction end formula](image.026.png)\n\nwhere:\n\nprovisional dividend is the amount of the dividend that the private company would be taken to pay apart from this section.\n\ntotal of provisional dividends is the sum of all the dividends the private company is taken under this Division to pay at the end of the year of income apart from this section.\n\nRequirement for private company to provide statement\n\n(4) If this section sets the amount of a dividend taken under this Division to be paid by a private company to an entity at the end of a year of income, the private company must give the entity a written statement as soon as possible after the end of the year of income.\n\nWhat the statement must contain\n\n(5) The statement must set out:\n\n(a) the private company’s distributable surplus for the year of income; and\n\n(b) the total amount the company would be taken under this Division to pay as dividends in the year of income apart from this section.\n\n109Z  Characteristics of dividends taken to be paid under this Division\n\nIf a private company is taken under this Division to have paid a dividend to an entity, the dividend is taken for the purposes of this Act to be paid:\n\n(a) to the entity as a shareholder in the private company; and\n\n(b) out of the private company’s profits.\n\n109ZA  No dividend taken to be paid for withholding tax purposes\n\nIf a private company is taken under this Division to have paid a dividend to an entity, disregard the dividend for the purposes of:\n\n(a) Division 11A of Part III (which deals with withholding tax on dividends paid to non‑residents and some other people); and\n\n(c) Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953 (which deals with PAYG withholding).\n\n109ZB  Amount treated as dividend is not a fringe benefit\n\n(1) This Division applies to a loan of an amount to an entity by a private company, even if the loan is made:\n\n(a) to the entity in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee; or\n\n(b) in respect of the employment of an employee (as defined in that Act).\n\nNote: This helps ensure that a loan is not a fringe benefit for the purposes of that Act.\n\n(2) This Division applies to a private company’s forgiveness of a debt owed by an entity to the private company, even if:\n\n(a) the entity owed the debt in its capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee; or\n\n(b) the forgiveness occurs in respect of the employment of an employee (as defined in that Act).\n\nNote: This helps ensure that the forgiveness of a debt is not a fringe benefit for the purposes of that Act.\n\n(3) However, this Division does not apply to a payment made to a shareholder, or an associate of a shareholder, in their capacity as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986) or an associate of such an employee.\n\n109ZC  Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend\n\n(1) This section sets out special rules for dealing with a dividend (the later dividend) distributed by a private company if some or all of the later dividend is set off against some or all of an amount taken under this Division to be a dividend previously paid by the company.\n\nExample: Some or all of a dividend distributed by a private company to a shareholder might be set off to reduce a loan the company had previously made to the shareholder that was treated as a dividend under Subdivision B.\n\n(1A) This section also sets out special rules for dealing with a dividend (also the later dividend) distributed by a private company if:\n\n(a) the private company distributes the later dividend to a shareholder in the company; and\n\n(b) the shareholder applies the amount of the dividend to repay all or part of a loan:\n\n(i) that was obtained from the private company by an associate of the shareholder; and\n\n(ii) in relation to which a dividend was previously taken under this Division to have been paid by the private company.\n\n(2) The amount of the later dividend set off or applied is taken not to be a dividend for the purposes of this Act, except Part 3‑6 of the Income Tax Assessment Act 1997 (which deals with franking of distributions). However, if the amount set off or applied exceeds the amount of the later dividend that is not either the franked part of that dividend, or the part of that dividend that has been franked with an exempting credit, the excess is still a dividend.\n\nNote: This prevents double taxation by ensuring that the entity’s assessable income does not include the amount of the later dividend that is not paid to the entity (except to the extent that that amount is franked).\n\n(3) An amount that is taken not to be a dividend under subsection (2) is not assessable income and is not exempt income.\n\n109ZCA  Treatment of dividend that is reduced on account of an amount included in assessable income under Subdivision EA\n\n(1) This section sets out special rules for dealing with a dividend (the later dividend) distributed by a private company if:\n\n(a) an amount is included in the assessable income of a shareholder, or an associate of a shareholder, of the company under section 109XB because of a loan made to the shareholder or associate by a trustee in relation to a present entitlement of the company to an amount from the net income of the trust estate; and\n\n(b) subsection 109XA(2) applied to the loan; and\n\n(c) some or all of the later dividend is applied to repay all or a part of the loan.\n\n(2) The amount of the later dividend applied is taken not to be a dividend for the purposes of this Act, except Part 3‑6 of the Income Tax Assessment Act 1997 (which deals with franking of distributions).\n\n(3) However, if the amount set off or applied exceeds the amount of the later dividend that is neither:\n\n(a) the franked part of that dividend; nor\n\n(b) the part of that dividend that has been franked with an exempting credit;\n\nthe excess is still a dividend.\n\nNote: This prevents double taxation by ensuring that the entity’s assessable income does not include the amount of the later dividend that is not paid to the entity (except to the extent that that amount is franked).\n\n(4) An amount that is taken not to be a dividend under subsection (2) is not assessable income and is not exempt income.\n\nSubdivision G—Defined terms\n\n109ZD  Defined terms\n\nIn this Division:\n\namalgamated loan has the meaning given by subsection 109E(3).\n\narrangement has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nassociate has the meaning given by section 318.\n\nbenchmark franking percentage has the same meaning as in the Income Tax Assessment Act 1997.\n\nbenchmark interest rate for a year of income has the meaning given by subsection 109N(2).\n\ndeficit has the same meaning as in the Income Tax Assessment Act 1997.\n\ndistributable surplus of a company for a year of income has the meaning given by subsection 109Y(2).\n\nentity has the meaning given by section 960‑100 of the Income Tax Assessment Act 1997.\n\nfamily law obligation means an order, agreement or award mentioned in paragraph 126‑5(1)(a), (b), (d), (e) or (f) of the Income Tax Assessment Act 1997.\n\nforgive a debt has the meaning given by section 109F.\n\nfranking account has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking percentage has the same meaning as in the Income Tax Assessment Act 1997.\n\nfranking period has the same meaning as in the Income Tax Assessment Act 1997.\n\nguarantee, in relation to a loan, includes providing security for the loan.\n\nloan has the meaning given by subsection 109D(3).\n\nlodgment day for a private company’s year of income has the meaning given by subsection 109D(6).\n\npayment has the meaning given by subsection 109C(3) and section 109CA.\n\nunfrankable has the same meaning as in the Income Tax Assessment Act 1997.\n\n109ZE  Interpretation rules about entities\n\nThe rules in section 960‑100 of the Income Tax Assessment Act 1997 about entities apply to this Division.\n\nDivision 9—Co‑operative and mutual companies\n\n117  Co‑operative companies\n\n(1) In this Division, co‑operative company means a company, not being a friendly society dispensary, the rules of which limit the number of shares which may be held by, or by and on behalf of, any one shareholder, and prohibit the quotation of the shares for sale or purchase at any stock exchange or in any other public manner whatever, and includes a company, not being a friendly society dispensary, which has no share capital, and which in either case is established for the purpose of carrying on any business having as its primary object or objects one or more of the following:\n\n(a) the acquisition of commodities or animals for disposal or distribution among its shareholders;\n\n(b) the acquisition of commodities or animals from its shareholders for disposal or distribution;\n\n(c) the storage, marketing, packing or processing of commodities of its shareholders;\n\n(d) the rendering of services to its shareholders;\n\n(e) the obtaining of funds from its shareholders for the purpose of making loans to its shareholders to enable them to acquire land or buildings to be used for the purpose of residence or of residence and business.\n\n(2) A company is not a co‑operative company within the meaning of this Division in relation to a year of income if the company is, for the purposes of section 23G, an approved credit union in relation to that year of income.\n\n(3) Subsection (2) does not apply to a credit union in relation to a year of income if:\n\n(a) the credit union is a recognised medium credit union in relation to the year of income; or\n\n(b) the credit union is a recognised large credit union in relation to the year of income.\n\n118  Company not co‑operative if less than 90% of business with members\n\nIf, in the ordinary course of business of a company in the year of income, the value of commodities and animals disposed of to, or acquired from, its shareholders by the company, or the amount of its receipts from the storage, marketing, packing and processing of commodities of its shareholders, or from the rendering of services to them, or the amount lent by it to them, is less respectively than 90% of the total value of commodities and animals disposed of or acquired by the company, or of its receipts from the storage, marketing, packing and processing of commodities, or from the rendering of services, or of the total amount lent by it, that company shall in respect of that year be deemed not to be a co‑operative company.\n\n119  Sums received to be taxed\n\n(1) The assessable income of a co‑operative company shall include all sums received by it, whether from shareholders or from other persons, for the storage, marketing, packing or processing of commodities, or for the rendering of services, or in payment for commodities or animals or land sold, whether on account of the company or on account of its shareholders.\n\n(2) For the purposes of subsection (1), if a credit union (within the meaning of section 23G) receives a payment of, or in the nature of, interest, the payment is taken to be for the rendering of services.\n\n(3) Subsection (2) does not limit the generality of subsection (1).\n\n120  Deductions allowable to co‑operative company\n\n(1) So much of the assessable income of a co‑operative company as:\n\n(a) is distributed among its shareholders as rebates or bonuses based on business done by shareholders with the company;\n\n(b) is distributed among its shareholders as interest or dividends on shares; or\n\n(c) in the case of a company having as its primary object that specified in paragraph 117(1)(b)—is applied by the company for or towards the repayment of any moneys loaned to the company by a government of the Commonwealth or a State to enable the company to acquire assets which are required for the purpose of carrying on the business of the company or to pay that government for assets so required which the company has taken over from that government;\n\nshall be an allowable deduction:","sortOrder":1000055},{"sectionNumber":"full-source-retrieval-0057","sectionType":"document_chunk","heading":"Document excerpt 57","content":"Provided that the deduction under paragraph (c) shall not be allowed unless shares representing not less than 90% of the value of the company are held by persons who supply the company with the commodities or animals which the company requires for the purposes of its business.\n\n(2) No such rebate or bonus based on purchases made by a shareholder from the company shall be included in his or her assessable income except where the amount of such purchases is allowable as a deduction in ascertaining his or her taxable income of any year.\n\n(3) It is hereby declared to be the intention of the Parliament that paragraph (1)(c) applies to loans taken out for the purpose of acquiring assets from:\n\n(a) government sources; or\n\n(b) non‑government sources.\n\n(4) No deduction is allowable under subsection (1) to the extent that the assessable income of a co‑operative company is distributed as the franked part of a franked distribution.\n\n(5) For the purposes of this section, in determining whether the assessable income of a co‑operative company is distributed as the franked part of a franked distribution, if:\n\n(a) an amount is distributed by the co‑operative company as a franked distribution; and\n\n(b) the franking percentage (within the meaning of the Income Tax Assessment Act 1997) for the distribution is less than 100%; and\n\n(c) a part of the distribution is attributable to sources other than the assessable income of the co‑operative company;\n\nit is to be assumed that the franked part of the distribution is attributable, to the greatest extent possible, to those other sources.\n\n(6) If a co‑operative company distributes assessable income among its shareholders within the period of 3 months (or such longer period as the Commissioner decides) starting at the end of a year of income, the co‑operative company may elect that the distribution is to be taken, for the purposes of this section only, to have been made on the last day of the year of income.\n\n(7) In this section:\n\nfranked distribution has the same meaning as in the Income Tax Assessment Act 1997.\n\n121  Mutual insurance associations\n\n(1) An association of persons formed for the purpose of insuring those persons against loss, damage or risk of any kind is taken, for the purposes of this Act, to be a company carrying on the business of insurance.\n\n(2) The assessable income of such a company includes all premiums derived by it, whether from its members or not.\n\nDivision 9AA—Demutualisation of insurance companies and affiliates\n\nSubdivision A—What this Division is about\n\n121AA  What this Division is about\n\nBasically, if an insurance company demutualises and its policyholders or members dispose of their listed shares in the company, for tax purposes the acquisition cost of the shares is based on the lesser of:\n\n(a) the embedded value or net tangible asset value of the company; and\n\n(b) the value of the company based on the total first trading day price of all shares in the company.\n\nOther tax consequences result from disposals of other interests and from other events in connection with the demutualisation.\n\nSubdivision B—Key concepts and related definitions\n\n121AB  Insurance company definitions\n\n(1) A mutual insurance company is an insurance company:\n\n(a) whose profits are divisible only among its policyholders; or\n\n(b) that satisfies all of the following conditions:\n\n(i) it is limited by guarantee;\n\n(ii) it did not divide its profits among its members during the 10 years ending on 9 May 1995;\n\n(iii) on a winding‑up, its profits are not divisible among its members; or\n\n(c) that satisfies all of the following conditions:\n\n(i) at 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 1995, it was a friendly society (within the meaning of this Act as in force at that time);\n\n(ii) it was an insurance company on 1 July 1999;\n\n(iii) it does not have capital divided into shares held by its members; or\n\n(d) if the insurance company is a mutual entity (within the meaning of the Corporations Act 2001)—that would be covered by paragraph (a), (b) or (c) if the following were disregarded:\n\n(i) any MCIs (within the meaning of that Act) issued by the entity;\n\n(ii) any dividends or profits paid or payable in respect of such MCIs;\n\n(iii) any members of the entity who are members by virtue of holding such MCIs.\n\n(2) An insurance company is a life insurance company or a general insurance company.\n\n(3) A life insurance company is a company registered under section 21 of the Life Insurance Act 1995.\n\n(4) A general insurance company is a company whose sole or principal business is insurance business within the meaning of subsection 3(1) of the Insurance Act 1973, but does not include a life insurance company.\n\n121AC  Mutual affiliate company\n\n(1) A mutual affiliate company is a company that satisfies the following conditions:\n\n(a) it is limited by guarantee;\n\n(b) it is not an insurance company;\n\n(c) at least 75% of the policyholders of a mutual insurance company are members of it;\n\n(d) it did not divide its profits among its members during the 10 years ending on 9 May 1995;\n\n(e) on a winding‑up, its profits are not divisible among its members in their capacity as such.\n\n(2) If the company is a mutual entity (within the meaning of the Corporations Act 2001) then, for the purposes of subsection (1), disregard the following:\n\n(a) any MCIs (within the meaning of that Act) issued by the company;\n\n(b) any dividends or profits paid or payable in respect of such MCIs;\n\n(c) any members of the company who are members by virtue of holding such MCIs.\n\n121AD  Demutualisation and demutualisation resolution day\n\n(1) A mutual insurance company demutualises if it ceases to be a mutual insurance company:\n\n(a) in any case—other than by ceasing to be an insurance company; or\n\n(b) if it is a life insurance company—because the whole of its life insurance business is transferred to another company under a scheme confirmed by the Federal Court of Australia.\n\n(2) A mutual affiliate company demutualises if it ceases to be a mutual affiliate company other than by ceasing to be a company.\n\n(3) The demutualisation resolution day, in relation to the demutualisation of a company, is:\n\n(a) if paragraph (b) does not apply—the day on which the resolution to proceed with the demutualisation is passed; or\n\n(b) if paragraph (1)(b) applies to the demutualisation—the day on which the transfer of the whole of the company’s life insurance business takes place.\n\n121AE  Demutualisation methods, the policyholder/member group and the listing period\n\nDemutualisation methods 1 to 6\n\n(1) There are 6 methods by which the demutualisation of a mutual insurance company, where a mutual affiliate company is not also demutualised, may be implemented that are relevant for the purposes of this Division. They are described in sections 121AF to 121AK as demutualisation methods 1 to 6.\n\nDemutualisation method 7\n\n(2) There is one method by which the demutualisation of both a mutual insurance company and a mutual affiliate company may be implemented that is relevant for the purposes of this Division. It is described in section 121AL as demutualisation method 7.\n\nDemutualisation methods\n\n(3) Each of the methods described in sections 121AF to 121AL is a demutualisation method.\n\nPolicyholder/member group\n\n(4) The policyholder/member group, in relation to the demutualisation of a mutual insurance company under any of demutualisation methods 1 to 6, consists of the following persons:\n\n(a) in the case of a mutual insurance company covered by paragraph 121AB(1)(a)—policyholders (other than trustees covered by paragraph (d) or (e)) in the company immediately before the demutualisation;\n\n(b) in the case of any other mutual insurance company—members (other than trustees covered by paragraph (d) or (e)) of the company immediately before the demutualisation;\n\n(c) in any case—any of the following who, in connection with the demutualisation, are entitled to the same rights to shares or the proceeds of the sale of shares as the policyholders (in a paragraph (a) case) or the members (in a paragraph (b) case):\n\n(i) employees of the company or a wholly‑owned subsidiary of the company;\n\n(ii) persons who ceased to be such policyholders or members before the demutualisation;\n\n(iii) charities;\n\n(iv) persons who are entitled to the rights because of the death of the policyholders or members;\n\n(d) in any case—each person who satisfies the following requirements:\n\n(i) the person is a member of a regulated superannuation fund (as defined by section 19 of the Superannuation Industry (Supervision) Act 1993), other than a standard employer‑sponsored member (as defined by subsection 16(5) of that Act);\n\n(ii) the trustee of the fund holds a policy or policies in the mutual insurance company;\n\n(iii) the trustee of the fund is a company that is a wholly‑owned subsidiary of the mutual insurance company;\n\n(iv) the person’s benefits in the fund consist solely of the proceeds of the policy or policies;\n\n(v) in connection with the demutualisation, the person, rather than the trustee, has the right to shares or the proceeds of the sale of shares in respect of the policy or policies held by the trustee;\n\n(e) in any case—each person who satisfies the following requirements:\n\n(i) the person is the member of a single‑member superannuation fund;\n\n(ii) the trustee of the fund holds a policy or policies in the mutual insurance company;\n\n(iii) in connection with the demutualisation, the person, rather than the trustee, has the right to shares or the proceeds of the sale of shares in respect of the policy or policies held by the trustee.\n\n(5) The policyholder/member group, in relation to the demutualisation of a mutual insurance company and a mutual affiliate company under demutualisation method 7, consists of the following persons:\n\n(a) if the mutual insurance company is covered by paragraph 121AB(1)(a)—policyholders (other than trustees covered by paragraph (e) or (f)) in the mutual insurance company immediately before the demutualisation;\n\n(b) in the case of any other mutual insurance company—members (other than trustees covered by paragraph (e) or (f)) of the company immediately before the demutualisation;\n\n(c) members (other than trustees covered by paragraph (e) or (f)) of the mutual affiliate company immediately before the demutualisation;\n\n(d) any of the following who, in connection with the demutualisation, are entitled to the same rights to shares or the proceeds of the sale of shares as the members:\n\n(i) employees of the mutual insurance company, the mutual affiliate company or a wholly‑owned subsidiary of either company;\n\n(ii) persons who ceased to be such members before the demutualisation;\n\n(iii) charities;\n\n(iv) persons who are entitled to the rights because of the death of members;\n\n(e) in any case—each person who satisfies the following requirements:\n\n(i) the person is a member of a regulated superannuation fund (as defined by section 19 of the Superannuation Industry (Supervision) Act 1993), other than a standard employer‑sponsored member (as defined by subsection 16(5) of that Act);\n\n(ii) the trustee of the fund holds a policy or policies in the mutual insurance company;\n\n(iii) the trustee of the fund is a company that is a wholly‑owned subsidiary of the mutual insurance company;\n\n(iv) the person’s benefits in the fund consist of the proceeds of the policy or policies;\n\n(v) in connection with the demutualisation, the person, rather than the trustee, has the right to shares or the proceeds of the sale of shares in respect of the policy or policies held by the trustee;\n\n(f) in any case—each person who satisfies the following requirements:\n\n(i) the person is the member of a single‑member superannuation fund;\n\n(ii) the trustee of the fund holds a policy or policies in the mutual insurance company;\n\n(iii) in connection with the demutualisation, the person, rather than the trustee, has the right to shares or the proceeds of the sale of shares in respect of the policy or policies held by the trustee.\n\n(6) The listing period is the period ending 2 years after the demutualisation resolution day, or at such later time as the Commissioner, before the end of the 2 years, allows.\n\n121AEA  Replacement of policyholders by persons exercising certain rights\n\nIf, as a result of the exercise of any power under the articles of association of an insurance company, persons are entitled to exercise rights in place of policyholders, then, to the extent that the Commissioner considers it appropriate, the persons are treated for the purposes of this Division as replacing the policyholders.\n\n121AF  Demutualisation method 1\n\n(1) Under demutualisation method 1, in connection with the implementation of the demutualisation:\n\n(a) all membership rights in the mutual insurance company are extinguished; and\n\n(b) shares (the ordinary shares) of only one class in the mutual insurance company are issued to each person in the policyholder/member group; and\n\n(c) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows, where this demutualisation method is used, the issue of the shares to the policyholder/member group.\n\n![A diagram of Demutualisation method 1 used to issue shares to the policyholder/member group](image.027.png)\n\n121AG  Demutualisation method 2\n\n(1) Under demutualisation method 2, in connection with the implementation of the demutualisation:\n\n(a) all membership rights in the mutual insurance company are extinguished; and\n\n(b) not more than 10 shares (the special shares) in the mutual insurance company are issued to a trustee to hold for the benefit of the policyholder/member group, where:\n\n(i) the issue takes place before the issue of the ordinary shares mentioned in paragraph (c); and\n\n(ii) on the issue of all the ordinary shares, the rights attaching to the special shares become the same as those attaching to the ordinary shares; and\n\n(c) a greater number of shares (the ordinary shares) of only one class in the mutual insurance company are either:\n\n(i) issued, at the election of each person in the policyholder/member group, to the person or to a trustee to sell on behalf of the person; or\n\n(ii) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and\n\n(d) the trustee sells the ordinary shares and distributes the proceeds to the person, or distributes the ordinary shares to the person; and\n\n(e) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events, where this demutualisation method is used involving an election covered by subparagraph (1)(c)(ii).\n\n![A diagram of Demutualisation method 2 showing the main events, where this demutualisation method is used involving an election covered by section 121AG(1)(c)(ii)](image.028.png)\n\n121AH  Demutualisation method 3\n\n(1) Under demutualisation method 3, in connection with the implementation of the demutualisation:\n\n(a) all membership rights in the mutual insurance company are extinguished; and\n\n(b) shares in the mutual insurance company are issued to another company (the holding company); and\n\n(c) shares (the ordinary shares) of only one class in:\n\n(i) the holding company; or\n\n(ii) another company (the ultimate holding company) of which the holding company is a wholly‑owned subsidiary, either directly or through one or more other wholly‑owned subsidiaries (each of which is an interposed holding company);\n\nare issued to each person in the policyholder/member group; and\n\n(d) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events, where this demutualisation method is used.\n\n![A diagram of Demutualisation method 3, in connection with the implementation of the demutualisation](image.029.png)\n\n121AI  Demutualisation method 4\n\n(1) Under demutualisation method 4, in connection with the implementation of the demutualisation:\n\n(a) all membership rights in the mutual insurance company are extinguished; and\n\n(b) shares in the mutual insurance company are issued to another company (the holding company); and\n\n(c) not more than 10 shares (the special shares) in:\n\n(i) the holding company; or\n\n(ii) another company (the ultimate holding company) of which the holding company is a wholly‑owned subsidiary, either directly or through one or more other wholly‑owned subsidiaries (each of which is an interposed holding company);\n\nare issued to a trustee to hold for the benefit of the policyholder/member group; and\n\n(d) the issue of the special shares takes place before the issue of the ordinary shares mentioned in paragraph (e), and on the issue of all the ordinary shares, the rights attaching to the special shares become the same as those attaching to the ordinary shares; and\n\n(e) a greater number of shares (the ordinary shares) of only one class in the holding company or ultimate holding company are either:\n\n(i) issued, at the election of each person in the policyholder/member group, to the person or to a trustee to sell on behalf of the person; or\n\n(ii) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and\n\n(f) the trustee sells the ordinary shares and distributes the proceeds of sale to the person, or distributes the ordinary shares to the person; and\n\n(g) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.","sortOrder":1000056},{"sectionNumber":"full-source-retrieval-0058","sectionType":"document_chunk","heading":"Document excerpt 58","content":"(2) The following diagram shows the main events, where this demutualisation method is used involving 2 trustees and an election covered by subparagraph (1)(e)(ii).\n\n![A diagram of Demutualisation method 4, in connection with the implementation of the demutualisation involving 2 trustees and an election covered by section 121AJ(1)(e)(ii)](image.030.png)\n\n121AJ  Demutualisation method 5\n\n(1) Under demutualisation method 5, in connection with the implementation of the demutualisation:\n\n(a) all membership rights in the mutual insurance company are extinguished; and\n\n(b) shares in the mutual insurance company are issued to another company (the holding company); and\n\n(c) shares (the ordinary shares) of only one class in:\n\n(i) the holding company; or\n\n(ii) another company (the ultimate holding company) of which the holding company is a wholly‑owned subsidiary, either directly or through one or more other wholly‑owned subsidiaries (each of which is an interposed holding company);\n\nare either:\n\n(iii) issued, at the election of each person in the policyholder/ member group, to the person or to a trustee to sell on behalf of the person; or\n\n(iv) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and\n\n(d) the trustee sells the ordinary shares and distributes the proceeds of sale to the person, or distributes the ordinary shares to the person; and\n\n(e) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events, where this demutualisation method is used involving an election covered by subparagraph (1)(c)(iv).\n\n![A diagram of Demutualisation method 5, where this demutualisation method is used involving an election covered by section 121AJ(1)(c)(iv)](image.031.png)\n\n121AK  Demutualisation method 6\n\n(1) Under demutualisation method 6, in connection with the implementation of the demutualisation of a life insurance company:\n\n(a) all membership rights in the company are extinguished; and\n\n(b) the whole of the life insurance business of the company is, under a scheme confirmed by the Federal Court of Australia, transferred to another company formed for the purpose; and\n\n(c) shares (the ordinary shares) of only one class in the other company are:\n\n(i) issued, at the election of each person in the policyholder/member group, to the person or to a trustee to sell on behalf of the person; or\n\n(ii) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and\n\n(d) the trustee sells the ordinary shares and distributes the proceeds of sale to the person or distributes the ordinary shares to the person; and\n\n(e) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events, where this demutualisation method is used.\n\n![A diagram of Demutualisation method 6, showing the main events of the demutualisation of a life insurance company](image.032.png)\n\n121AL  Demutualisation method 7\n\n(1) Under demutualisation method 7, in connection with the implementation of the demutualisation of both a mutual insurance company and a mutual affiliate company:\n\n(a) all membership rights in both companies are extinguished; and\n\n(b) shares in the mutual insurance company and the mutual affiliate company are issued to another company (the holding company); and\n\n(c) shares (the ordinary shares) of only one class in:\n\n(i) the holding company; or\n\n(ii) another company (the ultimate holding company) of which the holding company is a wholly‑owned subsidiary, either directly or through one or more other wholly‑owned subsidiaries (each of which is an interposed holding company);\n\nare either:\n\n(iii) issued, at the election of each person in the policyholder/member group to the person or to a trustee to sell on behalf of the person; or\n\n(iv) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and\n\n(d) the trustee sells the ordinary shares and distributes the proceeds of the sale to the person, or distributes the ordinary shares to the person; and\n\n(e) the ordinary shares are listed within the listing period.\n\nNote: Other things may also happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events, where this demutualisation method is used involving an election covered by subparagraph (1)(c)(iv).\n\n![A diagram of Demutualisation method 7, in connection with the implementation of the demutualisation of both a mutual insurance company and a mutual affiliate company](image.033.png)\n\n121AM  Embedded value of a mutual life insurance company\n\n(1) The embedded value of a mutual life insurance company that demutualises using a demutualisation method is, in accordance with this section, the sum of its existing business value and its adjusted net worth on the applicable accounting day (see subsection (3)).\n\nEligible actuary and Australian actuarial practice\n\n(2) The sum is to be worked out by an eligible actuary (see subsection 121AO(3)) according to Australian actuarial practice.\n\nApplicable accounting day\n\n(3) The applicable accounting day is:\n\n(a) if an accounting period of the company ends on the demutualisation resolution day—that day; or\n\n(b) in any other case—the last day of the most recent accounting period of the company ending before the demutualisation resolution day.\n\nAdjustment for changes after applicable accounting day\n\n(4) In a case covered by paragraph (3)(b), if any significant change in the amount of the existing business value or adjusted net worth occurs between the applicable accounting day and the demutualisation resolution day, the amount is to be adjusted to take account of the change.\n\nContinued business assumption\n\n(5) In working out the existing business value or the adjusted net worth, it is to be assumed:\n\n(a) that after the applicable accounting day the company will continue to conduct its life insurance business and any other activity in the same way as it did before that day, and that it will not conduct any different business or other activity; and\n\n(b) that the demutualisation will not occur.\n\nDiscount rate assumption\n\n(6) In working out the existing business value or adjusted net worth, the annual discount rate to be used in respect of each future accounting period is worked out using the formula:\n\n![Start formula 10 year Treasury bond rate plus 4.5% plus Capital reserve adequacy shortfall percentage end formula](image.034.png)\n\nwhere:\n\n10 year Treasury bond rate means the Treasury bond rate (see subsection 121AO(1)) for the applicable accounting day in respect of bonds with a 10 year term.\n\nCapital reserve adequacy shortfall percentage  means:\n\n(a) if, for any future accounting period, the capital reserves of the company are projected to fall below the capital reserve adequacy level (see subsection 121AO(2)) by 1% or more at both the beginning and end of the accounting period—the percentage worked out by averaging the percentages worked out under each of the following subparagraphs:\n\n(i) 0.2% for each 1% by which the capital reserves are projected to fall below the level at the beginning of the period;\n\n(ii) 0.2% for each 1% by which the capital reserves are projected to fall below the level at the end of the period; or\n\n(b) in any other case—nil.\n\nAnnual inflation rate assumption\n\n(7) In working out the existing business value, the annual inflation rate to be applied is worked out using the formula:\n\n![Start formula 10 year Treasury bond rate open bracket see subsection open bracket 6 close bracket close bracket minus 4% end formula](image.035.png)\n\nExpenditure assumption\n\n(8) In working out the existing business value, it is to be assumed that expenditure that the company will incur, in conducting its life insurance business, on recurring items after the demutualisation resolution day will be of the same kinds and amounts (increased to take account of any inflation, using the annual inflation rate in subsection (7)) as the company incurred in the accounting period, or part of an accounting period, ending on the demutualisation resolution day.\n\nInvestment return assumption\n\n(9) In working out the existing business value or the adjusted net worth, it is to be assumed that the annual rate of return on each investment of the company is:\n\n(a) if the investment is a security with a term less than 2 years or is cash—the Treasury bond rate (see subsection 121AO(1)) for the applicable accounting day in respect of bonds with a 26 week term; or\n\n(b) if the investment is any other kind of security—the Treasury bond rate for the applicable accounting day in respect of bonds with a 10 year term; or\n\n(c) in any other case—the rate mentioned in paragraph (b), plus 3%.\n\nFuture distributable profits assumption\n\n(10) In working out the existing business value or the adjusted net worth, the future distributable profits are to be determined on the assumption that the company:\n\n(a) will not distribute its profits so as to cause its capital reserves to fall below the capital reserve adequacy level (see subsection 121AO(2)) applicable to the company; and\n\n(b) will distribute all of its profits except to the extent necessary for its capital reserves not to fall below the capital reserve adequacy level.\n\n121AN  Net tangible asset value of a general insurance company or mutual affiliate company\n\n(1) The net tangible asset value of a general insurance company, or a mutual affiliate company, that demutualises using a demutualisation method is, in accordance with this section:\n\n(a) the amount of its assets on the applicable accounting day (see subsection (4));\n\nreduced by:\n\n(b) the amount of its liabilities (including future liabilities) arising from its business conducted before that day.\n\nAustralian accounting practice\n\n(2) The amount of the company’s assets and liabilities (other than future liabilities) is to be worked out according to Australian accounting practice.\n\nEligible actuary and Australian actuarial practice\n\n(3) The amount of the company’s future liabilities is to be worked out by an eligible actuary (see subsection 121AO(3)) according to Australian actuarial practice.\n\nApplicable accounting day\n\n(4) The applicable accounting day is:\n\n(a) if an accounting period of the company ends on the demutualisation resolution day—that day; or\n\n(b) in any other case—the last day of the most recent accounting period of the company ending before the demutualisation resolution day.\n\nAdjustment for changes after applicable accounting day\n\n(5) In a case covered by paragraph (4)(b), if any significant change in the amount of the company’s assets or liabilities occurs between the applicable accounting day and the demutualisation resolution day, that amount is to be adjusted to take account of the change.\n\nContinued business assumption\n\n(6) In working out the net tangible asset value, it is to be assumed:\n\n(a) that after the applicable accounting day the company will continue to conduct its business and any other activity in the same way as it did before that day, and that it will not conduct any different business or other activity; and\n\n(b) that the demutualisation will not occur.\n\n121AO  Treasury bond rate, capital reserve adequacy level, eligible actuary and security\n\nTreasury bond rate\n\n(1) The Treasury bond rate for the applicable accounting day in respect of bonds with a particular term is:\n\n(a) if any Treasury bonds with that term were issued on the applicable accounting day—the annual yield on those bonds; or\n\n(b) in any other case—the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia and applicable to the accounting day.\n\nCapital reserve adequacy level\n\n(2) The capital reserve adequacy level for a life insurance company that demutualises is:\n\n(a) if, after 1 July 1995 and before the applicable accounting day mentioned in subsection 121AM(3) or 121AN(4), a prudential standard made under section 230B of the Life Insurance Act 1995 in relation to capital adequacy applied to the company—the level of capital reserves required by that standard; or\n\n(b) in any other case—the level of capital reserves required to provide adequate capital for the conduct of the life insurance business and other activities of the company.\n\nEligible actuary\n\n(3) An eligible actuary is a Fellow or Accredited Member of the Institute of Actuaries of Australia who is not an employee of:\n\n(a) the mutual insurance company or, where demutualisation method 7 applies, the mutual insurance company or the mutual affiliate company; or\n\n(b) a subsidiary of that company or, where demutualisation method 7 applies, of either company.\n\nSecurity\n\n(4) A security is:\n\n(a) a bond, debenture, certificate of entitlement, bill of exchange or promissory note; or\n\n(b) a deposit with a bank or other financial institution; or\n\n(c) a secured or unsecured loan.\n\n121AP  Subsidiary and wholly‑owned subsidiary\n\nSubsidiary\n\n(1) A company (the test company) is a subsidiary of another company (the holding company) if at least half of the shares in the test company are beneficially owned by:\n\n(a) the holding company; or\n\n(b) a company that is, or 2 or more companies each of which is, a subsidiary of the holding company; or\n\n(c) the holding company and a company that is, or 2 or more companies each of which is, a subsidiary of the holding company.\n\n(2) If a company is a subsidiary of another company (including because of this subsection), every company that is a subsidiary of the first‑mentioned company is a subsidiary of the other company.\n\nWholly‑owned subsidiary\n\n(3) A company is a wholly‑owned subsidiary of another company if it would, under subsection (1) or (2), be a subsidiary of the other company assuming that the reference in subsection (1) to at least half of the shares were instead a reference to all of the shares.\n\n121AQ  Other definitions\n\nIn this Division:\n\nannuity has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993.\n\nfirst trading day price, in relation to a listed share, means the price on the stock market operated by ASX Limited, as published by that company, at which the share was last traded on the trading day on which it was listed.\n\ngeneral insurance business means insurance business (within the meaning of the Insurance Act 1973) other than life insurance business.\n\nlife insurance business has the same meaning as in the Life Insurance Act 1995.\n\nlisted means listed for quotation in the official list of ASX Limited.\n\nsuperannuation interest has the same meaning as in the Income Tax Assessment Act 1997.\n\n121AR  List of definitions\n\nThe following table lists the expressions defined in this Division and shows the provisions in which they are defined:\n\n| Definition | Provision |\n| --- | --- |\n| annuity | 121AQ |\n| applicable accounting day | 121AM(3) and 121AN(4) |\n| capital reserve adequacy level | 121AO(2) |\n| eligible actuary | 121AO(3) |\n| embedded value | 121AM(1) |\n| demutualise | 121AD(1) and (2) |\n| demutualisation method | 121AE(3) |\n| demutualisation method 1 to demutualisation method 7 | 121AF to 121AL |\n| demutualisation resolution day | 121AD(3) |\n| first trading day price | 121AQ |\n| general insurance business | 121AQ |\n| general insurance company | 121AB(4) |\n| insurance company | 121AB(2) |\n| life insurance business | 121AQ |\n| life insurance company | 121AB(3) |\n| listed | 121AQ |\n| listing period | 121AE(6) |\n| mutual affiliate company | 121AC |\n| mutual insurance company | 121AB(1) |\n| net tangible asset value | 121AN(1) |\n| policyholder/member group | 121AE(4) and (5) |\n| security | 121AO(4) |\n| subsidiary | 121AP(1) and (2) |\n| superannuation interest | 121AQ |\n| Treasury bond rate | 121AO(1) |\n| wholly‑owned subsidiary | 121AP(3) |\n\nSubdivision C—Tax consequences of demutualisation\n\n121AS  CGT consequences of demutualisation\n\nThe table below sets out modifications of the application of Parts 3‑1 and 3‑3 (about CGT) of the Income Tax Assessment Act 1997 in respect of events that are described in, or relate to events that are described in, particular demutualisation methods.","sortOrder":1000057},{"sectionNumber":"full-source-retrieval-0059","sectionType":"document_chunk","heading":"Document excerpt 59","content":"- TABLE 1—MODIFICATIONS OF CGT RULES\n- Item Event Modifications\n- 1 Any demutualisation method: Extinguishment of membership rights as mentioned in paragraph (1)(a) of sections 121AF to 121AL. A capital gain or capital loss arising from a CGT event constituted by the extinguishment is disregarded.\n- 2 Demutualisation method 6: The whole of the life insurance business of the life insurance company is transferred to the other company as mentioned in paragraph 121AK(1)(b). Subdivision 126‑B of the Income Tax Assessment Act 1997 as in force immediately before 21 October 1999 (about roll‑overs for transfers) applies as if the life insurance company and the other company were members of the same wholly‑owned group within the meaning of that Act.\n- 3 Any demutualisation method: A person (the disposer) in the policyholder/ member group disposes of a right to have ordinary shares issued or distributed to the person, or the proceeds of sale of ordinary shares distributed to the person, as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d). 1. A capital loss that the disposer makes from the disposal is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table). 2. For the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, he or she is taken: (a) to have paid, as consideration for the acquisition of the right disposed of, an amount worked out using the following formula:Start formula start fraction Right disposed of over Total of all rights of the same kind end fraction times Applicable company valuation amount open bracket see note 1 to this Table close bracket end formula; and(b) to have paid the amount in paragraph (a), and to have acquired the right disposed of, on the demutualisation resolution day.\n- 4 Demutualisation method 2, 4, 5, 6 or 7: A person (the disposer) in the policyholder/member group disposes of an asset consisting of all or part of the person’s interest in the trust property of the trustee mentioned in paragraph 121AG(1)(b) or (c), 121AI(1)(c) or (e), 121AJ(1)(c), 121AK(1)(c) or 121AL(1)(c). 1. A capital loss that the disposer makes from the disposal is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table).2. For the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, he or she is taken: (a) to have paid, as consideration for the acquisition of the interest disposed of, an amount worked out using the following formula:Start formula start fraction Amount of interest disposed of over Total of all interests in the trust property end fraction times Applicable company valuation amount open bracket see note 1 to this Table close bracket end formula; and(b) to have paid the amount in paragraph (a), and to have acquired the interest disposed of, on the demutualisation resolution day.\n- 5 Demutualisation method 3, 4 or 5: After the issue of the shares (each of which is a demutualisation share) in the mutual insurance company as mentioned in paragraph 121AH(1)(b), 121AI(1)(b) or 121AJ(1)(b), the holding company (the disposer) disposes of an asset consisting of: (a) a demutualisation share, or an interest in such a share; or (b) another share (a non‑demutualisation bonus share) in the mutual insurance company, or an interest in such a share, where the share is a bonus share mentioned in Division 8 of former Part IIIA and any of the demutualisation shares are the original shares mentioned in that Division. 1. A capital loss that the disposer makes from the disposal of the demutualisation share or interest in such a share is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table).2. If the disposal is of a demutualisation share (other than a demutualisation original share) or an interest in such a share then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, the disposer is taken:(a) to have paid as consideration for the acquisition of the share or interest both: (i) the amount worked out using the formula: Start formula start fraction Share or amount of interest disposed of over Total demutualisation shares or amount of interests in such shares end fraction times Applicable company valuation amount open bracket see note 1 to this Table close bracket end formula; and(ii) any consideration actually paid or given for the acquisition; and\n- (For the purposes of the modifications relating to this item, if any of the original shares mentioned in Division 8 of former Part IIIA is a demutualisation share, it is called a demutualisation original share.) (b) to have paid the amount in subparagraph (a)(i) on the demutualisation resolution day and the amount in subparagraph (a)(ii) when it was actually paid; and (c) to have acquired the share or interest on the demutualisation resolution day.3. If the disposal is of either: (a) a demutualisation original share, or an interest in such a share; or(b) a non‑demutualisation bonus share, or an interest in such a share; then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal:(c) for the purposes of applying section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997, the consideration for the acquisition of all of the demutualisation original shares to be taken into account under that section is taken to consist of both: (i) if the disposal and all previous disposals of the demutualisation original shares and the non‑demutualisation bonus shares, or interests in them, take place after the demutualisation listing day—the amount worked out using the formula: Start formula start fraction Number of demutualisation original shares over Number of demutualisation shares end fraction times Listing day company valuation amount open bracket see note 3 to this table close bracket end formula; and\n- (ii) if subparagraph (i) does not apply—the amount worked out using the formula:Start formula start fraction Number of demutualisation original shares over Number of demutualisation shares end fraction times Pre-listing day company valuation amount open bracket see note 2 to this table close bracket end formula; and(iii) any consideration actually paid or given for the acquisition of the share or interest disposed of; and\n- (d) if the disposal is of a demutualisation original share or an interest in such a share, the disposer is taken: (i) to have paid the amount in subparagraph (c)(i) or (ii) on the demutualisation resolution day and the amount in subparagraph (c)(iii) when it was actually paid; and (ii) to have acquired the share or interest on the demutualisation resolution day.\n- 6 Demutualisation method 7: After the issue of the shares (each of which is a demutualisation share) in the mutual insurance company and the mutual affiliate company as mentioned in paragraph 121AL(1)(b), the holding company (the disposer) disposes of an asset consisting of: (a) a demutualisation share, or an interest in such a share; or(b) another share (a non‑demutualisation bonus share) in the mutual insurance company or the mutual affiliate company, or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares are the original shares mentioned in that section. 1. A capital loss that the disposer makes from the disposal of the demutualisation share or interest in such a share is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table).2. If the disposal is of a demutualisation share (other than a demutualisation original share) or an interest in such a share then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, the disposer is taken: (a) to have paid as consideration for the acquisition of the share or interest both: (i) the amount worked out using the formula:Start formula start fraction Share or amount of interest disposed of over Total demutualisation shares or amount of interests in such shares in the company concerned end fraction times Net tangible asset value of the company concerned end formula; and(ii) any consideration actually paid or given for the acquisition; and\n- (For the purposes of the modifications relating to this item, if any of the original shares mentioned in that section is a demutualisation share, it is called a demutualisation original share.) (b) to have paid the amount in subparagraph (a)(i) on the demutualisation resolution day and the amount in subparagraph (a)(ii) when it was actually paid; and (c) to have acquired the share or interest on the demutualisation resolution day.3. If the disposal is of either: (a) a demutualisation original share, or an interest in such a share; or (b) a non‑demutualisation bonus share, or an interest in such a share; then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal: (c) for the purposes of applying section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997, the consideration for the acquisition of all of the demutualisation original shares to be taken into account under that section is taken to consist of both:\n- (i) the amount worked out using the formula:Start formula start fraction Number of demutualisation original shares over Number of demutualisation shares end fraction times Pre-listing day company valuation amount end formula; and(ii) any consideration actually paid or given for the acquisition of the share or interest disposed of; and (d) if the disposal is of a share connected with the demutualisation or interest in such a share, the disposer is taken:(i) to have paid the amount in subparagraph (c)(i) on the demutualisation resolution day and the amount in subparagraph (c)(ii) when it was actually paid; and (ii) to have acquired the share or interest on the demutualisation resolution day.\n- 7 Demutualisation method 3, 4, 5 or 7: After the issue of the shares in the mutual insurance company to the holding company as mentioned in paragraph 121AH(1)(b), 121AI(1)(b), 121AJ(1)(b), or in the mutual insurance company and the mutual affiliate company as mentioned in paragraph 121AL(1)(b):(a) the ultimate holding company (the disposer) disposes of an asset consisting of either of the following shares in the holding company or an interposed holding company:(i) a share (a demutualisation share) acquired before the issue of the shares in the mutual insurance company, or an interest in such a share; or The same modifications apply as for item 5.\n- (ii) another share (a non‑demutualisation bonus share), or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original shares mentioned in that section; or (b) the interposed holding company, or any of the interposed holding companies, (the disposer) disposes of an asset consisting of either of the following shares in the holding company or an interposed holding company:(i) a share (a demutualisation share) acquired before the issue of the shares in the mutual insurance company, or an interest in such a share; or\n- (ii) another share (a non‑demutualisation bonus share), or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original shares mentioned in that section. (For the purposes of the modifications relating to this item, if any of the original shares mentioned in that section is a demutualisation share, it is called a demutualisation original share.) (The ultimate holding company and interposed holding company are those mentioned in paragraph 121AH(1)(c), 121AI(1)(c), 121AJ(1)(c) or 121AL(1)(c)).\n- 8 Demutualisation method 2 or 4: The rights attaching to the special shares held by the trustee become the same as those attaching to the ordinary shares as mentioned in subparagraph 121AG(1)(b)(ii) or paragraph 121AI(1)(d). A capital gain or capital loss arising from a CGT event constituted by the change in the rights is disregarded.\n- 9 Demutualisation method 2, 4, 5, 6 or 7: The trustee (the disposer): (a) sells an ordinary share (a demutualisation share) in the company as mentioned in paragraph 121AG(1)(d), 121AI(1)(f), 121AJ(1)(d), 121AK(1)(d) or 121AL(1)(d); or (b) sells another share (a non‑demutualisation bonus share), where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not sold at the time) are the original shares mentioned in that section. (For the purposes of the modifications relating to this item, if any of the original shares mentioned in that section is a demutualisation share, it is called a demutualisation original share.) 1. The person in the policyholder/member group, instead of the trustee, is taken: (a) to have sold the demutualisation share or non‑demutualisation bonus share; and (b) to have paid, given and received any consideration that was paid, given or received by the trustee in respect of either share; and (c) to have done any other act in relation to either share that was done by the trustee. 2. The modifications in item 5 apply to the sale of the demutualisation share or non‑demutualisation bonus share in the same way as they do to the disposal of such shares covered by that item.\n- 10 Demutualisation method 2, 4, 5, 6 or 7: The trustee distributes an ordinary share as mentioned in paragraph 121AG(1)(d), 121AI(1)(f), 121AJ(1)(d), 121AK(1)(d) or 121AL(1)(d). A capital gain or capital loss arising from a CGT event constituted by the distribution is disregarded.\n- 11 Any demutualisation method: A person (the disposer) in the policyholder/member group disposes of an asset consisting of: (a) a share (a demutualisation share), or an interest in such a share, issued or distributed to the person as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d); or The same modifications apply as for item 5.\n- (b) another share (a non‑demutualisation bonus share) in the same company, or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original shares mentioned in that section. (For the purposes of the modifications relating to this item, if any of the original shares mentioned in that section is a demutualisation share, it is called a demutualisation original share.)\n- 12 Various demutualisation methods: A disposal of an asset takes place before the demutualisation listing day, where: (a) modification 1 of item 3, 4, 5, 6, 7 or 11 of this table applies to the disposal; and(b) a roll‑over provision (see note 5 to this table) applies to the disposal. 1. If the person who is taken to acquire the asset under the roll‑over provision disposes of it before the demutualisation listing day, a capital loss that the person makes from the disposal is disregarded.2. If the person disposes of the asset on or after the demutualisation listing day, then for the purposes of applying the roll‑over provision to that disposal, the modifications in the item in this table apply as if modification 1 were not made.\n\nNotes:\n\n1. For the purposes of the table, the applicable company valuation amount, in relation to the disposal of an asset or the allocation of an amount to a member in the records of a superannuation fund, is:\n\n(a) if the asset is disposed of, or the amount is allocated, before the demutualisation listing day—the pre‑listing day company valuation amount; or\n\n(b) in any other case—the listing day company valuation amount.\n\n2. The pre‑listing day company valuation amount is:\n\n(a) in relation to demutualisation methods 1 to 6, where the mutual insurance company is a life insurance company—the embedded value of the company; or\n\n(b) in relation to demutualisation methods 1 to 6, where the mutual insurance company is a general insurance company—the net tangible asset value of the company; or\n\n(c) in relation to demutualisation method 7—the sum of the net tangible asset values of the general insurance company and the mutual affiliate company.\n\n3. The listing day company valuation amount is the lesser of:\n\n(a) the pre‑listing day company valuation amount; and\n\n(b) the amount worked out using the formula:\n\n![Start formula First trading day price of a listed ordinary share mentioned in the demutualisation method concerned times Total number of ordinary shares issued or distributed to, or to be sold on behalf of, persons in the policyholder/member group end formula](image.043.png)\n\n4. The demutualisation listing day is the day on which the ordinary shares mentioned in the demutualisation method concerned are listed.\n\n5. A roll‑over provision is:\n\n- any of these Subdivisions of the Income Tax Assessment Act 1997: 122‑A, 122‑B, 124‑B, 124‑C, 124‑D, 124‑E, 124‑F, 124‑I, 126‑A, 126‑B; or\n- section 128‑10 or 128‑15, or Division 615, of that Act.","sortOrder":1000058},{"sectionNumber":"full-source-retrieval-0060","sectionType":"document_chunk","heading":"Document excerpt 60","content":"6. A trustee who gets a roll‑over under Subdivision 124‑M of the Income Tax Assessment Act 1997 for an original interest consisting of shares issued as part of a demutualisation may be eligible for a further roll‑over under Subdivision 126‑E of that Act when a beneficiary becomes absolutely entitled to the replacement shares.\n\n121AT  Other tax consequences of demutualisation\n\nThe table below sets out modifications of the application of this Act (except Parts 3‑1 and 3‑3 (about CGT) of the Income Tax Assessment Act 1997) in respect of events that are described in, or relate to events that are described in, particular demutualisation methods.\n\n- TABLE 2—MODIFICATIONS OF THIS ACT (EXCEPT CGT RULES)\n- Item Event Modifications\n- 1 Event described in item 1 of Table 1. No amount is included in, or allowable as a deduction from, assessable income in respect of the extinguishment.\n- 2 Event described in item 3 or 4 of Table 1. 1. If the disposal takes place before the demutualisation listing day (see note 4 to Table 1): (a) no loss is allowable as a deduction from the disposer’s assessable income in respect of the disposal; and (b) any deduction allowable from the disposer’s assessable income in respect of the acquisition of the right or interest does not exceed the amount included in the disposer’s assessable income in respect of the disposal. 2. Paragraphs 2(a) and (b) of the modifications column for item 3 or 4 in Table 1 apply for the purposes of working out: (a) the amount of any profit included in the disposer’s assessable income in respect of the disposal; or (b) the amount of any deduction allowable from the disposer’s assessable income in respect of the acquisition of the right or interest.\n- 3 Event that would be described in item 5 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA. 1. If the disposal is of a demutualisation share, or interest in such a share, and the disposal takes place before the demutualisation listing day:(a) no loss is allowable as a deduction from the disposer’s assessable income in respect of the disposal; and(b) any deduction allowable from the disposer’s assessable income in respect of the acquisition of the share or interest does not exceed the amount included in the disposer’s assessable income in respect of the disposal.\n- 2. If the disposal is of a demutualisation share (other than a demutualisation original share), or an interest in such a share, then paragraphs 2(a) to (c) of the modifications column for item 5 in Table 1 apply for the purposes of working out:(a) the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer’s assessable income in respect of the disposal; or(b) the amount of any deduction allowable (where modification 1 does not apply) from the disposer’s assessable income in respect of the acquisition of the share or interest\n- 3. If the disposal is of either: (a) a demutualisation original share, or an interest in such a share; or (b) a non‑demutualisation bonus share, or an interest in such a share; then paragraphs 3(c) and (d) of the modifications column for item 5 in Table 1 apply for the purpose of working out: (c) the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer’s assessable income in respect of the disposal; or (d) the amount of any deduction allowable (where modification 1 does not apply) from the disposer’s assessable income in respect of the acquisition of the share or interest. In applying paragraph 3(c) of the modifications column for item 5 in Table 1, the reference to section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 is taken instead to be a reference to section 6BA.\n- 4 Event that would be described in item 6 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA. 1. If the disposal is of a demutualisation share, or interest in such a share, and the disposal takes place before the demutualisation listing day:(a) no loss is allowable as a deduction from the disposer’s assessable income in respect of the disposal; and(b) any deduction allowable from the disposer’s assessable income in respect of the acquisition of the share or interest does not exceed the amount included in the disposer’s assessable income in respect of the disposal.\n- 2. If the disposal is of a demutualisation share (other than a demutualisation original share), or an interest in such a share, then paragraphs 2(a) to (c) of the modifications column for item 6 in Table 1 apply for the purposes of working out:(a) the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer’s assessable income in respect of the disposal; or(b) the amount of any deduction allowable (where modification 1 does not apply) from the disposer’s assessable income in respect of the acquisition of the share or interest.\n- 3. If the disposal is of either:(a) a demutualisation original share, or interest in such a share; or(b) a non‑demutualisation bonus share, or an interest in such a share;then paragraphs 3(c) and (d) of the modifications column for item 6 in Table 1 apply for the purpose of working out:(c) the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer’s assessable income in respect of the disposal; or(d) the amount of any deduction allowable (where modification 1 does not apply) from the disposer’s assessable income in respect of the acquisition of the share or interest. In applying paragraph 3(c) of the modifications column for item 6 in Table 1, the reference to section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 is taken instead to be a reference to section 6BA.\n- 5 Event that would be described in item 7 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA. The same modifications as for item 3 of this table apply.\n- 6 Event described in item 8 of Table 1. No amount is included in, or allowable as a deduction from, assessable income in respect of the change in the rights.\n- 7 Event that would be described in item 9 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA. 1. The person in the policyholder/member group, instead of the trustee is taken:(a) to have sold the demutualisation share or non‑demutualisation bonus share; and(b) to have paid, given and received any consideration that was paid, given or received by the trustee in respect of either share; and(c) to have done any other act in relation to either share that was done by the trustee.2. The modifications in item 3 of this table apply to the sale of the demutualisation share or non‑demutualisation bonus share in the same way as they do to the disposal of such shares covered by that item.\n- 8 Event that would be described in item 11 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA. The same modifications as for item 3 of this table apply.\n- 9 Under demutualisation method 6, the whole of the life insurance business of a life insurance company is transferred to another company as mentioned in paragraph 121AK(1)(b). The other company is taken to continue to carry on the transferred life insurance business of the mutual life insurance company.\n- 10 An ordinary share is issued or distributed to a person in the policyholder/member group as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d). No amount is included in, or allowable as a deduction from, assessable income of the person in respect of the issue or distribution of the share, except where the share is issued in consideration for services provided, or to be provided, by the person.\n- 11 Ordinary shares in the company are issued or distributed as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d) to a person in the policyholder/member group who is the trustee of a superannuation fund to hold on behalf of a member of the fund. The trustee within 30 days allocates to the member, in the records of the fund, an amount representing the member’s contributions in respect of the shares (the allocation shares). If the trustee pays a superannuation benefit to the member, the tax free component (within the meaning of the Income Tax Assessment Act 1997) of the superannuation interest (within the meaning of that Act) from which the benefit is paid is increased by the amount worked out using the formula:Start formula start fraction Number of allocation shares over Total number of ordinary shares issued or distributed to, or to be sold on behalf of, the policyholder/member group end fraction times Applicable company valuation amount open bracket see note 1 to Table 1 close bracket end formula\n- 12 A resolution is passed to proceed, in accordance with one of the demutualisation methods, with the demutualisation of: (a) a mutual insurance company that is a general insurance company; or (b) both such a mutual insurance company and a mutual affiliate company. The franking surplus is reduced to nil at the beginning of the demutualisation resolution day.\n- Immediately before the demutualisation resolution day: (a) in the case of any demutualisation method—the general insurance company or any wholly‑owned subsidiary of the general insurance company; or(b) in the case of demutualisation method 7—the mutual affiliate company, a wholly‑owned subsidiary of the mutual affiliate company, or a company all of whose shares are beneficially owned by the general insurance company and the mutual affiliate company; has a franking surplus.\n- 13 A resolution is passed to proceed with the demutualisation of a mutual insurance company or both a mutual insurance company and a mutual affiliate company. A dividend that was declared before the demutualisation resolution day is paid on or after the demutualisation resolution day to:(a) in the case of any demutualisation method—the mutual insurance company or any wholly‑owned subsidiary of the mutual insurance company; or(b) in the case of demutualisation method 7—the mutual affiliate company, a wholly‑owned subsidiary of the mutual affiliate company, or a company all of whose shares are beneficially owned by the general insurance company and the mutual affiliate company. No franking credit arises for the company or the subsidiary in relation to the payment of the dividend on or after the demutualisation resolution day.\n\n121AU  This Subdivision does not apply to demutualisation of friendly society health or life insurers\n\nThis Subdivision does not apply in relation to the demutualisation of a company in relation to whose demutualisation Division 316 (Demutualisation of friendly society health or life insurers) of the Income Tax Assessment Act 1997 applies.\n\nNote: Section 316‑5 of the Income Tax Assessment Act 1997 explains which demutualisations of entities Division 316 of that Act applies to.\n\nDivision 9A—Offshore banking units\n\nSubdivision A—Object and simplified outline\n\n121B  Simplified outline\n\nScope of section\n\n(1) The following is a simplified outline of the Division.\n\nMain concepts\n\n(2) Subdivision B sets out the concepts used in the Division, the most important being:\n\n(a) OB activity (sections 121D, 121EA and 121EAA) together with the related definition of offshore person (section 121E); and\n\n(b) special income and allowable deduction definitions relating to OB activities (sections 121EDA to 121EF).\n\nOperative provisions\n\n(3) Subdivision C contains the operative provisions. Basically, they provide as follows:\n\n(d) income from OB activities is taken to be Australian sourced;\n\n(e) a deemed interest penalty applies to equity provided by an OBU’s resident owner;\n\n(f) income of OBU offshore investment trusts is exempt from tax;\n\n(g) income derived by overseas charitable institutions from OBUs is exempt from tax;\n\n(h) certain adjustments are made to the capital gains and losses that flow from disposals of certain interests in trusts of which an OBU is the trustee.\n\nSubdivision B—Interpretation\n\n121C  Interpretation\n\nIn this Division:\n\nadjusted assessable OB income has the meaning given by subsection 121EE(4).\n\nadjusted total assessable income has the meaning given by subsection 121EE(5).\n\nallowable OB deduction has the meaning given by subsection 121EF(2).\n\napportionable OB deduction has the meaning given by subsection 121EF(5).\n\nassessable OB income has the meaning given by subsection 121EE(2).\n\nassociate has the meaning given by section 318.\n\nAustralian thing has the meaning given by subsection 121DA(5).\n\naverage Australian asset percentage has the meaning given by subsection 121DA(2).\n\nborrow includes raise finance by the issue of a security.\n\neligible contract means:\n\n(a) any of the following:\n\n(i) a futures contract;\n\n(ii) a forward contract;\n\n(iii) an options contract;\n\n(iv) a swap contract;\n\n(v) a cap, collar, floor or similar contract; or\n\n(b) a loan contract; or\n\n(c) a securities lending or repurchase arrangement; or\n\n(d) a non‑deliverable forward foreign currency contract.\n\nexclusive non‑OB deduction has the meaning given by subsection 121EF(6).\n\nexclusive OB deduction has the meaning given by subsection 121EF(3).\n\ngeneral OB deduction has the meaning given by subsection 121EF(4).\n\nlend includes provide finance by the purchase of a security.\n\nloss deduction has the meaning given by subsection 121EF(7).\n\nmonthly Australian asset percentage has the meaning given by subsection 121DA(3).\n\nnon‑OB accounting records has the meaning given by subsection 121EAA(3).\n\nnon‑OB money, in relation to an OBU, means money of the OBU other than:\n\n(a) money received by the OBU in carrying on an OB activity; or\n\n(b) OBU resident‑owner money of the OBU; or\n\n(c) money paid to the OBU by a non‑resident (other than in carrying on business in Australia at or through a permanent establishment of the non‑resident) by way of subscription for, or a call on, shares in the OBU;\n\n(an example of non‑OB money being money borrowed from a resident whose lending of the money does not occur in carrying on business in a country outside Australia at or through a permanent establishment of the resident).\n\nnon‑resident trust means a unit trust that is not a resident unit trust within the meaning of section 102Q.\n\nOB activity has the meaning given by section 121D.\n\nOB advisory activity has the meaning given by section 121DC.\n\nOB eligible contract activity has the meaning given by section 121DB.\n\nOB income has the meaning given by section 121EDA.\n\nOB leasing activity has the meaning given by section 121DD.\n\nOBU (offshore banking unit) means an offshore banking unit within the meaning of Division 11A of Part III.\n\nNote: In this Division, the head company of a consolidated group or MEC group may be treated for certain purposes as an OBU at a time when a subsidiary member of the group is an OBU (see Subdivision 717‑O of the Income Tax Assessment Act 1997).\n\nOBU resident‑owner money has the meaning given by section 121EC.\n\noffshore person has the meaning given by section 121E.\n\noffshore property means property that:\n\n(a) cannot be in Australia; or\n\nExample: Land outside Australia.\n\n(b) is used, or will be used:\n\n(i) wholly outside Australia; or\n\n(ii) in Australia to an extent that is not material.\n\noverseas charitable institution means a non‑resident institution the income of which:\n\n(a) would be exempt from tax under item 1.1 of section 50‑5 of the Income Tax Assessment Act 1997 (and not under any other item of that section) if the institution had a physical presence in Australia and incurred its expenditure and pursued its objectives principally in Australia; and\n\n(b) is exempt in the country in which it is resident.\n\nowner, in relation to a company, means a person who, alone or together with an associate or associates, is the beneficial owner of all of the shares in the company.\n\nportfolio investment has the meaning given by subsection 121DA(1).\n\nrelated person, in relation to an OBU, means:\n\n(a) an associate of the OBU; or\n\n(b) a permanent establishment referred to in paragraph 121EB(1)(b) in relation to the OBU.\n\nsecurity means a bond, debenture, debt interest, bill of exchange, promissory note or other security or similar instrument.\n\ntrade with a person has the meaning given by section 121ED.\n\n90‑day bank bill rate, at a particular time, means:\n\n(a) if the Reserve Bank of Australia has published a rate described as the 90‑day bank accepted bill rate in respect of a period in which the particular time occurs—that rate; or\n\n(b) in any other case—the rate declared by regulations for the purposes of this definition to be the 90‑day bank accepted bill rate in respect of a period in which the particular time occurs.\n\n121D  Meaning of OB activity\n\nKinds of OB activity","sortOrder":1000059},{"sectionNumber":"full-source-retrieval-0061","sectionType":"document_chunk","heading":"Document excerpt 61","content":"(1) Each of the following things done by an OBU is an OB activity (offshore banking activity) of the OBU (subject to sections 121EA and 121EAA):\n\n(a) a borrowing or lending activity described in subsection (2); or\n\n(b) a guarantee‑type activity described in subsection (3); or\n\n(c) a trading activity described in subsection (4) (subject to subsection (4A)); or\n\n(d) an OB eligible contract activity (see section 121DB); or\n\n(e) an investment activity described in subsection (6), (6A) or (6B); or\n\n(f) an OB advisory activity (see section 121DC); or\n\n(g) a hedging activity described in subsection (8); or\n\n(ga) an OB leasing activity (see section 121DD); or\n\n(h) any other activity involving an offshore person, being an activity declared by regulations for the purposes of this paragraph to be an OB activity.\n\nBorrowing or lending activity\n\n(2) For the purposes of paragraph (1)(a), a borrowing or lending activity is:\n\n(a) borrowing money from an offshore person where, if that person is a related person or a person to whom paragraph 121E(b) applies and is not an OBU, the money is not Australian currency; or\n\n(b) lending money, or making commitments to lend money, to an offshore person where, if that person is a person to whom paragraph 121E(b) applies and is not an OBU, the money is not Australian currency; or\n\n(c) borrowing gold from an offshore person; or\n\n(d) lending gold to an offshore person; or\n\n(e) acting as an arranger in a syndicated lending arrangement that includes a borrowing or lending activity to which paragraph (a), (b), (c) or (d) applies.\n\nGuarantee‑type activity\n\n(3) For the purposes of paragraph (1)(b), a guarantee‑type activity is:\n\n(a) providing a guarantee or letter of credit to an offshore person in relation to activities that are, or will be, conducted:\n\n(i) wholly outside Australia; or\n\n(ii) in Australia to an extent that is not material; or\n\n(b) underwriting a risk for an offshore person in respect of:\n\n(i) offshore property; or\n\n(ii) an event, if the likelihood of the event happening in Australia is not material; or\n\n(c) syndicating a loan for an offshore person; or\n\n(d) issuing a performance bond to an offshore person in relation to activities that are, or will be, conducted:\n\n(i) wholly outside Australia; or\n\n(ii) in Australia to an extent that is not material;\n\nwhere, if the offshore person is a related person, any money payable under the guarantee, letter, underwriting, loan or bond is not Australian currency.\n\nTrading activity\n\n(4) For the purposes of paragraph (1)(c), a trading activity is:\n\n(a) trading with an offshore person in:\n\n(i) securities issued by non‑residents; or\n\n(ii) eligible contracts, under which any amounts payable are payable by non‑residents; or\n\n(aa) trading with any person in non‑deliverable forward foreign currency contracts; or\n\n(b) trading with an offshore person in:\n\n(i) shares in non‑resident companies; or\n\n(ii) units in non‑resident trusts; or\n\n(c) trading with an offshore person in options or rights in respect of securities, eligible contracts, shares or units referred to in paragraph (a) or (b); or\n\n(d) trading (including on behalf of an offshore person) on the Sydney Futures Exchange in futures contracts, or options contracts, under which any money payable is not Australian currency; or\n\n(e) trading in currency, or options or rights in respect of currency, with any person, where the currency is not Australian currency; or\n\n(ea) trading in currency, or options or rights in respect of currency, with an offshore person; or\n\n(f) trading in gold bullion, or in options or rights in respect of such bullion:\n\n(i) with an offshore person where the money or moneys payable or receivable is or are in any currency; or\n\n(ii) a person other than an offshore person where the money or moneys payable or receivable is or are in a currency other than Australian currency; or\n\n(g) trading with an offshore person in silver, platinum or palladium bullion, or in options or rights in respect of such bullion; or\n\n(h) trading with an offshore person in base metals; or\n\n(i) trading with an offshore person in commodities, or in options or rights in respect of commodities, if:\n\n(i) the commodities, options or rights are not mentioned in another paragraph of this subsection; and\n\n(ii) the trading is incidental to an OB eligible contract activity.\n\n(4A) However, paragraph (1)(c) does not apply to a trading activity done by an OBU if:\n\n(a) the thing traded in affected the OBU’s total participation interest (within the meaning of the Income Tax Assessment Act 1997) in another entity; and\n\n(b) just before the trading activity:\n\n(i) the OBU’s total participation interest in the other entity was at least 10%; or\n\n(ii) any of the thing traded in was held by the OBU, and was not recorded in the OBU’s accounting records as held for trading in accordance with accounting standards (within the meaning of that Act).\n\n(4B) For the purposes of subsection (4A), disregard rights on winding‑up.\n\nInvestment activity\n\n(6) For the purposes of paragraph (1)(e), an investment activity is making (but not managing), as broker or agent for, or trustee for the benefit of, an offshore person to whom paragraph 121E(a) applies, an investment with an offshore person to whom that paragraph applies, where:\n\n(a) the currency in which the investment is made is not Australian currency; and\n\n(b) if the investment involves the purchase of any thing:\n\n(i) if the thing is a share in a company—the company is a non‑resident company; or\n\n(ii) if the thing is a unit in a unit trust—the unit trust is a non‑resident trust; or\n\n(iii) if the thing is land or a building—the land or building is not in Australia; or\n\n(iv) in any other case—the thing is located outside Australia.\n\nInvestment activity—portfolio investment\n\n(6A) For the purposes of paragraph (1)(e), an investment activity is also the managing by an OBU of a portfolio investment (see subsection 121DA(1)) for the whole or part (the investment management period) of a year of income, where:\n\n(a) the portfolio investment is managed as broker, agent or custodian for, or trustee for the benefit of, a non‑resident; and\n\n(b) the portfolio investment was made by the OBU or the non‑resident; and\n\n(c) the portfolio investment was made with a non‑resident (except to the extent that making the investment consisted of making a loan or purchasing an Australian thing); and\n\n(d) the currency in which the portfolio investment was made was not Australian currency; and\n\n(e) if the portfolio investment consists of only a single thing—the thing is not an Australian thing (see subsection 121DA(5)).\n\nInvestment activity—portfolio investment for overseas charitable institutions\n\n(6B) For the purposes of paragraph (1)(e), an investment activity is also the managing by an OBU of a portfolio investment (see subsection 121DA(1)) for the whole or part (the investment management period) of a year of income, where:\n\n(a) the portfolio investment is managed as broker, agent or custodian for, or trustee for the benefit of, an overseas charitable institution; and\n\n(b) the portfolio investment was made by the OBU or the overseas charitable institution.\n\nHedging activities\n\n(8) For the purposes of paragraph (1)(g), a hedging activity is entering into a financial arrangement (within the meaning of the Income Tax Assessment Act 1997) with an offshore person for the sole purpose of eliminating or reducing the risk of adverse financial consequences that might result to the OBU from:\n\n(a) interest rate exposure of the OBU in respect of borrowing or lending activities (described in subsection (2)) of the OBU; or\n\n(b) currency exposure of the OBU in respect of borrowing or lending activities (described in subsection (2)) of the OBU.\n\nEffect of subsection (8)\n\n(9) Subsection (8) does not limit the scope of any other OB activity of the OBU (for example the trading activity mentioned in paragraph (4)(e)).\n\n121DA  Meaning of expressions relevant to investment activity\n\nPortfolio investment\n\n(1) If, under a contract or trust instrument, an OBU manages one or more investments as broker an agent or custodian for, or trustee for the benefit of, a non‑resident, the investment, or all of the investments, constitute a portfolio investment.\n\nAverage Australian asset percentage\n\n(2) The average Australian asset percentage of a portfolio investment is the average, for all months that wholly or partly fall within the investment management period (see subsection 121D(6A) or (6B)), of the monthly Australian asset percentages (see subsection (3)) of all of the things comprising the portfolio investment.\n\nMonthly Australian asset percentage\n\n(3) For the purposes of subsection (2), the monthly Australian asset percentage of the things for a month is the percentage of the total value of all of the things comprising the portfolio investment, for the month, that is represented by the value of Australian things.\n\nBasis for working out percentage\n\n(4) The percentage in subsection (3) must be worked out according to reasonable accounting practice that applies on the same basis for all months falling wholly or partly within the investment management period.\n\nAustralian thing\n\n(5) A thing is an Australian thing at a particular time if:\n\n(a) where the thing is a share in a company—the company is a resident company at the time; or\n\n(b) where the thing is a unit in a unit trust—the unit trust is a resident trust (within the meaning of section 102Q) in relation to the year of income in which the time occurs; or\n\n(c) where the thing is land or a building—the land or building is in Australia; or\n\n(d) where the thing is a loan—the loan was made to an Australian resident; or\n\n(e) in any other case—the thing is located in Australia at the time.\n\n121DB  Meaning of OB eligible contract activity\n\nAn OB eligible contract activity is entering into an eligible contract (other than a loan contract that is not a securities lending or repurchase arrangement) with:\n\n(a) an offshore person; or\n\n(b) if the eligible contract is a non‑deliverable forward foreign currency contract—any person.\n\n121DC  Meaning of OB advisory activity\n\n(1) An OB advisory activity is giving investment or other financial advice to an offshore person, including advice about disposing of an investment.\n\n(2) Giving advice about the making of a particular investment is not an OB advisory activity unless the investment is of a kind mentioned in subsection 121D(6) (Investment activity).\n\n(3) Subsection (2) does not exclude giving advice about a particular investment of a different kind if doing so is incidental to advising on an investment of a kind mentioned in subsection 121D(6) (for example for the purpose of comparison or because the investments are commercially related).\n\n(4) To avoid doubt, for the purposes of this section, advice about disposing of an investment is not advice about the making of the investment.\n\n121DD  Meaning of OB leasing activity\n\n(1) An OB leasing activity is leasing activity with an offshore person involving offshore property.\n\n(2) Without limiting subsection (1), OB leasing activity includes entering into:\n\n(a) any arrangement (within the meaning of section 51AD) under which a right to use offshore property is granted by the owner to another person; or\n\n(b) any arrangement (within the meaning of that section) under which a right to use offshore property, being a right derived directly or indirectly from a right mentioned in paragraph (a) in relation to the property, is granted by a person to another person;\n\nwith an offshore person.\n\n121E  Meaning of offshore person\n\nA reference to an offshore person, in relation to the doing of any thing by an OBU (the first OBU), is a reference to:\n\n(a) a non‑resident whose involvement in the doing of the thing does not occur in carrying on business in Australia at or through a permanent establishment of that person; or\n\n(b) a resident whose involvement in the doing of the thing occurs in carrying on business in a country outside Australia at or through a permanent establishment of the person; or\n\n(c) another OBU (the second OBU), where, if the doing of the thing involves the payment of any money (for example a loan of money) by the second OBU to the first OBU, the second OBU gives, at or before the time of the payment, a statement in writing to the first OBU to the effect that none of the money is non‑OB money of the second OBU.\n\n121EA  OBU requirement\n\nFor a thing done by an OBU to be an OB activity, it is necessary that, when the thing is done:\n\n(a) the OBU is a resident and the thing is not done in carrying on business in a country outside Australia at or through a permanent establishment of the OBU; or\n\n(b) the OBU is a non‑resident and the thing is done in carrying on business in Australia at or through a permanent establishment of the OBU.\n\n121EAA  Activities recorded in domestic books not OB activities\n\n(1) An OBU may, when it does a thing that would otherwise be an OB activity of the OBU, choose to have the thing not be an OB activity.\n\nAccounting records\n\n(2) The OBU recording the thing in the OBU’s non‑OB accounting records is sufficient evidence of the making of the choice, if the OBU uses money in the thing.\n\nNote 1: The OBU must maintain accounting records, separate from its non‑OB accounting records, in respect of money used in its OB activities: see subsection 262A(1A).\n\nNote 2: Subsection (2) of this section and subsection 262A(1A) do not apply if the OBU does not use money in the thing, but the OBU must keep documents containing particulars of the choice: see paragraph 262A(2)(b).\n\nNote 3: Subsection (2) does not prevent the OBU from correcting a mistake in its accounting records.\n\n(3) The OBU’s non‑OB accounting records are the OBU’s accounting records, other than the accounting records maintained in respect of money used in the OBU’s OB activities under subsection 262A(1A).\n\nGrouping\n\n(4) The OBU is treated as having chosen under subsection (1) to have a thing (the transaction) done by the OBU not be an OB activity if:\n\n(a) it is reasonable to regard the transaction and one or more other things done by the OBU as constituting a single scheme (within the meaning of the Income Tax Assessment Act 1997); and\n\n(b) the OBU chooses under subsection (1) to have any of those other things done by the OBU not be an OB activity.\n\n(5) For the purposes of subsection (4), whether the transaction and one or more other things constitute a single scheme is a question of fact and degree determined having regard to the following (whichever are applicable):\n\n(a) the nature of the transaction and the other things;\n\n(b) their terms and conditions (including those relating to any payment or other consideration for them);\n\n(c) the circumstances surrounding their creation and their proposed exercise or performance (including what can reasonably be seen as the purposes of one or more of the entities involved);\n\n(d) whether they can be dealt with separately or must be dealt with together;\n\n(e) normal commercial understandings and practices in relation to them (including whether they are regarded commercially as separate things or as a group or series that forms a whole).\n\n(6) In applying subsection (5), have regard to the matters mentioned in paragraphs (5)(a) to (e) both:\n\n(a) in relation to the transaction and other things separately; and\n\n(b) in relation to the transaction and other things in combination with each other.\n\n121EB  Internal financial dealings of an OBU\n\nPermanent establishments treated as separate persons\n\n(1) If an OBU consists of:\n\n(a) one or more permanent establishments in Australia at or through which the OBU carries on what are OB activities apart from this section; and\n\n(b) one or more other permanent establishments either in Australia or outside Australia;\n\nthen sections 121D to 121EAA (inclusive) apply as if:\n\n(c) the OBU consisted only of the permanent establishments referred to in paragraph (a); and\n\n(d) the permanent establishments referred to in paragraph (b) were separate persons.\n\nHead office can be permanent establishment\n\n(2) For the purpose of determining under subsection (1) whether something is a permanent establishment, it does not matter whether it is a head office or not.\n\n(3) To avoid doubt, this section applies for the purposes of applying Subdivision 230‑A of the Income Tax Assessment Act 1997 to a financial arrangement (within the meaning of that Act).\n\nNote: This means that it is possible for financial arrangements to be entered into between the bank and the branch and for the bank or the branch to have a gain or loss from such an arrangement dealt with under Division 230 of the Income Tax Assessment Act 1997.\n\nArm’s length pricing\n\n(4) For the purposes of this Division, treat an amount that, because of subsections (1) to (3):\n\n(a) is included in the OBU’s OB income; or\n\n(b) is an allowable OB deduction of the OBU;\n\nas being the amount that would be so included, or that would be the amount of the allowable OB deduction, were the OBU and the permanent establishments mentioned in paragraph (1)(d) dealing with each other at arm’s length.\n\n(5) For the purposes of determining the effect subsection (4) has in relation to the amount that is included or allowable, work out the arm’s length dealing so as best to achieve consistency with:\n\n(a) the documents covered by section 815‑235 of the Income Tax Assessment Act 1997 (Guidance); and\n\n(b) subject to paragraph (a), the documents covered by section 815‑135 of that Act.\n\n121EC  Meaning of OBU resident‑owner money\n\nMoney is OBU resident‑owner money of an OBU if it is paid to the OBU by a resident owner of the OBU by way of a subscription for, or a call on, shares in the OBU, except if the shares are redeemable preference shares.\n\n121ED  Meaning of trade with a person\n\nA person (the trader) is said to trade with another person in a thing if:","sortOrder":1000060},{"sectionNumber":"full-source-retrieval-0062","sectionType":"document_chunk","heading":"Document excerpt 62","content":"(a) the trader, for the purpose of trading in the thing, acquires it on issue from the other person; or\n\n(b) the trader, for the purpose of trading in the thing, buys it from the other person; or\n\n(c) the trader, in trading in the thing, sells it to the other person.\n\n121EDA  Meaning of OB income\n\nOB income\n\n(1) Subject to subsections (2) to (5), the OB income of an OBU of a year of income is so much of the OBU’s ordinary income and statutory income of the year of income as is:\n\n(a) derived from OB activities of the OBU or the part of the OBU to which paragraph 121EB(1)(c) applies; or\n\n(b) included in the statutory income because of such activities.\n\n(2) Subsection (1) does not apply to amounts included under Part 3‑1 of the Income Tax Assessment Act 1997 (about capital gains).\n\n(3) Subsection (1) does not apply to the extent that the money lent, invested or otherwise used in carrying on the OB activities is non‑OB money of the OBU.\n\n(4) A typical example of an amount covered by the exception in subsection (3) is interest derived from the OB activity of lending money to an offshore person, where the money lent is non‑OB money.\n\nReduction of OB income because of certain investment activities\n\n(5) Ordinary or statutory income that:\n\n(a) would otherwise be taken into account under subsection (1); and\n\n(b) is derived from an investment activity (within the meaning of subsection 121D(6A) or (6B)) included in OB activities of the OBU or the part of the OBU to which paragraph 121EB(1)(c) applies;\n\nis reduced by the average Australian asset percentage (within the meaning of subsection 121DA(2)) of the portfolio investment concerned.\n\n121EE  Definitions relating to assessable income of an OBU\n\nPurpose of section\n\n(1) This section sets out certain definitions used in this Division that relate to the assessable income of an OBU of a year of income.\n\nAssessable OB income\n\n(2) The assessable OB income of an OBU is so much of the OBU’s OB income of the year of income as is assessable income.\n\nAdjusted assessable OB income\n\n(4) The adjusted assessable OB income of an OBU is the OBU’s assessable OB income of the year of income reduced by the sum of the OBU’s exclusive OB deductions for interest (including a discount in the nature of interest).\n\nAdjusted total assessable income\n\n(5) The adjusted total assessable income of an OBU is the OBU’s assessable income of the year of income reduced by the sum of the OBU’s exclusive OB deductions, and exclusive non‑OB deductions, for interest (including a discount in the nature of interest).\n\n121EF  Definitions relating to allowable deductions of an OBU\n\nPurpose of section\n\n(1) This section sets out certain definitions used in this Division relating to allowable deductions of an OBU in relation to a year of income.\n\nAllowable OB deduction\n\n(2) An allowable OB deduction is any of the following 3 kinds of allowable deduction:\n\n(a) an exclusive OB deduction;\n\n(b) a general OB deduction;\n\n(c) an apportionable OB deduction.\n\nExclusive OB deduction\n\n(3) An exclusive OB deduction is any deduction (other than a loss deduction) allowable from the OBU’s assessable income of the year of income that relates exclusively to assessable OB income.\n\nGeneral OB deduction\n\n(4) A deduction that:\n\n(a) is none of the following:\n\n(i) a loss deduction;\n\n(ii) an apportionable deduction;\n\n(iii) an exclusive OB deduction;\n\n(iv) an exclusive non‑OB deduction; and\n\n(b) is allowable from the OBU’s assessable income of the year of income;\n\nis a general OB deduction to the extent that:\n\n(c) it is incurred in gaining or producing the OB income of the OBU; or\n\n(d) it is necessarily incurred in carrying on a business for the purpose of gaining or producing the OB income of the OBU.\n\nApportionable OB deduction\n\n(5) An apportionable OB deduction is so much of any apportionable deduction allowable from the OBU’s assessable income of the year of income as is calculated by multiplying the deduction by the following fraction:\n\n![Start formula start fraction OBU's assessable OB income minus open bracket OBU's exclusive OB deductions plus OBU's general OB deductions close bracket over OBU's taxable income plus OBU's apportionable deductions end fraction end formula](image.045.png)\n\nExclusive non‑OB deduction\n\n(6) An exclusive non‑OB deduction is any deduction (other than a loss deduction) allowable from the OBU’s assessable income of the year of income that relates exclusively to assessable income that is not assessable OB income.\n\nLoss deduction\n\n(7) A loss deduction is any allowable deduction under Division 36 of the Income Tax Assessment Act 1997.\n\nSubdivision C—Operative provisions\n\n121EJ  Source of income derived from OB activities\n\nFor the purposes of this Act, income of an OBU that is derived from OB activities of the OBU is taken to be derived from a source in Australia.\n\n121EK  Deemed interest on 90% of certain OBU resident‑owner money\n\nDeemed interest\n\n(1) If:\n\n(a) an owner of an OBU pays an amount of money to the OBU and, because of section 121EC, the amount becomes OBU resident‑owner money of the OBU; and\n\n(b) the OBU uses, or holds ready for use, the whole or part of the amount (which whole or part is called the OB use amount) in carrying on any of its OB activities during the whole or part of any year of income (which whole or part is called the OB use period);\n\nthen the assessable income of the owner of the year of income includes deemed interest as described in subsection (2).\n\nAmount of deemed interest\n\n(2) The deemed interest is:\n\n(a) applied to 90% of the OB use amount; and\n\n(b) applied on a daily‑rests basis for the OB use period at a rate that is 2% above the 90‑day bank bill rate from time to time during that period.\n\nDeduction for deemed interest\n\n(3) A deduction is allowable from the OBU’s assessable income, equal to the amount included in the owner’s assessable income, for the year of income. The deduction is taken to be an exclusive OB deduction for interest.\n\n121EL  Exemption of income etc. of OBU offshore investment trusts\n\n(1) If:\n\n(a) an OBU is a trustee, or is the central manager and controller, of a trust estate; and\n\n(b) the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust are non‑residents; and\n\n(c) the terms of the trust are to the effect that income, profits or capital gains of the trust estate may only come from investment activities covered by subsection 121D(6) or (6A);\n\nthen:\n\n(d) any income of the trust estate derived from an investment activity covered by subsection 121D(6) is exempt from income tax; and\n\n(e) any capital gain or capital loss made by the trust estate from a CGT event happening in relation to a CGT asset of the trust estate in the course of, or in connection with, an investment activity covered by subsection 121D(6) is disregarded; and\n\n(f) any income of the trust estate derived from an investment activity covered by subsection 121D(6A) is exempt from income tax, in so far as the income exceeds the average Australian asset percentage (within the meaning of subsection 121DA(2)) for the portfolio investment concerned; and\n\n(g) if, apart from this section, the trust estate would make a capital gain or capital loss from a CGT event happening in relation to a CGT asset of the trust estate in the course of, or in connection with, an investment activity covered by subsection 121D(6A)—the trust estate makes only the average Australian asset percentage (for the portfolio investment concerned) of the gain or loss.\n\n(2) If:\n\n(a) an OBU is a trustee, or is the central manager and controller, of a trust estate; and\n\n(b) the only person who benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust is an overseas charitable institution; and\n\n(c) the terms of the trust are to the effect that income, profits or capital gains of the trust estate may only come from investment activities covered by subsection 121D(6B);\n\nthen:\n\n(d) any income of the trust estate derived from an investment activity covered by subsection 121D(6B) is exempt from income tax; and\n\n(e) any capital gain or capital loss made by the trust estate from a CGT event happening in relation to a CGT asset of the trust estate in the course of, or in connection with, an investment activity covered by subsection 121D(6B) is disregarded.\n\n121ELA  Exemption of income etc. of overseas charitable institutions\n\nInvestment with OBU\n\n(1) Income, derived by an overseas charitable institution, is exempt to the extent that it is:\n\n(a) a payment or outgoing from an OBU as part of the OB activities of the OBU; or\n\n(b) a distribution of income that is exempt under subsection 121EL(2).\n\nCapital gains and losses\n\n(2) If:\n\n(a) an OBU is a trustee, or is the central manager and controller, of a unit trust estate; and\n\n(b) the only person who benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust is an overseas charitable institution; and\n\n(c) the terms of the trust are to the effect that income, profits or capital gains of the trust estate may only come from investment activities covered by subsection 121D(6B); and\n\n(d) the overseas charitable institution disposes of its interest in the trust;\n\nthen the overseas charitable institution makes no capital gain or capital loss from a CGT event happening in relation to the disposal.\n\n121ELB  Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts\n\nTrust with subsection 121D(6) investment activities\n\n(1) If:\n\n(a) an OBU is a trustee, or is the central manager and controller, of a unit trust estate; and\n\n(b) the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust are non‑residents; and\n\n(c) all units in the trust are held by non‑residents; and\n\n(d) the terms of the trust are to the effect that income, profits or capital gains of the trust estate may only come from investment activities covered by subsection 121D(6); and\n\n(e) a non‑resident disposes of a unit in the trust;\n\nthen the non‑resident makes no capital gain or capital loss from a CGT event happening in relation to the disposal.\n\nTrust with subsection 121D(6A) investment activities\n\n(2) If:\n\n(a) an OBU is a trustee, or is the central manager and controller, of a unit trust estate; and\n\n(b) the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust are non‑residents; and\n\n(c) all units in the trust are held by non‑residents; and\n\n(d) the terms of the trust are to the effect that income, profits or capital gains of the trust estate may only come from investment activities covered by subsection 121D(6A); and\n\n(e) a non‑resident disposes of a unit in the trust; and\n\n(f) the average Australian asset percentage for the portfolio investment concerned was 10% or less;\n\nthen if, apart from this section, the non‑resident would make a capital gain or capital loss from a CGT event happening in relation to the disposal, the non‑resident makes only the average Australian asset percentage of the gain or loss.\n\n(3) In working out the average Australian asset percentage for the purposes of subsection (2), the investment management period is taken to be the period during the 12 months before the disposal during which the non‑resident held the unit.\n\nDivision 9C—Assessable income diverted under certain tax avoidance schemes\n\n121F  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nconsideration includes a benefit of any kind.\n\ndiverted income, in relation to a taxpayer, means all the amounts that are included under this Division in the diverted income of the taxpayer.\n\ndiverted trust income, in relation to a trustee of a trust estate, means all the amounts that are included under this Division in the diverted trust income of the trust estate.\n\nincome includes all amounts that, apart from the operation of the relevant exempting provisions, would be assessable income.\n\nproperty includes:\n\n(a) a chose in action;\n\n(b) any estate, interest, right or power, whether at law or in equity, in or over property; and\n\n(c) any right to receive income.\n\npublic company rate means the rate of tax payable in respect of the taxable income of a company that is not a private company.\n\nrelevant exempting provision means any of the following provisions:\n\n(aa) section 50‑5, 50‑10, 50‑15, 50‑25, 50‑30, 50‑40 or 50‑45 of the Income Tax Assessment Act 1997;\n\n(b) paragraph 23(ja) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987;\n\n(baa) paragraph 23(x) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1988;\n\n(ba) section 23F, 23FA or 23FB, as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987;\n\n(bb) paragraph 23(jaa) or section 23FC or 23FD, as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989;\n\n(bc) section 24AM;\n\n(c) paragraph 320‑37(1)(a) of the Income Tax Assessment Act 1997;\n\n(cb) regulations under the International Organisations (Privileges and Immunities) Act 1963, insofar as those regulations provide that an organisation is not liable to income tax;\n\n(d) any provision of an Act other than this Act to the effect that income of a particular person or body is not subject to taxation under any law of the Commonwealth or to the effect that a particular person or body is not subject to taxation under any law of the Commonwealth.\n\nright to receive income, in relation to a person, means a right of the person to have income that will or may be derived (whether from property or otherwise) paid to, or applied or accumulated for the benefit of, the person.\n\ntax avoidance agreement means an agreement that was entered into after 24 June 1980 and was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the agreement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the agreement had not been entered into or carried out.\n\ntaxpayer does not include a partnership.\n\n(2) In determining for the purposes of this Division whether an agreement is a tax avoidance agreement, no regard shall be had to a purpose that is a merely incidental purpose.\n\n(3) For the purposes of this Division, an agreement shall be taken to have been entered into or carried out for a particular purpose, or for purposes that included a particular purpose, if any of the parties to the agreement entered into or carried out the agreement for that purpose, or for purposes that included that purpose, as the case may be.\n\n(4) A reference in this Division to a person shall be read as including a reference to a person in the capacity of a trustee.\n\n(5) For the purposes of the application of this Division in relation to property acquired under a tax avoidance agreement, a reference to income that is derived from that property shall be read as including a reference to income that is derived from the disposal of that property, of any part of that property or of any interest in that property.\n\n121G  Diverted income and diverted trust income\n\n(1) Where:\n\n(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this subsection referred to as the relevant property) under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;\n\n(b) by reason that the taxpayer derives any income from the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included in the assessable income of the taxpayer of a year of income otherwise than under Division 5, section 97, section 99B or section 100;\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the year of income; and\n\n(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted income of the taxpayer of the year of income shall include the relevant amount.\n\n(2) Where:\n\n(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this subsection referred to as the relevant property), being an interest in a partnership, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;","sortOrder":1000061},{"sectionNumber":"full-source-retrieval-0063","sectionType":"document_chunk","heading":"Document excerpt 63","content":"(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included, under Division 5, in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income);\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the relevant year of income; and\n\n(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted income of the taxpayer of the relevant year of income shall include the relevant amount.\n\n(3) Where:\n\n(a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this subsection referred to as the relevant property), being a beneficial interest in a trust estate, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;\n\n(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included, under Division 6, in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income);\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the taxpayer of the relevant year of income; and\n\n(d) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted income of the taxpayer of the relevant year of income shall include the relevant amount.\n\n(4) Where:\n\n(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate, has acquired property (in this subsection referred to as the relevant property) under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;\n\n(b) by reason that the taxpayer derives any income from the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included in the assessable income of the trust estate of a year of income otherwise than under Division 5, section 97, section 99B or section 100;\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the trust estate of the year of income; and\n\n(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted trust income of the trust estate of the year of income shall include the relevant amount.\n\n(5) Where:\n\n(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate, has acquired property (in this subsection referred to as the relevant property), being an interest in a partnership, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;\n\n(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included, under Division 5, in the assessable income of the trust estate of a year of income (in this subsection referred to as the relevant year of income);\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the trust estate of the relevant year of income; and\n\n(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted trust income of the trust estate of the relevant year of income shall include the relevant amount.\n\n(6) Where:\n\n(a) a taxpayer, being a taxpayer in the capacity of a trustee of a trust estate (in this subsection referred to as the relevant trust estate), has acquired property (in this subsection referred to as the relevant property), being a beneficial interest in another trust estate, under a tax avoidance agreement or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of a tax avoidance agreement;\n\n(b) by reason of the ownership by the taxpayer of the relevant property, an amount (in this subsection referred to as the relevant amount) would, apart from the operation of the relevant exempting provisions, be included, under section 97, 99B or 100, in the assessable income of the relevant trust estate of a year of income (in this subsection referred to as the relevant year of income);\n\n(c) apart from this Division, the relevant amount would not be included in the assessable income of the relevant trust estate of the relevant year of income; and\n\n(e) so much of the amount or value of the consideration provided by the taxpayer under or in connection with the tax avoidance agreement as the Commissioner is satisfied was provided in respect of the acquisition by the taxpayer of the relevant property substantially exceeds the amount or value of the consideration that might reasonably be expected to have been provided by the taxpayer in respect of the acquisition of the relevant property if the taxpayer were liable to pay tax, in respect of any income derived by the taxpayer from the relevant property, at the public company rate applicable for the financial year in which the taxpayer acquired the relevant property;\n\nthe diverted trust income of the relevant trust estate of the relevant year of income shall include the relevant amount.\n\n(8) Where:\n\n(a) a deduction is allowable or deductions are allowable, in calculating the net income of a partnership or trust estate of a year of income, in respect of losses or outgoings (in this subsection referred to as the relevant losses or outgoings) incurred under or in connection with a tax avoidance agreement;\n\n(b) if no deduction were allowable, in calculating that net income, in respect of the relevant losses or outgoings and no relevant exempting provisions were applicable in relation to a taxpayer, an amount would be included in the assessable income of the taxpayer of a year of income by reason that the taxpayer owned an interest in the partnership or a beneficial interest in the trust estate or owned an interest in any other partnership or a beneficial interest in any other trust estate; and\n\n(c) if the deduction or deductions were allowed, in calculating that net income, in respect of the relevant losses or outgoings and no relevant exempting provision were applicable in relation to the taxpayer:\n\n(i) no amount would be included in the assessable income of the taxpayer of the year of income by reason that the taxpayer owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in paragraph (b); or\n\n(ii) an amount would be included in the assessable income of the taxpayer of the year of income by reason that the taxpayer owned an interest in a partnership or a beneficial interest in a trust estate as mentioned in paragraph (b) but the amount that would be so included in that assessable income would be less than the amount referred to in paragraph (b);\n\nthen, for the purposes of the application of subsections (2), (3), (5) and (6) in relation to the taxpayer in relation to the tax avoidance agreement, no deduction shall be allowed in respect of the relevant losses or outgoings in calculating the net income of the partnership or trust estate referred to in paragraph (a).\n\n(10) For the purposes of the application of subsection (8), a reference to a deduction that is allowable in calculating the net income of a partnership does not include a reference to a deduction allowable to the partnership in respect of expenditure taken under sections 70‑90 and 70‑95 and subsection 70‑100(3) of the Income Tax Assessment Act 1997 to have been incurred in the acquisition of trading stock by the partnership.\n\n(11) In determining for the purposes of this section the amount or value of the consideration that might reasonably be expected to have been provided by a taxpayer in respect of the acquisition of property by the taxpayer if the taxpayer were liable to pay tax in respect of any income derived by the taxpayer from the property at the public company rate applicable for the financial year in which the taxpayer acquired the property, the possibility that the taxpayer would be entitled to a rebate of tax in respect of any of that income shall be disregarded.\n\n(12) In determining for the purposes of this section whether an amount would, apart from the operation of the relevant exempting provisions, be included in the assessable income of a taxpayer or a trust estate of a year of income, section 128D of this Act and section 802‑15 of the Income Tax Assessment Act 1997 shall be disregarded.\n\n(13) For the purposes of this section, where:\n\n(a) a taxpayer acquired property, being an interest in a trust estate or partnership, before the time when a tax avoidance agreement was entered into; and\n\n(b) under the tax avoidance agreement, or by reason of an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance agreement, the amount of the share (in this subsection referred to as the relevant share) of the taxpayer of the income of the trust estate or partnership of any year of income was or is increased;\n\nthe following provisions apply:\n\n(c) the property referred to in paragraph (a) shall be taken to have been acquired by the taxpayer under the tax avoidance agreement; and\n\n(d) any consideration provided by the taxpayer in respect of the increase in the amount of the relevant share shall be taken to be consideration provided by the taxpayer in respect of the acquisition of the property referred to in paragraph (a).\n\n(14) For the purposes of the application of this section in relation to the acquisition of property by a person under a tax avoidance agreement, the Commissioner may be satisfied that consideration provided by the person under or in connection with the tax avoidance agreement was provided by the person in respect of the acquisition of the property notwithstanding, in a case where the person acquired property from another person, that the consideration was not provided to that other person.\n\n121H  Assessment of diverted income and diverted trust income\n\n(1) A taxpayer, not being a taxpayer in the capacity of a trustee of a trust estate, shall be assessed and is liable to pay tax, at the rate declared by the Parliament for the purposes of this Division, upon the diverted income of the taxpayer of the year of income.\n\n(2) A taxpayer in the capacity of a trustee of a trust estate shall be assessed and is liable to pay tax, at the rate declared by the Parliament for the purposes of this Division, upon the diverted trust income of the trust estate of the year of income.\n\n121J  Ascertainment of diverted income or diverted trust income deemed to be an assessment\n\nThe ascertainment of the amount of the diverted income or diverted trust income and of the tax payable thereon shall, for all purposes of this Act be deemed to be an assessment.\n\n121K  Application of International Tax Agreements Act\n\nFor the purposes of sections 15 and 16 of the International Tax Agreements Act 1953, any amount that is included in the diverted income or diverted trust income of a taxpayer of a year of income shall be deemed to be included in the assessable income of the taxpayer of the year of income.\n\n121L  Division applies notwithstanding exemption under other laws\n\nThis Division has effect notwithstanding anything contained in any law of the Commonwealth other than this Act.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1‑78A\n\nVolume 2: sections 79A‑121L\n\nVolume 3: sections 124ZM‑204\n\nVolume 4: sections 251R‑468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1‑4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart III—Liability to taxation\n\nDivision 10E—PDFs (pooled development funds)\n\nSubdivision A—Shares in PDFs\n\n124ZM Treatment distributions to shareholders in PDF\n\n124ZN Exemption of income from sale of shares in a PDF\n\n124ZO Shares in a PDF are not trading stock\n\n124ZQ Effect of company becoming a PDF\n\n124ZR Effect of company ceasing to be a PDF\n\nSubdivision B—The taxable income of PDFs\n\n124ZS Definitions\n\n124ZTA Taxable income in first year as PDF if PDF component is nil\n\n124ZT SME assessable income\n\n124ZU SME income component\n\n124ZV Unregulated investment component\n\nSubdivision C—Adjustments of the tax treatment of capital gains and capital losses of PDFs\n\n124ZW Definitions\n\n124ZX Companies to which this Subdivision applies\n\n124ZY Classes of assessable income\n\n124ZZ Treatment of capital gains\n\n124ZZA Allocation of gain amounts and loss amounts to classes of assessable income\n\n124ZZB Assessable income etc. in relation to capital gains\n\n124ZZD No net capital loss\n\nDivision 11—Interest paid by companies on bearer debentures\n\n126 Interest paid by a company on bearer debentures\n\n127 Credit for tax paid by company\n\n128 Assessments of tax\n\nDivision 11A—Dividends, interest and royalties paid to non‑residents and to certain other persons\n\nSubdivision A—General\n\n128AAA Application of Division to non‑share dividends\n\n128A Interpretation\n\n128AA Deemed interest in respect of transfers of certain securities","sortOrder":1000062},{"sectionNumber":"full-source-retrieval-0064","sectionType":"document_chunk","heading":"Document excerpt 64","content":"128AB Certificates relating to issue price of certain securities\n\n128AC Deemed interest in respect of hire‑purchase and certain other agreements\n\n128AD Indemnification etc. agreements in relation to bills of exchange and promissory notes\n\n128AE Interpretation provisions relating to offshore banking units\n\n128AF Payments through interposed entities\n\n128B Liability to withholding tax\n\n128C Payment of withholding tax\n\n128D Certain income not assessable\n\n128F Division does not apply to interest on certain publicly offered company debentures or debt interests\n\n128FA Division does not apply to interest on certain publicly offered unit trust debentures or debt interests\n\n128GB Division not to apply to interest payments on offshore borrowings by offshore banking units\n\n128NA Special tax payable in respect of certain securities and agreements\n\n128NB Special tax payable in respect of certain dealings by current and former offshore banking units\n\n128NBA Credits in respect of amounts assessed in relation to certain financial arrangements\n\n128P Objections\n\n128R Informal arrangements\n\nDivision 11C—Payments in respect of mining operations on Indigenous land\n\n128U Interpretation\n\n128V Liability to mining withholding tax\n\n128W Payment of mining withholding tax\n\nDivision 12—Oversea ships\n\n129 Taxable income of ship‑owner or charterer\n\n130 Commissioner may require master or agent to make return\n\n131 Determination by Commissioner\n\n132 Assessment of tax\n\n133 Master liable to pay\n\n134 Notice of assessment\n\n135 Clearance of ship\n\n135A Freights payable under certain agreements\n\nDivision 15—Insurance with non‑residents\n\n141 Interpretation\n\n142 Income derived by non‑resident insurer\n\n143 Taxable income of non‑resident insurer\n\n144 Liability of agents of insurer\n\n145 Deduction of premiums\n\n146 Exporter to furnish information\n\n147 Rate of tax in special circumstances\n\n148 Reinsurance with non‑residents\n\nDivision 16—Averaging of incomes\n\n149 Average income\n\n149A Capital gains, abnormal income and certain death benefits to be disregarded\n\n150 First average year\n\n151 First application of Division in relation to a taxpayer\n\n152 Taxpayer not in receipt of assessable income\n\n153 Taxpayer with no taxable income\n\n154 Excess of allowable deductions\n\n155 Permanent reduction of income\n\n156 Rebate of tax for, or complementary tax payable by, certain primary producers\n\n157 Application of Division to primary producers\n\n158 Application of Division\n\n158A Election that Division not apply\n\nDivision 16D—Certain arrangements relating to the use of property\n\n159GE Interpretation\n\n159GEA Division applies to certain State/Territory bodies\n\n159GF Residual amounts\n\n159GG Qualifying arrangements\n\n159GH Application of Division in relation to property\n\n159GJ Effect of application of Division on certain deductions etc.\n\n159GK Effect of application of Division on assessability of arrangement payments\n\n159GL Special provision relating to Division 10C or 10D property\n\n159GM Special provision where cost of plant etc. is also eligible capital expenditure\n\n159GN Effect of use of property under qualifying arrangement for producing assessable income\n\n159GO Special provisions relating to partnerships\n\nDivision 16E—Accruals assessability etc. in respect of certain security payments\n\n159GP Interpretation\n\n159GQ Tax treatment of holder of qualifying security\n\n159GQA Accrual period\n\n159GQB Accrual amount\n\n159GQC Implicit interest rate for fixed return security\n\n159GQD Implicit interest rate for variable return security\n\n159GR Consequences of actual payments\n\n159GS Balancing adjustments on transfer of qualifying security\n\n159GT Tax treatment of issuer of a qualifying security\n\n159GU Effect of Division on certain transfer profits and losses\n\n159GV Consequence of variation of terms of security\n\n159GW Effect of Division in relation to non‑residents\n\n159GX Effect of Division where certain payments not assessable\n\n159GY Effect of Division where qualifying security is trading stock\n\n159GZ Stripped securities\n\nDivision 16J—Effect of cancellation of subsidiary’s shares in holding company\n\n159GZZZC Interpretation—general\n\n159GZZZD Meaning of eligible entity, eligible interest and eligible proportion\n\n159GZZZE Share cancellations to which this Division applies\n\n159GZZZF Effect on subsidiary of share cancellations to which this Division applies\n\n159GZZZG Pre‑cancellation disposals of eligible interests\n\n159GZZZH Post‑cancellation disposals of eligible interests etc.\n\n159GZZZI Additional application of sections 159GZZZG and 159GZZZH to associates\n\nDivision 16K—Effect of buy‑backs of shares\n\nSubdivision AA—Application of Division to non‑share equity interests\n\n159GZZZIA Application of Division to non‑share dividends\n\nSubdivision A—Interpretation\n\n159GZZZJ Interpretation\n\n159GZZZK Explanation of terms\n\n159GZZZL Special buy‑backs not made in ordinary course of trading on a stock exchange\n\n159GZZZM Purchase price in respect of buy‑back\n\nSubdivision B—Company buying‑back shares\n\n159GZZZN Buy‑back and cancellation disregarded for certain purposes\n\nSubdivision C—Off‑market purchases\n\n159GZZZP Part of off‑market purchase price is a dividend if the company is not a listed public company\n\n159GZZZPA No part of off‑market purchase price is a dividend if the company is a listed public company\n\n159GZZZQ Consideration in respect of off‑market purchase\n\nSubdivision D—On‑market purchases\n\n159GZZZR No part of on‑market purchase price is a dividend\n\n159GZZZS Consideration in respect of on‑market purchase\n\nDivision 17—Rebates\n\nSubdivision A—Concessional rebates\n\n159H Application\n\nSubdivision AB—Lump sum payments in arrears\n\n159ZR Interpretation\n\n159ZRA Eligibility for rebate\n\n159ZRB Calculation of rebate\n\n159ZRC Notional tax amount for recent accrual years\n\n159ZRD Notional tax amount for distant accrual years\n\nSubdivision B—Miscellaneous\n\n160AAAA Tax rebate for low income aged persons and pensioners\n\n160AAAB Tax rebate for low income aged persons and pensioners—trustees assessed under section 98\n\n160AAA Rebate in respect of certain benefits etc.\n\n160AAB Rebate in respect of amounts assessable under section 26AH\n\n160AD Maximum amount of rebates\n\n160ADA Most tax offsets under the 1997 Assessment Act are treated as rebates\n\nPart IIIB—Australian branches of foreign banks\n\nDivision 1—Preliminary\n\n160ZZVA Object\n\n160ZZVB Application\n\n160ZZV Definitions\n\n160ZZW Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity\n\nDivision 2—Provisions relating to income tax\n\n160ZZX Income of branch to have Australian source\n\n160ZZZ Notional borrowing by branch from bank\n\n160ZZZA Notional payment of interest by branch to bank\n\n160ZZZC Offshore banking units\n\n160ZZZE Notional derivative transactions between branch and bank\n\n160ZZZF Notional foreign exchange transactions between branch and bank\n\n160ZZZG Losses\n\n160ZZZH Net capital losses\n\n160ZZZI Certain transactions to be disregarded\n\nDivision 3—Provisions relating to withholding tax\n\n160ZZZJ Withholding tax on interest paid by branch to bank\n\nDivision 4—Extension of Part to Australian branches of foreign financial entities\n\n160ZZZK Treatment like Australian branches of foreign banks\n\nDivision 5—Modifications relating to hybrid mismatch rules\n\n160ZZZL Certain “hybrid mismatch” deductions denied\n\n160ZZZN Adjusting if Australian branch derives dual inclusion income in a later year\n\n160ZZZP Dual inclusion income not to be applied more than once\n\n160ZZZR Interpretation\n\nPart IV—Returns and assessments\n\n161 Annual returns\n\n161A Form and content of returns\n\n161AA Contents of returns of full self‑assessment taxpayers\n\n161G Tax agent to give taxpayer copy of notice of assessment\n\n162 Further returns and information\n\n163 Special returns\n\n166 Assessment\n\n166A Deemed assessment\n\n167 Default assessment\n\n168 Special assessment\n\n169 Assessments on all persons liable to tax\n\n169AA Consolidated assessments\n\n169A Reliance by Commissioner on returns and statements\n\n170 Amendment of assessments\n\n170A Amendment of assessments—interaction with other Acts\n\n170B Protection for anticipation of certain discontinued announcements\n\n170C Power of Commissioner to reduce amount of tax payable in certain cases\n\n171 Where no notice of assessment served\n\n171A Limited period to make assessments for nil liability returns for the 2003‑04 year of income or earlier\n\n172 Refunds of amounts overpaid\n\n172A Consequences of amendment of assessments of tax offset refunds\n\n173 Amended assessment to be an assessment\n\n174 Notice of assessment\n\n175 Validity of assessment\n\n175A Objections against assessments\n\nPart IVA—Schemes to reduce income tax\n\n177A Interpretation\n\n177B Operation of Part\n\n177C Tax benefits\n\n177CB The bases for identifying tax benefits\n\n177D Schemes to which this Part applies\n\n177DA Schemes that limit a taxable presence in Australia\n\n177E Stripping of company profits\n\n177EA Creation of franking debit or cancellation of franking credits\n\n177EB Cancellation of franking credits—consolidated groups\n\n177F Cancellation of tax benefits etc.\n\n177G Amendment of assessments\n\n177H Diverted profits tax—objects\n\n177J Diverted profits tax—application\n\n177K Diverted profits tax—$25 million income test\n\n177L Diverted profits tax—sufficient foreign tax test\n\n177M Diverted profits tax—sufficient economic substance test\n\n177N Diverted profits tax—consequences\n\n177P Diverted profits tax—liability\n\n177Q Diverted profits tax—general interest charge on unpaid diverted profits tax or shortfall interest charge\n\n177R Diverted profits tax—when shortfall interest charge is payable\n\nPart VA—Tax file numbers\n\nDivision 1—Preliminary\n\n202 Objects of this Part\n\n202A Interpretation\n\n202AA Definition of eligible PAYG payment\n\n202AB Declaration that an arrangement is, or is not, a unit trust\n\nDivision 2—Issuing of tax file numbers\n\n202B Application for tax file number\n\n202BA Issuing of tax file numbers\n\n202BB Current tax file number\n\n202BC Deemed refusal by Commissioner\n\n202BD Interim notices\n\n202BE Cancellation of tax file numbers\n\n202BF Alteration of tax file numbers\n\nDivision 3—Quotation of tax file numbers by recipients of eligible PAYG payments\n\n202C TFN declarations by recipients of eligible PAYG payments\n\n202CA Operation of TFN declaration\n\n202CB Quotation of tax file number in TFN declaration\n\n202CC Making a replacement TFN declaration in place of an ineffective declaration\n\n202CD Sending of TFN declaration to Commissioner\n\n202CE Effect of incorrect quotation of tax file number\n\n202CEA Validation notices\n\n202CF Payer must notify Commissioner if no TFN declaration by recipient\n\n202CG Disclosing recipients’ tax file numbers to payers\n\nDivision 4—Quotation of tax file numbers in connection with certain investments\n\n202D Explanation of terms: investment, investor, investment body\n\n202DB Quotation of tax file numbers in connection with investments\n\n202DC Method of quoting tax file number\n\n202DD Investor excused from quoting tax file number in certain circumstances\n\n202DDB Quotation of tax file number in connection with indirectly held investment\n\n202DE Securities dealer to inform the investment body of tax file number\n\n202DF Effect of incorrect quotation of tax file number\n\n202DG Investments held jointly\n\n202DH Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments\n\n202DHA Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes\n\n202DI Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits\n\n202DJ Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes\n\nDivision 4A—Quotation of tax file numbers in connection with farm management deposits\n\n202DL Quotation of tax file number\n\n202DM Effect of incorrect quotation of tax file number\n\nDivision 4B—Quotation of tax file numbers in connection with certain closely held trusts\n\n202DN Application of Division\n\n202DO Quotation of tax file numbers\n\n202DP Trustee must report quoted tax file numbers\n\n202DR Effect of incorrect quotation of tax file number\n\nDivision 5—Exemptions\n\n202EA Persons receiving certain pensions etc.—employment\n\n202EB Persons receiving certain pensions etc.—investments\n\n202EC Entities not required to lodge income tax returns\n\n202EE Non‑residents\n\n202EG Manner of completing declarations\n\n202EH Declarations under this Division to be retained in certain circumstances\n\nDivision 6—Review of decisions\n\n202F Review of decisions\n\n202FA Statements to accompany notification of decisions\n\nDivision 8—Tax file number sharing and verification\n\n203 Verification of tax file numbers\n\n204 Disclosure of tax file numbers to certain registrars\n\nPart III—Liability to taxation\n\nDivision 10E—PDFs (pooled development funds)\n\nSubdivision A—Shares in PDFs\n\n124ZM  Treatment distributions to shareholders in PDF\n\nUnfranked part of distribution exempt from income tax\n\n(1) If a company makes a distribution to a shareholder at a time when the company is a PDF, the unfranked part of the distribution is exempt from income tax.\n\nRest of section deals with franked part\n\n(2) The rest of this section applies to the franked part of the distribution.\n\nUsual case\n\n(3) Subsection (4) applies if the assessable income of a year of income of a taxpayer who or that is:\n\n(a) a company or a natural person (other than a company or natural person in the capacity of a trustee); or\n\n(c) a public trading trust in relation to that year of income; or\n\n(d) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to that year of income;\n\nwould (apart from subsection (4)) include:\n\n(e) the franked part of the distribution; or\n\n(f) any of the franked part of the distribution that flows indirectly to the taxpayer.\n\nThis subsection does not apply to cases dealt with in subsections (5) and (6).\n\n(4) Subject to subsection (7), the following is exempt income of the taxpayer:\n\n(a) if paragraph (3)(e) applies—the franked part;\n\n(b) if paragraph (3)(f) applies—so much of the franked part of the distribution as flows indirectly to the taxpayer.\n\nTaxpayers who qualify for venture capital franking tax offset\n\n(5) If a taxpayer (other than a life assurance company) is entitled to a tax offset in relation to the distribution under section 210‑170 of the Income Tax Assessment Act 1997, then:\n\n(a) so much of the franked part of the distribution as equals the part of the distribution that is franked with a venture capital credit is exempt income of the taxpayer; and\n\n(b) if the franked part exceeds the amount so exempt—the excess is, subject to subsection (7), exempt income of the taxpayer.\n\n(6) If a life assurance company is entitled to a tax offset in relation to the distribution under section 210‑170 of the Income Tax Assessment Act 1997, then:\n\n(a) so much of the franked part of the distribution as equals the amount worked out using the following formula is exempt income of the life assurance company:\n\n![Start formula Venture capital franked part times start fraction Complying superannuation class of taxable income over Total income end fraction end formula](image.002.png)\n\nwhere:\n\ncomplying superannuation class of taxable income is the life assurance company’s complying superannuation class of taxable income, within the meaning of the Income Tax Assessment Act 1997, for the year of income in which the distribution is made.\n\nventure capital franked part is the part of the distribution that is franked with a venture capital credit.\n\ntotal income is the life assurance company’s assessable income for the year of income in which the distribution is made; and\n\n(b) if the franked part exceeds the amount so exempt—the excess is, subject to subsection (7), exempt income of the life assurance company.\n\nNo exemption if return prepared on basis that amount assessable\n\n(7) Subsection (4) and paragraphs (5)(b) and (6)(b) do not exempt, and are taken never to have exempted, an amount if the taxpayer’s return of income of the year of income is prepared on the basis that the amount is included in the taxpayer’s assessable income of that year.\n\nWhere partner entitled to deduction for amount flowing indirectly\n\n(8) If:\n\n(a) any of the franked part of the distribution flows indirectly to a taxpayer who is a partner in a partnership; and\n\n(b) apart from this subsection, the amount that flows indirectly would be allowable as a deduction from the taxpayer’s assessable income of a year of income; and\n\n(c) the taxpayer is of a kind mentioned in any of paragraphs (3)(a) to (d);\n\nthe amount that flows indirectly is not allowable as a deduction from that assessable income.\n\n(9) Subsection (8) does not prevent, and is taken never to have prevented, an amount from being allowable as a deduction if the taxpayer’s return of income of the year of income is prepared on the basis that the amount is so allowable.\n\nWhere trustee assessed on amount flowing indirectly\n\n(10) If:\n\n(a) any of the franked part of the distribution flows indirectly to the trustee of a trust estate; and\n\n(b) apart from this subsection, the trustee would be liable under section 98, 99 or 99A to be assessed and pay tax on the amount that flows indirectly;\n\nthe trustee is not liable under that section to be assessed and to pay tax on the amount that flows indirectly.\n\n(11) Subsection (10) does not prevent, and is taken never to have prevented, the trustee from being liable under that section to be assessed and to pay tax on an amount if the trustee elects to be so liable.\n\n(12) An election must be made in the trustee’s return of income of the trust estate for the year of income concerned.\n\nInterpretation\n\n(13) In this section:\n\nflows indirectly has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.","sortOrder":1000063},{"sectionNumber":"full-source-retrieval-0065","sectionType":"document_chunk","heading":"Document excerpt 65","content":"part of a distribution that is franked with a venture capital credit has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n124ZN  Exemption of income from sale of shares in a PDF\n\nIncome derived by a taxpayer from selling shares in a company is exempt from income tax if the company is a PDF at the time of the sale.\n\nNote: Any capital gain or capital loss from a disposal of shares in a PDF is disregarded: see section 118‑13 of the Income Tax Assessment Act 1997.\n\n124ZO  Shares in a PDF are not trading stock\n\nShares in a PDF are not trading stock for the purposes of this Act.\n\n124ZQ  Effect of company becoming a PDF\n\n(1) This section applies to shares in a company that a taxpayer holds when the company becomes a PDF.\n\n(2) In determining for the purposes of this Act whether an amount is or was allowable as a deduction to the taxpayer in respect of acquiring the shares, the shares are taken to have been shares in a PDF throughout the period beginning immediately before the taxpayer acquired them and ending when the company became a PDF.\n\n(3) For the purposes of this Act, the shares are taken to have been trading stock of the taxpayer at no time during that period.\n\n(4) Section 170 does not prevent an assessment from being amended to give effect to this section.\n\n124ZR  Effect of company ceasing to be a PDF\n\n(1) This section applies to shares in a company that a taxpayer holds when the company ceases to be a PDF.\n\n(2) For the purposes of this Act (except Parts 3‑1 and 3‑3 (about CGT) of the Income Tax Assessment Act 1997), the taxpayer is taken:\n\n(a) to have sold the shares immediately before the company ceased to be a PDF; and\n\n(b) to have rebought the shares immediately after the company so ceased;\n\nfor a consideration equal to the market value of the shares immediately after the company so ceased.\n\n(3) Parts 3‑1 and 3‑3 (about CGT) of the Income Tax Assessment Act 1997 apply as if the taxpayer:\n\n(a) had disposed of the CGT assets constituted by the shares, and had done so immediately before the company ceased to be a PDF; and\n\n(b) had re‑acquired those assets immediately afterwards;\n\nfor an amount equal to the shares’ market value immediately after the company so ceased.\n\nSubdivision B—The taxable income of PDFs\n\n124ZS  Definitions\n\nIn this Subdivision:\n\nnon‑CGT assessable income means an amount included in assessable income otherwise than under Part 3‑1 or 3‑3 (about CGT) of the Income Tax Assessment Act 1997 or Subdivision C of this Division.\n\nSME investment means an investment other than an unregulated investment.\n\nNote: SME stands for small and medium enterprises.\n\nunregulated investment has the same meaning as in the Pooled Development Funds Act 1992.\n\n124ZTA  Taxable income in first year as PDF if PDF component is nil\n\n(1) This section applies if:\n\n(a) a company becomes a PDF during a year of income and is still a PDF at the end of the year of income; and\n\n(b) the PDF component for the year of income is a nil amount; and\n\n(c) the year of income is the 1997‑98 year of income or a later one.\n\n(2) The company’s taxable income of the year of income is the amount that, if the period (the notional year) beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company, would be the company’s taxable income of the notional year.\n\n124ZT  SME assessable income\n\nSME assessable income\n\n(1) A company’s SME assessable income of a year of income is the sum of:\n\n(a) so much of the company’s non‑CGT assessable income of the year of income as was derived:\n\n(i) from, or from the disposal of, an SME investment of the company; and\n\n(ii) at a time when the company was a PDF; and\n\n(b) any assessable income allocated to the company’s SME assessable income under section 124ZZB.\n\nNote: Section 124ZZB deals with capital gains etc.\n\nWhen assessable income derived\n\n(2) For the purposes of paragraph (1)(a), if an amount is derived by a company during, but not at a particular time during, a year of income, the amount is taken to have been derived by the company on the last day of the year of income.\n\n124ZU  SME income component\n\nFull‑year PDFs\n\n(1) The SME income component of a year of income of a company that is a PDF throughout the year of income is so much of the company’s taxable income of the year of income as does not exceed the amount (if any) remaining after deducting from the company’s SME assessable income of the year of income any deductions allowable to the company in relation to the year of income.\n\nPart‑year PDFs\n\n(2) The SME income component of a year of income of a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income is so much of the company’s adjusted taxable income of the year of income as does not exceed the amount (if any) remaining after deducting from the company’s SME assessable income of the year of income any deductions where both of the following conditions are satisfied:\n\n(a) the deductions were allowable to the company in relation to the year of income;\n\n(b) the deductions were taken into account in working out the company’s PDF component of the year of income.\n\nFor this purpose, adjusted taxable income means so much of the company’s taxable income of the year of income as does not exceed its PDF component of the year of income.\n\n124ZV  Unregulated investment component\n\nFull‑year PDFs\n\n(1) The unregulated investment component of a year of income of a company that is a PDF throughout the year of income is the amount (if any) remaining after deducting from the company’s taxable income of the year of income the company’s SME income component of the year of income.\n\nPart‑year PDFs\n\n(2) The unregulated investment component of a year of income of a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income is the amount (if any) remaining after deducting from the company’s adjusted taxable income of the year of income the company’s SME income component of the year of income. For this purpose, adjusted taxable income means so much of the company’s taxable income of the year of income as does not exceed its PDF component of the year of income.\n\nSubdivision C—Adjustments of the tax treatment of capital gains and capital losses of PDFs\n\n124ZW  Definitions\n\nIn this Subdivision:\n\naccumulated net capital loss for a year of income (the loss year) means the amount (if any) by which the total of:\n\n(a) the total of the overall capital losses for all classes of assessable income for the loss year; and\n\n(b) any accumulated net capital loss for the last year of income before the loss year;\n\nexceeds:\n\n(c) the total of the overall capital gains for all classes of assessable income for the loss year (before section 116GB is applied).\n\nclass, in relation to assessable income, means a class specified in section 124ZY.\n\ncompany does not include a company in a capacity of trustee.\n\nnon‑CGT assessable income means an amount included in assessable income otherwise than under Part 3‑1 or 3‑3 (about CGT) of the Income Tax Assessment Act 1997 or this Subdivision.\n\nordinary capital gain for a CGT event means any capital gain that would (apart from this Subdivision) arise from the event.\n\nordinary capital loss for a CGT event means any capital loss that would (apart from this Subdivision) arise from the event.\n\noverall capital gain for a class of assessable income means:\n\n(a) the amount by which the total ordinary capital gain for that class exceeds the total ordinary capital loss for that class; or\n\n(b) if an amount has been applied under subsection 124ZZB(2) to reduce an overall capital gain previously worked out under this definition—that gain as so reduced.\n\noverall capital loss for a class of assessable income means the amount by which the total ordinary capital gain for that class is less than the total ordinary capital loss for that class.\n\nresidual overall capital gain means so much of an overall capital gain as remains after applying subsection 124ZZB(2).\n\nSME assessable income has the meaning given by Subdivision B.\n\nSME investment means an investment other than an unregulated investment.\n\ntotal ordinary capital gain for a class means the total of so much of any ordinary capital gains as has been allocated to that class under section 124ZZA.\n\ntotal ordinary capital loss for a class means the total of so much of any ordinary capital losses as has been allocated to that class under section 124ZZA.\n\nunregulated investment has the same meaning as in the Pooled Development Funds Act 1992.\n\n124ZX  Companies to which this Subdivision applies\n\nThis Subdivision applies to a company in relation to a year of income if:\n\n(a) the company is a PDF throughout the year of income; or\n\n(b) the company becomes a PDF during the year of income and is still a PDF at the end of the year of income.\n\n124ZY  Classes of assessable income\n\nClasses\n\n(1) The classes of assessable income of the company are as follows:\n\n(a) SME assessable income (see section 124ZT);\n\n(b) other assessable income (see subsection(2)).\n\nOther assessable income\n\n(2) The company’s other assessable income of the year of income is the sum of:\n\n(a) so much of the company’s non‑CGT assessable income of the year of income as is not included in the company’s SME assessable income of the year of income; and\n\n(b) any assessable income allocated to the company’s other assessable income under section 124ZZB.\n\n124ZZ  Treatment of capital gains\n\nNothing is to be included in the company’s assessable income of the year of income under section 102‑5 of the Income Tax Assessment Act 1997 (about net capital gains).\n\n124ZZA  Allocation of gain amounts and loss amounts to classes of assessable income\n\nDisposals of SME investments\n\n(1) If:\n\n(a) there is an ordinary capital gain amount, or an ordinary capital loss amount, in respect of a disposal of an SME investment of the company; and\n\n(b) the company was a PDF at the time of the disposal;\n\nthe ordinary capital gain amount or ordinary capital loss amount, as the case may be, is taken into account in determining the overall capital gain or overall capital loss for the class known as SME assessable income.\n\nDisposals of assets other than SME investments\n\n(2) If:\n\n(a) there is an ordinary capital gain amount, or an ordinary capital loss amount, in respect of a disposal of an asset of the company; and\n\n(b) subsection (1) does not apply to the disposal;\n\nthe ordinary capital gain amount or the ordinary capital loss amount, as the case may be, is taken into account in determining the overall capital gain or overall capital loss for the class known as other assessable income.\n\n124ZZB  Assessable income etc. in relation to capital gains\n\n(1) The assessable income of each class includes the amount (if any) that is left over after the overall capital gain for that class has been reduced in accordance with this section.\n\n(2) If there is an overall capital loss for a particular class of assessable income, the loss is to be applied in reduction of overall capital gains for the remaining class.\n\n(3) Any accumulated net capital loss for the immediately preceding year of income is to be applied in reduction of residual overall capital gains for the classes of assessable income in the following order:\n\n(a) SME assessable income;\n\n(b) other assessable income.\n\n124ZZD  No net capital loss\n\nThe company does not make a net capital loss for the year of income, despite section 102‑10 of the Income Tax Assessment Act 1997.\n\nDivision 11—Interest paid by companies on bearer debentures\n\n126  Interest paid by a company on bearer debentures\n\n(1) If:\n\n(a) a company pays or credits an amount of interest in respect of a debenture payable to bearer; and\n\n(b) the interest is not, to any extent, subject to withholding tax under Division 11A; and\n\n(c) neither of sections 128F (to the extent it applies to non‑residents who are not engaged in carrying on a business in Australia at or through a permanent establishment in Australia) and 128GB applies to the interest; and\n\n(e) the company does not give the Commissioner the name and address of the holder of the debenture;\n\nthe company is liable to pay income tax, as imposed by the Income Tax (Bearer Debentures) Act 1971, on the amount paid or credited, or, if the company makes a deduction under subsection (2), the amount that otherwise would have been paid or credited.\n\n(1A) Subsection (1) does not affect any other liability of the company to pay income tax.\n\n(2) The company may deduct and retain for its own use from an amount payable to a person in respect of which the company is liable to pay tax in accordance with subsection (1) an amount equal to that tax.\n\n(3) Where the Commissioner is satisfied that that person is not liable to furnish a return, the Commissioner must refund to that person the amount of tax paid by the company in respect of his or her debentures.\n\n127  Credit for tax paid by company\n\n(1) Where the company pays tax under this Division on any interest, and that interest is included in the assessment of the person to whom it was paid or credited, the proportionate amount of tax paid by the company in respect of the interest shall be deducted from the total tax payable by that person.\n\n128  Assessments of tax\n\nAn assessment of tax payable in accordance with this Division by a company may be an assessment of the amount of tax so payable upon interest in respect of a number of debentures, whether held by the one holder or not.\n\nDivision 11A—Dividends, interest and royalties paid to non‑residents and to certain other persons\n\nSubdivision A—General\n\n128AAA  Application of Division to non‑share dividends\n\n(1) This Division:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(2) Subsection (1) does not apply to:\n\n(a) section 128AE; and\n\n(b) section 128F; and\n\n(ba) section 128FA.\n\n128A  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\nADI means a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.\n\ndividend:\n\n(a) includes part of a dividend; and\n\n(b) (except when used in paragraph (d) of the definition of interest in subsection (1AB)) does not include a dividend paid in respect of a non‑equity share.\n\nenterprise means a business or other industrial or commercial undertaking.\n\nentity means:\n\n(a) the Commonwealth, a State or an authority of the Commonwealth or of a State;\n\n(b) a natural person;\n\n(c) a company;\n\n(d) the partners in a partnership, in their capacity as partners;\n\n(e) the persons carrying on a joint venture, in their capacity as such persons; or\n\n(f) the trustees of a trust, in their capacity as such trustees.\n\nforeign bank means a non‑resident company that carries on a banking business.\n\njoint venture means an enterprise carried on by 2 or more persons in common otherwise than as partners.\n\nnon‑ADI financial institution means a corporation that:\n\n(a) is a registered entity within the meaning of the Financial Sector (Collection of Data) Act 2001; and\n\n(b) is included in Category D (Money Market Corporation) in a list kept under section 11 of that Act; and\n\n(c) carries on a general business of providing finance (within the meaning of that Act) on a commercial basis.\n\nnostro account means an account that:\n\n(a) an ADI or non‑ADI financial institution holds with a foreign bank and maintains for the sole purpose of settling international transactions; and\n\n(b) operates on the basis that:\n\n(i) amounts deposited in the account are held in the account for no more than 10 days; and\n\n(ii) amounts advanced by way of an overdraft on the account are repaid within 10 days.\n\n(1AA) In this Division and in an Act imposing withholding tax:\n\nincome includes a royalty and a dividend.\n\n(1AB) For the purposes of this Division:\n\ninterest includes an amount:\n\n(a) that is in the nature of interest; or\n\n(b) to the extent that it could reasonably be regarded as having been converted into a form that is in substitution for interest; or\n\n(c) to the extent that it could reasonably be regarded as having been received in exchange for interest in connection with a washing arrangement; or\n\n(d) that is a dividend paid in respect of a non‑equity share; or\n\n(e) if regulations under the Income Tax Assessment Act 1997 are made having the effect that instruments known as upper tier 2 capital instruments, or a class of instruments of that kind, are debt interests—that is paid on such a debt interest and is not a return of an investment;\n\nbut does not include an amount to the extent to which it is a return on an equity interest in a company.\n\nwashing arrangement means an arrangement under which the title to a security is transferred to a resident shortly before an interest payment is made where the sole or dominant purpose of the arrangement is to reduce the amount of withholding tax payable by a person.\n\n(1AC) An example of an amount in the nature of interest is an amount representing a discount on a security.\n\n(1AD) An example of an amount in substitution for interest is a lump sum payment made instead of payments of interest.\n\n(1AE) For the purposes of this Division, if a lender assigns a loan, or the right to interest under a loan, any payment from the borrower to the assignee that represents an amount that would have been interest if the assignment had not taken place is taken to be a payment of interest.\n\n(1AF) For the purposes of this Division, if a person acquires a security, or the right to interest under a security, any payment from the issuer of the security to that person that represents an amount that would have been interest if the acquisition had not taken place is taken to be a payment of interest.","sortOrder":1000064},{"sectionNumber":"full-source-retrieval-0066","sectionType":"document_chunk","heading":"Document excerpt 66","content":"(1A) Subject to subsection (1B), for the purposes of this subsection and sections 128AA, 128AB, 128AD, 128C, 128NA and 128NBA:\n\n(a) a reference to the reduced issue price of a security that has been partially redeemed on one or more occasions is a reference to the issue price of the security reduced by the amount of the partial redemption or the sum of the amounts of the partial redemptions, as the case may be;\n\n(b) expressions used in this subsection or those sections that are also used in Division 16E have the same respective meanings as in that Division; and\n\n(c) sections 159GV (other than subsection 159GV(2)) and 159GZ apply as if references in those sections to “this Division” were references to “subsection 128A(1A) and sections 128AA, 128AB, 128AD, 128C, 128NA and 128NBA”.\n\n(1B) Subsection (1A) applies as if:\n\n(a) paragraph (c) of the definition of qualifying security in subsection 159GP(1) were omitted; and\n\n(b) paragraph (a) of the definition of security in that subsection included a reference to debt interests.\n\n(2) For the purposes of this Division, interest or a royalty shall be deemed to have been paid by a person to another person although it is not actually paid over to the other person but is reinvested, accumulated, capitalized, carried to any reserve, sinking fund or insurance fund however designated, or otherwise dealt with on behalf of the other person or as the other person directs.\n\n(3) For the purposes of this Division, a beneficiary who is presently entitled to a dividend, to interest or to a royalty included in the income of a trust estate shall be deemed to have derived income consisting of that dividend, interest or royalty at the time when he or she became so entitled.\n\n(4) In section 260, income tax or tax includes withholding tax.\n\n(5) For the purposes of this Division:\n\n(a) the borrowing of moneys by a company by means of the issue of a number of debentures or debt interests in one borrowing operation shall be deemed to be the raising of a loan;\n\n(b) subject to paragraph (a), each receipt of moneys by a borrower under a contract under which moneys are to be, or may be, advanced by way of loan shall be deemed to be the raising of a loan; and\n\n(c) the moneys received by the raising of a loan, less the expenses of borrowing, shall be deemed to be the loan moneys in respect of the loan.\n\n(6) A reference in this Division to beneficial interests in relation to an entity shall be read:\n\n(a) in the case of an entity being a company or the partners in a partnership—as a reference to beneficial interests in respect of the capital of, and in respect of any profits or income of, the company or partnership;\n\n(b) in the case of an entity being persons carrying on a joint venture—as a reference to beneficial interests in respect of the enterprise; and\n\n(c) in the case of an entity being the trustees of a trust—as a reference to beneficial interests under the trust.\n\n(7) A reference in this Division to the use of moneys for the purposes of an enterprise shall be read as not including use of those moneys in the course of carrying on an enterprise:\n\n(a) by way of providing capital for another enterprise; or\n\n(b) by way of the making of loans.\n\n(9) For the purposes of this Division:\n\n(a) a reference to particular loan moneys (including the reference in paragraph (b)) includes a reference to moneys that, in the opinion of the Commissioner, represent those loan moneys; and\n\n(b) without limiting the generality of paragraph (a):\n\n(i) moneys received by way of repayment of a loan made out of particular loan moneys; and\n\n(ii) moneys received in respect of shares in the capital of a company, being shares purchased or subscribed for by the expenditure of particular loan moneys, upon a sale of the shares, a return of capital by the company or liquidation of the company;\n\nshall be deemed to represent those loan moneys.\n\n(10) For the purposes of this Division, the trustee of a provident, benefit, superannuation or retirement fund is a non‑resident at a particular time if, and only if, the fund is a foreign superannuation fund at that time.\n\n(11) If, apart from this subsection, there is, in relation to a fund, no person who is a trustee of the fund for the purposes of this Division, the person, or each of the persons, who manages the fund is taken, for the purposes of this Division, to be the trustee, or a trustee, as the case requires, of the fund.\n\n128AA  Deemed interest in respect of transfers of certain securities\n\n(1) Where:\n\n(a) a person transfers a qualifying security; and\n\n(b) the transfer price of the security exceeds the issue price or, where the security has been partially redeemed, the reduced issue price of the security;\n\nso much of the transfer price as equals the excess referred to in paragraph (b) shall, for the purposes of this Division, be deemed to be income that consists of interest.\n\n(2) For the purposes of references to the transfer price, issue price or reduced issue price of a qualifying security in subsection (1), any application of subsection 159GP(2) shall be disregarded.\n\n128AB  Certificates relating to issue price of certain securities\n\n(1) Where:\n\n(a) a qualifying security is or was transferred either before or after the commencement of this section; and\n\n(b) at the time of transfer either:\n\n(i) the transferor is or was a resident; or\n\n(ii) the transferor is or was a non‑resident and the transfer price is or was derived from a source in Australia;\n\nthe transferee may at any time after the transfer (including a time after the transferee ceases to be the holder of the security) apply, in the approved form, to the Commissioner for the issue of a certificate under this section.\n\n(3) Where the Commissioner is satisfied that the requirements of paragraph (1)(b) are satisfied in relation to the transfer of the qualifying security to which an application under subsection (1) relates and that the security was transferred on a particular date and for a particular consideration to the applicant, the Commissioner shall issue to the applicant a certificate that:\n\n(a) is expressed to be issued under this section;\n\n(b) identifies the security to which it relates;\n\n(c) specifies that date as the date of transfer;\n\n(d) specifies that consideration, or, where subsection 159GP(2) applies, the amount that is taken under that subsection to be the consideration for the transfer, as the transfer price; and\n\n(e) specifies the name of the applicant as the transferee.\n\n(4) Where the Commissioner issues a certificate under this section in relation to a qualifying security that has been transferred to a person, the following provisions have effect:\n\n(a) for the purposes of the application of this Division in relation to the first subsequent transfer (if any) of the qualifying security by the person:\n\n(i) the amount specified in the certificate shall be taken to be the issue price of the security; and\n\n(ii) where the security was partially redeemed before the transfer to the person—any such partial redemption shall be taken not to have occurred;\n\n(b) if the security is redeemed or partially redeemed without having been subsequently transferred by the person—in determining for the purposes of the application of this Division the extent (if any) to which the redemption payment comprises an amount that is interest by reason only of the definition of interest in subsection 128A(1AB):\n\n(i) the amount specified in the certificate as the transfer price shall be taken to be the issue price of the security; and\n\n(ii) where the security was partially redeemed before the transfer to the person—any such partial redemption shall be taken not to have occurred.\n\n(5) If the Commissioner refuses an application under subsection (1), the Commissioner shall serve on the applicant, by post or otherwise, notice in writing that the application has been refused.\n\n128AC  Deemed interest in respect of hire‑purchase and certain other agreements\n\n(1) In this section:\n\nagreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.\n\nattributable agreement payment, in relation to a relevant agreement, means so much of any payment made or liable to be made under the agreement as represents consideration for the use, sale or disposal of the relevant agreement property.\n\ncarry forward interest, in relation to an attributable agreement payment in relation to a relevant agreement, means so much (if any) of the notional interest in relation to the payment as exceeds the amount of the payment.\n\neligible value, in relation to the relevant agreement property in relation to a relevant agreement, means the market value of the property at the time at which the agreement commences or commenced to apply in relation to the property.\n\nformula interest, in relation to an attributable agreement payment in relation to a relevant agreement, means the amount ascertained in accordance with the formula ![Start formula start fraction 2 times A times C over B open bracket B plus 1 close bracket end fraction end formula](image.003.png), where:\n\nA is the total interest in relation to the relevant agreements.\n\nB is the total number of attributable agreement payments liable to be made under the relevant agreements; and\n\nC is the number that is B, reduced by the number of attributable agreement payments made under the relevant agreement before the attributable agreement payment concerned.\n\nnotional interest, in relation to an attributable agreement payment in relation to a relevant agreement, means the sum of the formula interest (if any) in relation to the payment and the carry forward interest (if any) in relation to the immediately preceding attributable agreement payment in relation to the relevant agreement.\n\nrelevant agreement means an agreement entered into after 16 December 1984, being:\n\n(a) a hire‑purchase agreement; or\n\n(b) a lease or any other agreement relating to the use by a person of property owned by another person, being a lease or agreement under which:\n\n(i) the lessee or person using the property is entitled to purchase or require the transfer of the lease property or property subject to the agreement on the termination or expiration of the lease or agreement; or\n\n(ii) the lease term or term of the agreement is for all, or substantially all, of the effective life of the lease property or property subject to the agreement.\n\nrelevant agreement property, in relation to a relevant agreement, means:\n\n(a) in the case of a hire‑purchase agreement—the property that is the subject of the agreement; and\n\n(b) in any other case—the property in relation to which subparagraph (b)(i) or (ii) of the definition of relevant agreement applies.\n\ntotal interest, in relation to a relevant agreement, means the sum of all of the attributable agreement payments liable to be made under the relevant agreement, reduced by the eligible value of the relevant agreement property.\n\n(2) Where an agreement (including a hire‑purchase agreement and a lease) relates to the use by a person of 2 or more items of property owned by another person, this section applies as if, instead of the single agreement, there were separate agreements relating to the use of each of the items of property having such of the terms of the first‑mentioned agreement as are relevant.\n\n(3) Where a variation is or was made in the terms of, or liability to make payments under, a relevant agreement, then, for the purposes of the application of this section:\n\n(a) the relevant agreement shall be taken to be, or to have been, terminated at the time at which the variation has effect; and\n\n(b) a new relevant agreement shall be taken to be, or to have been, entered into at the time at which the variation has effect and on the terms of the first‑mentioned relevant agreement as so varied.\n\n(4) Where any right or option under an agreement to extend the term of, or otherwise vary the effect of, the agreement is or was exercised, then, for the purposes of this section, the exercise of that right or option shall be taken to be a variation of the terms of the agreement to provide for the extension or other effect.\n\n(5) Where an attributable agreement payment in relation to a relevant agreement is made, so much of the attributable agreement payment as does not exceed the notional interest in relation to the payment shall, for the purposes of this Division, be deemed to be income that consists of interest.\n\n(6) Where:\n\n(a) a relevant agreement is entered into after the commencement of this section; and\n\n(b) at the time at which the relevant agreement is entered into, the total interest in relation to the relevant agreement exceeds the sum of all amounts that, if all of the attributable agreement payments liable to be made under the relevant agreement were made, would, disregarding this subsection, be deemed to be income that consists of interest under subsection (5) in relation to the relevant agreement;\n\nthe amount of the notional interest in relation to the first attributable agreement payment in relation to the relevant agreement shall, for the purposes of this section, be increased by an amount equal to the excess referred to in paragraph (b).\n\n(7) For the purposes of section 128D, where withholding tax is payable on a part of an attributable agreement payment that is taken under subsection (5) of this section to be an amount of interest, the withholding tax shall be taken to be payable on the whole of the attributable agreement payment.\n\n128AD  Indemnification etc. agreements in relation to bills of exchange and promissory notes\n\n(1) Where:\n\n(a) the drawer of a bill of exchange issued after the day on which this section comes into operation pays an amount (in this subsection referred to as the indemnification amount) to the acceptor of the bill to indemnify, reimburse or otherwise compensate the acceptor in respect of the whole or a part of an amount (which whole or part is in this subsection referred to as the eligible presentment amount) that the acceptor has, or will, become liable to pay to the payee under the bill on presentment of the bill;\n\n(b) no part of the indemnification amount is, or will be, included in the assessable income of the acceptor of any year of income; and\n\n(c) the whole or a part (in this subsection referred to as the eligible presentment interest) of the eligible presentment amount consists or will consist of interest;\n\nso much of the indemnification amount as indemnifies, reimburses or otherwise compensates the acceptor in respect of the eligible presentment interest shall, for the purposes of this Division, be deemed to be income that consists of interest.\n\n(2) Where:\n\n(a) a person (in this subsection referred to as the indemnifier) pays an amount (in this subsection referred to as the indemnification amount) to the issuer of a promissory note issued after the day on which this section comes into operation to indemnify, reimburse or otherwise compensate the issuer in respect of the whole or a part of an amount (which whole or part is in this subsection referred to as the eligible presentment amount) that the issuer has, or will, become liable to pay to the payee under the note on presentment of the note;\n\n(b) no part of the indemnification amount is, or will be, included in the assessable income of the issuer of any year of income; and\n\n(c) the whole or a part (in this subsection referred to as the eligible presentment interest) of the eligible presentment amount consists or will consist of interest;\n\nso much of the indemnification amount as indemnifies, reimburses or otherwise compensates the issuer in respect of the eligible presentment interest shall, for the purposes of this Division, be deemed to be income that consists of interest.\n\n128AE  Interpretation provisions relating to offshore banking units\n\n(1) In this Division, unless the contrary intention appears:\n\nborrow includes raise finance by the issue of a security.\n\nlend includes provide finance by the purchase of a security.\n\nOB activity has the same meaning as in section 121D.\n\noffshore banking unit has the meaning given by this section.\n\noffshore borrowing means:\n\n(a) a borrowing in any currency, by a person who is or has been an offshore banking unit, from a non‑resident who is not a related person (within the meaning of Division 9A); or\n\n(b) a borrowing in a currency other than Australian currency, by a person who is or has been an offshore banking unit, from a resident or a related person (within the meaning of Division 9A).\n\noffshore gold borrowing means borrowing gold from an offshore person within the meaning of section 121E.\n\nprevailing borrowing rate, in relation to a person who is or has been an offshore banking unit, in relation to a particular time, means the effective annual interest rate that the Commissioner considers was payable by the person on borrowings at or about that time or, where there were none, by offshore banking units generally at or about that time.\n\nprevailing borrowing term, in relation to a person who is or has been an offshore banking unit, in relation to a particular time, means the period that the Commissioner considers was the usual term of borrowings by the person at or about that time or, where there were none, by offshore banking units generally at or about that time.\n\nsecurity means a bond, debenture, debt interest, bill of exchange, promissory note or other security or similar instrument.\n\ntax exempt gold means gold that is tax exempt gold under this section.\n\ntax exempt loan money means an amount that is tax exempt loan money under this section.\n\ntransfer to a person includes apply an amount for the benefit of a person.","sortOrder":1000065},{"sectionNumber":"full-source-retrieval-0067","sectionType":"document_chunk","heading":"Document excerpt 67","content":"(1A) The Minister must not make a declaration under subsection (2), or a determination under subsection (2AA), after the day on which the Treasury Laws Amendment (2021 Measures No. 2) Act 2021 received the Royal Assent.\n\n(2) The Minister may, by notifiable instrument, declare a person being:\n\n(a) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959; or\n\n(b) a public authority constituted by a law of a State, being a public authority that carries on the business of State banking; or\n\n(ba) a company in which all of the equity interests are beneficially owned by an offshore banking unit (other than one to which paragraph (c) applies); or\n\n(c) a person whom the Minister is satisfied is appropriately authorised to carry on business as a dealer in foreign exchange; or\n\n(d) a life insurance company registered under section 21 of the Life Insurance Act 1995; or\n\n(e) a company incorporated under the Corporations Act 2001 that provides funds management services on a commercial basis (other than solely to related persons):\n\n(i) that is, under the Financial Sector (Collection of Data) Act 2001, a registered entity included in the category for money market corporations; or\n\n(ii) all of the shares which are beneficially owned by a company covered by subparagraph (i); or\n\n(iii) a financial services licensee (within the meaning of the Corporations Act 2001) whose licence covers dealing in securities (within the meaning of subsection 92(3) of that Act), providing financial advice in relation to such securities or operating a managed investment scheme (within the meaning of that Act); or\n\n(f) a company that the Minister determines, in writing, to be an OBU under subsection (2AA);\n\nto be an offshore banking unit for the purposes of this Division.\n\n(2AA) The Minister may, on written application by a company, determine, by notifiable instrument, that the company is an OBU.\n\n(2AB) The determination must:\n\n(a) specify the day when the company commences to be an OBU; and\n\n(b) contain any other information the Minister considers appropriate.\n\n(2AC) A determination of the Minister under subsection (2AA) must be made in accordance with guidelines determined by the Minister under subsection (2AD).\n\n(2ACA) A determination under subsection (2AA) that a company is an OBU and a declaration under subsection (2), for the purposes of paragraph (2)(f), that the company is an offshore banking unit for the purposes of this Division may be included in the same instrument.\n\n(2AD) The Minister must, by legislative instrument, determine guidelines for the making of determinations under subsection (2AA). The guidelines may require the Minister to take into account:\n\n(a) specified criteria; or\n\n(b) recommendations of particular bodies; or\n\n(c) any other factors.\n\n(2A) If a person who is an offshore banking unit for the purposes of this Division:\n\n(a) is convicted of an offence against section 8L, 8N, 8Q, 8T or 8U of the Taxation Administration Act 1953, or against Division 136 or 137 of the Criminal Code in relation to a taxation law (within the meaning of the Taxation Administration Act 1953); or\n\n(b) incurs a tax liability, within the meaning of that Act, by way of a penalty equal to 90% of an amount;\n\nthe Minister may, by notifiable instrument, declare that the person is no longer an offshore banking unit for the purposes of this Division.\n\n(2B) If the Minister makes such a declaration in respect of a company that is an offshore banking unit only because of paragraph (2)(ba), the offshore banking unit mentioned in that paragraph, and in any previous application of that paragraph that was necessary for it to apply to the company, is no longer an offshore banking unit from the time when the declaration comes into force.\n\n(2C) If a person who is an offshore banking unit ceases to be a person of a kind mentioned in any of paragraphs (2)(a), (b), (ba) and (c), the Minister must, by notifiable instrument, declare that the person is no longer an offshore banking unit for the purposes of this Division.\n\n(2D) Except as mentioned in subsection (2A), (2B) or (2C), a person does not cease to be an offshore banking unit for the purposes of this Division.\n\n(3) A declaration under subsection (2), (2A) or (2C) shall not come into force before the day on which the declaration is registered on the Federal Register of Legislation under the Legislation Act 2003.\n\n(4) Where:\n\n(a) a person who is an offshore banking unit makes an offshore borrowing or offshore gold borrowing; and\n\n(b) the lender would, but for section 128GB, be liable to pay withholding tax on income consisting of interest on the offshore borrowing or offshore gold borrowing;\n\nthen, for the purposes of this Division, the amount borrowed is tax exempt loan money or tax exempt gold of the person.\n\n(5) Where:\n\n(a) a person who is or has been an offshore banking unit makes a loan of tax exempt loan money or tax exempt gold where the loan is an OB activity or would be if the person were an OBU; and\n\n(b) the loan is repaid;\n\nthe amount repaid is, for the purposes of this Division, deemed to be tax exempt loan money or tax exempt gold of the person.\n\n(7) Where a person who is or has been an offshore banking unit transfers an amount of tax exempt loan money or tax exempt gold to another person, the following provisions have effect for the purposes of this Division:\n\n(a) subject to subsections (10) and (11), the amount transferred ceases to be tax exempt loan money or tax exempt gold of the person; and\n\n(b) the amount transferred does not become tax exempt loan money or tax exempt gold of the other person.\n\n(8) Where a person who is or has been an offshore banking unit transfers to another person an amount of money or gold that, in the opinion of the Commissioner, includes tax exempt loan money or tax exempt gold, so much of the amount transferred as the Commissioner considers was tax exempt loan money or tax exempt gold is deemed, for the purposes of this Division, to have been tax exempt loan money or tax exempt gold of the person.\n\n(9) Where a person who is or has been an offshore banking unit deals with an amount of tax exempt loan money or tax exempt gold of the person under the person’s internal accounting arrangements in such a way that the amount becomes available for possible transfer to other persons (other than by way of payment in carrying on an OB activity, or what would be an OB activity if the person were an OBU, or repayment of an offshore borrowing or an offshore gold borrowing), the following provisions have effect for the purposes of this Division:\n\n(a) the person is, when the amount so becomes available, deemed to make a transfer of the amount to another person, other than by way of payment in carrying on an OB activity (or what would be an OB activity if the person were an OBU) or repayment of an offshore borrowing or an offshore gold borrowing;\n\n(b) any actual transfer of the amount by the person to another person shall be disregarded.\n\n(10) For the purposes of this Division, where a person who is or has been an offshore banking unit transfers tax exempt loan money to another person in exchange for an equivalent amount in a different currency:\n\n(a) the amount received in exchange shall be taken to be the same money as was transferred; and\n\n(b) the transfer shall be taken not to have occurred.\n\n(11) For the purposes of this Division, where a person who is or has been an offshore banking unit transfers tax exempt loan money or tax exempt gold to another person by way of a deposit for the purposes of temporary safe‑keeping pending the making of an offshore loan or repayment of an offshore borrowing or an offshore gold borrowing:\n\n(a) the amount held on deposit and upon being repaid shall be taken to be the same money as was transferred; and\n\n(b) the transfer shall be taken not to have occurred.\n\n(12) For the purposes of this section, an amount:\n\n(a) deposited in an account with a bank or other financial institution; or\n\n(b) paid by way of consideration for the issue of a security;\n\nshall be taken to have been lent to, and borrowed by, the bank, financial institution or issuer of the security.\n\n(13) If an offshore banking unit consists of:\n\n(a) one or more permanent establishments in Australia at or through which the offshore banking unit carries on what are OB activities within the meaning of Division 9A; and\n\n(b) one or more other permanent establishments either in Australia or outside Australia;\n\nthen this section and section 128NB apply as if:\n\n(c) the offshore banking unit consisted only of the permanent establishments referred to in paragraph (a); and\n\n(d) the permanent establishments referred to in paragraph (b) were separate persons.\n\n128AF  Payments through interposed entities\n\n(1) This section applies if:\n\n(a) a payment received by a non‑resident through one or more interposed companies, partnerships, trusts or other persons is attributable to an amount of dividends, interest or royalties paid by a resident; and\n\n(b) one or more of the interposed companies, partnerships, trusts or other persons is exempt from tax.\n\n(1A) However, this section does not apply if one or more of the interposed entities is an AMIT for the year of income in which the payment is received.\n\nNote: See Division 12A in Schedule 1 to the Taxation Administration Act 1953 for provisions about withholding tax that apply specifically to AMITs.\n\n(2) If this section applies, the amount of dividends, interest or royalties paid by a resident is taken, for the purposes of this Division, to have been paid by the resident directly to the non‑resident.\n\n(3) For the purposes of this section, a person is exempt from tax if, at the time at which the payment was received by the non‑resident, all income of the person was exempt from tax.\n\n128B  Liability to withholding tax\n\n(1A) In this section, a reference to a person to whom this section applies is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.\n\nNote: References in this section to amounts paid to a person may include amounts from an AMIT that, under section 12A‑205 in Schedule 1 to the Taxation Administration Act 1953, are treated as payments to the person (from the trustee of the AMIT or a custodian).\n\n(1) Subject to subsections (3), (3A), (3D) and (3E), this section applies to income that:\n\n(a) is derived, on or after 1 January 1968, by a non‑resident; and\n\n(b) consists of a dividend paid by a company that is a resident.\n\nNote: An amount declared to be conduit foreign income is an amount to which this section does not apply: see sections 802‑15 and 802‑17 of the Income Tax Assessment Act 1997.\n\n(2) Subject to subsection (3), this section also applies to income that:\n\n(a) is derived, on or after 1 January 1968, by a non‑resident; and\n\n(b) consists of interest that:\n\n(i) is paid to the non‑resident by a person to whom this section applies and is not an outgoing wholly incurred by that person in carrying on business in a country outside Australia at or through a permanent establishment of that person in that country; or\n\n(ii) is paid to the non‑resident by a person who, or by persons each of whom, is not a resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.\n\nNote: An amount of interest paid to a person by a temporary resident is an amount to which this section does not apply: see section 768‑980 of the Income Tax Assessment Act 1997.\n\n(2A) Subject to subsection (3), where income:\n\n(a) is, or has, after 2 July 1973, been, derived, or derived in part, by a person to whom this section applies in carrying on business in a country outside Australia at or through a permanent establishment of the person in that country; and\n\n(b) consists of interest that:\n\n(i) is or has been paid to the person by another person to whom this section applies and is not an outgoing wholly incurred by that other person in carrying on business in a country outside Australia at or through a permanent establishment of that other person in that country; or\n\n(ii) is or has been paid to the first‑mentioned person by a person who is, or by persons each of whom is, not a resident and is, or is in part, an outgoing incurred by that last‑mentioned person or those last‑mentioned persons in carrying on business in Australia at or through a permanent establishment of that last‑mentioned person or those last‑mentioned persons in Australia;\n\nthis section also applies to that income or to the part of that income so derived, as the case may be.\n\nNote: An amount of interest paid to a person by a temporary resident is an amount to which this section does not apply: see section 768‑980 of the Income Tax Assessment Act 1997.\n\n(2B) Subject to subsection (3), this section also applies to income that:\n\n(a) is derived by a non‑resident:\n\n(i) during the 1993‑94 year of income of the non‑resident; or\n\n(ii) during a later year of income of the non‑resident; and\n\n(b) consists of a royalty that:\n\n(i) is paid to the non‑resident by a person to whom this section applies and is not an outgoing wholly incurred by that person in carrying on business in a foreign country at or through a permanent establishment of that person in that country; or\n\n(ii) is paid to the non‑resident by a person who, or by persons each of whom, is not a resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.\n\n(2C) Subject to subsection (3), where income:\n\n(a) is derived, or derived in part, by a person (the recipient) to whom this section applies in carrying on business in a country outside Australia at or through a permanent establishment of the person in that country; and\n\n(b) consists of a royalty that:\n\n(i) is paid to the recipient by another person (the payer) to whom this section applies and is not an outgoing wholly incurred by the payer in carrying on business in a country outside Australia at or through a permanent establishment of the payer in that country; or\n\n(ii) is paid to the recipient by one or more persons (the non‑resident payers), each of whom is not a resident, and is, or is in part, an outgoing incurred by the non‑resident payers in carrying on business in Australia at or through a permanent establishment of the non‑resident payers in Australia;\n\nthis section also applies to that income or to the part of that income mentioned in paragraph (a).\n\n(2D) Subsections (2B) and (2C) do not apply to income to the extent to which it is a return on an equity interest in a company.\n\n(3) This section does not apply to:\n\n(aaa) income that consists of a non‑share dividend that is unfrankable under section 215‑10 of the Income Tax Assessment Act 1997; or\n\n(a) income derived by a non‑resident that is:\n\n(i) exempt from income tax because of section 50‑5 (other than because of item 1.6 in the table in that section) or 50‑10, item 6.1 or 6.2 of the table in section 50‑30, section 50‑40 or item 9.1, 9.2, 9.3, 9.4 or 9.5 of the table in section 50‑45 of the Income Tax Assessment Act 1997; and\n\n(ii) exempt from income tax in the country in which the non‑resident resides; or\n\n(aa) income derived by a non‑resident that is an overseas charitable institution (within the meaning of section 121C) where the income is exempt under subsection 121ELA(1); or\n\n(ba) income that is exempt from income tax because of section 124ZM (which exempts dividends paid by PDFs); or\n\n(d) income in respect of which a trustee is liable to be assessed under section 99 or section 99A; or\n\n(e) income that is derived by a trustee, being a trustee in relation to a trust created by a person who, at the time the income is derived, is a resident and in respect of which the Commissioner is empowered, under section 102, to assess the trustee to pay income tax; or\n\n(ga) income that consists of:\n\n(i) the franked part of a dividend; or\n\n(ii) in relation to a dividend that is paid by a former exempting entity (within the meaning of the Income Tax Assessment Act 1997) on a share acquired under an employee share scheme (within the meaning of that Act)—the part of the dividend that is franked with an exempting credit; or\n\n(iii) in relation to a dividend that is paid by a former exempting entity (within the meaning of the Income Tax Assessment Act 1997) to an eligible continuing substantial member (within the meaning of that Act)—the part of the dividend that is franked with an exempting credit;\n\nother than a dividend in respect of which a determination is made under paragraph 204‑30(3)(c) of the Income Tax Assessment Act 1997 or a dividend or a part of a dividend in respect of which a determination is made under paragraph 177EA(5)(b) of this Act; or\n\n(gb) income that consists of a dividend derived from assets included in the insurance funds of a life assurance company that carries on business in Australia at or through a permanent establishment of the life assurance company in Australia; or\n\n(gc) income that consists of interest derived on a nostro account by a non‑resident that is a foreign bank; or\n\n(h) income that consists of:\n\n(ii) interest derived by a non‑resident in carrying on business in Australia at or through a permanent establishment of the non‑resident in Australia (except interest derived by a limited partner in a VCLP, ESVCLP or AFOF as such a partner);\n\n(iv) interest to which section 128F, 128FA or 128GB applies; or\n\n(j) income in respect of which a taxpayer is liable to be assessed under Division 9C; or\n\n(jb) income that:\n\n(i) is derived by a non‑resident that is a superannuation fund for foreign residents; and","sortOrder":1000066},{"sectionNumber":"full-source-retrieval-0068","sectionType":"document_chunk","heading":"Document excerpt 68","content":"(ii) consists of interest, or consists of dividends or non‑share dividends paid by a company that is a resident; and\n\n(iii) is exempt from income tax in the country in which the non‑resident resides; or\n\nNote: See subsection (3CA) for extra requirements relating to this paragraph.\n\n(k) income that is not included in assessable income because of subsection 271‑105(1); or\n\n(l) income derived by a trustee that, because of paragraph 102UK(2)(b) or 102UM(2)(b), is not included in the assessable income of a trustee beneficiary of the trust estate; or\n\n(m) income that consists of a royalty that is paid to the non‑resident by a person (the lessee) as consideration for the lease, by the lessee from the non‑resident, of a vessel if:\n\n(i) the lessee is an Australian resident company; and\n\n(ii) the vessel is not an excluded vessel (within the meaning of the Shipping Reform (Tax Incentives) Act 2012); and\n\n(iii) under the lease, the lessee has whole possession and control of the vessel (including the right to appoint the master and crew of the ship); and\n\n(iv) during the period of the lease, the vessel is used, or is available for use, as mentioned in paragraph 8(1)(c) of the Shipping Reform (Tax Incentives) Act 2012; or\n\n(n) income that is non‑assessable non‑exempt income because of Division 880 of the Income Tax Assessment Act 1997 or Division 880 of the Income Tax (Transitional Provisions) Act 1997.\n\n(3A) Paragraph (3)(ga) does not apply to income consisting of a dividend, or a part of a dividend, that is derived by the trustee of a trust, or a partnership, to the extent (if any) to which any amount paid to, or applied for the benefit of, a taxpayer (being a beneficiary in the trust or a partner in the partnership) that:\n\n(a) was attributable to the dividend; and\n\n(b) was paid or applied:\n\n(i) in respect of an interest in the trust or partnership that was acquired, or was acquired for a period that was extended, at or after the commencing time; or\n\n(ii) under a financing arrangement (including an arrangement extending an earlier arrangement) entered into at or after the commencing time;\n\nmay reasonably be regarded as equivalent to the payment of interest on a loan.\n\n(3B) In subsection (3A):\n\ncommencing time means 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.\n\nfinancing arrangement has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n(3C) In determining for the purposes of subsection (3A) the extent (if any) to which an amount may reasonably be regarded as equivalent to the payment of interest on a loan, regard is to be had to:\n\n(a) the way in which the amount was calculated; and\n\n(b) the conditions applying to the payment or application of the amount; and\n\n(c) any other relevant matters.\n\n(3CA) Paragraph (3)(jb) applies to income derived by the superannuation fund mentioned in subparagraph (3)(jb)(i) only if:\n\n(a) the superannuation fund satisfies the portfolio interest test in subsection (3CC) in relation to the entity mentioned in subsection (3CB) (the test entity):\n\n(i) at the time the income was derived; and\n\n(ii) throughout any 12 month period that began no earlier than 24 months before that time and ended no later than that time; and\n\n(b) the superannuation fund does not, at the time the income was derived, have influence of a kind described in subsection (3CD) in relation to the test entity; and\n\n(c) the income is not non‑assessable non‑exempt income of the superannuation fund because of:\n\n(i) Subdivision 880‑C of the Income Tax Assessment Act 1997; or\n\n(ii) Division 880 of the Income Tax (Transitional Provisions) Act 1997.\n\n(3CB) For the purposes of subsection (3CA), the test entity is:\n\n(a) unless paragraph (b) applies—the entity that paid the interest, dividends or non‑share dividends as mentioned in subparagraph (3)(jb)(ii); or\n\n(b) if subsection 128A(3) applies in relation to a resident trust estate (within the meaning of Division 6)—the trust estate.\n\n(3CC) A superannuation fund satisfies the portfolio interest test in this subsection in relation to the test entity at a time if, at that time, the total participation interest (within the meaning of the Income Tax Assessment Act 1997) the superannuation fund holds in the test entity:\n\n(a) is less than 10%; and\n\n(b) would be less than 10% if, in working out the direct participation interest (within the meaning of that Act) that any entity holds in a company:\n\n(i) an equity holder were treated as a shareholder; and\n\n(ii) the total amount contributed to the company in respect of non‑share equity interests were included in the total paid‑up share capital of the company.\n\n(3CD) A superannuation fund has influence of a kind described in this subsection in relation to the test entity at a time if any of the following requirements are satisfied at that time:\n\n(a) the superannuation fund:\n\n(i) is directly or indirectly able to determine; or\n\n(ii) in acting in concert with others, is directly or indirectly able to determine;\n\nthe identity of at least one of the persons who, individually or together with others, make (or might reasonably be expected to make) the decisions that comprise the control and direction of the test entity’s operations;\n\n(b) at least one of those persons is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of the superannuation fund (whether those directions, instructions or wishes are expressed directly or indirectly, or through the superannuation fund acting in concert with others).\n\n(3CE) However, a superannuation fund does not have influence of a kind described in subsection (3CD) if, disregarding any breach of terms of a debt interest by any entity, the superannuation fund would not have influence of that kind.\n\n(3D) This section does not apply to a demerger dividend to which section 45B does not apply.\n\n(3E) This section does not apply to income that consists of a dividend that:\n\n(a) is paid to a person who is a non‑resident carrying on business in Australia at or through a permanent establishment of the person in Australia; and\n\n(b) is attributable to the permanent establishment; and\n\n(c) is not paid to the person in the person’s capacity as trustee.\n\nNote: This subsection not only ensures that this section does not apply to that income to make withholding tax payable on it, but also (as a result) ensures that none of that income is non‑assessable non‑exempt income under section 128D. Subsection 44(1) makes that income assessable income.\n\n(3F) In subsection (3E):\n\npermanent establishment of a person:\n\n(a) has the same meaning as in a double tax agreement (as defined in Part X) that relates to a foreign country and affects the person; or\n\n(b) has the meaning given by subsection 6(1), if there is no such agreement.\n\n(4) A person who derives income to which this section applies that consists of a dividend is liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.\n\n(5) A person who derives income to which this section applies that consists of interest is, subject to subsections (6) and (7), liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.\n\n(5A) A person who derives income to which this section applies that consists of a royalty is liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.\n\n(6) Where:\n\n(a) income to which this section applies consists of interest and is paid to the person by whom it is derived by a person to whom this section applies; and\n\n(b) the interest is, in part only, an outgoing incurred by that person to whom this section applies in carrying on business in a country outside Australia at or through a permanent establishment of that person to whom this section applies in that country;\n\nincome tax is payable under subsection (5) upon so much only of the income as is attributable to so much of the interest as is not an outgoing so incurred.\n\n(7) Where:\n\n(a) income to which this section applies consists of interest and is paid to the person by whom it is derived by a person who, or by persons each of whom, is not a resident; and\n\n(b) the interest is, in part only, an outgoing incurred by the person or persons by whom it is paid in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;\n\nincome tax is payable under subsection (5) upon so much only of the income as is attributable to so much of the interest as is an outgoing so incurred.\n\n(8) For the purposes of subparagraphs (2)(b)(i) and (2A)(b)(i) and paragraph (6)(b), where:\n\n(a) interest is paid, or has, after 2 July 1973, been paid, to a person by another person, being a person to whom this section applies, carrying on business in a country outside Australia; and\n\n(b) the interest or a part of the interest:\n\n(i) is interest incurred by the other person in gaining or producing income that is derived by the other person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country or is interest incurred by the other person for the purpose of gaining or producing income to be so derived; or\n\n(ii) is interest incurred by the other person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the other person otherwise than in so carrying on business at or through a permanent establishment of the other person in a country outside Australia;\n\nthe interest or the part of the interest, as the case may be, is not an outgoing incurred by the other person in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country.\n\n(9) For the purposes of subparagraphs (2)(b)(ii) and (2A)(b)(ii) and paragraph (7)(b), where:\n\n(a) interest is paid, or has, after 2 July 1973, been paid, to a person by another person or other persons (in this subsection referred to as the borrower), being:\n\n(i) another person who is or was carrying on business in Australia and is not or was not a resident; or\n\n(ii) other persons who are or were carrying on business in Australia and each of whom is not or was not a resident; and\n\n(b) the interest or a part of the interest:\n\n(i) is interest incurred by the borrower in gaining or producing income that is derived by the borrower in carrying on business in Australia at or through a permanent establishment of the borrower in Australia or is interest incurred by the borrower for the purpose of gaining or producing income to be so derived; or\n\n(ii) is interest incurred by the borrower in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the borrower in so carrying on business at or through a permanent establishment of the borrower in Australia;\n\nthe interest or the part of the interest, as the case may be, is an outgoing incurred by the borrower in carrying on business in Australia at or through a permanent establishment of the borrower in Australia.\n\n(9A) For the purposes of subparagraphs (2B)(b)(i) and (2C)(b)(i), where:\n\n(a) a royalty is paid, to a person by another person, being a person to whom this section applies, carrying on business in a country outside Australia; and\n\n(b) the royalty, or a part of the royalty:\n\n(i) is a royalty incurred by the other person in gaining or producing income that is derived by the other person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country or is a royalty incurred by the other person for the purpose of gaining or producing income to be so derived; or\n\n(ii) is a royalty incurred by the other person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the other person otherwise than in so carrying on business at or through a permanent establishment of the other person in a country outside Australia;\n\nthe royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the other person in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country.\n\n(9B) For the purposes of subparagraphs (2B)(b)(ii) and (2C)(b)(ii), where:\n\n(a) a royalty is paid to a person by another person or other persons (the licensee), being:\n\n(i) another person who is or was carrying on business in Australia and is not or was not a resident; or\n\n(ii) other persons who are or were carrying on business in Australia and each of whom is not or was not a resident; and\n\n(b) the royalty or a part of the royalty:\n\n(i) is a royalty incurred by the licensee in gaining or producing income that is derived by the licensee in carrying on business in Australia at or through a permanent establishment of the licensee in Australia or is a royalty incurred by the licensee for the purpose of gaining or producing income to be so derived; or\n\n(ii) is a royalty incurred by the licensee in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the licensee in so carrying on business at or through a permanent establishment of the licensee in Australia;\n\nthe royalty or the part of the royalty, as the case may be, is an outgoing incurred by the licensee in carrying on business in Australia at or through a permanent establishment of the licensee in Australia.\n\n(9C) If:\n\n(a) apart from this subsection, tax would be payable under subsection 126(1) on an amount of interest paid to a person; and\n\n(b) section 128F would apply to the interest, assuming that paragraph (1)(e) of that section had not been enacted;\n\nthen:\n\n(c) despite anything else in this section, the interest is taken, for the purposes of this Division, to be income derived by the person and to be income to which this section applies; and\n\nNote: As a result of this paragraph, the interest will not be subject to tax under subsection 126(1): see paragraph 126(1)(b).\n\n(d) in addition to the effect of any credit arising under section 18‑30 in Schedule 1 to the Taxation Administration Act 1953 in respect of the interest, the total tax payable by the person, other than under this section, is reduced by the amount of any tax payable under this section on the interest; and\n\n(e) tax paid under this section on the interest is not an allowable deduction.\n\n(10) Income tax payable by a person in accordance with this section is in addition to any other income tax payable by him or her upon income to which this section does not apply.\n\n(11) Income tax payable by a person in accordance with this section upon income to which this section applies by virtue of subsection (2A) or (2C) is in addition to, and shall not be taken into account in arriving at the amount of, any other income tax payable by him or her in respect of that income.\n\n128C  Payment of withholding tax\n\n(1) Withholding tax is due and payable by the person liable to pay the tax at the expiration of 21 days after the end of the month in which the income to which the tax relates was derived by the person.\n\n(3) If any of the withholding tax which a person is liable to pay remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n\n(a) started at the beginning of the day by which the withholding tax was due to be paid; and\n\n(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n\n(i) the withholding tax;\n\n(ii) general interest charge on any of the withholding tax.\n\nNote: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n(4AA) If:\n\n(a) a person is liable to pay the general interest charge on an amount of withholding tax which is payable on an amount that, by virtue of the application of section 128AA, is taken to consist of interest paid in relation to the transfer of a qualifying security;\n\n(b) the Commissioner is satisfied that:\n\n(i) before the security was transferred, a notice expressed to be issued under subsection 265B(4) identifying the security was given by the person, in connection with the transfer, to the transferee;\n\n(ii) one or more of the statements made in the notice is incorrect; and\n\n(iii) the person did not know of the circumstance referred to in subparagraph (ii) at the time of transfer of the security; and\n\n(c) the proper amount of the withholding tax liability of the person exceeds the amount that would have been the amount of the withholding tax liability if it were determined on the basis that the statements made in the notice were correct;\n\nthe Commissioner shall remit so much of the amount of the general interest charge as bears to that amount the same proportion as the amount of the excess referred to in paragraph (c) bears to the amount of withholding tax.\n\n(6) The ascertainment of the amount of any withholding tax shall not be deemed to be an assessment within the meaning of any of the provisions of this Act.\n\n(7) The Commissioner may serve on a person, by post or otherwise, a notice in which is specified:\n\n(a) the amount of any withholding tax that the Commissioner has ascertained is payable by that person; and\n\n(b) the date on which that tax became due and payable.","sortOrder":1000067},{"sectionNumber":"full-source-retrieval-0069","sectionType":"document_chunk","heading":"Document excerpt 69","content":"(8) The production of a notice served under subsection (7), or of a document under the hand of the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of such a notice, is prima facie evidence that the amount of withholding tax specified in the notice became due and payable by the person on whom the notice was served on the date so specified.\n\n128D  Certain income not assessable\n\nIncome other than income to which section 128B applies by virtue of subsection (2A), (2C) or (9C) of that section upon which withholding tax is payable, or upon which withholding tax would, but for paragraph 128B(3)(ga), (jb) or (m), section 128F, section 128FA or section 128GB, be payable, is not assessable income and is not exempt income of a person.\n\nNote: An amount of interest paid to a person by a temporary resident is non‑assessable non‑exempt income: see section 768‑980 of the Income Tax Assessment Act 1997.\n\n128F  Division does not apply to interest on certain publicly offered company debentures or debt interests\n\nInterest to which this section applies\n\n(1) This section applies to interest paid by a company in respect of a debenture or debt interest in the company if:\n\n(a) the company was a resident of Australia when it issued the debenture or debt interest; and\n\n(b) the company is a resident of Australia when the interest is paid; and\n\n(c) for a debt interest other than a debenture—the debt interest:\n\n(i) is a non‑equity share; or\n\n(ii) consists of 2 or more related schemes (within the meaning of the Income Tax Assessment Act 1997) where one or more of them is a non‑equity share; or\n\n(iii) is a syndicated loan; or\n\n(iv) is prescribed by the regulations for the purposes of this section; and\n\n(d) either:\n\n(i) the issue of the debenture or debt interest satisfies the public offer test set out in subsection (3) or (4); or\n\n(ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test set out in subsection (3A).\n\n(1A) This section also applies to interest paid by a company in respect of a debenture or debt interest in the company if:\n\n(a) the company was a non‑resident when it issued the debenture or debt interest; and\n\n(b) the company is a non‑resident when the interest is paid; and\n\n(c) the debenture or debt interest was issued, and the interest is paid, by the company in carrying on business at or through a permanent establishment in Australia; and\n\n(d) for a debt interest other than a debenture—the debt interest:\n\n(i) is a non‑equity share; or\n\n(ii) consists of 2 or more related schemes (within the meaning of the Income Tax Assessment Act 1997) where one or more of them is a non‑equity share; or\n\n(iii) is a syndicated loan; or\n\n(iv) is prescribed by the regulations for the purposes of this section; and\n\n(e) either:\n\n(i) the issue of the debenture or debt interest satisfies the public offer test set out in subsection (3) or (4); or\n\n(ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test set out in subsection (3A).\n\n(1B) If:\n\n(a) some or all of the transfer price (within the meaning of section 128AA) of a debenture or debt interest is taken under that section to be income that consists of interest; and\n\n(b) for a debt interest other than a debenture—the debt interest:\n\n(i) is a non‑equity share; or\n\n(ii) consists of 2 or more related schemes (within the meaning of the Income Tax Assessment Act 1997) where one or more of them is a non‑equity share; or\n\n(iii) is a syndicated loan; or\n\n(iv) is prescribed by the regulations for the purposes of this section; and\n\n(c) either:\n\n(i) the issue of the debenture or debt interest satisfies the public offer test set out in subsection (3) or (4); or\n\n(ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test set out in subsection (3A);\n\nthis section applies to the interest.\n\nNote: Subsection (6) does not apply to the interest because that subsection deals only with interest paid on a debenture or debt interest by the issuing company.\n\nTax not payable\n\n(2) Tax is not payable under this Division in respect of interest to which this section applies.\n\nPublic offer test\n\n(3) The issue of a debenture or debt interest by a company satisfies the public offer test if the issue resulted from the debenture or debt interest being offered for issue:\n\n(a) to at least 10 persons each of whom:\n\n(i) was carrying on a business of providing finance, or investing or dealing in securities, in the course of operating in financial markets; and\n\n(ii) was not known, or suspected, by the company to be an associate (see subsection (9)) of any of the other persons covered by this paragraph; or\n\n(b) to at least 100 persons whom it was reasonable for the company to have regarded as either:\n\n(i) having acquired debentures or debt interests in the past; or\n\n(ii) being likely to be interested in acquiring debentures or debt interests; or\n\n(c) as a result of being accepted for listing on a stock exchange, where the company had previously entered into an agreement with a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, requiring the company to seek such listing; or\n\n(d) as a result of negotiations being initiated publicly in electronic form, or in another form, that was used by financial markets for dealing in debentures or debt interests; or\n\n(e) to a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, who, under an agreement with the company, offered the debenture or debt interest for sale within 30 days in a way covered by any of paragraphs (a) to (d).\n\n(3A) An invitation to become a lender under a syndicated loan facility by a company satisfies the public offer test if the invitation was made:\n\n(a) to at least 10 persons each of whom:\n\n(i) was carrying on a business of providing finance, or investing or dealing in securities, in the course of operating in financial markets; and\n\n(ii) was not known, or suspected, by the company to be an associate (see subsection (9)) of any of the other persons covered by this paragraph; or\n\n(b) publicly in electronic form, or in another form, that was used by financial markets for dealing in debentures or debt interests; or\n\n(c) to a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, who, under an agreement with the company, made the invitation to become a lender under the facility within 30 days in a way covered by paragraph (a) or (b).\n\nGlobal bonds\n\n(4) The issue of a debenture or debt interest by a company also satisfies the public offer test if the debenture or debt interest is a global bond (see subsection (10)).\n\nIssues and invitations that always fail the public offer test\n\n(5) The issue of a debenture or debt interest by a company does not satisfy the public offer test if, at the time of the issue, the company knew, or had reasonable grounds to suspect, that:\n\n(a) the debenture, an interest in the debenture or the debt interest was being, or would be, acquired either directly or indirectly by an associate of the company; and\n\n(b) either:\n\n(i) the associate is a non‑resident and the debenture or interest, or the debt interest, was not being, or would not be, acquired by the associate in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or\n\n(ii) the associate is a resident of Australia and the debenture or interest, or the debt interest, was being, or would be, acquired by the associate in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and\n\n(c) the debenture or interest, or the debt interest, was not being, or would not be, acquired by the associate in the capacity of:\n\n(i) a dealer, manager or underwriter in relation to the placement of the debenture or debt interest; or\n\n(ii) a clearing house, custodian, funds manager or responsible entity of a registered scheme.\n\n(5AA) An invitation to become a lender under a syndicated loan facility is taken never to have satisfied the public offer test if, at the time the invitation is made, the company knew, or had reasonable grounds to suspect, that:\n\n(a) an associate of the company is or will become a lender under the facility; and\n\n(b) either:\n\n(i) the associate is a non‑resident and the associate is not or would not become a lender under the facility in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or\n\n(ii) the associate is a resident of Australia and the associate is or would become a lender under the facility in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and\n\n(c) the associate is not or would not become a lender under the facility in the capacity of:\n\n(i) a dealer, manager or underwriter in relation to the invitation; or\n\n(ii) a clearing house, custodian, funds manager or responsible entity of a registered scheme.\n\nNo exemption for interest paid to certain associates of the issuing company\n\n(6) This section does not apply to interest paid by the company to a person in respect of the debenture or debt interest if, at the time of the payment, the company knows, or has reasonable grounds to suspect, that:\n\n(a) the person is an associate of the company; and\n\n(b) either:\n\n(i) the associate is a non‑resident and the payment is not received by the associate in respect of a debenture or debt interest that the associate acquired in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or\n\n(ii) the associate is a resident of Australia and the payment is received by the associate in respect of a debenture or debt interest that the associate acquired in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and\n\n(c) the associate does not receive the payment in the capacity of a clearing house, paying agent, custodian, funds manager or responsible entity of a registered scheme.\n\nAustralian public bodies are treated as Australian resident companies\n\n(7) This section applies in relation to a debenture or debt interest issued by:\n\n(a) the Commonwealth, a State or a Territory; or\n\n(b) an authority of the Commonwealth, of a State or of a Territory;\n\nas if the Commonwealth, State, Territory or authority were a company and a resident of Australia.\n\nDebentures or debt interests issued through certain non‑resident subsidiaries can also get the exemption\n\n(8) If:\n\n(a) a company (the parent company) beneficially owns all of the issued equity interests in the capital of a company (the subsidiary) that is not a resident of Australia; and\n\n(b) the subsidiary’s only business is raising finance for the purposes of the parent company; and\n\n(c) the subsidiary raises finance in the United States of America or in another country specified in the regulations (but not Australia) by issuing a debenture or debt interest in that country; and\n\n(d) when the debenture or debt interest is issued, the subsidiary is treated as a resident of that country for the purposes of the tax law (see subsection (9)) of the country;\n\nthen this section has effect as if the parent company had raised the finance and issued the debenture or debt interest.\n\nDefinitions\n\n(9) In this section:\n\nassociate has the meaning given by section 318, except that paragraphs (1)(b), (2)(a) and (4)(a) of that section must be disregarded.\n\nclearing house means a person who operates a facility that is used by financial markets for investing in or dealing in securities.\n\ncompany includes a company in the capacity of trustee of a resident trust estate if:\n\n(a) the trust is not a charity; and\n\n(b) the only person who is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust is a company other than a company in the capacity of trustee.\n\ndebenture, without affecting its meaning elsewhere in this Act, includes a promissory note or a bill of exchange (in addition to the things mentioned in the definition of debenture in subsection 6(1)).\n\nglobal bond has the meaning given by subsection (10).\n\nregistered scheme has the same meaning as in the Corporations Act 2001.\n\nresponsible entity, of a registered scheme, has the same meaning as in the Corporations Act 2001.\n\nsyndicated loan means a loan or other form of financial accommodation that is provided under a syndicated loan facility, being a facility that has 2 or more lenders.\n\nsyndicated loan facility has the meaning given by subsections (11), (12) and (13).\n\ntax law, in relation to a country other than Australia, means:\n\n(a) if the country has federal foreign tax—the law of the country that imposes the federal foreign tax; or\n\n(b) in any other case—the law of the country that imposes foreign tax.\n\nGlobal bond\n\n(10) A debenture or debt interest issued by a company is a global bond if:\n\n(a) it describes itself as a global bond or a global note; and\n\n(b) it is issued to a clearing house (see subsection (9)) or to a person as trustee or agent for, or otherwise on behalf of, one or more clearing houses; and\n\n(c) in connection with the issue, the clearing house or houses:\n\n(i) confer rights in relation to the debenture or debt interest on other persons; and\n\n(ii) record the existence of the rights; and\n\n(d) before the issue:\n\n(i) the company; or\n\n(ii) a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, on behalf of the company;\n\nannounces that, as a result of the issue, such rights will be able to be created; and\n\n(e) the announcement is made in a way or ways covered by any of paragraphs (3)(a) to (e) (reading a reference in those paragraphs to “debentures or debt interests” as if it were a reference to such a right, and a reference to the “company” as if it included a reference to the dealer, manager or underwriter); and\n\n(f) under the terms of the debenture or debt interest, interests in the debenture or debt interest are able to be surrendered, whether or not in particular circumstances, in exchange for other debentures or debt interests issued by the company that are not themselves global bonds.\n\n(11) A written agreement is a syndicated loan facility if:\n\n(a) the agreement describes itself as a syndicated loan facility or syndicated facility agreement; and\n\n(b) the agreement is between one or more borrowers and at least 2 lenders; and\n\n(c) under the agreement each lender severally, but not jointly, agrees to lend money to, or otherwise provide financial accommodation to, the borrower or borrowers; and\n\n(d) the amount to which the borrower or borrowers will have access at the time the first loan or other form of financial accommodation is to be provided under the agreement is at least $100,000,000 (or a prescribed amount).\n\n(12) A written agreement is also a syndicated loan facility if:\n\n(a) the agreement describes itself as a syndicated loan facility or syndicated facility agreement; and\n\n(b) the agreement is between one or more borrowers and one lender where the agreement provides for the addition of other lenders; and\n\n(c) the agreement provides that, when other lenders are added, each lender severally, but not jointly, agrees to lend money to, or otherwise provide financial accommodation to, the borrower or borrowers; and\n\n(d) the amount to which the borrower or borrowers will have access at the time the first loan or other form of financial accommodation is to be provided under the agreement is at least $100,000,000 (or a prescribed amount).\n\n(13) However, an agreement under which there are 2 or more borrowers is a syndicated loan facility only if all of them are:\n\n(a) members of the same wholly‑owned group (within the meaning of the Income Tax Assessment Act 1997); or\n\n(b) parties to the same joint venture; or\n\n(c) associates of each other.\n\n(14) For the purposes of this section, a change (including by novation) to the lenders under a syndicated loan facility does not result in a different agreement.\n\n(15) For a debt interest that consists of 2 or more related schemes (within the meaning of the Income Tax Assessment Act 1997) where one or more of them is a non‑equity share, this section applies only to interest paid in respect of the non‑equity share.\n\nNote: Subsection 128A(1AB) defines interest for the purposes of this Division. Under that subsection, dividends paid in respect of a non‑equity share are treated as being interest.\n\n(16) The rule in subsection (15) does not apply to the extent that interest in respect of the other related scheme or schemes would be interest to which this section applies in respect of a debenture or debt interest.\n\n128FA  Division does not apply to interest on certain publicly offered unit trust debentures or debt interests\n\nInterest to which this section applies\n\n(1) This section applies to interest paid by the trustee of an eligible unit trust in respect of a debenture or debt interest issued by the trustee if:\n\n(a) for a debt interest other than a debenture—the debt interest:\n\n(i) is a syndicated loan; or\n\n(ii) is prescribed by the regulations for the purposes of this section; and\n\n(b) either:\n\n(i) the issue of the debenture or debt interest satisfies the public offer test set (see subsection (6)); or\n\n(ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test (see subsection (6A)).\n\n(2) If:\n\n(a) some or all of the transfer price (within the meaning of section 128AA) of a debenture or debt interest issued by the trustee of an eligible unit trust is taken under that section to be income that consists of interest; and","sortOrder":1000068},{"sectionNumber":"full-source-retrieval-0070","sectionType":"document_chunk","heading":"Document excerpt 70","content":"(b) for a debt interest other than a debenture—the debt interest:\n\n(i) is a syndicated loan; or\n\n(ii) is prescribed by the regulations for the purposes of this section; and\n\n(c) either:\n\n(i) the issue of the debenture or debt interest satisfies the public offer test set (see subsection (6)); or\n\n(ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test (see subsection (6A));\n\nthis section applies to the interest.\n\nNote: Subsection (4) does not apply to the interest because that subsection deals only with interest paid on a debenture or debt interest by the issuing eligible unit trust.\n\nTax not payable\n\n(3) Tax is not payable under this Division in respect of interest to which this section applies.\n\nNo exemption for interest paid to certain associates of the issuing trustee\n\n(4) This section does not apply to interest paid by the trustee of an eligible unit trust to a person in respect of the debenture or debt interest if, at the time of the payment, the trustee knows, or has reasonable grounds to suspect, that:\n\n(a) the person is an associate of the trustee; and\n\n(b) either:\n\n(i) the associate is a non‑resident and the payment is not received by the associate in respect of a debenture or debt interest that the associate acquired in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or\n\n(ii) the associate is a resident of Australia and the payment is received by the associate in respect of a debenture or debt interest that the associate acquired in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and\n\n(c) the associate does not receive the payment in the capacity of a clearing house, paying agent, custodian, funds manager or responsible entity of a registered scheme.\n\nDebentures or debt interests issued through certain non‑resident subsidiaries can also get the exemption\n\n(5) If:\n\n(a) the trustee of an eligible unit trust holds all of the issued equity interests in the capital of a company that is not a resident of Australia; and\n\n(b) the company’s only business is raising finance for the purposes of the eligible unit trust; and\n\n(c) the company raises finance in a country specified in the regulations (but not Australia) by issuing a debenture or debt interest in that country; and\n\n(d) when the debenture or debt interest is issued, the company is treated as a resident of that country for the purposes of the tax law (see subsection (8)) of the country;\n\nthen this section has effect as if the trustee had raised the finance and issued the debenture or debt interest.\n\nPublic offer test\n\n(6) For the purposes of working out under this section whether the issue of a debenture or debt interest by the trustee of an eligible unit trust satisfies the public offer test, subsections 128F(3) to (5) apply to the trustee of the eligible unit trust in a corresponding way to the way in which those subsections apply to a company, subject to subsection (7) of this section.\n\n(6A) For the purposes of working out under this section whether an invitation to become a lender under a syndicated loan facility satisfies the public offer test, subsections 128F(3A) and (5AA) apply to the trustee of the eligible unit trust in a corresponding way to the way in which those subsections apply to a company, subject to subsection (7) of this section.\n\n(7) For the purposes of applying subsection 128F(3), (3A), (4), (5) or (5AA) as mentioned in subsection (6) or (6A) of this section:\n\n(a) a reference in any of those subsections to a company knowing, suspecting or having reasonable grounds to suspect something, or it being reasonable for a company to have regarded something, is taken to be a reference to the trustee of the eligible unit trust knowing, suspecting or having reasonable grounds to suspect that thing, or it being reasonable for the trustee of the eligible unit trust to have regarded that thing; and\n\n(b) a reference in any of those subsections to an associate is taken to be a reference to an associate within the meaning of this section; and\n\n(c) a reference in any of those subsections to a global bond is taken to be a reference to a global bond within the meaning of subsection 128F(10).\n\n(7A) For the purposes of this section, a change (including by novation) to the lenders under a syndicated loan facility does not result in a different agreement.\n\nDefinitions\n\n(8) In this section:\n\nassociate has the meaning given by section 318, except that:\n\n(a) paragraphs (1)(b), (2)(a) and (4)(a) of that section must be disregarded; and\n\n(b) subsection (5) of that section applies to a unit trust mentioned in paragraph (b) of the definition of eligible unit trust in this subsection in the same way as that subsection applies in relation to a public unit trust.\n\nclearing house has the same meaning as in section 128F.\n\ncompany has the same meaning as in section 128F.\n\ndebenture:\n\n(a) in relation to the trustee of an eligible unit trust, includes debenture stock, bonds, promissory and other notes, bills of exchange and any other securities issued by the trustee, whether constituting a charge on the assets of the eligible unit trust or not; and\n\n(b) in relation to a company, has the same meaning as in section 128F.\n\neligible unit holder means:\n\n(a) the trustee of a public unit trust; or\n\n(b) the trustee (within the meaning of the Income Tax Assessment Act 1997) of a complying superannuation fund that has 50 or more members; or\n\n(c) the trustee of a pooled superannuation trust within the meaning of the Income Tax Assessment Act 1997; or\n\n(d) the trustee (within the meaning of the Income Tax Assessment Act 1997) of a complying approved deposit fund; or\n\n(e) a life insurance company within the meaning of the Income Tax Assessment Act 1997; or\n\n(f) a public company within the meaning of section 103A; or\n\n(g) the trustee of a unit trust in which all of the issued units are held by 2 or more entities that are eligible unit holders because of:\n\n(i) the application of another paragraph of this definition (whether or not the same paragraph); or\n\n(ii) a previous application of this paragraph; or\n\n(iii) any combination of subparagraphs (i) and (ii).\n\neligible unit trust means:\n\n(a) a public unit trust; or\n\n(b) a unit trust in which all of the issued units are held by 2 or more eligible unit holders.\n\npublic unit trust has the same meaning as in section 102P (disregarding subsection (2) of that section).\n\nregistered scheme has the same meaning as in section 128F.\n\nresponsible entity has the same meaning as in section 128F.\n\nsyndicated loan has the same meaning as in section 128F.\n\nsyndicated loan facility has the same meaning as in section 128F.\n\ntax law has the same meaning as in section 128F.\n\n(9) For the purposes of this section, a trust or fund of a kind mentioned in any of paragraphs (a) to (d) of the definition of eligible unit holder in subsection (8) in relation to a year of income is taken to be a trust or fund of that kind at all times during the year of income.\n\n128GB  Division not to apply to interest payments on offshore borrowings by offshore banking units\n\n(1) This section applies to:\n\n(a) interest paid by a person in respect of an offshore borrowing of the person; or\n\n(b) interest consisting of gold paid by a person in respect of an offshore gold borrowing of the person;\n\nif, when the borrowing took place, the person was an offshore banking unit (whether or not the person is still an offshore banking unit when the interest is paid).\n\n(1A) However, this section does not apply to:\n\n(a) interest paid on or after 1 January 2024; and\n\n(b) interest consisting of gold paid on or after 1 January 2024.\n\n(2) Tax is not payable in accordance with this Division in respect of interest to which this section applies.\n\n128NA  Special tax payable in respect of certain securities and agreements\n\n(1) Where, but for subsection 128AA(2):\n\n(a) the transferor of a qualifying security who is not liable to pay withholding tax in relation to the transfer of the qualifying security would be liable to pay withholding tax in relation to the transfer; or\n\n(b) the transferor of a qualifying security who is liable to pay withholding tax in relation to the transfer of the qualifying security would be liable to pay additional withholding tax in relation to the transfer;\n\nthen, for the purposes of this section, there shall be taken to be an avoided withholding tax amount in relation to the person who is the transferee of the qualifying security of an amount equal to the withholding tax or the additional withholding tax, as the case may be, that the person would be so liable to pay.\n\n(2) Where:\n\n(a) an attributable agreement payment or attributable agreement payments were made by a person under a relevant agreement before the commencement of section 128AC; and\n\n(b) the Commissioner is of the opinion that the payment or payments were made before the commencement of that section, or that the payment or payments were of a greater amount than they would otherwise have been, for the sole or dominant purpose of securing the result that the total amount (in this subsection referred to as the actual withholding tax) of withholding tax payable under that section in relation to all attributable agreement payments made under the relevant agreement after the commencement of that section would be less than the amount (in this subsection referred to as the notional withholding tax) that would otherwise have been payable;\n\nthen, for the purposes of this section, there shall be taken to be an avoided withholding tax amount in relation to the person of an amount equal to the amount by which the notional withholding tax exceeds the actual withholding tax.\n\n(3) For the purposes of subsection (2), expressions used in that subsection that are also used in section 128AC have the same respective meanings in that subsection as in that section.\n\n(4) Where there is an avoided withholding tax amount in relation to a person under this section, the person is liable to pay income tax, as imposed by the Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986, in respect of the avoided withholding tax amount.\n\n128NB  Special tax payable in respect of certain dealings by current and former offshore banking units\n\n(1) Where a person who is or has been an offshore banking unit transfers to another person an amount of tax exempt loan money or tax exempt gold, other than by way of:\n\n(a) payment in carrying on an OB activity or what would be an OB activity if the person were an OBU; or\n\n(b) repayment of an offshore borrowing or offshore gold borrowing;\n\nthe person is liable to pay income tax, as imposed by the Income Tax (Offshore Banking Units) (Withholding Tax Recoupment) Act 1988, on the lost withholding tax amount in respect of the transfer.\n\n(2) For the purposes of subsection (1), the lost withholding tax amount in respect of the transfer is an amount ascertained in accordance with the formula:\n\n![Start formula IWT rate times PB rate times PB term times TA end formula](image.004.png)\n\nwhere:\n\nIWT rate is the rate declared by the Parliament in respect of income to which subsection 128B(5) applies.\n\nPB rate is the prevailing borrowing rate in relation to the person at the time of the transfer.\n\nPB term is the number of years in the prevailing borrowing term in relation to the person at the time of the transfer; and\n\nTA is the amount of tax exempt loan money or tax exempt gold transferred.\n\n(3) Tax under this section is due and payable by the person liable to pay the tax at the end of:\n\n(a) 21 days after the end of the month in which the transfer to which it relates takes place; or\n\n(b) such further period as the Commissioner, in special circumstances, allows.\n\nApplication\n\n(3A) The Commissioner must not exercise his or her power under paragraph (3)(b) on or after 1 July 2000.\n\nNote: For provisions about collection and recovery of tax on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n(4) Section 128C (other than subsections (1) and (4AA)) applies, in addition to its application apart from this subsection, as if references in that section to withholding tax were references to tax payable under this section.\n\n(5) The Commissioner may remit the whole or part of an amount of tax payable under this section in relation to the transfer of an amount of tax exempt loan money or tax exempt gold to another person if:\n\n(a) the Commissioner is satisfied that:\n\n(i) the liability to pay the amount of tax arose because the person mistakenly believed, on reasonable grounds, that the other person was a non‑resident or an offshore banking unit, that interest payable to the person in respect of the amount transferred would be an outgoing of a particular kind or that the amount transferred was not tax exempt loan money or tax exempt gold; and\n\n(ii) the person had taken reasonable steps to ascertain the matter to which the mistaken belief related; or\n\n(b) the Commissioner is satisfied that there are special circumstances justifying the remission of the whole or part of the amount of tax.\n\n128NBA  Credits in respect of amounts assessed in relation to certain financial arrangements\n\nWhen section applies\n\n(1) This section applies if:\n\n(a) the amount of any withholding tax that has become payable by a taxpayer on a payment of interest under, or in relation to the transfer of, a qualifying security or a Division 230 financial arrangement has been paid; and\n\n(b) there is a net financial arrangement amount (see subsection (5)) in relation to the taxpayer in relation to:\n\n(i) if the payment of interest is a payment in relation to the transfer of the qualifying security—the security; or\n\n(ii) if the payment of interest is such a payment by virtue of the application of section 128AC in relation to an attributable agreement payment within the meaning of that section—the attributable agreement payment; or\n\n(iii) in any other case—the payment of interest; and\n\n(c) the amount of the withholding tax payable on the interest exceeds the amount that would have been payable on the interest if the interest were reduced by the net financial arrangement amount.\n\nEntitlement to apply for credit\n\n(2) The taxpayer may apply to the Commissioner for a credit of an amount equal to the excess.\n\nRequirements for application\n\n(3) The application must be in the approved form.\n\nEntitlement to credit\n\n(4) If the Commissioner is satisfied as to the matters mentioned in paragraphs (1)(a), (b) and (c), the applicant is entitled to a credit of an amount equal to the excess.\n\nNet financial arrangement amount\n\n(5) For the purposes of this section, if:\n\n(a) in the case of a qualifying security—the sum of all amounts (if any) included in the assessable income of the taxpayer of any years of income in relation to the qualifying security, attributable agreement payment or payment of interest under section 159GQ; or\n\n(b) in the case of a Division 230 financial arrangement—the sum of all amounts (if any) included in the assessable income of the taxpayer of any years of income in relation to the arrangement under Division 230 of the Income Tax Assessment Act 1997;\n\nexceeds:\n\n(c) in the case of a qualifying security—the sum of all amounts (if any) allowable as deductions from the assessable income of the taxpayer of any years of income in relation to the security or the payment, as the case may be, under that section; or\n\n(d) in the case of a Division 230 financial arrangement—the sum of:\n\n(i) all amounts (if any) allowable as deductions from the assessable income of the taxpayer of any years of income in relation to the arrangement under Division 230 of the Income Tax Assessment Act 1997; and\n\n(ii) all amounts (if any) of interest paid under the arrangement before the interest mentioned in paragraph (1)(a) is paid;\n\nthere is a net financial arrangement amount equal to the excess.\n\n(6) For the purposes of paragraph (5)(b) and subparagraph (5)(d)(i), disregard any year of income in which the taxpayer was not an Australian resident.\n\n(7) For the purposes of subsection (6):\n\n(a) if section 230‑485 of the Income Tax Assessment Act 1997 applies in relation to a year of income:\n\n(i) treat the foreign residency period mentioned in that section as a year of income in which the taxpayer was not an Australian resident; and\n\n(ii) treat the Australian residency period mentioned in that section as a year of income in which the taxpayer was an Australian resident; and\n\n(b) if section 230‑490 of that Act applies in relation to a year of income:\n\n(i) treat the period during that year in which the taxpayer was not an Australian resident as a year of income in which the taxpayer was not an Australian resident; and\n\n(ii) treat the period during that year in which the taxpayer was an Australian resident as a year of income in which the taxpayer was an Australian resident.\n\n128P  Objections\n\nIf an applicant for a certificate under this Division is dissatisfied with a decision of the Commissioner:\n\n(a) in any case—to refuse to issue the certificate; or\n\n(b) in the case of a certificate under section 128AB—to specify a particular amount in the certificate;\n\nthe applicant may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n128R  Informal arrangements\n\nFor the purposes of this Division, the Commissioner may have regard to arrangements, understandings and practices not having legal force in the same manner as if they had legal force.\n\nDivision 11C—Payments in respect of mining operations on Indigenous land\n\n128U  Interpretation\n\n(1) In this Division, unless the contrary intention appears:","sortOrder":1000069},{"sectionNumber":"full-source-retrieval-0071","sectionType":"document_chunk","heading":"Document excerpt 71","content":"Aboriginals Benefit Account means the Aboriginals Benefit Account continued in existence by section 62 of the Aboriginal Land Rights (Northern Territory) Act 1976.\n\ndistributing body means:\n\n(a) an Aboriginal Land Council established by or under the Aboriginal Land Rights (Northern Territory) Act 1976;\n\n(b) a corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006; or\n\n(d) any other incorporated body that:\n\n(i) is established by or under provisions of a law of the Commonwealth or of a State or Territory that relate to Indigenous persons; and\n\n(ii) is empowered or required (whether under that law or otherwise) to pay moneys received by the body to Indigenous persons or to apply such moneys for the benefit of Indigenous persons, either directly or indirectly.\n\nmineral royalties means royalties payable in respect of the mining of minerals.\n\nminerals means:\n\n(a) gold, silver, copper, tin and other metals;\n\n(b) coal, shale, petroleum (within the meaning of the Income Tax Assessment Act 1997) and valuable earths and substances;\n\n(c) mineral substances;\n\n(d) gems and precious stones; and\n\n(e) ores and other substances containing minerals;\n\nwhether suspended in water or not, and includes water.\n\nminer’s right means a miner’s right or other authority issued or granted under a law of the Commonwealth or of a State or Territory relating to mining of minerals, being a right or authority that empowers the holders to take possession of, mine or occupy land or take any other action in relation to land for any purpose in connection with mining.\n\nmining includes the obtaining of minerals from alluvial or surface deposits.\n\nmining interests, in relation to any land, means any lease or other interest in the land (including a right to prospect or explore for minerals in or on the land) issued or granted under a law of the Commonwealth or of a State or Territory relating to mining of minerals.\n\nmining payment means a payment made to a distributing body or made to, or applied for the benefit of, an Indigenous person or persons, being:\n\n(a) a payment made on or after 1 July 1979 and before the day that the Financial Management Legislation Amendment Act 1999 commenced, out of the Aboriginals Benefit Reserve to the extent that the payment represents money paid into the Aboriginals Benefit Reserve on or after 1 July 1979 in pursuance of subsection 63(2) or (4) of the Aboriginal Land Rights (Northern Territory) Act 1976; and\n\n(aa) a payment made on or after the day that the Financial Management Legislation Amendment Act 1999 commenced by the Commonwealth in respect of a debit from the Aboriginals Benefit Account to the extent that the payment represents an amount credited to the Aboriginals Benefit Account in pursuance of subsection 63(1) or (4) of the Aboriginal Land Rights (Northern Territory) Act 1976; and\n\n(b) any payment made on or after 1 July 1979 that is of the kind referred to in subsection 44 (1) or (2) of the Aboriginal Land Rights (Northern Territory) Act 1976; and\n\n(c) any other payment made on or after 1 July 1979 under provisions of a law of the Commonwealth or of a State or Territory that relate to Indigenous persons or under an agreement made in accordance with such provisions, being a payment made:\n\n(i) in consideration of the issuing, granting or renewal of a miner’s right or mining interest in respect of Indigenous land;\n\n(ii) in consideration of the granting of permission to a person to enter or remain on Indigenous land or to do any act on Indigenous land in relation to prospecting or exploring for, or mining of, minerals; or\n\n(iii) by way of payment of mineral royalties payable in respect of the mining of minerals on Indigenous land or by way of payment of an amount determined by reference to an amount of mineral royalties received by the Commonwealth, a State or the Northern Territory in respect of the mining of minerals on Indigenous land;\n\nbut does not include:\n\n(d) a payment made by a distributing body; or\n\n(e) a native title benefit (within the meaning of the Income Tax Assessment Act 1997).\n\n(2) In section 260, income tax or tax includes mining withholding tax.\n\n(3) For the purposes of this Division, a mining payment is taken to include any amount that has been, or purports to have been, withheld from the mining payment for the purposes of section 12‑320 in Schedule 1 to the Taxation Administration Act 1953.\n\n(4) For the purposes of the succeeding provisions of this Division, where a mining payment (in this subsection referred to as the relevant mining payment) is made to, or applied for the benefit of, 2 or more persons, there shall be deemed to have been made to, or applied for the benefit of, each of those persons, a mining payment of an amount equal to so much of the relevant mining payment as bears to the relevant mining payment the same proportion as 1 bears to the number of persons to whom the relevant mining payment was made or for whose benefit the relevant mining payment was applied, as the case may be.\n\n128V  Liability to mining withholding tax\n\n(1) Where a mining payment is made to, or applied for the benefit of, a person, that person is liable to pay income tax on the amount of the mining payment at the rate declared by the Parliament for the purposes of this section.\n\n(2) Income tax payable by a person in accordance with this section is in addition to other income tax payable by that person upon amounts that are not mining payments.\n\n128W  Payment of mining withholding tax\n\n(1) Mining withholding tax is due and payable by a person liable to pay the tax at the expiration of 21 days after the end of the month in which the payment of the amount to which the tax relates was made, or of such further period as the Commissioner, in special circumstances, allows.\n\nNote: For provisions about collection and recovery of mining withholding tax and other amounts, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n(4) The ascertainment of the amount of any mining withholding tax shall not be deemed to be an assessment within the meaning of any of the provisions of this Act.\n\n(5) The Commissioner may serve on a person liable to pay mining withholding tax, by post or otherwise, a notice in which is specified:\n\n(a) the amount of any mining withholding tax that the Commissioner has ascertained is payable by that person; and\n\n(b) the date on which that tax became due and payable.\n\n(6) The production of a notice served under subsection (5), or of a document under the hand of the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of such a notice, is prima facie evidence that the amount of mining withholding tax specified in the notice became due and payable by the person on whom the notice was served on the date specified in the notice as the date on which that tax became due and payable.\n\nDivision 12—Oversea ships\n\n129  Taxable income of ship‑owner or charterer\n\nWhere a ship belonging to or chartered by a person whose principal place of business is out of Australia carries passengers, live‑stock, mails or goods shipped in Australia, 5% of the amount paid or payable to him or her in respect of such carriage, whether that amount is payable in or out of Australia, shall be deemed to be taxable income derived by him or her in Australia.\n\n130  Commissioner may require master or agent to make return\n\n(1) The Commissioner may, by writing, require:\n\n(a) the master of a particular ship to which section 129 applies, or the agent or other representative in Australia of the owner or charterer of the ship; or\n\n(b) the master of a ship included in a class of ships to which section 129 applies, or the agent or other representative in Australia of the owner or charterer of the ship;\n\nto make a return of the amounts so paid or payable.\n\n(2) An instrument under paragraph (1)(a):\n\n(a) must be given to the master, agent or representative; and\n\n(b) is not a legislative instrument.\n\n(3) An instrument under paragraph (1)(b) is a legislative instrument.\n\n131  Determination by Commissioner\n\nIf such return is not made, or if the Commissioner is not satisfied with the return, the Commissioner may determine the amount so paid or payable.\n\n132  Assessment of tax\n\nThe master, agent or representative, as agent for the owner or charterer, may be assessed upon the taxable income and shall be liable to pay the tax assessed.\n\n133  Master liable to pay\n\n(1) Where the assessment is made on the agent or representative, and the tax is not paid forthwith upon receipt of notice of the assessment, the master shall be liable to pay the tax.\n\n(2) This section shall not, so long as any tax for which the master becomes liable under this section remains unpaid, relieve any other person to whom the notice of assessment has been given in respect of that tax, from liability to pay the tax remaining unpaid.\n\n134  Notice of assessment\n\nWhere any person is liable to pay tax under this Division, the Commissioner shall give notice to the person of the assessment, and he or she shall forthwith pay the tax.\n\n135  Clearance of ship\n\nA collector or officer of customs for any State or Territory shall not grant a clearance to the ship until he or she is satisfied that any tax which has been or may be assessed under this Division has been paid, or that arrangements for its payment have been made to the satisfaction of the Commissioner.\n\n135A  Freights payable under certain agreements\n\nWhere goods are shipped in pursuance of an agreement of the kind specified in section 7C of the Australian Industries Preservation Act 1906‑1937, the amount paid or payable to the owner or charterer of the ship in respect of the carriage of those goods shall, for the purposes of this Division, be deemed to be the amount remaining after deducting from the amount which would be payable according to the gross rate of freight specified in the agreement the amount of any rebate allowed in pursuance of the agreement or any payment, whenever made, by the owner or charterer, or out of funds provided by the owner or charterer, to any person or persons being the owner or shipper of the goods or the agent of either of them in respect of the shipment.\n\nDivision 15—Insurance with non‑residents\n\n141  Interpretation\n\nIn this Division:\n\ninsurance contract means a contract or guarantee whereby liability is undertaken, contingent upon the happening of any specified event, to pay any money or make good any loss or damage, but does not include a contract of life assurance.\n\ninsured event means an event upon the happening of which the liability under an insurance contract arises.\n\ninsured person means a person with whom any insurance contract is entered into by an insurer.\n\ninsured property means the property the subject of an insurance contract made or given by an insurer.\n\ninsurer means any non‑resident who undertakes liability under an insurance contract.\n\n142  Income derived by non‑resident insurer\n\n(1) Where an insured person, whether a resident or non‑resident, has entered into an insurance contract with an insurer, and the insured property at the time of the making of the contract is situated in Australia, or the insured event is one which can happen only in Australia, the premium paid or payable under the contract shall be included in the assessable income of the insurer, and shall be deemed to be derived by the insurer from sources in Australia, and, unless the contract was made by a principal office or branch established by the insurer in Australia, this Division shall apply to that premium.\n\n(2) Where an insured person who is a resident has entered into an insurance contract with an insurer, and an agent or representative in Australia of the insurer was in any way instrumental in inducing the entry of the insured person into that contract, any premium paid or payable under the contract shall, wherever the insured property is situate, or the insured event may happen, be included in the assessable income of the insurer and shall be deemed to be derived by the insurer from sources in Australia, and, unless the contract was made by a principal office or branch established by the insurer in Australia, this Division shall apply to that premium.\n\n143  Taxable income of non‑resident insurer\n\nThe insurer shall be deemed to have derived in any year, in respect of the premiums paid or payable in that year under such contracts, a taxable income equal to 10% of the total amount of such premiums:\n\nProvided that, where the actual profit or loss derived or made by the insurer in respect of such premiums is established to the satisfaction of the Commissioner, the taxable income of the insurer in respect thereof, or the amount of the loss so made by the insurer shall, subject to this Act, be calculated by reference to receipts and expenditure taken into account in calculating that profit or loss.\n\n144  Liability of agents of insurer\n\nThe insured person and any person in Australia acting on behalf of the insurer shall be the agents of the insurer, and shall be jointly and severally liable as such for all purposes of this Act. If either of those persons pays or credits to the insurer any amount in respect of the insurance contract before arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed under this Division in respect of that amount, that person shall be personally liable to pay that tax.\n\n145  Deduction of premiums\n\nNotwithstanding any other provision of this Act, no such premium shall be an allowable deduction to the insured person unless arrangements have been made to the satisfaction of the Commissioner for the payment of any income tax which has been or may be assessed in respect of that premium.\n\n146  Exporter to furnish information\n\nEvery person who exports any goods from Australia shall furnish to the Collector of Customs for transmission to the Commissioner a copy of the customs entry for such goods, and shall show thereon such information as is prescribed regarding the insurance of such goods.\n\n147  Rate of tax in special circumstances\n\nWhere the insurer satisfies the Commissioner that, on account of special circumstances, it is necessary that the rate of tax payable by the insurer under this Division should be ascertained at the time when premiums are paid to the insurer, the Commissioner may direct that the tax so payable in respect of premiums paid during any financial year shall be calculated at the rate which would have been payable if an assessment had been made in respect of those premiums at the date when they were paid.\n\n148  Reinsurance with non‑residents\n\n(1) Notwithstanding anything contained in this Act other than section 177F, but subject to this section, where a person carrying on the business of insurance in Australia reinsures out of Australia the whole or part of any risk with a non‑resident:\n\n(a) the premiums paid or credited in respect of the reinsurance shall not be:\n\n(i) an allowable deduction to the person carrying on the business of insurance in Australia; or\n\n(ii) included in the assessable income of the non‑resident; and\n\n(b) the income of the person carrying on the business of insurance in Australia shall not include sums recovered from that non‑resident in respect of a loss on any risk so reinsured.\n\n(2) A person carrying on the business of insurance in Australia who reinsures out of Australia the whole or part of any risk with a non‑resident may elect, in accordance with this section, that the provisions of subsection (1) shall not be applied in arriving at that person’s taxable income, and thereupon:\n\n(a) those provisions shall not apply in arriving at that person’s taxable income of a year of income to which the election applies; and\n\n(b) that person shall be liable to furnish returns, and to pay tax, in accordance with the succeeding provisions of this section, as agent for all non‑residents with whom that person so reinsures.\n\n(3) Where a person makes an election under subsection (2), he or she shall, subject to subsection (5), be assessed and liable to pay tax as agent, on an amount equal to 10% of the sum of the gross amounts of the premiums paid or credited by him or her in the year of income (being a year of income to which the election applies) to non‑residents in respect of all such reinsurances, as if that amount were the taxable income of a non‑resident company (not being a private company) not carrying on business in Australia by means either of a principal office or a branch.\n\n(4) A person who has made an election under this section shall, as agent, furnish to the Commissioner, within the prescribed time, or within such further time as the Commissioner allows, in respect of every year of income to which the election applies:\n\n(a) a return showing the gross amounts of the premiums paid or credited by that person to non‑residents in respect of all such reinsurances; or\n\n(b) 2 returns, of which:\n\n(i) one shall show the gross amounts of such premiums paid or credited by that person to non‑residents which are companies; and\n\n(ii) the other shall show the gross amounts of such premiums paid or credited by that person to non‑residents who are not companies.","sortOrder":1000070},{"sectionNumber":"full-source-retrieval-0072","sectionType":"document_chunk","heading":"Document excerpt 72","content":"(5) Where returns are furnished by a person in accordance with paragraph (4)(b), there shall be excluded from the amount on which that person shall be assessed and liable to pay tax as agent in pursuance of subsection (3) an amount equal to 10% of the sum of the gross premiums properly shown in the return specified in subparagraph (4)(b)(ii), and that person shall, in addition to any other tax which that person is liable under this section to pay as agent, be assessed and liable to pay tax as agent on the amount so excluded as if it were the taxable income of a non‑resident company (being a private company) not carrying on business in Australia by means either of a principal office or a branch.\n\n(6) An election for the purposes of this section shall:\n\n(c) be made on or before the last day for the furnishing of the taxpayer’s return of income of the year of income in respect of which the election is first to apply, or within such further time as the Commissioner allows;\n\n(d) first apply in respect of a year of income which shall be specified in the election; and\n\n(e) apply in respect of all subsequent years of income.\n\n(7) An assessment for the purposes of subsection (3) or (5) shall be made and notified separately from any other assessment.\n\n(8) Where a person is liable, in pursuance of an assessment for the purposes of this section, to pay tax, in respect of any premiums, as agent for more than one non‑resident, the amount which that person shall be liable to pay as agent for any one of those non‑residents shall be so much of the tax so payable as bears to the whole of that tax the same proportion as the total amount of such of those premiums as were paid to that non‑resident bears to the total amount of those premiums.\n\n(9) Where a person is or may become liable under this section to pay tax as agent for a non‑resident in respect of any premium paid or credited by that person to that non‑resident:\n\n(a) that person shall, for the purposes of section 254, be deemed to have received the premium in that person’s representative capacity immediately before it was so paid or credited; and\n\n(b) if that person pays or credits the premium before arrangements have been made to the satisfaction of the Commissioner for the payment of any tax which may be assessed in respect of that premium, that person shall be personally liable to pay that tax.\n\nApplication to a life assurance company\n\n(10) This section applies to a life assurance company in relation to the whole or a part of a risk if, and only if, the risk or that part of the risk:\n\n(a) is covered by a disability policy as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997; and\n\n(b) relates to a benefit that is payable in an event mentioned in that definition.\n\nDivision 16—Averaging of incomes\n\n149  Average income\n\n(1) For the purposes of the application of this Division in relation to a taxpayer in relation to a year of income, a reference in this Division to the average income of the taxpayer shall be construed as a reference to the average of the taxable incomes of the taxpayer of the years of income (in this Division referred to as average years) beginning with the first average year and ending with the first‑mentioned year of income.\n\n149A  Capital gains, abnormal income and certain death benefits to be disregarded\n\n(1) For the purposes of this Division (including the purpose of determining whether this Division applies to the income of a taxpayer):\n\n(a) references in this Division to the assessable income of a taxpayer shall be read as references to the amount that would have been the assessable income if the assessable income did not include any net capital gain and did not include any amount under section 82‑65, 82‑70 or 302‑145 of the Income Tax Assessment Act 1997; and\n\n(b) references in this Division to the taxable income of a taxpayer shall be read as references to the amount that would have been the taxable income if:\n\n(i) the assessable income did not include any net capital gain and did not include any amount under section 82‑65, 82‑70 or 302‑145 of the Income Tax Assessment Act 1997; and\n\n(ii) the taxable income were reduced by so much of the taxable income as consists of above‑average special professional income within the meaning of the Income Tax Assessment Act 1997.\n\n(2) A reference in subsection (1) to the assessable income or taxable income of a taxpayer of a year of income shall, in relation to a taxpayer in the capacity of trustee of a trust estate, be read as a reference to the assessable income or net income, as the case may be, of the trust estate of the year of income.\n\n150  First average year\n\nSubject to this Division, the first average year shall be the fourth year before the year of income. A year the income of which was subject to assessment under the previous Act shall be capable of being a first or subsequent average year.\n\n151  First application of Division in relation to a taxpayer\n\n(1) For the purposes of the first application of this Division in determining the tax payable by a taxpayer, the first average year shall be the first year which is otherwise capable of being an average year, and in which the taxable income is not greater than that of the next succeeding year. No year prior to that first average year shall, for the purposes of any application of this Division in determining the tax payable by a taxpayer, be capable of being an average year.\n\n(2) Any year in which the taxpayer was not carrying on business and was not in receipt of a taxable income shall not be counted as a first average year for the purposes of the first application of this Division in determining the tax payable by a taxpayer.\n\n(3) This section shall not apply to a taxpayer whose income has been or is liable to be assessed at an average rate of tax determined under the provisions of the previous Act.\n\n152  Taxpayer not in receipt of assessable income\n\nAny year in which the taxpayer was not carrying on business and was not in receipt of assessable income shall not be counted as an average year, and the provisions of this Division shall apply to the income thereafter derived by the taxpayer as if he or she had never been a taxpayer before that year.\n\n153  Taxpayer with no taxable income\n\nAny year in which the taxpayer was carrying on business but had no taxable income shall be capable of being an average year.\n\n154  Excess of allowable deductions\n\nAny excess of allowable deductions over the assessable income of the taxpayer in any average year shall not be taken into account in calculating the average income.\n\n155  Permanent reduction of income\n\n(1) Where a taxpayer establishes that, owing to his or her retirement from his or her occupation, or from any other cause (but not including a change in the investment of assets from which assessable income was derived into assets from which the taxpayer derives income which is not liable to be assessed under this Act), his or her taxable income has been permanently reduced to an amount which is less than two‑thirds of his or her average taxable income, he or she shall be assessed, and the provisions of this Division shall apply to the income thereafter derived by him or her, as if he or she had never been a taxpayer before that year.\n\n(2) For the purposes of the application of subsection (1) in relation to a taxpayer in relation to a year of income, a reference in that subsection to the average taxable income of the taxpayer shall be construed as a reference to the amount that would be the average income of the taxpayer in relation to that year of income ascertained in accordance with section 149 if there were excluded from the assessable income of the taxpayer of the average years any income received by him or her from sources from which he or she does not usually receive income.\n\n156  Rebate of tax for, or complementary tax payable by, certain primary producers\n\n(1) In this section:\n\nactual taxable income from primary production, in relation to a taxpayer in relation to a year of income, means the amount (if any) remaining after deducting from the assessable primary production income of the taxpayer of the year of income so much of the aggregate of the relevant primary production deductions of the taxpayer of the year of income as does not exceed that assessable income.\n\nassessable primary production income, in relation to a taxpayer in relation to a year of income, means so much of the assessable income of the taxpayer of the year of income as was derived from the carrying on of a primary production business by the taxpayer or was included in the assessable income of the taxpayer of the year of income in consequence of the carrying on of a primary production business by the taxpayer.\n\ndeemed taxable income from primary production, in relation to a taxpayer in relation to a year of income, means:\n\n(a) if the taxpayer did not have a non‑primary production profit in relation to the year of income—the taxable income of the taxpayer; and\n\n(b) in any other case—the sum of the actual taxable income from primary production of the taxpayer of the year of income and the notional taxable income from primary production of the taxpayer of the year of income.\n\nnotional taxable income from primary production, in relation to a taxpayer in relation to a year of income, being a taxpayer who had a non‑primary production profit in relation to the year of income, means:\n\n(a) where the taxpayer did not incur a primary production loss in relation to the year of income:\n\n(i) in a case to which subparagraph (ii) does not apply—the amount ascertained by deducting from the taxable income of the taxpayer of the year of income the actual taxable income from primary production of the taxpayer of the year of income; and\n\n(ii) where the taxable income of the taxpayer of the year of income exceeds the actual taxable income from primary production of the taxpayer of the year of income and that excess is greater than $5,000—$5,000 reduced by $1 for each whole dollar by which the amount of that excess exceeds $5,000; and\n\n(b) where the taxpayer incurred a primary production loss in relation to the year of income:\n\n(i) in a case where the sum of the taxable income of the taxpayer of the year of income and the amount of the primary production loss is less than or equal to $5,000—the taxable income of the taxpayer of the year of income; and\n\n(ii) in a case where the sum of the taxable income of the taxpayer of the year of income and the amount of the primary production loss (which sum is in this subparagraph referred to as the non‑farm income) exceeds $5,000—an amount ascertained by deducting from $5,000 one dollar for each whole dollar by which so much of the non‑farm income as does not exceed $10,000 exceeds $5,000 and deducting from the resultant amount so much (if any) of the amount of the primary production loss as does not exceed that resultant amount.\n\nrelevant primary production deductions, in relation to a taxpayer in relation to a year of income, means:\n\n(a) any deductions allowed or allowable in the taxpayer’s assessment in respect of income of the year of income that relate exclusively to assessable primary production income of the taxpayer of a year of income;\n\n(b) so much of any other deductions (other than apportionable deductions) allowed or allowable in the taxpayer’s assessment in respect of income of the year of income as, in the opinion of the Commissioner, may appropriately be related to assessable primary production income of the taxpayer of a year of income; and\n\n(c) the amount that bears to the apportionable deductions allowed or allowable in the taxpayer’s assessment the same proportion as the amount ascertained by deduction from the assessable primary production income of the taxpayer of the year of income any deductions allowable from that assessable income in accordance with paragraphs (a) and (b) bears to the sum of the taxable income of the taxpayer of the year of income and the apportionable deductions.\n\n(2) For the purposes of subsection (1), a taxpayer shall be taken to have a non‑primary production profit in relation to a year of income if the assessable income of the taxpayer of the year of income other than assessable primary production income exceeds the aggregate of the deductions (other than relevant primary production deductions) allowable to the taxpayer in respect of the year of income.\n\n(3) For the purposes of subsection (1), a taxpayer shall be taken to have incurred a primary production loss in relation to a year of income if the aggregate of the relevant primary production deductions in relation to the year of income exceeds the assessable primary production income of the taxpayer of the year of income, and the amount of that loss shall be taken to be the amount of the excess.\n\n(5) Where:\n\n(a) this Division applies to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of subsection 98(1) or (2) or to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this subsection referred to as the eligible net income); and\n\n(b) the amount of tax that would, apart from this section, section 94, Division 6AA and Part VIIB and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income exceeds the amount of tax that would, apart from this section, section 94, Division 6AA and Part VIIB and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the trustee in respect of the eligible net income;\n\nthe trustee is entitled, in his or her assessment in respect of the eligible net income, to a rebate of tax of an amount ascertained in accordance with the formula ![Start formula start fraction A times B over C end fraction end formula](image.005.png), where:\n\nA  is the number of whole dollars in the amount of the deemed net income from primary production.\n\nB  is the excess referred to in paragraph (b); and\n\nC  is the number of whole dollars in the eligible net income.\n\n(5A) Where:\n\n(a) this Division applies to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of subsection 98(1) or (2) or to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this subsection referred to as the eligible net income); and\n\n(b) the amount of tax that would, apart from this section, section 94, Division 6AA and Part VIIB and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the trustee in respect of the eligible net income exceeds the amount of tax that would, apart from this section, section 94, Division 6AA and Part VIIB and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income;\n\nthe trustee is liable to pay complementary tax, at the rate declared by the Parliament for the purposes of this subsection, on so much of the net income of the trust estate as is equal to the deemed net income from primary production.\n\n(6) For the purposes of the application of this section in relation to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of subsection 98(1) or (2) or in relation to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this subsection referred to as the eligible net income):\n\nactual net income from primary production means so much of the net income from primary production of the trust estate as is included in the eligible net income.\n\nassessable primary production income means so much of the assessable income of the trust estate of the year of income as was derived from the carrying on of a primary production business by the trustee or was included in the assessable income of the trust estate of the year of income in consequence of the carrying on of a primary production business by the trustee.\n\ndeemed net income from primary production means:\n\n(a) if the trust estate did not have a non‑primary production profit in relation to the year of income—the eligible net income; and\n\n(b) in any other case—the sum of the actual net income from primary production of the trust estate of the year of income and the notional net income from primary production of the trust estate of the year of income.\n\neligible part of the primary production loss, in relation to a primary production loss incurred by the trust estate in the year of income, means so much of the primary production loss as is equal to the amount by which the eligible net income would have been increased if the aggregate of the relevant primary production deductions allowable in calculating the amount of the net income of the trust estate of the year of income had been equal to the assessable primary production income of the trust estate of the year of income.","sortOrder":1000071},{"sectionNumber":"full-source-retrieval-0073","sectionType":"document_chunk","heading":"Document excerpt 73","content":"net income from primary production means the amount (if any) remaining after deducting from the assessable primary production income of the trust estate of the year of income so much of the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate as does not exceed that assessable primary production income.\n\nnotional net income from primary production means:\n\n(a) where the trust estate had a non‑primary production profit in relation to the year of income and did not incur a primary production loss in relation to the year of income:\n\n(i) in a case to which subparagraph (ii) does not apply—the amount ascertained by deducting from the eligible net income the actual net income from primary production (if any); and\n\n(ii) where the eligible net income exceeds the actual net income from primary production in relation to the year of income and that excess is greater than $5,000—$5,000 reduced by $1 for each whole dollar by which the amount of that excess exceeds $5,000; and\n\n(b) where the trust estate had a non‑primary production profit in relation to the year of income and incurred a primary production loss in relation to the year of income:\n\n(i) in a case where the sum of the eligible net income and the eligible part of the primary production loss is less than or equal to $5,000—the eligible net income; and\n\n(ii) in a case where the sum of the eligible net income and the eligible part of the primary production loss (which sum is in this subparagraph referred to as the  non‑farm income) exceeds $5,000—an amount ascertained by deducting from $5,000 one dollar for each whole dollar by which so much of the non‑farm income as does not exceed $10,000 exceeds $5,000 and deducting from the resultant amount so much (if any) of the eligible part of the primary production loss as does not exceed that resultant amount.\n\nrelevant primary production deductions means:\n\n(a) any deductions allowed or allowable in calculating the amount of the net income of the trust estate of the year of income that relate exclusively to assessable primary production income of a year of income;\n\n(b) so much of any other deductions (other than apportionable deductions) allowed or allowable in calculating the amount of that net income as, in the opinion of the Commissioner, may appropriately be related to assessable primary production income of the trust estate of a year of income; and\n\n(c) the amount that bears to the apportionable deductions allowed or allowable in calculating the amount of that net income the same proportion as the amount ascertained by deducting from the assessable primary production income of the trust estate of the year of income any deductions allowable from that assessable primary production income in accordance with paragraphs (a) and (b) bears to the sum of the net income of the trust estate and the apportionable deductions.\n\n(7) For the purposes of subsection (6), a trust estate shall be taken to have incurred a primary production loss in relation to a year of income if the aggregate of the relevant primary production deductions allowable in calculating the amount of the net income of the trust estate of the year of income exceeds the assessable primary production income of the trust estate of the year of income, and the amount of that loss shall be taken to be the amount of the excess.\n\n(8) For the purposes of subsection (6), a trust estate shall be taken to have a non‑primary production profit in relation to a year of income if the assessable income of the trust estate of the year of income other than assessable primary production income exceeds the aggregate of the deductions (other than relevant primary production deductions) allowable in calculating the amount of the net income of the trust estate of the year of income.\n\n157  Application of Division to primary producers\n\n(1) In respect of income derived during the year ending on 30 June 1938 and during any subsequent year or during any accounting period adopted in lieu of any such year, the foregoing provisions of this Division shall not apply except in respect of income derived by a primary producer.\n\n(2) For the purposes of this section, primary producer means a person who carries on in Australia a primary production business.\n\n(3) Subject to subsection (3A), for the purposes only of determining whether a person is carrying on a primary production business, a beneficiary in a trust estate shall, to the extent to which he or she is presently entitled to the income or part of the income of that estate, be deemed to be carrying on the business carried on by the trustees of the estate which produces that income.\n\n(3A) Subsection (3) does not operate to deem a beneficiary in a trust estate who is presently entitled to the income or a part of the income of that estate to be carrying on the business carried on by the trustees of the trust estate in a year of income unless:\n\n(a) the share of the income of that trust estate of the year of income to which the beneficiary is presently entitled is not less than $1,040; or\n\n(b) the Commissioner is satisfied that the interest of the beneficiary in the trust estate was not acquired by, or granted to, the beneficiary for the purpose, or primarily for the purpose, of enabling the provisions of this Division to apply in respect of income derived by the beneficiary.\n\n(4) If in any year in respect of which this Division applies only to taxpayers who are primary producers, a taxpayer was not carrying on business as a primary producer, that year shall not be counted as an average year and the provisions of this Division shall apply to the income thereafter derived by the taxpayer as if he or she had never been a taxpayer before that year.\n\n158  Application of Division\n\nThis Division shall not apply in any case where there are not at least 2 average years or where the taxpayer is assessed in accordance with section 99A in respect of the year of income, and shall not apply to the taxable income of a company except income in respect of which it is assessable as a trustee.\n\n158A  Election that Division not apply\n\n(1) A taxpayer may elect that this Division shall not apply in relation to income of the taxpayer of a year of income specified in the election and of all subsequent years of income.\n\n(2) An election in pursuance of subsection (1) shall be made in writing and lodged with the Commissioner on or before the date of lodgment of the return of income of the taxpayer for the year of income specified in the election or within such further time as the Commissioner allows.\n\n(3) Where a taxpayer makes an election under subsection (1), this Division shall not apply in relation to income of the taxpayer of the year of income specified in the election or of any subsequent year of income.\n\nDivision 16D—Certain arrangements relating to the use of property\n\n159GE  Interpretation\n\n(1) In this Division:\n\narrangement includes:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct whether unilateral or otherwise.\n\narrangement payment, in relation to an arrangement relating to the use, or the control of the use, of an item of property, means so much of any payment liable to be made under the arrangement as represents consideration for any one or more of the following:\n\n(a) the use of the item;\n\n(b) the control of the use of the item;\n\n(c) the sale or disposal of the item.\n\narrangement period, in relation to an item of eligible property that is, or is included in, arrangement property in relation to an arrangement at a particular time, means the period that is at that time the total period during which the arrangement is likely to be in force in relation to that item of eligible property (including any period before that time when the arrangement was in force in relation to that item of eligible property).\n\narrangement property means property that is, or is to be, used, or the use of which is, or is to be, controlled, under an arrangement.\n\nassessable arrangement payment means an arrangement payment that, apart from this Division, would be included in whole or in part in the assessable income of a taxpayer of a year of income.\n\nassociate means, in relation to a person other than an exempt public body, any person who is an associate, within the meaning of section 318, in relation to the person or, in relation to an exempt public body:\n\n(a) a partner of the exempt public body or a partnership in which the exempt public body is a partner; or\n\n(b) if a partner of the exempt public body is a natural person otherwise than in the capacity of trustee—the spouse or a child of that partner; or\n\n(c) a trustee of a trust where the exempt public body, or another entity that is an associate of the exempt public body because of paragraph (a), (b) or (d), benefits under the trust; or\n\n(d) a company where:\n\n(i) the company is sufficiently influenced by:\n\n(A) the exempt public body; or\n\n(B) another entity that is an associate of the exempt public body because of paragraph (a), (b) or (c); or\n\n(C) another company that is an associate of the exempt public body because of another application of this paragraph; or\n\n(D) 2 or more entities covered by the preceding sub‑subparagraphs; or\n\n(ii) a majority voting interest in the company is held by:\n\n(A) the exempt public body; or\n\n(B) the entities that are associates of the primary entity because of subparagraph (i) of this paragraph and paragraphs (a), (b) and (c); or\n\n(C) the exempt public body and the entities that are associates of the exempt public body because of subparagraph (i) of this paragraph and because of paragraphs (a), (b) and (c).\n\nSubsections 318(6) and (7) apply for the purposes of paragraphs (a) to (d) in the same way as those subsections apply for the purposes of section 318.\n\ncapital expenditure deduction means a deduction:\n\n(a) under the former Division 10, 10AAA, 10AA, 10A, 10C or 10D of this Part; or\n\n(b) under Subdivision 40‑B of the Income Tax Assessment Act 1997 for a depreciating asset that is a forestry road or timber mill building; or\n\n(c) under Division 43 of that Act; or\n\n(d) under section 40‑830 of that Act for an amount that is a project amount under subsection 40‑840(1) (about mining capital expenditure and transport capital expenditure); or\n\n(e) under the former Subdivision 330‑C, 330‑H or 387‑G of that Act.\n\ncontrol means effectively control.\n\ndepreciation deduction means a deduction:\n\n(a) in respect of depreciation under Division 3 of this Act or the former Division 42 of the Income Tax Assessment Act 1997; or\n\n(b) for the decline in value of a depreciating asset under Division 40 of the Income Tax Assessment Act 1997.\n\nDivision 10, 10AA or 10A property means property in relation to which there has been incurred:\n\n(a) allowable capital expenditure within the meaning of the former Division 10 or 10AA of this Part or the former Subdivision 330‑C of the Income Tax Assessment Act 1997 or mining capital expenditure within the meaning of section 40‑860 of that Act;\n\n(b) expenditure taken into account in ascertaining an amount of residual capital expenditure specified in the former paragraph 122C(1)(a); or\n\n(c) capital expenditure specified in the former subsection 124F(1) or 124JA(1) of this Act or the former section 387‑460 of the Income Tax Assessment Act 1997; or\n\n(d) capital expenditure on a forestry road in connection with a timber operation, or capital expenditure for the construction or acquisition of a timber mill building.\n\nDivision 10AAA property means property in relation to which there has been incurred capital expenditure to which the former Division 10AAA of this Part applies or transport capital expenditure within the meaning of the former Subdivision 330‑H, or section 40‑865 of the Income Tax Assessment Act 1997.\n\nDivision 10C or 10D property means property in relation to which there has been incurred qualifying expenditure within the meaning of the former Division 10C or 10D or for which there is a pool of construction expenditure within the meaning of Division 43 of the Income Tax Assessment Act 1997.\n\neffective life, in relation to an item of eligible property at a particular time, means the period (if any) that the Commissioner estimates will be, or would be, at that time the effective life of the property after that time assuming that it is or would be maintained in reasonably good order and condition.\n\neligible amount, in relation to an item of eligible property, means:\n\n(a) where the item is an item of eligible depreciation property—the amount that:\n\n(i) was the cost of the item of property within the meaning of Division 40, or the former Division 42, of the Income Tax Assessment Act 1997 to the taxpayer who holds it; or\n\n(ii) would have been the cost of the item of property to the taxpayer for the purposes of that Division if that Division had applied in relation to the item of property; and\n\n(b) where the item is an item of eligible capital expenditure property—any amount of eligible capital expenditure in relation to the item of property.\n\neligible capital expenditure, in relation to an item of eligible capital expenditure property, means expenditure by reason of which the item of property is eligible capital expenditure property.\n\neligible capital expenditure property means Division 10, 10AA or 10A property, Division 10AAA property, Division 10C or 10D property or eligible spectrum licences.\n\neligible depreciation property means:\n\n(a) plant or articles within the meaning of the former section 54 of this Act; or\n\n(b) plant within the meaning of the former section 42‑18 of the Income Tax Assessment Act 1997 or plant within the meaning of section 45‑40 of that Act; or\n\n(c) a depreciating asset within the meaning of Division 40 of that Act.\n\neligible property means:\n\n(a) eligible depreciation property;\n\n(b) Division 10, 10AA or 10A property;\n\n(c) Division 10AAA property;\n\n(d) Division 10C or 10D property; or\n\n(e) eligible spectrum licences.\n\neligible real property, means eligible property that is:\n\n(a) a building or a part of a building; or\n\n(b) a structure that is a fixture or a part of such a structure.\n\neligible spectrum licence means a spectrum licence within the meaning of the Income Tax Assessment Act 1997.\n\nexempt public body means:\n\n(a) the Commonwealth, a State or a Territory; or\n\n(aa) an STB (within the meaning of Division 1AB) the income of which is wholly exempt from tax; or\n\n(b) a municipal corporation or other local governing body, the income of which is wholly exempt from tax; or\n\n(c) a public authority:\n\n(i) that is constituted by or under a law of the Commonwealth, a State or a Territory; and\n\n(ii) the income of which is wholly exempt from tax.\n\npayment portion, in relation to an arrangement payment in relation to an eligible amount in relation to an item of eligible property, means so much of the arrangement payment as the Commissioner considers is attributable to the eligible amount in relation to the item of eligible property.\n\nperson includes an exempt public body.\n\ntotal notional principal, in relation to an eligible amount in relation to an item of eligible property in relation to an application period, means the sum of all notional principal amounts (if any) in relation to payment portions of arrangement payments in relation to the eligible amount in relation to the application period.\n\nNote: This Division applies to deductions under Division 40 (Capital allowances) and Division 43 (Capital works) of the Income Tax Assessment Act 1997 as if you were the owner of an asset you hold (under that Division) instead of any other person: see section 40‑135 of that Act.\n\n(2) For the purposes of the definition of  arrangement period in subsection (1), a reference in that definition to the total period during which an arrangement is, at a particular time, likely to be in force in relation to an item of eligible property that at that time is, or is included in, arrangement property in relation to the arrangement is a reference to:\n\n(a) where at that time the total period during which the arrangement was, or is, to be in force in relation to that item of eligible property (including any period before that time when the arrangement was in force in relation to that item) was or is specified in or ascertainable in accordance with the arrangement—that period; and\n\n(b) in any other case—such period as would have been, or is, at that time the period during which the arrangement would be, or is, likely to be in force in relation to the item of property (including any period before that time when the arrangement was in force in relation to the item), having regard to the provisions of the arrangement and any other relevant circumstances in relation to the arrangement, or in relation to the item of property.\n\n(3) Nothing in this Division prevents an item of eligible property from being an item of eligible property by reason of the application of 2 or more paragraphs of the definition of eligible property in subsection (1).\n\n(4) For the purposes of the definition of total notional principal in subsection (1), where:\n\n(a) under section 159GK there is an interest amount within the meaning of that section in relation to a payment portion (not being a notional final payment portion within the meaning of that section) in relation to an arrangement payment; and\n\n(b) the interest amount is less than the amount of the payment portion;\n\nthere shall be taken to be a notional principal amount in relation to the payment portion of an amount equal to the difference between the interest amount and the amount of the payment portion.\n\n(5) Where:","sortOrder":1000072},{"sectionNumber":"full-source-retrieval-0074","sectionType":"document_chunk","heading":"Document excerpt 74","content":"(a) under 2 or more successive arrangements relating to the use by a person, or the control by a person of the use, of property owned by another person, the same property is used by, or the use of the same property is controlled by, the same person or by persons who, in relation to each other, are associates; and\n\n(b) the Commissioner considers that the arrangements should be taken, for the purposes of this Division, to be a single arrangement;\n\nthe arrangements shall, for the purposes of this Division, be deemed to be a single arrangement entered into at the same time as the first of the arrangements, coming into force at the same time as the first of the arrangements and continuing in force until the expiration of the second or last, as the case requires, of the arrangements.\n\n(6) A reference in subsection (5) to successive arrangements includes a reference to:\n\n(a) where the arrangement periods of 2 or more arrangements overlap—those arrangements; and\n\n(b) where there is a period between the expiration of an arrangement and the commencement of another arrangement and the Commissioner considers that the arrangements should be taken to be successive arrangements for the purposes of that subsection—those arrangements.\n\n(7) Where this Division applies in relation to an item of eligible property in relation to a qualifying arrangement, a reference in this Division to the application period in relation to that application of this Division in relation to the item of eligible property is a reference to the period commencing at the time at which this Division in that application commences to apply and ending at the time at which this Division in that application ceases to apply.\n\n(8) For the purposes of this Division, where one or more of the partners in a partnership uses, or controls the use of, an item of property, each of the partners in the partnership shall be taken to use, or to control the use of, the item of property and the partnership shall be taken not to use, or to control the use of, the item of property.\n\n(10) For the purpose of this Division, disregard an acquisition or disposal of property by way of the transfer of the property for the provision or redemption of a security. Consequently this Division applies as if the person who was the owner of the property before the transfer continues to be the owner after the transfer.\n\n159GEA  Division applies to certain State/Territory bodies\n\nIn addition to any other operation that this Division has, this Division operates as if the references to an exempt public body included a reference to a prescribed excluded STB (within the meaning of Division 1AB).\n\n159GF  Residual amounts\n\n(1) Subject to subsection 159GJ(1), in this Division a reference to the residual amount at a particular time (in this subsection referred to as the relevant time) in relation to the eligible amount by reason of which an item of property is eligible depreciation property at the relevant time is a reference to the eligible amount reduced by:\n\n(a) where the item of property was not dealt with by the taxpayer who holds the item in the prescribed manner at any time during the period (in this subsection referred to as the relevant period) before the relevant time when it was held by the taxpayer (within the meaning of Division 40 of the Income Tax Assessment Act 1997)—the total amount of deductions for depreciation or decline in value that would, but for any deduction denying provision, have been allowable to the taxpayer under this Act or the Income Tax Assessment Act 1997 in respect of that item of property for the relevant period if:\n\n(i) at all times during the relevant period the taxpayer had wholly and exclusively dealt with the item of property in the prescribed manner; and\n\n(ii) those deductions were calculated using the diminishing value method; and\n\n(iii) section 57AG, as in force immediately before the commencement of section 1 of the Taxation Laws Amendment Act 1992, did not apply in relation to the item of property;\n\n(b) where the item of property was wholly and exclusively dealt with by the taxpayer who held the item in the prescribed manner at all times during the relevant period—the total amount of deductions for depreciation or decline in value that were or, but for any deduction denying provision, would have been, allowed or allowable to the taxpayer in respect of the item of property for that period under this Act or the Income Tax Assessment Act 1997; and\n\n(c) in any other case—the total amount of deductions for depreciation or decline in value that, but for any deduction denying provision, would have been allowable to the taxpayer who holds the item of property in respect of the item under this Act or the Income Tax Assessment Act 1997 for the relevant period if:\n\n(i) the taxpayer had wholly and exclusively dealt with the item of property in the prescribed manner at all times during the relevant period; and\n\n(ii) in respect of any part of the relevant period for which deductions for depreciation or decline in value were or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997—the deductions were allowable on the same basis and at the same percentage as was or would have been allowed or allowable for that part of the relevant period; and\n\n(iii) in respect of any other part (in this subparagraph referred to as the relevant part) of the relevant period—the deductions were allowable:\n\n(A) where the relevant part was immediately succeeded by another part of the relevant period in respect of which deductions for depreciation or decline in value were or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997—on the same basis and at the same percentage as was or would have been allowed or allowable in respect of that other part; and\n\n(B) in any other case—on the same basis and at the same percentage as was or, but for any deduction denying provision, would have been allowed or allowable under this Act or the Income Tax Assessment Act 1997 in respect of the part of the relevant period for which deductions for depreciation or decline in value was or would have been allowed or allowable, being the part that immediately preceded the relevant part.\n\n(2) For the purposes of subsection (1):\n\n(a) an item of eligible depreciation property shall be taken to be dealt with by a taxpayer in the prescribed manner at a particular time if:\n\n(i) the item of property is used by the taxpayer at that time for the purpose of producing assessable income; or\n\n(ii) the item of property is, at that time, installed ready for use for the purpose of producing assessable income and held in reserve by the taxpayer; and\n\n(b) a reference to a deduction denying provision is a reference to a provision of this Act that would have the effect of denying an entitlement in whole or in part to a deduction otherwise wholly allowable under this Act.\n\n(3) Subject to subsection 159GJ(2), where any of the following amounts (in this subsection referred to as the attributable amount):\n\n(a) an amount of residual previous capital expenditure within the meaning of the former Division 10 or 10AA;\n\n(b) an amount of residual capital expenditure within the meaning of the former Division 10, 10AA or 10A;\n\n(c) an amount of residual (1 May 1981 to 18 August 1981) capital expenditure within the meaning of the former Division 10 or 10AA;\n\n(d) an amount of residual (19 August 1981 to 19 July 1982) capital expenditure within the meaning of the former Division 10 or 10AA;\n\n(e) so much as is unrecouped of an amount of allowable (post‑19 July 1982) capital expenditure within the meaning of the former Division 10 or 10AA;\n\n(f) so much as is unrecouped of an amount of allowable capital expenditure within the meaning of the former Subdivision 330‑C of the Income Tax Assessment Act 1997;\n\n(fa) so much of an amount of mining capital expenditure or transport capital expenditure (within the meaning of the Income Tax Assessment Act 1997) as has not been deducted under Division 40 of that Act;\n\n(g) the difference between capital expenditure and previous deductions as defined in the former subsection 387‑470(1) of the Income Tax Assessment Act 1997;\n\n(h) the difference between the cost of a forestry road or timber mill building for the purposes of Division 40 of the Income Tax Assessment Act 1997 and its adjustable value for the purposes of that Division;\n\nascertained as at the end of a year of income, is attributable in whole or in part to an amount of expenditure (in this subsection referred to as the relevant expenditure) by reason of which an item of property is Division 10, 10AA or 10A property, in this Division a reference to the residual amount at any time during the year of income in relation to the relevant expenditure is a reference to so much of the attributable amount as is attributable to the relevant expenditure.\n\n(4) Subject to subsection 159GJ(3), in this Division a reference to the residual amount at a particular time in relation to an amount of expenditure by reason of which an item of property is Division 10AAA property is a reference to the amount of expenditure reduced by any part of that expenditure that has been allowed or is allowable as a deduction under the former Division 10AAA of this Part or the former Subdivision 330‑H of the Income Tax Assessment Act 1997, or under Subdivision 40‑I of that Act for transport capital expenditure, from the assessable income of any taxpayer of a year of income preceding the year of income in which the particular time occurs.\n\n(5) Subject to subsection 159GJ(4), in this Division a reference to the residual amount at a particular time in relation to an amount of expenditure by reason of which an item of property is Division 10C or 10D property is a reference to the residual capital expenditure within the meaning of the former Division 10C or 10D of this Part, or to the undeducted construction expenditure within the meaning of Division 43 of the Income Tax Assessment Act 1997, as appropriate, at that time in relation to the amount of expenditure.\n\n(6) In this Division, a reference to the residual amount at a particular time in relation to an amount of expenditure because of which an item of property is an eligible spectrum licence is a reference to:\n\n(a) the amount of unrecouped expenditure (within the meaning of the former section 380‑20 of the Income Tax Assessment Act 1997) on that licence at that time; or\n\n(b) the adjustable value of that licence (within the meaning of Division 40 of that Act) at that time.\n\n159GG  Qualifying arrangements\n\n(1) For the purposes of this Division, where at any time (in this subsection referred to as the relevant time) any of the following conditions is satisfied in relation to an arrangement relating to the use by a person (in this subsection referred to as the end‑user), or to the control by a person (in this subsection also referred to as the end‑user) of the use, of property owned by another person who is a party to the arrangement, being property that is or includes an item of eligible property:\n\n(a) the arrangement contains provision to the effect that:\n\n(i) if:\n\n(A) on the termination or expiration of the arrangement, the owner sells or otherwise disposes of the whole of the arrangement property, or part of the arrangement property that is or includes the item of eligible property, to any person; and\n\n(B) the owner or an associate receives in respect of the sale or disposal no consideration, or consideration of an amount less than an amount (in this subparagraph referred to as the guaranteed residual value) specified in, or ascertainable under, the provision;\n\nthe end‑user or an associate will pay to the owner or an associate an amount equal to the guaranteed residual value, or to the amount by which the guaranteed residual value exceeds the consideration, as the case may be;\n\n(ii) at or after the termination or expiration of the arrangement, the whole of the arrangement property or part of the arrangement property that is or includes the item of eligible property is to be transferred (whether or not for any consideration) to the end‑user or an associate;\n\n(iii) the end‑user or an associate has or will have the right to purchase or to require the transfer of the whole of the arrangement property or part of the arrangement property that is or includes the item of eligible property; or\n\n(iv) the arrangement period in relation to the item of eligible property in relation to the arrangement is a period that exceeds 1 year and the end‑user or an associate will be liable to carry out, to expend money in respect of or to reimburse the owner or an associate for expenditure in respect of, repairs that may be required to the whole of the arrangement property or to part of the arrangement property that is or includes the item of eligible property;\n\n(b) the arrangement period in relation to the item of eligible property in relation to the arrangement is equal to or greater than:\n\n(i) where the item is an item of eligible real property—50% of the effective life of that item at the commencement of the arrangement period; or\n\n(ii) in any other case—75% of the effective life of that item at the commencement of the arrangement period;\n\n(c) the sum of:\n\n(i) the payment portions of arrangement payments that were liable to be made at or before the relevant time in relation to the eligible amount, or in relation to all of the eligible amounts (including any eligible amount in respect of expenditure incurred after the commencement of the arrangement period), in relation to the item of eligible property; and\n\n(ii) the payment portions of arrangement payments that, having regard to the provisions of the arrangement and any other relevant circumstances, are or were, at the relevant time, likely to become liable to be made after the relevant time in relation to the eligible amount, or in relation to all of the eligible amounts (including any eligible amount in respect of expenditure that, having regard to the provisions of the arrangement and any other relevant circumstances, is or was likely to be incurred during the arrangement period), in relation to the item of eligible property;\n\nis equal to or greater than 90% of the sum of:\n\n(iii) the residual amount in relation to the eligible amount, or the sum of the residual amounts in relation to the eligible amounts, in respect of which expenditure was incurred before the commencement of the arrangement period in relation to the item of eligible property, as ascertained at the commencement of the arrangement period; and\n\n(iv) the amount of any expenditure that was, or is likely to be, incurred during the arrangement period, being expenditure giving rise to an eligible amount in relation to the item of eligible property;\n\nthe arrangement shall be taken to be, or to have been, a qualifying arrangement in relation to the item of eligible property:\n\n(d) at the relevant time; and\n\n(e) at all times before the relevant time when the arrangement was in force in relation to the item of eligible property.\n\n(2) For the purposes of this Division, where:\n\n(a) an item of eligible property is, or is included in, arrangement property in relation to an arrangement relating to the use by a person (in this subsection referred to as the end‑user), or to the control by a person (in this subsection also referred to as the end‑user) of the use, of property owned by another person who is a party to the arrangement; and\n\n(b) the ownership of the item of eligible property is transferred to the end‑user or an associate within 1 year after the arrangement ceases to be in force (whether by termination or expiration) in relation to the item of eligible property;\n\nthe arrangement shall be taken to have been a qualifying arrangement in relation to the item of eligible property at all times during the period during which the arrangement was in force in relation to the item of eligible property.\n\n(3) For the purposes of subsections (1) and (2):\n\n(a) a lease to a person of property owned by another person shall be taken to be an arrangement relating to the use by the person of property owned by the other person; and\n\n(b) any arrangement entered into in relation to the lease referred to in paragraph (a) shall be taken to be part of the arrangement referred to in that paragraph.\n\n(4) Where, but for this subsection, an arrangement would be a qualifying arrangement in relation to an item of eligible property at a particular time (in this subsection referred to as the relevant time) and the Commissioner, having regard to:\n\n(a) the circumstances by reason of which the arrangement is a qualifying arrangement in relation to that item of eligible property; and\n\n(b) any other relevant circumstances;\n\nconsiders it unreasonable that the arrangement should be a qualifying arrangement at the relevant time in relation to the item of eligible property, the arrangement shall be taken not to be a qualifying arrangement at the relevant time in relation to the item of eligible property.\n\n(5) Where an arrangement is a qualifying arrangement in relation to an item of eligible property at a particular time (in this subsection referred to as the relevant time) and the arrangement ceases to be a qualifying arrangement in relation to that item of eligible property at a later time, the arrangement shall not be taken not to have been a qualifying arrangement in relation to that item of eligible property at the relevant time by reason of it ceasing to be a qualifying arrangement in relation to that item of eligible property at the later time.\n\n159GH  Application of Division in relation to property","sortOrder":1000073},{"sectionNumber":"full-source-retrieval-0075","sectionType":"document_chunk","heading":"Document excerpt 75","content":"(1A) This Division does not apply in relation to the item of eligible property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if the tax preferred use:\n\n(a) starts on or after 1 July 2007; and\n\n(b) does not occur under a legally enforceable arrangement entered into before 1 July 2007.\n\n(1B) This Division does not apply in relation to the item of eligible property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if:\n\n(a) the tax preferred use starts on or after 1 July 2007; and\n\n(b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and\n\n(c) an election is made under item 71 of Schedule 1 to the Tax Laws Amendment (2007 Measures No. 5) Act 2007 to have subitem 71(2) of that Schedule apply to the property.\n\n(1) Subject to subsections (1A), (1B) and (2), where:\n\n(a) at a particular time (in this subsection referred to as the relevant time) an arrangement is a qualifying arrangement under subsection 159GG(1) or (2) in relation to an item of eligible property; and\n\n(b) either of the following conditions is satisfied:\n\n(i) the qualifying arrangement was entered into after 5 o’clock in the afternoon, by standard time in the Australian Capital Territory, on 15 May 1984 and the end‑user referred to in subsection 159GG(1) or (2) is an exempt public body;\n\n(ii) the arrangement was entered into after 5 o’clock in the afternoon, by legal time in the Australian Capital Territory, on 16 December 1984 and the use of the property referred to in subsection 159GG(1) or (2) takes place, or will take place, outside Australia and is, or will be, wholly or partly for the purpose of producing exempt income;\n\nthis Division applies in relation to the item of eligible property at the relevant time.\n\n(2) This Division does not apply in relation to an item of eligible property at a particular time if at that time section 51AD applies to the item of eligible property in relation to a taxpayer.\n\n159GJ  Effect of application of Division on certain deductions etc.\n\n(1) Where this Division applies in relation to an item of eligible depreciation property:\n\n(b) in relation to any year of income the whole of which is included in or comprises the application period—no depreciation deduction shall be allowable to any taxpayer in relation to the item of property for that year of income;\n\n(c) in relation to any other year of income in which the whole or a part of the application period occurs:\n\n(i) in relation to any part (in this subsection referred to as the pre‑application part) of the year of income that precedes the application period—there shall be allowable to a taxpayer as a depreciation deduction in relation to the item of property:\n\n(A) where this Division has not previously applied in relation to the item of property—the same depreciation deduction (if any) as would, apart from this Division, be allowable to the taxpayer; and\n\n(B) in any other case—the same depreciation deduction (if any) as would, but for this application of this section, be allowable to the taxpayer;\n\n(ii) in relation to the part of the year of income during which this Division applies—no depreciation deduction shall be allowable to any taxpayer in relation to the item of property; and\n\n(iii) in relation to any part (in this subsection referred to as the post‑application part) of the year of income that occurs after the application period (not being a part that occurs after the commencement of a subsequent application period):\n\n(A) the residual amount in relation to the item of eligible depreciation property at any time (in this sub‑subparagraph referred to as the relevant time) during the post‑application part is an amount ascertained in accordance with the formula:\n\n![Start formula A plus B minus C end formula](image.006.png)\n\nwhere:\n\nA is the amount that, but for this application of this section, would be the residual amount at the relevant time in relation to the eligible amount (in this subparagraph referred to as the relevant eligible amount) by reason of which the item is an item of eligible depreciation property.\n\nB is:\n\n(a) where paragraph (b) of this component does not apply—the amount that, in determining the residual amount in component A, would be taken into account as depreciation under subsection 159GF(1) in respect of the application period; and\n\n(b) where, in determining the residual amount in component A, depreciation deductions taken into account in respect of the post‑application part would be calculated under this Act or the Income Tax Assessment Act 1997 using the diminishing value method—the amount that, in determining the residual amount in component A, would be taken into account under subsection 159GF(1) as depreciation deductions in respect of the application period and the part of the post‑application part before the relevant time; and\n\nC is:\n\n(a) where paragraph (a) of component B applies—an amount equal to the total notional principal in relation to the relevant eligible amount in relation to the application period; and\n\n(b) where paragraph (b) of component B applies—the sum of:\n\n(i) the total notional principal in relation to the relevant eligible amount in relation to the application period; and\n\n(ii) the amount that, in determining the residual amount in component A, would be taken into account as depreciation deductions under subsection 159GF(1) in respect of the part of the post‑application part before the relevant time if the depreciated value under this Act, the undeducted cost under the former Division 42 of the Income Tax Assessment Act 1997 or the adjustable value under Division 40 of that Act, of the item of eligible depreciation property at the beginning of the year of income in which this Division ceases to apply were equal to the residual amount at the beginning of the application period as reduced by the total notional principal in relation to the relevant eligible amount in relation to the application period;\n\n(B) for the purposes of any application of this Act or the Income Tax Assessment Act 1997, in relation to the item of property in relation to the post‑application part—the depreciated value, within the meaning of Division 3 of this Part, the undeducted cost under the former Division 42 of the Income Tax Assessment Act 1997 or the adjustable value under Division 40 of that Act, of the item of property at any time during the post‑application part shall be taken to be an amount equal to the residual amount in relation to the relevant eligible amount at that time as ascertained in accordance with sub‑subparagraph (A); and\n\n(C) the depreciation deduction (if any) allowable to a taxpayer in relation to the item of property in relation to the post‑application part is the depreciation deduction that would be allowable in respect of that period if this Division did not apply and, in the case of an item of property in relation to which the former paragraph 56(1)(a) of this Act or the diminishing value method under the former Division 42, or Division 40, of the Income Tax Assessment Act 1997 would, apart from this Division, apply, if the depreciated value, within the meaning of the former section 62 of this Act, the undeducted cost, under the former Division 42 of the Income Tax Assessment Act 1997 or the adjustable value under Division 40 of that Act, of the item of property at the beginning of the year of income were equal to the residual amount, as ascertained under sub‑subparagraph (A), in relation to the relevant eligible amount at the commencement of the post‑application part;\n\n(d) the residual amount at any time (in this paragraph referred to as the relevant time) after the year of income in which the application period ends (not being a time after the commencement of a subsequent application period) in relation to the eligible amount (in this paragraph referred to as the relevant eligible amount) by reason of which the item is an item of eligible depreciation property is the amount that would be the residual amount in relation to the relevant eligible amount in relation to the relevant time under sub‑subparagraph (1)(c)(iii)(A) if the post‑application part referred to in that sub‑subparagraph extended to include the relevant time; and\n\n(e) for the purpose of the application of this Act and the Income Tax Assessment Act 1997 in relation to the item of property at any time after the year of income in which the application period ends—there shall be taken to have been allowed as a depreciation deduction in relation to the item of property in relation to the application period an amount equal to the total notional principal in relation to the eligible amount by reason of which the item of property is eligible depreciation property in relation to the application period.\n\n(2) Where this Division applies in relation to an item of Division 10, 10AA or 10A property:\n\n(a) no deduction is allowable to any taxpayer under:\n\n(ii) section 40‑830 of the Income Tax Assessment Act 1997 for a project amount that is mining capital expenditure within the meaning of that Act; or\n\n(iii) Subdivision 40‑B of that Act for a depreciating asset that is a forestry road or timber mill building;\n\nin relation to any amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10, 10AA or 10A property for any year of income in which the whole or a part of the application period occurs;\n\n(b) the residual amount at any time after the application period (not being a time after the commencement of a subsequent application period) in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10, 10AA or 10A property is an amount equal to the amount that, but for this paragraph, would be the residual amount at that time in relation to the amount of expenditure under subsection 159GF(3) reduced by an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period and any prior application period; and\n\n(c) for the purposes of the application of:\n\n(ii) section 40‑830 of the Income Tax Assessment Act 1997 for a project amount that is mining capital expenditure within the meaning of that Act; or\n\n(iii) Subdivision 40‑B of that Act for a depreciating asset that is a forestry road or timber mill building;\n\nin relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10, 10AA or 10A property at any time after the application period, there shall be taken to have been allowed in respect of the amount of expenditure a deduction under whichever of those provisions applies in respect of the amount of expenditure of an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period.\n\n(3) Where this Division applies in relation to an item of Division 10AAA property:\n\n(a) no deduction is allowable to any taxpayer under section 40‑830 of the Income Tax Assessment Act 1997 for a project amount that is transport capital expenditure within the meaning of that Act in relation to any amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10AAA property for any year of income in which the whole or a part of the application period occurs; and\n\n(b) the residual amount at any time after the application period (not being a time after the commencement of a subsequent application period) in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10AAA property is an amount equal to the amount that, but for this paragraph, would be the residual amount at that time in relation to the amount of expenditure under subsection 159GF(4) reduced by an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period and any prior application period; and\n\n(c) for the purposes of the application of section 40‑830 of the Income Tax Assessment Act 1997, for a project amount that is transport capital expenditure within the meaning of that Act, in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10AAA property for any year of income after the year of income in which this Division ceases to apply—it is taken to be a requirement of that section that the deduction allowable under that section in respect of the amount of expenditure does not exceed the residual amount in relation to the amount of expenditure as worked out in accordance with paragraph (b).\n\n(4) Where this Division applies in relation to an item of Division 10C or 10D property:\n\n(a) in relation to any year of income the whole of which is included in or comprises the application period—no deduction shall be allowable to any taxpayer under Division 43 of the Income Tax Assessment Act 1997, in relation to any amount of expenditure by reason of which the item is Division 10C or 10D property for that year of income;\n\n(b) in relation to any other year of income in which the whole or a part of the application period occurs:\n\n(i) in relation to any part (in this subsection referred to as the pre‑application part) of the year of income that precedes the application period—there shall be allowable to the taxpayer as a deduction under Division 43 of the Income Tax Assessment Act 1997 in relation to an amount of expenditure by reason of which the item is Division 10C or 10D property:\n\n(A) where this Division has not previously applied in relation to the amount of expenditure—the same deduction (if any) as would, apart from this Division, be allowable under that Division; and\n\n(B) in any other case—the same deduction (if any) as would, but for this application of this section, be allowable under that Division;\n\n(ii) in relation to the part of the year of income during which this Division applies—no deduction shall be allowable to any taxpayer under Division 43 of the Income Tax Assessment Act 1997 in relation to any amount of expenditure by reason of which the item is Division 10C or 10D property; and\n\n(iii) in relation to any part (in this subsection referred to as the post‑application part) of the year of income that occurs after the application period (not being a part that occurs after the commencement of a subsequent application period):\n\n(A) the residual amount at any time during the post‑application part in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10C or 10D property is an amount equal to the amount that, but for this paragraph, would be the residual amount at that time in relation to the amount of expenditure under subsection 159GF(5) reduced by an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period and any prior application period; and\n\n(C) the deduction (if any) allowable to a taxpayer in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10C or 10D property under Division 43 of the Income Tax Assessment Act 1997 in relation to the post‑application part is the deduction (if any) that would be allowable to the taxpayer under that Division in respect of that period if this Division (other than this sub‑subparagraph) did not apply and if it were a requirement of that Division that the deduction did not exceed the residual amount in relation to the amount of expenditure as ascertained in accordance with sub‑subparagraph (A);\n\n(c) the residual amount at any time after the year of income in which the application period ends (not being a time after the commencement of a subsequent application period) in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10C or 10D property is the amount that, but for this paragraph, would be the residual amount at that time in relation to the amount of expenditure under subsection 159GF (5) reduced by an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period and any prior application period; and\n\n(d) in the application of Division 43 of the Income Tax Assessment Act 1997 in relation to any year of income after the year of income in which this Division ceases to apply, in relation to an amount of expenditure (not being expenditure incurred after the application period) by reason of which the item is Division 10C or 10D property it shall be taken to be a requirement of Division 43 of the Income Tax Assessment Act 1997 that the deduction (if any) allowable to a taxpayer under that Division in respect of the amount of expenditure does not exceed the residual amount in relation to the amount of expenditure as ascertained in accordance with paragraph (c).\n\n(5) If this Division applies in relation to an item of property that is an eligible spectrum licence:\n\n(a) an amount cannot be deducted under Division 40 of the Income Tax Assessment Act 1997 in relation to any amount of expenditure (other than expenditure incurred after the application period) by reason of which the item is an eligible spectrum licence for any year of income in which any of the application period occurs; and\n\n(b) the residual amount at any time after the application period (but before the start of a later application period) in relation to an amount of expenditure (other than expenditure incurred after the application period) because of which the item is an eligible spectrum licence is an amount equal to:","sortOrder":1000074},{"sectionNumber":"full-source-retrieval-0076","sectionType":"document_chunk","heading":"Document excerpt 76","content":"• the amount that, if not for this paragraph, would be the residual amount at that time in relation to the amount of expenditure under subsection 159GF(6);\n\nreduced by:\n\n• an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period and any prior application period; and\n\n(c) for the purposes of applying Division 40 of the Income Tax Assessment Act 1997 in relation to an amount of expenditure (other than expenditure incurred after the application period) because of which the item is an eligible spectrum licence at any time after the application period, a deduction under that Division is taken to have been allowed, for the amount of expenditure, of an amount equal to the total notional principal in relation to the amount of expenditure in relation to the application period.\n\n159GK  Effect of application of Division on assessability of arrangement payments\n\n(1) Where this Division applies in relation to an item of eligible property in relation to which there is an assessable arrangement payment or assessable arrangement payments in relation to a taxpayer in respect of the application period, there shall be included in the assessable income of the taxpayer so much only of any payment portion of each assessable arrangement payment in relation to an eligible amount as does not exceed the interest amount (if any) in relation to the payment portion.\n\n(2) For the purposes of subsection (1), a reference to the interest amount in relation to a payment portion of an assessable arrangement payment in relation to an eligible amount is a reference to the amount (if any) ascertained in accordance with the formula A (1 + B)t – A, where:\n\nA  is the eligible principal in relation to the payment portion;\n\nB  is:\n\n(a) where the sum of the payment portions of the likely arrangement payments in relation to the eligible amount in respect of the likely application period (including any notional final payment portion of an arrangement payment) exceeds the residual amount, as ascertained at the commencement of the application period, in relation to the eligible amount—the fraction that is the effective annual interest rate, ascertained at the commencement of the application period referred to in subsection (1), at which the sum of the present values of the payment portions equals the residual amount; and\n\n(b) in any other case—nil; and\n\nt  is the number of whole days in the arrangement payment period divided by 365.\n\n(3) For the purposes of subsection (2):\n\n(a) a reference in that subsection to the eligible principal in relation to a payment portion of an arrangement payment in relation to an eligible amount is a reference to:\n\n(i) where the arrangement payment is the first arrangement payment in the likely application period referred to in that subsection—the residual amount in relation to the eligible amount, as ascertained at the commencement of the arrangement payment period in relation to the arrangement payment; and\n\n(ii) in the case of any other arrangement payment—an amount ascertained in accordance with the formula A ‑ B  +  C, where:\n\nA  is the eligible principal in relation to the payment portion of the immediately preceding arrangement payment;\n\nB  is the amount of the payment portion of the immediately preceding arrangement payment; and\n\nC  is the interest amount in relation to the payment portion of the immediately preceding arrangement payment; and\n\n(b) a reference in that subsection to the arrangement payment period in relation to an arrangement payment is a reference to:\n\n(i) where the arrangement payment is the first arrangement payment liable to be made in respect of the application period referred to in that subsection—the period commencing at the beginning of the application period and ending at the time at which the arrangement payment is liable to be made; and\n\n(ii) in the case of any other arrangement payment—the period commencing at the time at which the immediately preceding arrangement payment was liable to be made and ending at the time at which the arrangement payment concerned is liable to be made.\n\n(4) Where the qualifying arrangement in relation to an item of eligible property in relation to which this Division applies does not provide for the sale or disposal of the item to a person who is a party to the qualifying arrangement or to an associate, for the purposes of this section an arrangement payment (not being an assessable arrangement payment) that includes a payment portion (which portion is in this section referred to as a notional final payment portion) in relation to any eligible amount by reason of which the item is an item of eligible property shall be taken to be liable to be made at the end of the likely application period of an amount equal to:\n\n(a) where the qualifying arrangement is a qualifying arrangement by reason of the application of subparagraph 159GG(1)(a)(i)—so much of the guaranteed residual value referred to in that subparagraph as is attributable to the eligible amount; or\n\n(b) in any other case—the amount that in the opinion of the Commissioner was, or would have been, at the commencement of the application period, the market value at the end of the application period of so much of the item of eligible property as is attributable to the eligible amount.\n\n(5) Where an amount of eligible capital expenditure is incurred in relation to an item of eligible property at any time after this Division commences to apply in relation to the item of eligible property, this section applies in respect of that expenditure as if this Division had commenced to apply in relation to the item of eligible property at the time at which the expenditure was incurred.\n\n(6) In this section:\n\n(a) likely application period, in relation to an application of this Division, means the period that, having regard to the provisions of the qualifying arrangement referred to in section 159GH and to any other relevant circumstances, was, at the time at which that application of this Division commenced, the likely length of the application period; and\n\n(b) likely arrangement payment, in relation to a likely application period, means an arrangement payment that, having regard to the provisions of the qualifying arrangement referred to in section 159GH and to any other relevant circumstances, was, at the time at which the likely application period commenced, likely to become liable to be made during the likely application period.\n\n159GL  Special provision relating to Division 10C or 10D property\n\n(1) If:\n\n(a) section 159GH applies in relation to an item of Division 10C or 10D property; and\n\n(b) at the time at which that section commenced to apply in relation to the item of property, the sum of the present values of the net Division 16D amounts, for each year of income during which the whole or a part of the likely application period occurs, in relation to an amount of expenditure by reason of which the property is Division 10C or 10D property will be less than the sum of the present values, at that time, of the net Division 10C or 10D amounts for each such year of income in relation to the expenditure;\n\nsections 159GJ and 159GK do not apply in relation to the amount of expenditure in relation to the application period.\n\n(2) In subsection (1):\n\n(a) a reference to the net Division 10C or 10D amounts for a year of income in relation to an amount of expenditure by reason of which an item of property is Division 10C or 10D property is a reference to the sum of the payment portions of any assessable arrangement payments likely to become liable to be made in relation to the amount of expenditure in relation to that year of income reduced by the deduction (if any) that, but for this Division, would be allowable under the former Division 10C or 10D of this Part, or under Division 43 of the Income Tax Assessment Act 1997, for the year of income in respect of the amount of expenditure;\n\n(b) a reference to the net Division 16D amounts for a year of income in relation to an amount of expenditure by reason of which an item of property is Division 10C or 10D property is a reference to the sum of so much of the payment portions of any assessable arrangement payments likely to become liable to be made during the year of income in relation to the amount of expenditure as would, but for this section, be included in the assessable income of any taxpayer of the year of income under section 159GK; and\n\n(c) likely application period has the same meaning as in section 159GK.\n\n159GM  Special provision where cost of plant etc. is also eligible capital expenditure\n\nWhere:\n\n(a) at a particular time (in this section referred to as the relevant time) an item of eligible property is both eligible depreciation property and eligible capital expenditure property; and\n\n(b) the expenditure by reason of which the item of property is eligible capital expenditure property is the amount that:\n\n(i) was the cost of the item of property to the taxpayer who incurred the expenditure for the purpose of the former Subdivision 42‑B, or Subdivision 40‑C, of the Income Tax Assessment Act 1997; or\n\n(ii) would have been the cost to the taxpayer for the purpose of that Subdivision if it applied in relation to the item of property;\n\nfor the purpose of ascertaining the residual amount at the relevant time in relation to the amount of expenditure:\n\n(c) if a capital expenditure deduction would, apart from this Division, be allowable to a taxpayer in respect of the amount of eligible capital expenditure in relation to the year of income in which the relevant time occurs—the item of eligible property shall be taken to be at the relevant time an item of eligible capital expenditure property and not an item of eligible depreciation property; and\n\n(d) in any other case—the item of eligible property shall be taken to be at the relevant time an item of eligible depreciation property and not an item of eligible capital expenditure property.\n\n159GN  Effect of use of property under qualifying arrangement for producing assessable income\n\n(1) Where:\n\n(a) this Division applies in relation to an item of eligible property by reason of the application of subparagraph 159GH(1)(b)(i) in relation to the use by an exempt public body, or the control by an exempt public body of the use, of the item of eligible property under a qualifying arrangement;\n\n(b) the exempt public body jointly uses, or jointly controls the use of, the item of eligible property together with another person, or one or more other persons, who are not exempt public bodies;\n\n(c) the item of eligible property is or will be used during the arrangement period in relation to the qualifying arrangement for producing income of an amount that, having regard to the provisions of the qualifying arrangement and any other relevant circumstances, is not likely to be less than the total amount of the arrangement payments under the qualifying arrangement in relation to the item of eligible property; and\n\n(d) the income, or a part of the income, referred to in paragraph (c) will be included in the assessable income of one or more persons (which person, or each of which persons, is in this subsection referred to as an assessable person);\n\nthe following provisions have effect:\n\n(e) where all of the income referred to in paragraph (c) will be included in the assessable income of one or more persons—sections 159GJ and 159GK do not apply in relation to the item of eligible property;\n\n(f) where paragraph (e) does not apply:\n\n(i) there is allowable to a taxpayer so much of any deduction that, but for this section, would not, by reason of the application of section 159GJ, be allowable to the taxpayer in relation to any eligible amount in relation to the item of eligible property in respect of the application period as is ascertained in accordance with the formula AB, where:\n\nA  is the amount of the deduction that, but for this section would not, by reason of the application of section 159GJ, be allowable to the taxpayer; and\n\nB  is the assessable person fraction for the purposes of the application of this Division concerned;\n\n(ii) for the purposes of section 159GJ, a reference in that section to the total notional principal in relation to an eligible amount in relation to the item of eligible property in respect of the application period shall be taken to be a reference to the amount that, but for this subparagraph, would be the total notional principal, as increased by the amount of any deduction allowable under subparagraph (i) of this paragraph in relation to the eligible amount in respect of the application period; and\n\n(iii) for the purposes of the application of section 159GK, any eligible amount in relation to the item of property in respect of the application period shall be ascertained in accordance with the formula AB, where:\n\nA  is the amount that, but for this section, would be the eligible amount; and\n\nB  is the non‑assessable person fraction in relation to the application of this Division concerned.\n\n(2) For the purposes of subsection (1):\n\n(a) a reference in that subsection to the assessable person fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the interest of all of the assessable persons in the income referred to in paragraph (1)(c) expressed as a fraction of the interests of all of the persons entitled to that income; and\n\n(b) a reference in that subsection to the non‑assessable person fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the fraction ascertained by subtracting the assessable person fraction in relation to that application of this Division in relation to the item of eligible property from the number 1.\n\n(3) Where:\n\n(a) this Division applies in relation to an item of eligible property by reason of the application of subparagraph 159GH(1)(b)(ii) in relation to the use of the item of property outside Australia partly for the purpose of producing exempt income; and\n\n(b) that use is also partly for the purpose of producing assessable income;\n\nthe following provisions have effect:\n\n(c) there is allowable to a taxpayer so much of any deduction that, but for this section, would not, by reason of the application of section 159GJ, be allowable to the taxpayer in relation to any eligible amount in relation to the item of eligible property in respect of the application period as is ascertained in accordance with the formula AB, where:\n\nA  is the amount of the deduction that, but for this section would not, by reason of the application of section 159GJ, be allowable to the taxpayer; and\n\nB  is the assessable income fraction for the purposes of the application of this Division concerned;\n\n(d) for the purposes of section 159GJ, a reference in that section to the total notional principal in relation to an eligible amount in relation to the item of eligible property in respect of the application period shall be taken to be a reference to the amount that, but for this paragraph, would be the total notional principal, as increased by the amount of any deduction allowable under paragraph (c) of this subsection in relation to the eligible amount in respect of the application period; and\n\n(e) for the purposes of the application of section 159GK, any eligible amount in relation to the item of property in respect of the application period shall be ascertained in accordance with the formula AB, where:\n\nA  is the amount that, but for this section, would be the eligible amount; and\n\nB  is the exempt income fraction in relation to the application of this Division concerned.\n\n(4) For the purposes of subsection (3):\n\n(a) a reference in that subsection to the assessable income fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the amount of the assessable income referred to in paragraph (3)(b) expressed as a fraction of the sum of that assessable income and the exempt income referred to in paragraph (3)(a); and\n\n(b) a reference in that subsection to the exempt income fraction in relation to an application of this Division in relation to an item of eligible property is a reference to the fraction ascertained by subtracting the assessable income fraction in relation to that application of this Division in relation to the item of eligible property from the number 1.\n\n159GO  Special provisions relating to partnerships\n\n(1) Where:\n\n(a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n(b) either a deduction or an arrangement payment, or both, were taken into account in calculating that net income or partnership loss;\n\n(c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction), or the arrangement payment or a part of the arrangement payment (which arrangement payment or part of the arrangement payment, as the case may be, is referred to in this subsection as the relevant arrangement payment) would not have been taken into account for the purpose of that calculation if this Division applied in relation to the partnership in relation to particular property that is arrangement property in relation to a qualifying arrangement;","sortOrder":1000075},{"sectionNumber":"full-source-retrieval-0077","sectionType":"document_chunk","heading":"Document excerpt 77","content":"(d) this Division does not apply in relation to the partnership in relation to the property by reason only that the qualifying arrangement was entered into before the time (in this subsection referred to as the earliest application time) referred to in whichever subparagraph of paragraph 159GH(1)(b) would be applicable if this Division applied as mentioned in paragraph (c); and\n\n(e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer after the earliest application time;\n\nthe following provisions have effect:\n\n(f) there shall be included in the assessable income of the taxpayer of the relevant year of income an amount that bears to the amount of the relevant deduction the same proportion as the individual interest of the taxpayer in that net income bears to that net income or, as the case requires, as the individual interest of the taxpayer in that partnership loss bears to that partnership loss;\n\n(g) there shall be allowable as a deduction in the assessment of the taxpayer of the relevant year of income an amount that bears to the amount of the relevant arrangement payment the same proportion as the individual interest of the taxpayer in that net income bears to that net income or, as the case requires, as the individual interest of the taxpayer in that partnership loss bears to that partnership loss.\n\n(2) Where:\n\n(a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this subsection referred to as the relevant year of income), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this subsection also referred to as the relevant year of income);\n\n(b) either a deduction or an arrangement payment, or both, were taken into account in calculating that net income or partnership loss;\n\n(c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this subsection as the relevant deduction), or the arrangement payment or a part of the arrangement payment (which arrangement payment or part of the arrangement payment, as the case may be, is referred to in this subsection as the relevant arrangement payment), would not have been taken into account for the purpose of that calculation if this Division applied in relation to the partnership in relation to particular property that is arrangement property in relation to a qualifying arrangement;\n\n(d) this Division does not apply in relation to the partnership in relation to the property by reason only that the qualifying arrangement was entered into before the time (in this subsection referred to as the earliest application time) referred to in whichever subparagraph of paragraph 159GH(1)(b) would be applicable if this Division applied as mentioned in paragraph (c);\n\n(e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer before the earliest application time;\n\n(f) after the earliest application time, the taxpayer made or agreed to make a contribution or contributions (which contribution is or contributions are in this subsection referred to as the additional contribution) to the capital of the partnership in addition to any contribution or contributions to the capital of the partnership that, under a contract or contracts entered into at or before that time, the taxpayer had made or agreed to make; and\n\n(g) by reason of making or agreeing to make the additional contribution, the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss, is greater than it would otherwise have been;\n\nthe following provisions have effect:\n\n(h) where a deduction was taken into account in calculating that net income or partnership loss—there shall be included in the assessable income of the taxpayer of the relevant year of income an amount ascertained in accordance with the formula A (B – C);\n\n(j) where an arrangement payment was taken into account in calculating that net income or partnership loss—there shall be allowable as a deduction in the assessment of the taxpayer of the relevant year of income an amount ascertained in accordance with the formula A (B – C);\n\nwhere:\n\nA  is the amount of the relevant deduction or of the relevant arrangement payment, as the case requires;\n\nB  is the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss; and\n\nC  is the fraction that would be B if that fraction were ascertained on the basis of the individual interests of the partners immediately before the earliest application time and the net income or partnership loss at that time were equal to the net income or partnership loss of the relevant year of income.\n\nDivision 16E—Accruals assessability etc. in respect of certain security payments\n\n159GP  Interpretation\n\n(1) In this Division, unless the contrary intention appears:\n\naccrual amount has the meaning given by subsection 159GQB(1).\n\naccrual period has the meaning given by section 159GQA.\n\nagreement has the same meaning as in Subdivision D of Division 3.\n\nannuity has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993.\n\nassociate has the same meaning as in Subdivision D of Division 3.\n\ndeferred superannuation income stream has the same meaning as in the Income Tax Assessment Act 1997.\n\neligible return has the meaning given by subsection (3).\n\nfixed return security means a qualifying security under which the amount or amounts payable are or consist of:\n\n(a) a specified amount or specified amounts;\n\n(b) an amount or amounts the method of calculation of which does not involve an interest or indexation rate or other factor, being a rate or factor that varies or may vary during the term of the security; or\n\n(c) any combination of amounts referred to in paragraph (a) or (b).\n\nholder, in relation to a security at a particular time, means the person who, if the amount or amounts payable under the security were due and payable at that time, would be entitled to receive payment of the amount or amounts.\n\nimplicit interest rate has the meaning given by subsection 159GQB(2).\n\nineligible annuity means:\n\n(a) an annuity that is issued by a life assurance company to or for the benefit of a natural person other than in the capacity of trustee of a trust estate; or\n\n(b) an annuity that is issued by a life assurance company to a complying superannuation fund if:\n\n(i) the annuity is held by the fund for the sole purpose of meeting its liabilities to provide one or more deferred superannuation income streams to one or more members of the fund; and\n\n(ii) the value of the annuity and the one or more deferred superannuation income streams is the same or substantially the same; and\n\n(iii) the terms on which the annuity and the one or more deferred superannuation income streams are payable are the same or substantially the same; or\n\n(c) an annuity that is issued by a life assurance company to an RSA provider if:\n\n(i) the annuity is held by the RSA provider for the sole purpose of meeting its liabilities to provide one or more deferred superannuation income streams to one or more holders of the RSA; and\n\n(ii) the value of the annuity and the one or more deferred superannuation income streams is the same or substantially the same; and\n\n(iii) the terms on which the annuity and the one or more deferred superannuation income streams are payable are the same or substantially the same.\n\nissue, in relation to a security other than a bill of exchange, means the creation of the liability to pay an amount or amounts under the security.\n\nissue price, in relation to a security, means the consideration (if any) for the issue of the security.\n\nissuer, in relation to a security (other than a bill of exchange) at a particular time, means the person who, if the amount or amounts payable under the security were due and payable at that time, would be liable to pay the amount or amounts.\n\npartial redemption, in relation to a security, means the discharging of a part (other than the final part) of a liability to pay an amount or amounts under the security representing a return of the issue price of the security.\n\npartial redemption payment, in relation to a security, means a payment that has the effect of partially redeeming the security.\n\nqualifying security means any security:\n\n(a) that is issued after 16 December 1984;\n\n(ba) that is not part of an exempt series (see subsection (9A));\n\n(c) the term of which, ascertained as at the time of issue of the security will, or is reasonably likely to, exceed 1 year;\n\n(d) that has an eligible return; and\n\n(e) where the precise amount of the eligible return is able to be ascertained at the time of issue of the security—in relation to which the amount of the eligible return is greater than 1½% of the amount ascertained by multiplying the amount of the payment or the sum of the payments (excluding any periodic interest) liable to be made under the security by the number (including any fraction) of years in the term of the security;\n\nbut does not, except as provided by subsection (10), include an annuity.\n\nredemption, in relation to a security, means the discharging of all liability to pay any amount or amounts under the security representing a return of the issue price of the security.\n\nredemption payment, in relation to a security, means any payment that has the effect of redeeming the security.\n\nsecurity means:\n\n(a) stock, a bond, debenture, certificate of entitlement, bill of exchange, promissory note or other security;\n\n(b) a deposit with a bank or other financial institution;\n\n(c) a secured or unsecured loan; or\n\n(d) any other contract, whether or not in writing, under which a person is liable to pay an amount or amounts, whether or not the liability is secured.\n\ntaxpayer’s maximum term, in relation to a security held by a taxpayer, means:\n\n(a) if the security was issued to the taxpayer—the term of the security; or\n\n(b) if the security was transferred to the taxpayer—the part of the term remaining after the transfer.\n\nterm, in relation to a security, means the period from the issue of the security until the time at which the liability to make the payment or final payment or payments, as the case requires, under the security arises.\n\ntransfer, in relation to a security, means transfer, sell, assign or dispose in any way of the security or of the right to receive payment of the amount or amounts payable under the security, but does not include a redemption or partial redemption of the security.\n\ntransfer price, in relation to the transfer of a security, means the consideration (if any) for the transfer of the security.\n\nvariable return security means a qualifying security that is not a fixed return security.\n\n(2) Where:\n\n(a) the Commissioner, having regard to any connection between the parties to the issue or transfer of a security and to any other relevant circumstances, is satisfied that the parties were not dealing with each other at arm’s length in relation to the issue or transfer; and\n\n(b) the Commissioner determines that this subsection should apply in relation to the issue or transfer;\n\nthen, for the purposes of the application of the definition of issue price or transfer price, as the case may be, in subsection (1) in relation to the issue or transfer, the consideration for the issue or transfer shall be taken to be equal to:\n\n(c) the consideration that might reasonably be expected for the issue or transfer if the parties to the issue or transfer were independent parties dealing at arm’s length with each other in relation to the issue or transfer; or\n\n(d) where, for any reason (including an insufficiency of information available to the Commissioner), it is not possible or not practicable for the Commissioner to ascertain the amount referred to in paragraph (c)—such amount as the Commissioner determines.\n\n(3) For the purposes of this Division, there shall be taken to be an eligible return in relation to a security if at the time when the security is issued it is reasonably likely, by reason that the security was issued at a discount, bears deferred interest or is capital indexed or for any other reason, having regard to the terms of the security, for the sum of all payments (other than periodic interest payments) under the security to exceed the issue price of the security, and the amount of the eligible return is the amount of the excess.\n\n(6) For the purposes of this Division, where an amount of interest is payable under a security, the amount shall be taken to be periodic interest if the period between the commencement of the period in respect of which the interest is expressed to be payable and the time at which the interest is payable is less than or equal to one year.\n\n(7) Where:\n\n(a) but for this subsection, an amount of interest payable under a security would, by reason of the application of subsection (6), be taken, for the purposes of this Division, to be periodic interest; and\n\n(b) the Commissioner, having regard to the amount of the interest, considers that it is properly attributable to a period in excess of one year;\n\nthen, for purposes of the application of this Division:\n\n(c) the amount of interest shall not be taken to be periodic interest; and\n\n(d) the amount of interest shall be taken to be attributable to the period to which the Commissioner considers it is properly attributable.\n\n(8) Where 2 or more of the amounts payable under a security are payable to different persons and in return for consideration given by different persons, the 2 or more amounts shall, for the purposes of this Division, be taken to be payable under a separate security having such of the terms of the first‑mentioned security as are relevant.\n\n(9) For the purposes of the application of this Division in relation to the holding of a security acquired by a taxpayer on transfer, any prior holding of the security by the taxpayer, whether on issue or transfer, shall be disregarded.\n\n(9A) For the purposes of paragraph (ba) of the definition of qualifying security in subsection (1), if:\n\n(a) after 16 December 1984, a person issues a security (the first in the series) that is not a qualifying security; and\n\n(b) during the period from the end of 16 December 1984 until the issuing of the first in the series, the person did not issue any qualifying security with exactly the same payment dates, payment amounts and other terms as the first in the series; and\n\n(c) after issuing the first in the series, the person issues another security (the later security) with exactly the same payment dates, payment amounts and other terms as the first in the series;\n\nthe later security is part of an exempt series.\n\n(9B) In determining for the purposes of paragraph (9A)(b) or (c) whether a security has exactly the same other terms as another security, the fact that the first‑mentioned security has a different issue price than the second‑mentioned security is to be disregarded.\n\n(10) Where:\n\n(a) an annuity is issued on or after 29 October 1987;\n\n(b) the requirements of paragraphs (b) to (e) (inclusive) of the definition of qualifying security in subsection (1) are satisfied in relation to the annuity; and\n\n(c) the annuity is not an ineligible annuity;\n\nthe annuity is a qualifying security for the purposes of this Division.\n\n159GQ  Tax treatment of holder of qualifying security\n\nAccrual amounts to be worked out\n\n(1) If a taxpayer holds a qualifying security for all or part of a year of income, the effect on the taxpayer’s taxable income is determined by working out the accrual amount (see section 159GQB) for each accrual period (see section 159GQA) in the year of income and then summing the accrual amounts.\n\nPositive sum assessable\n\n(2) If the sum is a positive amount, the amount is included in the assessable income of the taxpayer of the year of income.\n\nNegative sum deductible\n\n(3) If the sum is a negative amount, a deduction of the amount is allowable in the assessment of the taxpayer of the year of income.\n\n159GQA  Accrual period\n\nTaxpayer’s maximum term to be divided into accrual periods\n\n(1) The taxpayer’s maximum term for the qualifying security is divided into accrual periods in accordance with this section.\n\nWhole year of income\n\n(2) If a year of income is wholly taken up by any of the taxpayer’s maximum term, the year of income is divided into 2 accrual periods of 6 months.\n\nBeginning of taxpayer’s maximum term\n\n(3) If the taxpayer’s maximum term begins after the beginning of the year of income:\n\n(a) if it begins less than 6 months after the beginning of the year of income—the period from the beginning of the taxpayer’s maximum term until the middle of the year of income is an accrual period and the second 6 months of the year of income is an accrual period; and\n\n(b) in any other case—the part of the year of income taken up by the taxpayer’s maximum term is an accrual period.\n\nEnd of taxpayer’s maximum term\n\n(4) If the taxpayer’s maximum term ends before the end of a year of income:\n\n(a) if it ends no later than 6 months after the beginning of the year of income—the part of the year of income taken up by the taxpayer’s maximum term is an accrual period; and\n\n(b) in any other case—the first 6 months of the year of income is an accrual period and the period from the middle of the year of income until the end of the taxpayer’s maximum term is an accrual period.\n\nExample","sortOrder":1000076},{"sectionNumber":"full-source-retrieval-0078","sectionType":"document_chunk","heading":"Document excerpt 78","content":"(5) For example, if the taxpayer’s year of income is a financial year and a security with a 2 year term is issued to the taxpayer on 1 April, the accrual periods will be as follows:\n\n- 1st year 2nd year 3rd year\n- of income of income of income\n- 1 Apr. 1 July 1 Jan. 1 July 1 Jan. 1 Apr.\n- 3 month 6 month 6 month 6 month 3 month\n- accrual accrual accrual accrual accrual\n- period period period period period\n\n159GQB  Accrual amount\n\nFormula\n\n(1) The accrual amount for an accrual period is worked out using the formula:\n\n![Start formula open bracket Implicit interest rate times Opening balance close bracket minus Period interest etc end formula](image.007.png)\n\nImplicit interest rate\n\n(2) In the formula in subsection (1), Implicit interest rate means the rate of interest worked out under section 159GQC (for a fixed return security) or 159GQD (for a variable return security), properly adjusted to take account of the case where the accrual period is less than 6 months.\n\nOpening balance\n\n(3) In the formula in subsection (1), Opening balance means the amount worked out using the formula:\n\nIssue/transfer price + Previous accruals – Payments\n\nwhere:\n\nIssue/transfer price means the issue price or transfer price, as the case requires, of the security; and\n\nPrevious accruals means:\n\n(a) if paragraph (b) does not apply—the sum, whether positive or negative, of all accrual amounts for previous accrual periods in the taxpayer’s maximum term; or\n\n(b) if the accrual period is the first in the taxpayer’s maximum term—nil; and\n\nPayments means all payments (other than of periodic interest) made or liable to be made under the security during all previous accrual periods in the taxpayer’s maximum term.\n\nPeriodic interest etc.\n\n(4) In the formula in subsection (1), Periodic interest etc. means the sum of:\n\n(a) all periodic interest payments made or liable to be made under the security during the accrual period, properly adjusted in the case of any payment made other than at the end of the period; and\n\n(b) if any payments (other than of periodic interest) made or liable to be made under the security during the accrual period are made or liable to be made other than at its end—an amount to adjust properly for the making of the payments other than at the end of the period.\n\n159GQC  Implicit interest rate for fixed return security\n\nFor the purposes of the formula component Implicit interest rate in subsection 159GQB(1), the rate of interest for a fixed return security in relation to a taxpayer is the rate of compound interest per period of 6 months at which:\n\n(a) the sum of the present values of all amounts payable under the security during the taxpayer’s maximum term;\n\nequals:\n\n(b) the issue price or the transfer price, as the case requires, of the security.\n\n159GQD  Implicit interest rate for variable return security\n\nImplicit interest rate to be recalculated each year etc.\n\n(1) For the purposes of the formula component Implicit interest rate in subsection 159GQB(1), the rate of interest for a variable return security must be worked out in accordance with subsection (2) separately for each year of income during the taxpayer’s maximum term. If there are 2 accrual periods of 6 months in the year of income, the rate is the same for both periods. It is possible for the rate to be negative.\n\nRate\n\n(2) The rate applicable in relation to a year of income is the rate of compound interest per period of 6 months in the calculation period (see subsection (3)) at which:\n\n(a) the sum of the present values of all amounts payable under the security during the calculation period;\n\nequals:\n\n(b) the opening balance, mentioned in subsection 159GQB(1), for the accrual period that begins the calculation period.\n\nCalculation period\n\n(3) The calculation period means the part of the taxpayer’s maximum term that occurs after the beginning of the year of income.\n\nWhere amount payable is not known\n\n(4) For the purposes of paragraph (2)(a), if by the end of the year of income it is not possible to determine whether an amount will be payable, or the size of the amount that will be payable, after the end of the year of income, the determination is to be made by applying subsection (5), (7) or (11), or a combination of those subsections.\n\nAssumption of constant level\n\n(5) Subject to subsection (7), if an amount payable is worked out to any extent by reference to the amount or level, at a particular time, of a rate, price, index or other thing, it is to be assumed that the rate, price, index or thing will be the same at all times after the end of the year of income as it was at the end of the year of income (or, if it was not available at the end of the year of income, at the time when it was last available in the year of income).\n\nExamples\n\n(6) For the purposes of subsection (5):\n\n(a) an example of an amount worked out wholly by reference to the amount of a rate at a particular time is an interest payment under a floating rate note. The amount payable is the product of an interest rate indicator (such as the prevailing bank bill rate) and the face or par value of the note; and\n\n(b) an example of an amount worked out wholly by reference to the amount of a price at a particular time is a redemption payment under a commodity linked security where the amount of the payment is the product of the prevailing price of a commodity (such as gold) and the face or par value of the security.\n\nAssumption of continuing rate of change\n\n(7) If an amount payable is worked out to any extent by reference to the amount of change in an index or other thing that occurs during a period, it is to be assumed that the index or other thing will continue to change at the same rate as it did:\n\n(a) if the index or other thing was available at the end of the year of income—during the year of income; or\n\n(b) in any other case—during the period of 12 months in respect of which the index or other thing was last available in the year of income.\n\nExample\n\n(8) An example for the purposes of subsection (7) is a payment whose amount is the product of the face or par value of a security and the percentage increase in the All Groups Consumer Price Index number (the CPI) during the year ending on 30 June 1995. If the year of income for which the implicit interest rate is being worked out is the 1993‑94 year of income and the CPI increases by 2% during the year ending on 31 March 1994 (the date of the last available number during the year of income), the CPI is assumed to increase by 2% during the year ending on 30 June 1995.\n\nDisguised continuing rate of change case\n\n(9) For the purposes of subsection (7), if an amount payable is worked out to any extent by reference to the quotient of:\n\n(a) the amount or level of an index or other thing at a particular time; and\n\n(b) either:\n\n(i) the amount or level of the index or other thing at a different time; or\n\n(ii) another amount that, while not expressed to be the amount or level of the index or other thing at a different time, may reasonably be regarded as representing the amount or level of the index or other thing at a different time;\n\nthe amount payable is taken to be worked out to that extent by reference to the amount of change in the index or other thing that occurs during the period between the 2 times.\n\nExample\n\n(10) An example for the purposes of subsection (9) is a payment under a security issued in December 1994 that is worked out by multiplying a number of dollars by the quotient of:\n\n(a) the All Groups Consumer Price Index number in respect of the quarter ending on 31 December 1997; and\n\n(b) the number 114.\n\nAssume that the number in paragraph (b) is the same as the All Groups Consumer Price Index number in respect of the quarter ending on 31 December 1994. In this case, it would be reasonable to regard the number as representing the amount of the index at 31 December 1994, and therefore to apply subsection (7).\n\nGeneral assumption\n\n(11) If it is not possible to make the determination mentioned in subsection (4) in respect of the whole or part of any amount by applying subsection (5) or (7), or both, (for example, because no information about a rate, price or index was available during the year of income), the determination in respect of that whole or part is to be made on the basis of what is most likely in the circumstances.\n\n159GR  Consequences of actual payments\n\n(1) Where a payment (not being a payment that is, or to the extent that it consists of, a periodic interest payment, a redemption payment or a partial redemption payment) is made or liable to be made in a year of income to a taxpayer under a qualifying security:\n\n(a) no amount shall be included in the assessable income of the taxpayer of the year of income in respect of the payment otherwise than under section 159GQ; and\n\n(b) where the taxpayer acquired the qualifying security on transfer—no amount shall be allowable as a deduction from the assessable income of the taxpayer of the year of income in respect of the payment otherwise than under section 159GQ.\n\n159GS  Balancing adjustments on transfer of qualifying security\n\n(1) Where there is a profit amount in relation to the transfer of a qualifying security by a taxpayer in a year of income:\n\n(a) if there is a net assessable amount in relation to the transfer and:\n\n(i) the profit amount exceeds the net assessable amount—an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income; or\n\n(ii) the net assessable amount exceeds the profit amount—an amount equal to the excess shall be allowable as a deduction from the assessable income of the taxpayer of the year of income; and\n\n(b) if there is a net deductible amount in relation to the transfer—an amount equal to the sum of that amount and the profit amount shall be included in the assessable income of the taxpayer of the year of income.\n\n(2) Where there is a loss amount in relation to the transfer of a qualifying security by a taxpayer in a year of income and:\n\n(a) there is a net assessable amount in relation to the transfer—an amount equal to the net assessable amount shall be allowable as a deduction from the assessable income of the taxpayer of the year of income; or\n\n(b) there is a net deductible amount in relation to the transfer that exceeds the loss amount—an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income.\n\n(3) For the purposes of the application of this section in relation to the transfer (in this subsection referred to as the relevant transfer) of a qualifying security by a taxpayer:\n\n(a) where the transfer price, as increased by the amount of any payments (other than periodic interest payments) made to the taxpayer under the security in respect of the period when the security was held by the taxpayer exceeds:\n\n(i) the issue price of the security; or\n\n(ii) where the security was acquired by the taxpayer on transfer—the transfer price in relation to that transfer;\n\nthere shall be taken to be a profit amount in relation to the relevant transfer of an amount equal to the excess;\n\n(b) where the issue price of the security or, where the security was acquired by the taxpayer on transfer, the transfer price in relation to that transfer exceeds the sum of the transfer price in relation to the relevant transfer and any payments (other than periodic interest payments) made to the taxpayer under the security in respect of the period when the security was held by the taxpayer, there shall be taken to be a loss amount in relation to the relevant transfer of an amount equal to the excess;\n\n(c) where the sum of all amounts (if any) included under section 159GQ in the assessable income of the taxpayer in respect of the security in respect of the period when the security was held by the taxpayer exceeds the sum of all amounts (if any) allowable under those sections as deductions from the assessable income of the taxpayer in respect of the security in respect of that period, there shall be taken to be a net assessable amount in relation to the relevant transfer of an amount equal to the excess; and\n\n(d) where the sum of all amounts (if any) allowable under section 159GQ as deductions from the assessable income of the taxpayer in respect of the security in respect of the period when the taxpayer held the security exceeds the sum of all amounts (if any) included under those sections in the assessable income of the taxpayer in respect of the security in respect of that period, there shall be taken to be a net deductible amount in relation to the relevant transfer of an amount equal to the excess.\n\n159GT  Tax treatment of issuer of a qualifying security\n\n(1) Subsections (1A) and (1B) apply if a taxpayer is an issuer of a qualifying security to which this section applies during a period (the issuer period) comprising the whole or part of a year of income.\n\n(1A) If, on the assumptions in subsection (1C), an amount would be included in the taxpayer’s assessable income of the year of income in respect of the issuer period, then, subject to this section, the taxpayer is entitled to a deduction in his or her assessment for the year of income equal to that amount.\n\n(1B) If, on the assumptions in subsection (1C), a deduction would be allowable in the taxpayer’s assessment for the year of income, then an amount equal to the deduction is included in the taxpayer’s assessable income of the year of income.\n\n(1C) For the purposes of subsections (1A) and (1B), the assumptions are that:\n\n(a) the security was issued to the taxpayer (rather than the taxpayer being the issuer of the security); and\n\n(b) the taxpayer held the security during the whole of the issuer period; and\n\n(c) the taxpayer did not transfer the security at the end of the issuer period; and\n\n(d) sections 159GW, 159GX and 159GY were not enacted.\n\n(2) A deduction is not allowable to a taxpayer under subsection (1A) in relation to a qualifying security to which this section applies unless the taxpayer would, but for this Division, be entitled to a deduction under section 8‑1 of the Income Tax Assessment Act 1997 in respect of payments (not being redemption payments, partial redemption payments or periodic interest payments) made or liable to be made under the security in respect of the relevant period referred to in that subsection.\n\n(3) Where a payment (not being a payment that is, or to the extent that it consists of, a periodic interest payment, a redemption payment or a partial redemption payment) is made or liable to be made in a year of income by a taxpayer under a qualifying security to which this section applies, no amount shall be allowable as a deduction from the assessable income of the taxpayer of the year of income in respect of the payment otherwise than under this section.\n\n(5) Subject to subsection (6), this section applies to:\n\n(a) any qualifying security issued on or before 22 May 1986; and\n\n(b) any qualifying security issued in Australia after 22 May 1986 other than a negotiable instrument issued payable to bearer.\n\n(6) This section does not apply to a qualifying security issued by a taxpayer after 5 o’clock in the evening, by standard time in the Australian Capital Territory, on 23 April 1987:\n\n(a) to, on behalf of or otherwise for the benefit of, a non‑resident or a prescribed dual resident associate of the taxpayer; or\n\n(b) subject to an agreement between the taxpayer and an associate of the taxpayer under which the security is or was to be transferred to a non‑resident or a prescribed dual resident associate of the taxpayer.\n\n159GU  Effect of Division on certain transfer profits and losses\n\n(1) Where, apart from this Division, a profit that is made by a resident taxpayer in relation to a transfer of a qualifying security that does not form part of the trading stock of the taxpayer would be included in the assessable income of the taxpayer of a year of income, the profit shall not be so included in the assessable income of the taxpayer.\n\n(2) Where, apart from this Division, a loss that is incurred by a resident taxpayer in relation to a transfer of a qualifying security that does not form part of the trading stock of the taxpayer would be allowable as a deduction from the assessable income of the taxpayer of a year of income and there is a net deductible amount, within the meaning of section 159GS, in relation to the transfer, so much only of the amount of the loss as exceeds the net deductible amount shall be so allowable as a deduction.\n\n159GV  Consequence of variation of terms of security\n\n(1) Where, after 22 May 1986, a material variation is made in the terms of a security, for the purposes of the application of this Division in relation to the security in respect of the period after the variation and before any subsequent material variation:\n\n(a) the security shall be taken to have been issued on the terms on which it was originally issued as varied by the material variation and any prior variation;\n\n(b) where consideration for the variation is paid or payable by the holder of the security—the issue price of the security shall be taken to be an amount equal to the amount that was the issue price of the security immediately before this application of this subsection increased by the amount of that consideration;\n\n(c) where consideration for the variation is paid or payable by the issuer of the security—the issue price of the security shall be taken to be an amount equal to the amount that was the issue price of the security immediately before this application of this subsection reduced by the amount of that consideration; and\n\n(d) paragraph (a) of the definition of qualifying security in subsection 159GP(1) shall be disregarded.\n\n(2) Where:\n\n(a) subsection (1) applies in relation to a security held by a taxpayer in relation to a material variation in the terms of the security; and\n\n(b) if:","sortOrder":1000077},{"sectionNumber":"full-source-retrieval-0079","sectionType":"document_chunk","heading":"Document excerpt 79","content":"(i) that subsection had effect not only in relation to the period after the variation but also in relation to the whole of the term of the security before the variation; and\n\n(ii) any previous material variations were taken into account but any subsequent material variations were disregarded;\n\nthe sum (in this subsection referred to as the  total notional taxable income) of the taxable incomes of the taxpayer in respect of the year of income in which the variation is made and all previous years of income would have differed from the sum (in this subsection referred to as the  total actual taxable income) of the actual taxable incomes of the taxpayer of those years of income;\n\nthe following provisions have effect:\n\n(c) where the total notional taxable income exceeds the total actual taxable income—an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income in which the variation is made;\n\n(d) where the total actual taxable income exceeds the total notional taxable income—an amount equal to the excess shall be allowable as a deduction from the assessable income of the taxpayer of the year of income in which the variation is made.\n\n(3) In this section, a reference to a material variation of the terms of a security is a reference to a variation of the terms of the security:\n\n(a) that has the effect that a security that was not a qualifying security before the variation would, if the security had been originally issued with the terms as varied and if paragraph (a) of the definition of qualifying security in subsection 159GP(1) were disregarded, have been a qualifying security when the security was issued;\n\n(b) that has the effect that a security that is a qualifying security would, if originally issued with the terms as varied, not have been a qualifying security at the time of issue; or\n\n(c) that has the effect that the amount, or time of making, of a payment under the security, or that the holder or issuer of the security, is varied.\n\n(4) Where any right or option under a security to extend the term of, or otherwise vary the effect of, the security is exercised, then, for the purposes of this section, the exercise of that right or option shall be taken to be a variation of the terms of the security to provide for the extension or other effect.\n\n159GW  Effect of Division in relation to non‑residents\n\n(1) Subject to subsection (2), where during the whole or a part of a year of income (which whole or part is in this subsection referred to as the period of non‑residence) a taxpayer is not a resident:\n\n(a) no amount shall be included in, or allowable as a deduction from, the assessable income of the taxpayer of the year of income under section 159GQ in relation to the period of non‑residence; and\n\n(c) no amount shall be included in, or allowable as a deduction from, the assessable income of the taxpayer of the year of income under section 159GS in relation to any transfer of the security that occurred during the period of non‑residence.\n\n(2) Where:\n\n(a) a payment is made or liable to be made under a qualifying security to a resident taxpayer; and\n\n(b) the taxpayer was not a resident for the whole or a part (which whole or part is in this subsection referred to as the period of non‑residence) of the period during which the taxpayer held the security;\n\nthe following provisions have effect:\n\n(c) there shall be included in the assessable income of the taxpayer of the year of income in which the payment is made or liable to be made an amount equal to the amount that, but for subsection (1), would have been included in the assessable income of the taxpayer of any year or years of income under section 159GQ in respect of the payment in respect of the period of non‑residence;\n\n(d) there shall be allowable as a deduction from the assessable income of the taxpayer of the year of income in which the payment is made or liable to be made an amount equal to the amount that, but for subsection (1), would have been allowable as a deduction from the assessable income of the taxpayer of any year or years of income under section 159GQ in respect of the payment in respect of the period of non‑residence.\n\n159GX  Effect of Division where certain payments not assessable\n\nWhere, but for this section, an amount would be included in, or allowable as a deduction from, the assessable income of a taxpayer of a year of income under section 159GQ in respect of the whole or a part of a payment under a qualifying security, no amount shall be so included or allowable unless the payment or a part of the payment, when actually made or liable to be made, would, disregarding section 128D, be included in the assessable income of the taxpayer of a year of income.\n\n159GY  Effect of Division where qualifying security is trading stock\n\nNo amount shall be included in, or allowable as a deduction from, the assessable income of a taxpayer:\n\n(a) under section 159GQ in relation to a qualifying security in respect of any year or part of a year of income during which the qualifying security forms part of the trading stock of the taxpayer; or\n\n(c) under section 159GS in relation to the transfer of a qualifying security by the taxpayer where, immediately before the transfer, the qualifying security was or formed part of the trading stock of the taxpayer.\n\n159GZ  Stripped securities\n\n(1) Where:\n\n(a) at any time a taxpayer acquires or acquired a security (in this subsection referred to as the underlying security) in relation to which there are or were 2 or more payment rights; and\n\n(b) the taxpayer transfers or transferred one or some but not all of those rights to a particular person or particular persons jointly;\n\nfor the purposes of the application of this Division (including any subsequent application of this subsection) in relation to any period after the transfer of the right or rights:\n\n(c) instead of the underlying security, there shall be taken to have been originally issued:\n\n(i) a separate security under which the payment right or payment rights transferred to the person or persons referred to in paragraph (b) were created;\n\n(ii) where at the time at which that right or those rights were transferred, another payment right or other payment rights in relation to the underlying security was or were transferred to another person or to other persons jointly—a separate security under which that other right or those other rights were created; and\n\n(iii) where immediately after the transfer the taxpayer retains or retained any payment right or rights—a separate security under which that right or those rights were created;\n\n(d) where the underlying security was issued to the taxpayer—the issue price of each separate security referred to in paragraph (c) shall be taken to be so much of the issue price of the underlying security as bears to that amount the proportion that the market value of the separate security at the time of issue of the underlying security bears to the market value of the underlying security at that time; and\n\n(e) where the underlying security was acquired by the taxpayer on transfer—the transfer price, in relation to that transfer, of each separate security referred to in paragraph (c) shall be taken to be so much of the transfer price of the underlying security as bears to that amount the proportion that the market value of the separate security at the time of transfer bears to the market value of the underlying security at that time.\n\n(2) Where, by reason of the application of subsection (1) in relation to the transfer after 16 December 1984 of a payment right or payment rights in relation to a security to a particular person or particular persons jointly, the payment right or rights is or are taken to comprise a separate security, then, for the purposes of the application of this Division in relation to the separate security in relation to any period after the transfer, paragraph (a) of the definition of qualifying security in subsection 159GP(1) shall be disregarded.\n\n(3) In subsections (1) and (2), payment right, in relation to a security, means a right to receive a particular payment that is liable to be made under the security.\n\n(4) Where:\n\n(a) at any time a taxpayer acquires or acquired a security (in this subsection referred to as the underlying security) on issue or transfer;\n\n(b) after 16 December 1984, the taxpayer issues a qualifying security (in this subsection referred to as the stripped security); and\n\n(c) but for this subsection, a deduction of an amount equal to the whole or a part of the issue price or, where the underlying security was acquired on transfer, the transfer price of the underlying security would be allowable from the assessable income of the taxpayer of the year of income in which the taxpayer issues the stripped security in respect of the issue of the stripped security;\n\nthe amount of the deduction allowable shall be an amount that bears to the issue price or transfer price, as the case may be, of the underlying security the same proportion as the market value of the stripped security at the time of issue or purchase, as the case may be, bears to the market value of the underlying security at that time.\n\nDivision 16J—Effect of cancellation of subsidiary’s shares in holding company\n\n159GZZZC  Interpretation—general\n\n(1) In this Division:\n\nassociate has the same meaning as in section 318.\n\ncancellation includes redemption.\n\ndisposal includes cancellation.\n\nentity means a company, a partnership or a trust estate.\n\npre‑cancellation period, in relation to a cancellation of shares to which this Division applies, means the period beginning when the holding company concerned became a holding company of the subsidiary concerned and ending at the time of the cancellation.\n\nsecurity means stock, a bond or debenture, or any other document evidencing the indebtedness of a person, whether or not the debt is secured.\n\n(3) For the purposes of this Division, a company is:\n\n(a) a subsidiary of another company; or\n\n(b) the holding company of another company;\n\nif the first‑mentioned company is such for the purposes of the Corporations Act 2001.\n\n(4) For the purposes of this Division, a reference to an interest in an entity is a reference to a legal or equitable interest in:\n\n(a) if the entity is a company—shares in the company;\n\n(b) if the entity is a partnership—capital or profits of the partnership;\n\n(c) if the entity is a trust estate—corpus or income of the trust estate; or\n\n(d) in any case—securities issued by the entity.\n\n159GZZZD  Meaning of eligible entity, eligible interest and eligible proportion\n\nFor the purposes of this Division, where a holding company holds interests in a subsidiary of the holding company either directly or indirectly through interposed entities:\n\n(a) a reference to an eligible entity in relation to the holding company and the subsidiary is a reference to the holding company or any of the interposed entities;\n\n(b) a reference to an eligible interest of an eligible entity is a reference to any interest held by the eligible entity directly in the subsidiary or directly in any other eligible entity in relation to the holding company and the subsidiary; and\n\n(c) a reference to the eligible proportion in relation to an eligible interest of an eligible entity is a reference to the proportion of the total interests held directly in the subsidiary by all persons and entities that is represented by:\n\n(i) if the eligible entity holds the eligible interest directly in the subsidiary—the eligible interest; or\n\n(ii) if, by virtue of holding the eligible interest, the eligible entity holds an interest in the subsidiary indirectly through another eligible entity or other eligible entities—that interest in the subsidiary.\n\n159GZZZE  Share cancellations to which this Division applies\n\nWhere a holding company cancels shares in itself that are held by a subsidiary of that company, this Division applies to the cancellation of the shares.\n\n159GZZZF  Effect on subsidiary of share cancellations to which this Division applies\n\n(1) Where:\n\n(a) this Division applies to a cancellation of shares; and\n\n(b) apart from this section, either:\n\n(i) the subsidiary concerned would not receive or be entitled to receive any capital proceeds in respect of the cancellation; or\n\n(ii) the capital proceeds that the subsidiary concerned would receive or be entitled to receive in respect of the cancellation would be less than the adjusted market value of the shares;\n\nthe following provisions have effect for the purposes of this Act:\n\n(c) where subparagraph (b)(i) applies—the subsidiary shall be taken to have received or to be entitled to receive, as capital proceeds in respect of the cancellation, an amount equal to the adjusted market value of the shares;\n\n(d) where subparagraph (b)(ii) applies—the amount of the capital proceeds that the subsidiary receives or is entitled to receive in respect of the cancellation shall be taken to be increased by an amount so that it equals the adjusted market value of the shares.\n\n(2) For the purposes of subsection (1), the adjusted market value of the shares is the amount that would have been their market value at the time of the cancellation if the cancellation did not occur and was never proposed to occur.\n\n159GZZZG  Pre‑cancellation disposals of eligible interests\n\n(1) Where:\n\n(a) this Division applies to a cancellation of shares;\n\n(b) during the pre‑cancellation period, there is a disposal of an eligible interest held by an eligible entity in relation to the holding company and the subsidiary concerned; and\n\n(c) apart from this section, either:\n\n(i) the eligible entity would not have received or been entitled to receive any capital proceeds in respect of the disposal; or\n\n(ii) the capital proceeds that the eligible entity would have received or been entitled to receive in respect of the disposal would have been less than the adjusted market value of the eligible interest;\n\nthe following provisions have effect for the purposes of this Act:\n\n(d) where subparagraph (c)(i) applies—the eligible entity shall be taken to have received or to have been entitled to receive, as capital proceeds in respect of the disposal, an amount equal to the adjusted market value of the eligible interest;\n\n(e) where subparagraph (c)(ii) applies—the amount of the capital proceeds that the eligible entity received or was entitled to receive in respect of the disposal shall be taken to be increased by an amount so that it equals the adjusted market value of the eligible interest.\n\n(2) For the purposes of subsection (1), the adjusted market value of the eligible interest is the amount that would have been its market value at the time of the disposal if the cancellation of the shares to which this Division applies did not occur and was never proposed to occur.\n\n159GZZZH  Post‑cancellation disposals of eligible interests etc.\n\n(1) Where:\n\n(a) as a result of the application of section 159GZZZF in relation to a cancellation of shares, the subsidiary concerned is taken to have received or to be entitled to receive an amount of capital proceeds or an increase in an amount of capital proceeds (which amount or increase is in this section called the cancellation adjustment amount) in relation to the cancellation of the shares; and\n\n(b) an eligible entity in relation to the holding company and the subsidiary concerned holds an eligible interest at the time of the share cancellation;\n\nthen this section applies in relation to the eligible interest.\n\n(2) For the purposes of this Act (other than Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997):\n\n(a) if the eligible interest is not trading stock—in determining:\n\n(i) the amount of any deduction allowed or allowable to the eligible entity in respect of the acquisition of the eligible interest; or\n\n(ii) the amount of any profit included in, or loss allowable as a deduction from, the assessable income of the eligible entity in respect of the acquisition and any subsequent disposal of the eligible interest;\n\nthe capital proceeds in respect of the acquisition of the eligible interest shall be taken to have been reduced by the eligible interest’s eligible proportion of the cancellation adjustment amount; and\n\n(b) if the eligible interest is trading stock—the capital proceeds in respect of any subsequent disposal of the eligible interest shall be taken to be increased by the eligible interest’s eligible proportion of the cancellation adjustment amount.\n\n(3) For the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997, if a CGT event happens in relation to the eligible interest, the cost base and reduced cost base of the eligible interest is reduced by the eligible interest’s eligible proportion of the cancellation adjustment amount.\n\n(5) This section applies in relation to the acquisition of the eligible interest held by the eligible entity, and to a CGT event happening in relation to the eligible interest, even if the entity was not an eligible entity, and the interest was not an eligible interest, at the time of the acquisition or CGT event.\n\n159GZZZI  Additional application of sections 159GZZZG and 159GZZZH to associates\n\n(1) Subject to this section, where a natural person is an associate of a holding company (otherwise than solely because of being the trustee of a trust estate), sections 159GZZZG and 159GZZZH apply (in addition to any application apart from this application of this section) as if references in those sections to:\n\n(a) an eligible entity in relation to the holding company and the subsidiary concerned;\n\n(b) an eligible interest of such an entity; or\n\n(c) the eligible proportion in relation to such an interest;\n\nwere references to what would, if the natural person were a holding company in relation to the subsidiary, be respectively:\n\n(d) an eligible entity in relation to the natural person and the subsidiary;\n\n(e) an eligible interest of such an entity; or","sortOrder":1000078},{"sectionNumber":"full-source-retrieval-0080","sectionType":"document_chunk","heading":"Document excerpt 80","content":"(f) the eligible proportion in relation to such an interest.\n\n(2) For the purposes of applying section 159GZZZG or 159GZZZH in accordance with subsection (1):\n\n(a) any interest of an entity that is an eligible interest for the purposes of the application of that section apart from subsection (1) shall be taken not to be an eligible interest; and\n\n(b) any eligible interest of an eligible entity (including the natural person) held in the actual holding company referred to in subsection (1), or in any eligible entity interposed between the natural person and that holding company, shall be taken not to be an eligible interest.\n\nDivision 16K—Effect of buy‑backs of shares\n\nSubdivision AA—Application of Division to non‑share equity interests\n\n159GZZZIA  Application of Division to non‑share dividends\n\n(1) This Division:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(2) Paragraph (1)(a) does not apply to subsection 159GZZZP(1).\n\nSubdivision A—Interpretation\n\n159GZZZJ  Interpretation\n\nIn this Division:\n\nbuy‑back has the meaning given by paragraph 159GZZZK(a).\n\noff‑market purchase has the meaning given by paragraph 159GZZZK(d).\n\non‑market purchase has the meaning given by paragraph 159GZZZK(c).\n\npurchase price has the meaning given by section 159GZZZM.\n\nseller has the meaning given by paragraph 159GZZZK(b).\n\n159GZZZK  Explanation of terms\n\nFor the purposes of this Division, where a company buys a share in itself from a shareholder in the company:\n\n(a) the purchase is a buy‑back; and\n\n(b) the shareholder is the seller; and\n\n(c) if:\n\n(i) the share is listed for quotation in the official list of a stock exchange in Australia or elsewhere; and\n\n(ii) the buy‑back is made in the ordinary course of trading on that stock exchange;\n\nthe buy‑back is an on‑market purchase; and\n\n(d) if the buy‑back is not covered by paragraph (c)—the buy‑back is an off‑market purchase.\n\n159GZZZL  Special buy‑backs not made in ordinary course of trading on a stock exchange\n\nFor the purposes of this Division, a buy‑back is not made in the ordinary course of trading on a stock exchange in Australia if, when reported to the stock exchange, the transaction under which the buy‑back is made, is, under the stock exchange’s rules, described as special.\n\n159GZZZM  Purchase price in respect of buy‑back\n\nFor the purposes of this Division, the purchase price in respect of a buy‑back of a share is:\n\n(a) if the seller has received or is entitled to receive an amount or amounts of money as a result of or in respect of the buy‑back—that amount or the sum of those amounts; or\n\n(b) if the seller has received or is entitled to receive property other than money as a result of or in respect of the buy‑back—the market value of that property at the time of the buy‑back; or\n\n(c) if the seller has received or is entitled to receive both an amount or amounts of money and property other than money as a result of or in respect of the buy‑back—the sum of that amount or those amounts and the market value of that property at the time of the buy‑back.\n\nSubdivision B—Company buying‑back shares\n\n159GZZZN  Buy‑back and cancellation disregarded for certain purposes\n\nIf a company buys‑back a share then the buy‑back, and any subsequent cancellation of the share, are disregarded for the purposes of:\n\n(a) determining for the purposes of this Act:\n\n(i) whether an amount is included in the assessable income of the company under a provision of this Act (other than a provision of Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (about CGT)); or\n\n(ii) whether an amount is allowable as a deduction to the company; or\n\n(b) determining whether the company makes a capital gain or capital loss.\n\nSubdivision C—Off‑market purchases\n\n159GZZZP  Part of off‑market purchase price is a dividend if the company is not a listed public company\n\n(1) For the purposes of this Act, but subject to subsection (1A), where a buy‑back of a share or non‑share equity interest by a company is an off‑market purchase, the difference between:\n\n(a) the purchase price; and\n\n(b) the part (if any) of the purchase price in respect of the buy‑back of the share or non‑share equity interest which is debited against amounts standing to the credit of:\n\n(i) the company’s share capital account if it is a share that is bought back; or\n\n(ii) the company’s share capital account or non‑share capital account if it is a non‑share equity interest that is bought back;\n\nis taken to be a dividend paid by the company:\n\n(c) to the seller as a shareholder in the company; and\n\n(d) out of profits derived by the company; and\n\n(e) on the day the buy‑back occurs.\n\n(1A) If the dividend is included to any extent in the seller’s assessable income of any year of income, it is not taken into account to that extent under section 118‑20 of the Income Tax Assessment Act 1997.\n\n(2) The remainder of the purchase price is taken not to be a dividend for the purposes of this Act.\n\n(3) This section does not apply if the company is a listed public company.\n\n159GZZZPA  No part of off‑market purchase price is a dividend if the company is a listed public company\n\nFor the purposes of this Act, where a buy‑back of a share by a listed public company is an off‑market purchase, no part of the purchase price in respect of the buy‑back of the share is taken to be a dividend.\n\n159GZZZQ  Consideration in respect of off‑market purchase\n\n(1) Subject to this section, if a buy‑back of a share is an off‑market purchase, then:\n\n(a) in determining, for the purposes of this Act:\n\n(i) whether an amount is included in the assessable income of the seller under a provision of this Act other than Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT); or\n\n(ii) whether an amount is allowable as a deduction to the seller; or\n\n(b) whether the seller makes a capital gain or capital loss;\n\nin respect of the buy‑back, the seller is taken to have received or to be entitled to receive, as consideration in respect of the sale of the share, an amount equal to the purchase price in respect of the buy‑back.\n\nDeemed consideration increased to market value\n\n(2) If apart from this section:\n\n(a) the purchase price in respect of the buy‑back;\n\nis less than:\n\n(b) the amount that would have been the market value of the share at the time of the buy‑back if the buy‑back did not occur and was never proposed to occur;\n\nthen, subject to subsection (3), in making the determinations mentioned in paragraphs (1)(a) and (b), the amount of consideration that the seller is taken to have received or to be entitled to receive in respect of the sale of the share is equal to the market value mentioned in paragraph (b) of this subsection.\n\nDeemed consideration reduced where dividend assessable etc.\n\n(3) Subject to subsections (3A) and (8), if there is a reduction amount in respect of the buy‑back (see subsection (4)), then, in making the determinations mentioned in paragraphs (1)(a) and (b), the amount of consideration that the seller is taken to have received or to be entitled to receive in respect of the sale of the share, after any application of subsection (2), is reduced by the reduction amount.\n\n(3A) Subsection (3) does not apply if the buy‑back is by a listed public company.\n\nReduction amount\n\n(4) The following steps are to be taken in working out whether there is a reduction amount in respect of the buy‑back:\n\n(a) first, work out whether the whole or part of the purchase price in respect of the buy‑back is taken to be a dividend by section 159GZZZP;\n\n(b) second, for any amount satisfying paragraph (a), work out whether the whole or part of it is either:\n\n(i) included in the seller’s assessable income of any year of income (disregarding section 128D of this Act and section 802‑15 of the Income Tax Assessment Act 1997); or\n\n(ii) an eligible non‑capital amount (see subsection (5)).\n\nThe amount worked out is the reduction amount in respect of the buy‑back.\n\nEligible non‑capital amount\n\n(5) An amount is an eligible non‑capital amount if it is neither:\n\n(a) debited against a share capital account or a reserve to the extent that it consists of profits from the revaluation of assets of the company that have not been disposed of by the company; nor\n\n(b) attributable, either directly or indirectly, to amounts that were transferred from such an account or reserve of the company.\n\nDebit for deemed dividend\n\n(7) For the purposes of subsection (5), an amount of the purchase price that is taken to be a dividend by section 159GZZZP is taken to have been debited against the account or reserves against which the purchase price was debited, and to the same extent.\n\nOffsetable amount excluded from reduction where loss\n\n(8) If:\n\n(aa) the seller is a corporate tax entity; and\n\n(a) the amount of consideration that the seller is taken by subsection (1) or (2) to have received or to be entitled to receive in respect of the sale of the share is, apart from this subsection, reduced by a reduction amount under subsection (3); and\n\n(b) the dividend mentioned in paragraph (4)(a), so far as it does not exceed the reduction amount, consists to any extent of an offsetable amount (see subsection (9)); and\n\n(c) disregarding this subsection, as a result of the operation of this section:\n\n(i) for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT), the seller incurs a capital loss or an increased capital loss (which loss or increase is the loss amount) in respect of the buy‑back; or\n\n(ii) a loss, or an increased loss, (which loss or increase is also the loss amount) in respect of the buy‑back is allowable as a deduction to the seller under a provision of a Part of this Act other than Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997; or\n\n(iii) the amount of a deduction allowable from the seller’s assessable income of any year of income in respect of the issue or acquisition of the share exceeds, or exceeds by a greater amount, (the excess or increased excess is also the loss amount) the amount included in the seller’s assessable income of any year of income in respect of the buy‑back of the share;\n\nthen the reduction in the amount of the consideration under subsection (3) is instead a reduction equal to:\n\n(d) the reduction amount;\n\nless:\n\n(e) so much of the offsetable amount as does not exceed the loss amount.\n\nMeaning of offsetable amount\n\n(9) For the purposes of subsection (8), if the seller is entitled to a tax offset under Division 207 of the Income Tax Assessment Act 1997 in the seller’s assessment for a year of income in respect of the dividend, the dividend consists of an offsetable amount worked out using the formula:\n\n![Start formula start fraction Amount of offset over Corporate tax rate end fraction end formula](image.008.png)\n\nSubdivision D—On‑market purchases\n\n159GZZZR  No part of on‑market purchase price is a dividend\n\nFor the purposes of this Act, where a buy‑back by a company of a share is an on‑market purchase, no part of the purchase price in respect of the buy‑back of the share is taken to be a dividend.\n\n159GZZZS  Consideration in respect of on‑market purchase\n\nWhere a buy‑back is an on‑market purchase, then:\n\n(a) in determining, for the purposes of this Act:\n\n(i) whether an amount is included in the assessable income of the seller under a provision of this Act other than Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT); or\n\n(ii) whether an amount is allowable as a deduction to the seller; or\n\n(b) whether the seller makes a capital gain or capital loss;\n\nin respect of the buy‑back, the seller is taken to have received or to be entitled to receive, as consideration in respect of the sale of the share, the purchase price in respect of the buy‑back of the share.\n\nDivision 17—Rebates\n\nSubdivision A—Concessional rebates\n\n159H  Application\n\nThis Subdivision applies in relation to an assessment in respect of the income of a taxpayer if and only if:\n\n(a) the taxpayer is a resident and is not a company, and the assessment is not in respect of income derived by him or her in a representative capacity as an agent or trustee; or\n\n(b) both of the following requirements are satisfied:\n\n(i) the taxpayer is a trustee who is liable to be assessed under section 98 in respect of a share of the net income of a trust estate in respect of a beneficiary;\n\n(ii) the beneficiary is a resident and is not a company.\n\nSubdivision AB—Lump sum payments in arrears\n\n159ZR  Interpretation\n\n(1) In this Subdivision, unless the contrary intention appears:\n\naccrual year, in relation to the total arrears amount, means a year of income in which any part of the total arrears amount accrued.\n\nannual arrears amount, in relation to an accrual year, means so much of the total arrears amount as accrued in that year.\n\nassociate has the same meaning as in section 318.\n\nBSWAT payment amount means a payment amount paid to a person under the Business Services Wage Assessment Tool Payment Scheme Act 2015.\n\ncurrent year means the year of income for which the rebate is being calculated.\n\ndistant accrual year means an accrual year that is not a recent accrual year.\n\neligible income means:\n\n(a) salary or wages to the extent to which they accrued during a period ending more than 12 months before the date on which they are paid;\n\n(b) salary or wages paid to a person after re‑instatement to duty following a period of suspension of the person from duty, to the extent to which the salary or wages accrued during the period of suspension;\n\n(c) a payment covered by section 12‑80 or 12‑120 in Schedule 1 to the Taxation Administration Act 1953;\n\n(d) a Commonwealth education or training payment (see subsection 6(1));\n\n(e) a payment that is covered by Division 52, 53 or 55 of the Income Tax Assessment Act 1997, but that is not exempt from income tax under that Division;\n\n(f) a payment under a law of a foreign country that is similar to a payment covered by paragraph (e);\n\nbut does not include so much of any such amount as was taken into account in calculating the amount of a tax reimbursement payment by the Commonwealth that was authorised under section 65 of the Public Governance, Performance and Accountability Act 2013 (which deals with act of grace payments by the Commonwealth).\n\neligible lump sum, in relation to a year of income, means a lump sum payment of eligible income received on or after 1 July 1986 that is included in the assessable income of the year of income and accrued, in whole or in part, in an earlier year or years of income.\n\ngross tax means the tax payable before the allowance of any rebates or credits.\n\nlaw of a foreign country includes a law of any part of, or place in, a foreign country.\n\nnormal taxable income is the amount that would be the taxable income if:\n\n(a) no amount were included in assessable income under Division 82, section 83‑10 or 83‑80 or Division 301 or 302 of the Income Tax Assessment Act 1997 or Division 82 of the Income Tax (Transitional Provisions) Act 1997; and\n\n(b) the taxable income were reduced by any above‑average special professional income included in the taxable income under section 405‑15 of the Income Tax Assessment Act 1997; and\n\n(c) no amount were included in assessable income under section 102‑5 of the Income Tax Assessment Act 1997 (about including net capital gains in assessable income).\n\nnotional tax amount has the meaning given by sections 159ZRC and 159ZRD.\n\nrebated tax means the tax payable after the allowance of any tax offset under Division 82, 83, 301 or 302 of the Income Tax Assessment Act 1997, subsection 392‑35(2) of that Act (which allows some primary producers tax offsets) or Division 82 of the Income Tax (Transitional Provisions) Act 1997, but before the allowance of any other tax offsets or any credits.\n\nrebate year means a year of income for which the conditions in paragraphs 159ZRA(1)(a) and (b) are satisfied.\n\nrecent accrual year, in relation to the total arrears amount, means:\n\n(a) if there are 3 or more accrual years for the total arrears amount—the most recent 2 of those years; or\n\n(b) in any other case—the accrual year, or each of the accrual years, for the total arrears amount.\n\nsalary or wages means payments covered by sections 12‑35, 12‑40 (except payments of remuneration to a director of the company who is also an associate of the company), 12‑45, 12‑80, 12‑110, 12‑115 and 12‑120 in Schedule 1 to the Taxation Administration Act 1953.\n\ntotal arrears amount, in relation to a year of income, means the aggregate of the eligible lump sums included in the assessable income of the year of income to the extent to which those eligible lump sums accrued in an earlier year or years of income.\n\n(2) This Subdivision applies in relation to a BSWAT payment amount as if:\n\n(a) the BSWAT payment amount were an eligible lump sum accrued wholly in an earlier year or years of income; and\n\n(b) the wages by reference to which the BSWAT payment amount was worked out were eligible income accrued in the year of income to which the wages relate.\n\n159ZRA  Eligibility for rebate\n\n(1) Where:\n\n(a) the assessable income of the taxpayer of a year of income (in this Subdivision called the current year) includes one or more eligible lump sums; and\n\n(b) the total arrears amount is not less than 10% of the amount (if any) remaining after deducting that total arrears amount from the normal taxable income of the current year;\n\nthe taxpayer is entitled to a rebate of tax, in the taxpayer’s assessment for the current year, of the amount (if any) calculated in accordance with this Subdivision.\n\n(2) The rebate is only available to a natural person (otherwise than in the capacity of a trustee).\n\n159ZRB  Calculation of rebate\n\nThe rebate is calculated in accordance with the formula:\n\nTax on arrears – Notional tax on arrears","sortOrder":1000079},{"sectionNumber":"full-source-retrieval-0081","sectionType":"document_chunk","heading":"Document excerpt 81","content":"where:\n\nTax on arrears is the amount by which the rebated tax on the taxable income of the current year exceeds the rebated tax on the taxable income of the current year, being that taxable income reduced by the total arrears amount.\n\nNotional tax on arrears is the total of the notional tax amounts for the accrual years.\n\n159ZRC  Notional tax amount for recent accrual years\n\nThe notional tax amount for a recent accrual year is calculated in accordance with the formula:\n\nTax on increased income – Tax on actual income\n\nwhere:\n\nTax on increased income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows:\n\n(a) the annual arrears amount for the accrual year is to be added;\n\n(b) if the accrual year is also a rebate year—the total arrears amount for the accrual year is to be deducted; and\n\n(c) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the accrual year is to be added.\n\nTax on actual income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows (if applicable):\n\n(d) if the accrual year is also a rebate year—the total arrears amount for the accrual year is to be deducted; and\n\n(e) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the accrual year is to be added.\n\n159ZRD  Notional tax amount for distant accrual years\n\n(1) The notional tax amount for a distant accrual year is calculated in accordance with the formula:\n\nArrears amount  Average tax rate on recent arrears\n\nwhere:\n\nArrears amount is the annual arrears amount in relation to the accrual year.\n\nAverage tax rate on recent arrears is the average of the rates calculated in accordance with the following formula in respect of each of the recent accrual years:\n\n![Start formula start fraction Increased normal tax minus Normal tax over Arrears amount end fraction end formula](image.009.png)\n\nwhere:\n\nIncreased normal tax is the gross tax on the normal taxable income of the recent accrual year, being that normal taxable income adjusted as follows:\n\n(a) the annual arrears amount for the recent accrual year is to be added;\n\n(b) if the recent accrual year is also a rebate year—the total arrears amount for the recent accrual year is to be deducted; and\n\n(c) if, during the recent accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the recent accrual year is to be added.\n\nNormal tax is the gross tax on the normal taxable income of the recent accrual year, being that normal taxable income adjusted as follows (if applicable):\n\n(d) if the recent accrual year is also a rebate year—the total arrears amount for the recent accrual year is to be deducted; and\n\n(e) if, during the recent accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the recent accrual year is to be added.\n\nArrears amount is the annual arrears amount for the recent accrual year.\n\n(2) A rate calculated for the purposes of subsection (1) in respect of a recent accrual year shall be calculated as a decimal fraction to 3 decimal places.\n\n(3) If a rate so calculated would end with a number greater than 4 if it were calculated to 4 decimal places, the rate shall be increased by 0.001.\n\nSubdivision B—Miscellaneous\n\n160AAAA  Tax rebate for low income aged persons and pensioners\n\n(1) Subject to subsection 160AAA(4), a taxpayer who is an individual (other than in the capacity as trustee) is entitled to a rebate of tax in the taxpayer’s assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations, if the taxpayer satisfies the conditions in subsections (2) and (3).\n\n(2) The first condition is that:\n\n(a) on at least one day during the year of income, the taxpayer:\n\n(i) is eligible for a pension, allowance or benefit under the Veterans’ Entitlements Act 1986 (other than Part VII); and\n\n(ii) has reached pension age, within the meaning of that Act; and\n\n(iii) is not in gaol; or\n\n(b) on at least one day during the year of income, the taxpayer:\n\n(i) is qualified for an age pension under the Social Security Act 1991; and\n\n(ii) is not in gaol; or\n\n(c) the assessable income of the taxpayer of the year of income includes an amount of:\n\n(i) social security pension or education entry payment (within the meaning of the Social Security Act 1991); or\n\n(ii) service pension, carer service pension or income support supplement under the Veterans’ Entitlements Act 1986;\n\nand, on at least one day during the year of income, the taxpayer is not in gaol.\n\n(3) The second condition is that the taxpayer’s rebate income for the year of income is less than an amount ascertained in accordance with the regulations.\n\n(4) If the taxpayer is the spouse of another person, the amount applicable to the taxpayer under subsection (3) is half of the sum of:\n\n(a) the taxpayer’s rebate income for the year of income; and\n\n(b) the taxpayer’s spouse’s rebate income for the year of income (reduced by any amount included in the spouse’s assessable income under section 100); and\n\n(c) an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 in respect of the taxpayer’s spouse.\n\n(5) Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.\n\n160AAAB  Tax rebate for low income aged persons and pensioners—trustees assessed under section 98\n\n(1) Subject to subsection 160AAA(4A), a trustee who is liable to be assessed under section 98 in respect of a beneficiary’s share of the net income of the trust estate is entitled to a rebate of tax in the trustee’s assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations, if the conditions in subsections (2) and (3) are satisfied.\n\n(2) The first condition is that:\n\n(a) on at least one day during the year of income, the beneficiary:\n\n(i) is eligible for a pension, allowance or benefit under the Veterans’ Entitlements Act 1986 (other than Part VII); and\n\n(ii) has reached pension age, within the meaning of that Act; and\n\n(iii) is not in gaol; or\n\n(b) on at least one day during the year of income, the beneficiary:\n\n(i) is qualified for an age pension under the Social Security Act 1991; and\n\n(ii) is not in gaol; or\n\n(c) the assessable income of the beneficiary of the year of income includes an amount of:\n\n(i) social security pension or education entry payment (within the meaning of the Social Security Act 1991); or\n\n(ii) service pension, carer service pension or income support supplement under the Veterans’ Entitlements Act 1986;\n\nand, on at least one day during the year of income, the beneficiary is not in gaol.\n\n(3) The second condition is that the beneficiary has an amount applicable under subsection (4) or (5) for the year of income less than an amount ascertained in accordance with the regulations.\n\n(4) If the beneficiary is not the spouse of another person, the amount applicable to the beneficiary under subsection (3) is the amount that would be the beneficiary’s rebate income for the year of income if the beneficiary’s taxable income for that year were the beneficiary’s share of the net income of the trust estate.\n\n(5) If the beneficiary is the spouse of another person, the amount applicable to the beneficiary under subsection (3) is half the sum of:\n\n(a) the amount that would be applicable to the beneficiary under subsection (3) if the beneficiary were not the spouse of another person; and\n\n(b) the beneficiary’s spouse’s rebate income for the year of income (reduced by any amount included in the spouse’s assessable income under section 100); and\n\n(c) an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 in respect of the taxpayer’s spouse.\n\n(6) Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.\n\n160AAA  Rebate in respect of certain benefits etc.\n\n(1) In this section:\n\nrebatable benefit means an amount:\n\n(a) paid by way of a benefit under Part 2.11, 2.11A, 2.12, 2.15 or 2.23B of the Social Security Act 1991; or\n\n(aa) paid by way of parenting payment that is PP (partnered) under the Social Security Act 1991, to the extent that the amount is not exempt under Division 52 of the Income Tax Assessment Act 1997; or\n\n(ab) paid from the Commonwealth by way of an ex‑gratia payment to which subsection (2) applies; or\n\n(b) consisting of a Commonwealth education or training payment (see subsection 6(1)), except where the recipient, or the individual on whose behalf the recipient receives the payment, is an employee of any person who is entitled to a Commonwealth subsidy in respect of the employment; or\n\n(e) paid by way of income support to farmers and small business owners affected by Cyclone Larry or Cyclone Monica; or\n\n(f) known as an interim income support payment and paid under section 65 of the Public Governance, Performance and Accountability Act 2013 (which deals with act of grace payments by the Commonwealth); or\n\n(g) known as the Equine Workers Hardship Wage Supplement Payment.\n\n(2) This subsection applies to an ex‑gratia payment known as income support allowance for special category visa (subclass 444) holders if the payment is for a disaster:\n\n(a) occurring in Australia during the 2014‑15 financial year or a later financial year; and\n\n(b) for which a determination under subsection 36A(1) of the Social Security Act 1991 has been made.\n\n(3) Subject to subsections (4) and (4A), where the assessable income of a taxpayer of a year of income includes an amount of rebatable benefit, the taxpayer is entitled in the taxpayer’s assessment in respect of income of the year of income to a rebate of tax of an amount (if any) ascertained in accordance with the regulations.\n\n(4) Where, apart from this subsection, the taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate of tax under both section 160AAAA (Tax rebate for low income aged persons and pensioners) and this section:\n\n(a) if the amounts of the rebates are the same—the taxpayer is entitled to only one of the rebates; and\n\n(b) if the amounts of the rebates are not the same—the taxpayer is not entitled to the lesser of the rebates.\n\n(4A) If, apart from this subsection:\n\n(a) the taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate of tax under this section; and\n\n(b) the taxpayer is the beneficiary of a trust; and\n\n(c) the trustee of the trust is entitled to a rebate of tax for the year of income under section 160AAAB in respect of the taxpayer;\n\nthen:\n\n(d) if the amounts of the rebates are the same, or the amount of the rebate under this section is the lesser amount—the taxpayer is not entitled to the rebate under this section; or\n\n(e) if the amount of the rebate under this section is the greater amount—the trustee is not entitled to the rebate under section 160AAAB.\n\n(5) Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.\n\n160AAB  Rebate in respect of amounts assessable under section 26AH\n\n(1) In this section:\n\neligible 26AH amount, in relation to a year of income, means an amount included in assessable income under section 26AH in relation to an eligible policy within the meaning of that section issued by:\n\n(a) a life assurance company, not being a life assurance company the whole of the income of which of the year of income is exempt from tax;\n\n(c) the Government Insurance Office of New South Wales;\n\n(d) Suncorp Insurance and Finance, being a body corporate established by a law of Queensland;\n\n(e) the State Government Insurance Commission established by a law of South Australia;\n\n(f) the State Insurance Office established by a law of Victoria; or\n\n(g) the State Government Insurance Corporation established by a law of Western Australia.\n\nstatutory percentage means:\n\n(a) if the policy concerned was issued by a friendly society:\n\n(i) if the year of income is earlier than the 2002‑03 year of income—33%; or\n\n(ii) if the year of income is the 2002‑03 year of income or a later year of income—30%; or\n\n(b) otherwise:\n\n(i) if the year of income is earlier than the 2001‑02 year of income—39%; or\n\n(ii) if the year of income is the 2001‑02 year of income—34%; or\n\n(iii) if the year of income is the 2002‑03 year of income or a later year of income—30%.\n\n(2) A taxpayer, not being a taxpayer in the capacity of trustee of a trust estate, is entitled in his or her assessment in respect of income of a year of income to a rebate of tax equal to the statutory percentage of an eligible 26AH amount included in his or her assessable income of the year of income.\n\n(3) Where:\n\n(a) an amount is included under section 97, 98A or 100 in the assessable income of a year of income of a taxpayer being a beneficiary of a trust estate otherwise than in the capacity of trustee of another trust estate; and\n\n(b) the whole or a part of the amount so included (which whole or part is in this subsection referred to as the rebatable amount) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate;\n\nthe taxpayer is entitled in his or her assessment in respect of income of the year of income to a rebate of tax equal to the statutory percentage of the rebatable amount.\n\n(4) Where:\n\n(a) a taxpayer being the trustee of a trust estate is liable to be assessed and to pay tax in pursuance of section 98 in respect of a share of the net income of the trust estate of a year of income; and\n\n(b) the whole or part of that share (which whole or part is in this subsection referred to as the rebatable amount) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate;\n\nthe taxpayer is entitled in that assessment to a rebate of tax equal to the statutory percentage of the rebatable amount.\n\n(5) Where:\n\n(a) a taxpayer being the trustee of a trust estate is liable to be assessed and to pay tax in pursuance of section 99 or 99A in respect of the whole or a part (which whole or part is in this subsection referred to as the relevant trust income) of the net income of the trust estate of a year of income; and\n\n(b) the whole or a part of the relevant trust income (which whole or part is in this subsection referred to as the rebatable amount) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate;\n\nthe taxpayer is entitled in that assessment to a rebate of tax equal to the statutory percentage of the rebatable amount.\n\n(5A) A taxpayer being the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust is entitled in the taxpayer’s assessment in respect of income of a year of income to a rebate of tax equal to the statutory percentage of any eligible section 26AH amount included in the taxpayer’s assessable income of the year of income.\n\n(6) Where an eligible 26AH amount is included in the assessable income of a partnership of a year of income in the calculation of the net income or partnership loss of the partnership of the year of income, a partner in the partnership is entitled in his or her assessment in respect of income of the year of income to a rebate of tax equal to the statutory percentage of the amount by which the taxable income of the partner of the year of income exceeds the amount that could reasonably be expected to be that taxable income if the eligible 26AH amount had not been included in the assessable income of the partnership of the year of income.\n\n160AD  Maximum amount of rebates\n\nNotwithstanding anything contained in this or any other Act, the sum of the rebates allowable under this Act shall not exceed the amount of tax which would otherwise be payable by the taxpayer.\n\n160ADA  Most tax offsets under the 1997 Assessment Act are treated as rebates\n\nA tax offset under a provision of the Income Tax Assessment Act 1997 is taken to be a rebate for the purposes of this Act, unless that provision corresponds to a provision of this Act that provides for a credit.\n\nNote: If the tax offset provision does correspond to a credit provision, the tax offset is treated as a credit: see section 6D.\n\nPart IIIB—Australian branches of foreign banks\n\nDivision 1—Preliminary\n\n160ZZVA  Object\n\n(1) The object of this Part is:\n\n(a) to assist in calculating that part of a foreign bank’s taxable income that is referable to certain activities of its Australian branch; and\n\n(b) to make it clear that withholding tax will apply to amounts that are taken by this Part to be interest paid by the branch to the bank.\n\nNote: This Part also:\n\n(a) applies to foreign entities that are financial entities in the same way as it applies to foreign banks; and\n\n(b) applies to permanent establishments in Australia of foreign entities that are financial entities in the same way as it applies to Australian branches of foreign banks.\n\nSee Division 4.","sortOrder":1000080},{"sectionNumber":"full-source-retrieval-0082","sectionType":"document_chunk","heading":"Document excerpt 82","content":"(2) For the purpose of achieving the object mentioned in subsection (1), this Part requires, in the circumstances stated in this Part and not otherwise, that the Australian branch is to be treated as if it were a separate legal entity from the bank.\n\n160ZZVB  Application\n\n(1) It is the intention that, in so far as this Part is to be applied to identify amounts of income and expenditure that are taken into account in calculating that part of a foreign bank’s taxable income of a year of income that is referable to certain activities of its Australian branch, the provisions of this Part are to be applied in their entirety.\n\n(2) If, as a result of the application of this Part:\n\n(a) the taxable income of a year of income of a foreign bank that is attributable to activities carried on by the bank through its Australian branch is greater than the amount that would be that taxable income if this Part did not apply; or\n\n(b) a foreign bank would be taken not to incur a loss in a year of income in respect of activities carried on by the bank through its Australian branch that it would be taken to have incurred if this Part did not apply; or\n\n(c) the amount of a loss that a foreign bank would be taken to incur in a year of income in respect of activities carried on by the bank through its Australian branch is less than the amount of the loss that it would be taken to have incurred if this Part did not apply;\n\nthe bank may elect that this Part is not to apply in the calculation of its taxable income of that year of income.\n\n(3) If a foreign bank makes an election as mentioned in subsection (2):\n\n(a) this Part does not apply in the calculation of the bank’s taxable income of the year of income to which the election relates and the bank may furnish returns, and is liable to pay tax, accordingly; but\n\n(b) the election does not affect the operation of this Part in respect of the application of withholding tax to amounts that are taken by this Part to be interest paid by the branch to the bank.\n\n160ZZV  Definitions\n\nIn this Part, unless the contrary intention appears:\n\naccounting records  includes:\n\n(a) invoices, receipts, vouchers and other documents of prime entry; and\n\n(b) any working papers and other documents that are necessary to explain the methods and calculations by which accounts are made up.\n\nAustralian branch, in relation to a foreign bank, means a permanent establishment in Australia through which the bank carries on banking business.\n\nderivative transaction means a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997) that is entered into for the purpose of eliminating, reducing or altering the risk of adverse financial consequences that might result from changes in rates of interest or changes in rates of exchange between currencies, or for the purpose of making a profit from such changes, but does not include a transaction entered into for the provision of finance or a foreign exchange transaction.\n\nforeign bank means a body corporate that is a foreign ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.\n\nforeign exchange transaction  means a transaction by which different currencies are exchanged.\n\ninterest has the same meaning as in Division 11A of Part III.\n\noffshore banking unit  has the same meaning as in Division 11A of Part III.\n\ntime of establishment, in relation to an Australian branch of a foreign bank, means the time when the bank began to carry on business through the permanent establishment in Australia that constitutes the branch.\n\n160ZZW  Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity\n\n(1) Subsections (2), (3), (4) and (5) apply only:\n\n(a) for the purposes of sections 160ZZZ, 160ZZZA, 160ZZZC, 160ZZZE and 160ZZZF as they have effect in the determination under this Act of the liability of a foreign bank to tax (other than withholding tax) in respect of income derived from an Australian branch of the bank; and\n\n(b) for the purposes of the provisions of this Act other than this Part as those provisions apply in relation to amounts that are taken by this Part to have been received from a foreign bank by its Australian branch or to have been paid to a foreign bank by its Australian branch; and\n\n(c) for the purposes of section 160ZZZJ as it has effect in determining the liability of a foreign bank to withholding tax in respect of amounts paid to the bank by an Australian branch of the bank.\n\n(1A) To avoid doubt, subsection (2) applies for the purposes of applying Subdivision 230‑A of the Income Tax Assessment Act 1997 to a financial arrangement (within the meaning of that Act).\n\nNote: This means that it is possible for financial arrangements to be entered into between the bank and the branch and for the bank or the branch to have a gain or loss from such an arrangement dealt with under Division 230 of the Income Tax Assessment Act 1997.\n\n(2) The branch and the bank are taken to be, and to have been since the time of establishment of the branch, separate legal entities.\n\nNote: For cross‑border transfer pricing, the rules in Subdivision 815‑B of the Income Tax Assessment Act 1997 apply to the separate legal entity, rather than the rules for permanent establishments in Subdivision 815‑C: see subsection 815‑210(3) of that Act.\n\n(3) The branch is taken to be, and to have been since the time of its establishment, a company having a share capital all the shares in which are or were beneficially owned by the bank.\n\n(4) The branch is taken to be a non‑resident and to have been a non‑resident since the time of its establishment.\n\nDivision 2—Provisions relating to income tax\n\n160ZZX  Income of branch to have Australian source\n\n(1) All income derived by a foreign bank through its Australian branch is taken, for the purposes of this Act, to be income derived from a source in Australia.\n\n(2) All gains from a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997) made by a foreign bank through its Australian branch is taken, for the purposes of this Act, to be from an Australian source.\n\n160ZZZ  Notional borrowing by branch from bank\n\n(1) If an amount has been made available by a foreign bank for use by an Australian branch of the bank and is recorded in the branch’s accounting records as having been provided by the bank to the branch, that amount is taken, for the purposes of this Act, to have been borrowed by the branch from the bank when the amount became so available and to have been so borrowed in the currency in which the amount became so available.\n\n(2) If an amount has been made available by the branch to the bank in purported repayment of an amount that is taken, under subsection (1), to have been borrowed by the branch from the bank and the amount so made available is recorded in the branch’s accounting records as having been repaid by the branch to the bank, the amount that was so taken to have been borrowed is taken, for the purposes of this Act, to have been repaid by the branch to the bank when the amount became so available and to have been so repaid in the currency in which the amount became so available.\n\n160ZZZA  Notional payment of interest by branch to bank\n\n(1) If, under section 160ZZZ, an amount is taken, for the purposes of this Act, to have been borrowed (the notional borrowing) in a particular currency from a foreign bank by an Australian branch of the bank, the following provisions have effect:\n\n(a) at any time (the relevant time) when, in respect of the notional borrowing, an amount (the notional amount of interest) is entered in the branch’s accounting records as interest for a period fixed by the bank, interest is taken, for the purposes of this Act, to be incurred by the branch, paid by the branch to the bank, and derived by the bank, in respect of the notional borrowing;\n\n(b) subject to the application of paragraph (c), the notional amount of interest is taken, for the purposes of this Act, to be the amount of interest so taken to be paid;\n\n(c) if the interest on the notional borrowing at the relevant time was at a rate of interest that exceeded the LIBOR that was applicable at the beginning of the relevant interest calculation period in relation to the notional borrowing, there is taken to have been entered in the branch’s accounting records at the relevant time, in lieu of the notional amount of interest, the amount that would have been so entered if interest on the notional borrowing for the relevant interest calculation period had been calculated at the LIBOR that was applicable at the beginning of that period.\n\n(2) For the purposes of this section, a reference to the LIBOR that was applicable at the beginning of the relevant interest calculation period in relation to the notional borrowing is a reference to:\n\n(a) the LIBOR applicable at the beginning of that period in respect of advances in the currency of that borrowing for a term the number of days in which was equal to the number of days in that period; or\n\n(b) if there was no LIBOR applicable at the beginning of that period in respect of advances in the currency of that borrowing for such a term:\n\n(i) the LIBOR applicable at the beginning of that period in respect of advances in that currency for a term the number of days in which most nearly approximated the number of days in that period; or\n\n(ii) if there were different LIBORs so applicable for different terms the number of days in each of which could be described as having most nearly approximated the number of days in that period—the LIBOR so applicable for the shorter of those terms.\n\n(3) For the purposes of this section:\n\n(a) a reference to LIBOR, in relation to a particular time, is a reference to the rate of interest applicable at that time in relation to banks in the London inter bank market as determined by reference to the Reuter Monitor Money Rates Service or any other published source; and\n\n(b) a reference to the relevant interest calculation period in relation to a notional borrowing from a foreign bank by an Australian branch of the bank is a reference to the period fixed by the bank for the calculation of the notional amount of interest in respect of the notional borrowing.\n\n160ZZZC  Offshore banking units\n\nIf:\n\n(a) apart from this section, a foreign bank would be an offshore banking unit under a declaration made under subsection 128AE(2); and\n\n(b) the foreign bank has an Australian branch;\n\nthis Act has effect as if the Australian branch were the offshore banking unit under the declaration.\n\n160ZZZE  Notional derivative transactions between branch and bank\n\nIf the accounting records of an Australian branch of a foreign bank reflect a derivative transaction notionally entered into by the branch with the bank:\n\n(a) the notional transaction is taken to be a transaction entered into by the branch with the bank; and\n\n(b) any amount entered in the branch’s accounting records as a payment or receipt in respect of the notional transaction is taken, for the purposes of this Act, to be an amount paid or received by the branch, as the case may be, in respect of the derivative transaction when the amount was so entered.\n\n160ZZZF  Notional foreign exchange transactions between branch and bank\n\nIf the accounting records of an Australian branch of a foreign bank reflect a foreign exchange transaction notionally entered into by the branch with the bank:\n\n(a) the notional transaction is taken to be a transaction entered into by the branch with the bank; and\n\n(b) any amount entered in the branch’s accounting records as a payment or receipt in respect of the notional transaction is taken, for the purposes of this Act, to be an amount paid or received by the branch, as the case may be, in respect of the foreign exchange transaction when the amount was so entered.\n\n160ZZZG  Losses\n\nSubdivision 170‑A of the Income Tax Assessment Act 1997 has effect as if an Australian branch of a foreign bank were a subsidiary of the bank and a resident of Australia.\n\n160ZZZH  Net capital losses\n\nSubdivision 170‑B of the Income Tax Assessment Act 1997 (about transfer of net capital losses within wholly‑owned groups of companies) has effect as if an Australian branch of a foreign bank were a 100% subsidiary (within the meaning of that Act) of the bank and an Australian resident (within the meaning of that Act).\n\n160ZZZI  Certain transactions to be disregarded\n\nAny transaction entered into by a foreign bank otherwise than through its Australian branch:\n\n(a) under which finance is provided to the bank; or\n\n(b) that is a derivative transaction or a foreign exchange transaction;\n\nis to be disregarded for the purpose of determining whether a deduction is allowable to the bank under this Act.\n\nDivision 3—Provisions relating to withholding tax\n\n160ZZZJ  Withholding tax on interest paid by branch to bank\n\n(1) If:\n\n(a) an amount of interest is taken under section 160ZZZA to be paid to, and derived by, a foreign bank by an Australian branch of the bank; and\n\n(b) apart from this section, section 128B of this Act, and Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953, would apply to an amount (the taxable amount) that comprises the whole or a part of the amount so taken to be paid;\n\nthe following subsections have effect.\n\n(2) Section 128B of this Act, and Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953, apply only to the amount worked out using the formula:\n\n![Start formula start fraction Taxable amount over 2 end fraction end formula](image.010.png)\n\n(3) An amount to which section 128B applies because of subsection (2) of this section is taken, for the purposes of section 128C, to be income that was derived by the bank when the amount of interest referred to in paragraph (1)(a) is taken to have been paid to the bank.\n\nDivision 4—Extension of Part to Australian branches of foreign financial entities\n\n160ZZZK  Treatment like Australian branches of foreign banks\n\nObjects\n\n(1) The main objects of this section are:\n\n(a) to treat foreign entities that are financial entities like foreign banks for the purposes of this Part; and\n\n(b) to treat Australian permanent establishments of foreign entities that are financial entities like Australian branches of foreign banks for the purposes of this Part.\n\nForeign financial entities treated like foreign banks\n\n(2) This Part (except this Division) applies to a foreign entity that is a financial entity in the same way as this Part applies to a foreign bank.\n\nAustralian permanent establishments treated like Australian branches\n\n(3) This Part (except this Division) applies to a permanent establishment in Australia of a foreign entity that is a financial entity in the same way as this Part applies to an Australian branch of a foreign bank.\n\nDefinitions\n\n(4) In this section:\n\nfinancial entity has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nforeign entity has the meaning given by section 995‑1 of the Income Tax Assessment Act 1997.\n\nDivision 5—Modifications relating to hybrid mismatch rules\n\n160ZZZL  Certain “hybrid mismatch” deductions denied\n\n(1) Subsection (2) applies if:\n\n(a) either:\n\n(i) an amount of interest (a notional payment) is taken under section 160ZZZA to be incurred by an Australian branch of a foreign bank in respect of a notional borrowing; or\n\n(ii) an amount (also a notional payment) is taken under section 160ZZZE to be an amount paid by an Australian branch of a foreign bank in respect of a notional derivative transaction; and\n\n(b) the amount would, apart from this section, give rise to a deduction for the Australian branch in a year of income; and\n\n(c) the amount of the deduction exceeds the amount worked out under subsection (3).\n\nNeutralising hybrid mismatch outcomes\n\n(2) So much of the deduction as equals the excess worked out under paragraph (1)(c) is not allowable as a deduction for the year of income.\n\nExtent to which notional payment gives rise to a deduction/non‑inclusion outcome\n\n(3) For the purposes of paragraph (1)(c), sum the following amounts:\n\n(a) the amount of the notional payment that is subject to foreign income tax;\n\n(b) so much (if any) of the amount of the notional payment as it is reasonable to conclude is effectively funding expenses covered by subsection (4) or (5) (about non‑deductible third party expenses);\n\n(c) the amount (if any) of income or profits of the Australian branch that is both:\n\n(i) subject to Australian income tax for the purposes of subsection 832‑680(1) of the Income Tax Assessment Act 1997 in the year of income mentioned in paragraph (1)(b); and\n\n(ii) subject to foreign income tax for the purposes of subsection 832‑680(1) of the Income Tax Assessment Act 1997 in the foreign country in which the foreign bank is a resident.\n\nNon‑deductible third party expenses\n\n(4) For the purposes of paragraph (3)(b), if:\n\n(a) the notional payment is in respect of a notional borrowing; and\n\n(b) it is reasonable to conclude that the notional borrowing is effectively funded by actual borrowings by the foreign bank;\n\nthen the expenses in respect of the actual borrowings are covered by this subsection to the extent (if any) that those expenses do not give rise to foreign income tax deductions.\n\n(5) For the purposes of paragraph (3)(b), if:\n\n(a) the notional payment is in respect of a notional derivative transaction; and\n\n(b) it is reasonable to conclude that the foreign bank has hedged or managed all or part of its risk in relation to the notional derivative transaction by entering into actual transactions;\n\nthen the expenses in respect of the actual transactions are covered by this subsection to the extent (if any) that those expenses do not give rise to foreign income tax deductions.\n\nSafe harbour","sortOrder":1000081},{"sectionNumber":"full-source-retrieval-0083","sectionType":"document_chunk","heading":"Document excerpt 83","content":"(6) The deduction is taken for the purposes of paragraph (1)(c) not to exceed the amount worked out under subsection (3) if the foreign bank adopts a recognised transfer pricing methodology in allocating expenditure and income between itself and all its branches.\n\n160ZZZN  Adjusting if Australian branch derives dual inclusion income in a later year\n\n(1) There is an adjustment under subsection (2) for the Australian branch in a year of income (the adjustment year) if:\n\n(a) an amount of a deduction was not allowable for the branch in an earlier year of income under subsection 160ZZZL(2); and\n\n(b) this Part applies in the calculation of the foreign bank’s taxable income in the adjustment year; and\n\n(c) an amount of income or profits of the Australian branch is:\n\n(i) subject to Australian income tax for the purposes of subsection 832‑680(1) of the Income Tax Assessment Act 1997 in the adjustment year; and\n\n(ii) subject to foreign income tax for the purposes of that subsection in the foreign country in which the foreign bank is a resident.\n\n(2) So much of the amount of income or profits that satisfies paragraph (1)(c) as does not exceed the amount of the deduction that was not allowable is an amount the Australian branch can deduct in the adjustment year.\n\n(3) For the purposes of a later application of this section, treat the amount of the deduction that was not allowable under subsection 160ZZZL(2) as being reduced by the amount deducted under subsection (2).\n\n160ZZZP  Dual inclusion income not to be applied more than once\n\n(1) For the purposes of paragraphs 160ZZZL(3)(c) and 160ZZZN(1)(c), an amount of income or profits is to be disregarded if:\n\n(a) the amount is dual inclusion income; and\n\n(b) the amount has been applied by a provision of Division 832 of the Income Tax Assessment Act 1997.\n\n(2) For the purposes of Division 832 of that Act, an amount of dual inclusion income is not available to be applied by a provision of that Division if it has been taken into account under paragraph 160ZZZL(3)(c) or subsection 160ZZZN(2).\n\n160ZZZR  Interpretation\n\nIn this Division:\n\ndual inclusion income has the same meaning as in the Income Tax Assessment Act 1997.\n\nforeign income tax deduction has the same meaning as in the Income Tax Assessment Act 1997.\n\nsubject to Australian income tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nsubject to foreign income tax has the same meaning as in the Income Tax Assessment Act 1997.\n\nPart IV—Returns and assessments\n\n161  Annual returns\n\nRequirement to lodge a return\n\n(1) Every person must, if required by the Commissioner by legislative instrument, give to the Commissioner a return for a year of income within the period specified in the instrument.\n\nNote: The Commissioner may defer the time for giving the return: see section 388‑55 in Schedule 1 to the Taxation Administration Act 1953.\n\n(1A) The Commissioner may, in the instrument, exempt from liability to furnish returns such classes of persons not liable to pay income tax as the Commissioner thinks fit, and a person so exempted need not furnish a return unless the person is required by the Commissioner to do so.\n\n(2) If the taxpayer is absent from Australia, or is unable from physical or mental infirmity to make such return, the return may be signed and delivered by some person duly authorized.\n\n(3) Nothing in this section prevents an approval by the Commissioner of a form of return under section 35D of the Superannuation Industry (Supervision) Act 1993 from requiring or permitting a return under that section to be attached to, or to form part of, a return under this section.\n\nNote: However, the rules applicable to a return under section 35D of the Superannuation Industry (Supervision) Act 1993 are those specified in that Act.\n\n161A  Form and content of returns\n\n(1) The return must be in the approved form.\n\nElectronic returns\n\n(2) An approval given by the Commissioner of a form of return may require or permit the return to be given on a specified kind of data processing device, or by way of electronic transmission, in accordance with specified software requirements.\n\n161AA  Contents of returns of full self‑assessment taxpayers\n\nA full self‑assessment taxpayer must, in a return for a year of income, specify:\n\n(a) its taxable income or its net income for that year of income (or that it has no taxable income or net income for that year); and\n\n(b) the amount of the tax payable on that taxable income or net income (or that no tax is payable); and\n\n(ba) the total of its tax offset refunds for that year of income (or that it can get no such refund for that year of income); or\n\n(c) the amount of interest (if any) payable by the taxpayer under section 102AAM for that year of income; and\n\n(d) for a company that is an RSA provider, or a trustee of a superannuation fund in relation to the year of income:\n\n(i) its no‑TFN contributions income as defined by section 295‑610 of the Income Tax Assessment Act 1997 (or that it has no no‑TFN contributions income); and\n\n(ii) the amount of the income tax payable on that income (or that no income tax is payable).\n\n161G  Tax agent to give taxpayer copy of notice of assessment\n\nWhere a taxpayer has given the address of a registered tax agent as the taxpayer’s address for service, the registered tax agent must give the taxpayer the original of, or a copy of, any notice of assessment in respect of that taxpayer that is delivered to that address.\n\nPenalty: 30 penalty units.\n\n162  Further returns and information\n\nA person must, if required by the Commissioner, whether before or after the end of the year of income, give the Commissioner, within the time required and in the approved form:\n\n(a) a return or a further or fuller return for a year of income or a specified period, whether or not the person has given the Commissioner a return for the same period; or\n\n(b) any information, statement or document about the person’s financial affairs.\n\n163  Special returns\n\nEvery person, whether a taxpayer or not, if required by the Commissioner, shall, in the approved form and within the time required by the Commissioner, furnish any return required by the Commissioner for the purposes of this Act.\n\n166  Assessment\n\nFrom the returns, and from any other information in the Commissioner’s possession, or from any one or more of these sources, the Commissioner must make an assessment of:\n\n(a) the amount of the taxable income (or that there is no taxable income) of any taxpayer; and\n\n(b) the amount of the tax payable thereon (or that no tax is payable); and\n\n(c) the total of the taxpayer’s tax offset refunds (or that the taxpayer can get no such refunds).\n\n166A  Deemed assessment\n\n(1) Where a taxpayer that is a relevant entity within the meaning of former Division 1B of Part VI furnishes a return in respect of income of a year of income to which that Division applied:\n\n(a) the Commissioner is taken to have made, on the day on which the return is furnished, an assessment of the relevant taxable income or net income, as the case may be, and of the tax payable on that taxable income or net income, being those respective amounts as specified in the return; and\n\n(b) on and after the day on which the Commissioner is deemed to have made the assessment, the return is deemed to be a notice of the deemed assessment and to be under the hand of the Commissioner; and\n\n(c) the notice referred to in paragraph (b) is deemed to have been served on the entity on the day on which the Commissioner is deemed to have made the assessment.\n\n(2) Where:\n\n(aa) at a particular time, a taxpayer to which former Division 1C of Part VI applied gives a return in respect of income of a year of income to which that Division applied; and\n\n(ab) before that time, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the income of the year of income:\n\nthe following provisions apply:\n\n(a) the Commissioner is deemed to have made an assessment of the taxable income or net income, and the tax payable on that income, equal to those respective amounts specified in the return;\n\n(b) the assessment is deemed to have been made on the day on which the return is lodged;\n\n(c) on and after the day on which the Commissioner is deemed to have made the assessment, the return is deemed to be a notice of the deemed assessment:\n\n(i) under the hand of the Commissioner; and\n\n(ii) served on the taxpayer on the day on which the Commissioner is deemed to have made the assessment.\n\n(3) If:\n\n(a) at a particular time, a full self‑assessment taxpayer gives a return in respect of a year of income for which the taxpayer is a full self‑assessment taxpayer; and\n\n(b) before that time, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the income of the year of income;\n\nthe following provisions apply:\n\n(c) the Commissioner is taken to have made an assessment of:\n\n(i) the taxable income or net income (or an assessment that there is no taxable income or net income); and\n\n(ii) the tax payable on that income (or that no tax is payable); and\n\n(iii) the total of the taxpayer’s tax offset refunds for the year of income (or that the taxpayer can get no such refunds);\n\nin accordance with what the taxpayer specified in the return;\n\n(d) the assessment is taken to have been made on the day on which the return is lodged;\n\n(e) on and after the day on which the Commissioner is taken to have made the assessment, the return is taken to be a notice of the assessment:\n\n(i) under the hand of the Commissioner; and\n\n(ii) served on the taxpayer on the day on which the Commissioner is taken to have made the assessment.\n\n167  Default assessment\n\nIf:\n\n(a) any person makes default in furnishing a return; or\n\n(b) the Commissioner is not satisfied with the return furnished by any person; or\n\n(c) the Commissioner has reason to believe that any person who has not furnished a return has derived taxable income;\n\nthe Commissioner may make an assessment of the amount upon which in his or her judgment income tax ought to be levied, and that amount shall be the taxable income of that person for the purpose of section 166.\n\n168  Special assessment\n\n(1) The Commissioner may at any time during any year, or after its expiration, make an assessment of:\n\n(a) the taxable income derived (or that there is no taxable income) in that year or any part of it by any taxpayer; and\n\n(b) the tax payable thereon (or that no tax is payable); and\n\n(c) the total of the taxpayer’s tax offset refunds for that year or that part of it (or that the taxpayer can get no such refunds).\n\n(2) Where the income, in respect of which such an assessment is made, is derived in a period less than a year, the assessment shall be made as if the beginning and end of that period were the beginning and end respectively of the year of income.\n\n169  Assessments on all persons liable to tax\n\nWhere under this Act any person is liable to pay tax (including a nil liability), the Commissioner may make an assessment of the amount of such tax (or an assessment that no tax is payable).\n\n169AA  Consolidated assessments\n\n(1) This section applies if 2 or more persons (the recipients) are in receipt of income, or of profits or gains of a capital nature, for or on behalf of:\n\n(a) a non‑resident; or\n\n(b) a person absent from Australia.\n\n(2) The Commissioner may, if it appears to him or her to be expedient to do so:\n\n(a) consolidate all or any of the assessments of the income, profits or gains; and\n\n(b) declare one of the recipients to be the agent of the non‑resident or absent person in respect of the consolidated assessment; and\n\n(c) require the agent to pay income tax on the amount assessed.\n\n(3) If the Commissioner does so, the agent is liable to pay the tax.\n\n169A  Reliance by Commissioner on returns and statements\n\n(1) Where a return of income of a taxpayer of a year of income is furnished to the Commissioner (whether or not by the taxpayer), the Commissioner may, for the purposes of making an assessment in relation to the taxpayer under this Act, accept, either in whole or in part, a statement in the return of the assessable income derived by the taxpayer and of any allowable deductions or rebates to which it is claimed that the taxpayer is entitled and any other statement in the return or otherwise made by or on behalf of the taxpayer.\n\n(2) Despite subsection (1), if, in a document given with a return of income of a taxpayer of a year of income and signed by or on behalf of the taxpayer, a question is raised:\n\n(a) that is relevant to the liability of the taxpayer in respect of the year of income; and\n\n(b) on which the taxpayer is not entitled to apply for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953;\n\nthe Commissioner must give attention to that question.\n\n(3) In determining whether an assessment is correct, any determination, opinion or judgment of the Commissioner made, held or formed in connection with the consideration of an objection against the assessment shall be deemed to have been made, held or formed when the assessment was made.\n\n170  Amendment of assessments\n\n(1) The Commissioner may amend an assessment as follows:","sortOrder":1000082},{"sectionNumber":"full-source-retrieval-0084","sectionType":"document_chunk","heading":"Document excerpt 84","content":"- Amendment of assessments\n- Time of amendment Qualification\n- 1 The Commissioner may amend an assessment of an individual for a year of income within 2 years after the day on which the Commissioner gives notice of the assessment to the individual. This item does not apply:(a) if the individual carries on a business at any time in that year unless the individual is a small business entity or medium business entity for that year; or(b) if the individual is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or(c) to an individual in the capacity of a trustee of a trust estate at any time in that year (see item 3 for this case); or(d) if the individual is a beneficiary of a trust estate at any time in that year unless the trust is a small business entity or medium business entity for that year or the trustee of the trust (in that capacity) is a full self‑assessment taxpayer for that year; or(e) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the individual obtaining a scheme benefit in relation to income tax from the scheme for that year; or(f) in any other circumstance prescribed by the regulations.This item is subject to items 5 and 6.\n- 2 The Commissioner may amend an assessment of a company that is a small business entity or medium business entity for the year of income to which the assessment relates within 2 years after the day on which the Commissioner gives notice of the assessment to the company. This item does not apply:(a) if the company is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or(b) to a company in the capacity of a trustee of a trust estate at any time in that year (see item 3 for this case); or(c) if the company is a beneficiary of a trust estate at any time in that year unless the trust is a small business entity or medium business entity for that year or the trustee of the trust (in that capacity) is a full self‑assessment taxpayer for that year; or(d) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the company obtaining a scheme benefit in relation to income tax from the scheme for that year; or(e) in any other circumstance prescribed by the regulations.This item is subject to items 5 and 6.\n- 3 The Commissioner may amend an assessment of a person (in the capacity of a trustee of a trust estate) for a year of income if the trust is a small business entity or medium business entity for that year.The Commissioner may amend the assessment within 2 years after the day on which he or she gives notice of the assessment to the person. This item does not apply:(a) if the person (in that capacity) is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or(b) if the person (in that capacity) is a beneficiary of another trust estate at any time in that year unless the other trust is a small business entity or medium business entity for that year or the trustee of the other trust (in that capacity) is a full self‑assessment taxpayer for that year; or(c) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the person (in that capacity) obtaining a scheme benefit in relation to income tax from the scheme for that year; or(d) in any other circumstance prescribed by the regulations.This item is subject to items 5 and 6.\n- 3A The Commissioner may amend an assessment of an individual, a company or a person (in the capacity of a trustee of a trust estate) for a year of income within 4 years after the day on which the Commissioner gives notice of the assessment to the taxpayer if:(a) the individual, company or trust is a small business entity or a medium business entity for the year; and(b) the individual, company or trustee applies for an amendment in the approved form before the end of that 4 year period; and(c) the Commissioner could amend the assessment within 2 years under item 1, 2 or 3; and(d) the period within which the Commissioner could amend the assessment under item 1, 2 or 3 has ended.The Commissioner may amend the assessment to give effect to the decision on the application. This item is subject to items 5 and 6.\n- 4 If item 1, 2 or 3 does not apply, the Commissioner may amend an assessment within 4 years after the day on which he or she gives notice of the assessment to the taxpayer. This item is subject to items 5 and 6.\n- 5 The Commissioner may amend an assessment at any time if he or she is of the opinion there has been fraud or evasion. None.\n- 6 The Commissioner may amend an assessment at any time:(a) to give effect to a decision on a review or appeal; or(b) as a result of an objection made by the taxpayer or pending a review or appeal. None.\n\nNote 1: This section applies to assessments where no tax is payable: see the definition of assessment in subsection 6(1).\n\nNote 2: This section also applies to amended assessments: see section 173. However, there are limits on how amended assessments can be amended: see subsections (2) and (3) of this section.\n\nNote 3: The amendment period mentioned in item 1, 2, 3 or 4 may be extended: see subsections (5) to (7).\n\nLimit on amending amended assessments under subsection (1)\n\n(2) The Commissioner cannot amend an amended assessment under item 1, 2, 3 or 4 of the table in subsection (1) if the limited amendment period for the original assessment concerned has ended.\n\nNote: The Commissioner can amend amended assessments at any time under item 5 or 6 of the table in subsection (1).\n\n(2A) The Commissioner cannot amend an amended assessment under item 3A of the table in subsection (1) if the period of 4 years after the day on which the Commissioner gives notice of the original assessment concerned has ended.\n\nRefreshed amendment period for amending amended assessments\n\n(3) If the Commissioner amends an assessment (the earlier assessment) as set out in column 2 of the following table, he or she may, under this subsection, amend the assessment (the later assessment) that results from that amendment in the way set out in column 3 within:\n\n(a) if item 1, 2, 3 or 3A of the table in subsection (1) applies to the original assessment concerned (which may or may not be the earlier assessment)—2 years after the day on which he or she gives notice of the later assessment to the taxpayer; or\n\n(b) otherwise—4 years after that day.\n\n- Amendment of later assessment\n- Column 1 Item Column 2 In this case: Column 3 the position is:\n- 1 The Commissioner amends the earlier assessment about a particular in a way that reduces a taxpayer’s liability and the Commissioner accepts a statement made by the taxpayer in making the amendment The Commissioner may amend the later assessment about that particular in a way that increases the taxpayer’s liability.\n- 2 The Commissioner amends the earlier assessment about a particular in a way that:(a) increases a taxpayer’s liability; or(b) reduces a taxpayer’s liability (other than in a case covered by item 1) The Commissioner may amend the later assessment about that particular in a way that reduces the taxpayer’s liability.\n\nNote 1: The earlier assessment may be the original assessment or an amended assessment.\n\nNote 2: The Commissioner can amend the later assessment at any time under item 5 or 6 of the table in subsection (1).\n\nNote 3: The amendment period mentioned in paragraph (3)(a) or (b) may be extended: see subsections (5) to (7).\n\n(4) The Commissioner cannot amend an assessment under item 2 of the table in subsection (3) about a particular if he or she has previously amended an assessment under item 1 of that table about that particular.\n\nExtensions—applications by taxpayer\n\n(5) The Commissioner may amend an assessment even though the limited amendment period has ended if, before the end of that period, the taxpayer applies for an amendment in the approved form. The Commissioner may amend the assessment to give effect to the decision on the application.\n\nExtensions—giving effect to private rulings\n\n(6) The Commissioner may amend an assessment even though the limited amendment period has ended if:\n\n(a) the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 before the end of that period; and\n\n(b) the Commissioner makes a private ruling under that Division because of the application.\n\nThe Commissioner may amend the assessment to give effect to the ruling.\n\nExtensions—Federal Court orders or taxpayer consent\n\n(7) If:\n\n(a) the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment; and\n\n(b) the Commissioner has not completed the examination before the end of the limited amendment period or that period as extended;\n\nthe limited amendment period may be extended as follows:\n\n- Extensions of limited amendment period\n- In this case: the position is:\n- 1 The Commissioner, before the end of the limited amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the limited amendment period The Court may order an extension of the limited amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the limited amendment period, or that period as extended, because of:(a) any action taken by the taxpayer; or(b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take.\n- 2 The Commissioner, before the end of the limited amendment period or that period as extended, requests the taxpayer to consent to extending the limited amendment period The taxpayer may, by notice in writing, consent to extending the limited amendment period for a specified period.\n\n(8) The limited amendment period for an assessment may be extended more than once under subsection (7).\n\nOther amendment periods\n\n(9) Notwithstanding anything contained in this section, when the assessment of the taxable income of any year includes an estimated amount of income, or of profits or gains of a capital nature, derived by the taxpayer in that year from an operation or series of operations the profit or loss on which was not ascertainable at the end of that year owing to the fact that the operation or series of operations extended over more than one or parts of more than one year, the Commissioner may at any time within 4 years after ascertaining the total profit or loss actually derived or arising from the operation or series of operations, amend the assessment so as to ensure its completeness and accuracy on the basis of the profit or loss so ascertained.\n\n(9D) This section does not prevent the amendment of an assessment at any time if the amendment is made, in relation to a contract that after the making of the assessment is found to be void ab initio, to ensure that Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 (about CGT) is taken always to have applied to the contract as if the contract had never been made.\n\n(10) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of giving effect to any of the provisions of this Act set out in this table.\n\n| Item | Provision | Brief description |\n| --- | --- | --- |\n| 1 | Section 23AB | Income of certain persons serving with an armed force under the control of the United Nations |\n| 3 | Section 26AG | Certain film proceeds included in assessable income |\n| 4 | Subsection 47(2B) | Distributions by liquidator |\n| 5 | Section 51AD | Deductions not allowable in respect of property used under certain leveraged arrangements |\n| 6 | Section 51AH | Deductions not allowable where expenses incurred by employee are reimbursed |\n| 10 | Section 78A | Certain gifts not to be allowable deductions |\n| 14 | Section 82KL | Tax benefit not allowable in respect of certain recouped expenditure |\n| 16 | Subsection 82SA(2) | Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976 |\n| 17 | Section 100A | Present entitlement arising from reimbursement agreement |\n| 18 | Subdivision C of Division 6D of Part III | Trustee beneficiary non‑disclosure tax on share of net income |\n| 20 | Section 105AB | Additional period for distribution by liquidator |\n| 21 | Section 121AT | Other tax consequences of demutualisation |\n| 22 | Division 9C of Part III | Assessable income diverted under certain tax avoidance schemes |\n| 23 | Former Division 10BA of Part III | Australian films |\n| 25 | Division 16D of Part III | Certain arrangements relating to the use of property |\n| 26 | Subsection 159GZZZH(2) | Post‑cancellation disposals of eligible interests etc. |\n| 27 | Section 160ABB | Rebate in respect of certain payments by the Commonwealth Savings Bank of Australia |\n| 27A | Subsection 170B(7) | Removal of protection relating to discontinued announcement because of later inconsistent return |\n| 28 | Section 271‑105 in Schedule 2F | Amounts subject to family trust distribution tax not assessable |\n\n(10AA) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of giving effect to any of the provisions of the Income Tax Assessment Act 1997 set out in this table.\n\n- Amendment of assessments\n- Item Provision Brief description\n- 5 Subsection 26‑25(3) Deduction for interest or royalty if withholding tax paid\n- 15 Subsection 26‑25A(2) Deduction for salary, wages etc. if labour mobility program withholding tax paid\n- 17 The cell, of the table in subsection 43‑145(1), dealing with use in the 4% build to rent mannerSection 43‑237 Deductions for capital works relating to build to rent developments\n- 22 Section 59‑30 Repayment of amounts\n- 23 Subdivision 61‑G Private health insurance offset complementary to Part 2‑2 of the Private Health Insurance Act 2007\n- 26 Section 83A‑310 Forfeiture of ESS interests acquired under an employee share scheme\n- 28 Section 83A‑340 Rights that become rights to acquire shares\n- 30 Subsection 104‑10(3) or (6) Subsection 104‑25(2) Subsection 104‑45(2) Subsection 104‑90(2) Subsection 104‑110(2) Subsection 104‑205(2) Subsection 104‑225(5) Subsection 104‑230(5) The time of a CGT event is decided by there being a contract entered into\n- 40 Paragraph 104‑15(4)(a) CGT event B1: agreement ends without title passing\n- 50 Subsection 104‑40(5) Exception to CGT event D2 where option is exercised\n- 60 Section 108‑15 Disposal of collectable that is part of a set\n- 70 Section 108‑25 Disposal of personal use asset that is part of a set\n- 80 Section 116‑45 Modification to capital proceeds for non‑receipt\n- 90 Section 116‑50 Modification to capital proceeds for amounts you repay\n- 100 Subsection 122‑25(4) Right or option etc. exercised after roll‑over to acquire trading stock\n- 110 Subsection 122‑135(4) Right or option etc. exercised after roll‑over to acquire trading stock\n- 120 Subdivision 124‑B Roll‑over for assets compulsorily acquired, lost or destroyed\n- 130 Subsection 126‑5(3) CGT event B1: agreement ends without title passing\n- 140 Subsection 126‑45(3) CGT event B1: agreement ends without title passing\n- 150 Subsection 126‑50(3) Right or option etc. exercised after roll‑over to acquire trading stock\n- 160 Section 126‑70 Capital loss disregarded despite choice for no roll‑over\n- 165 Subsection 138‑15(5) CGT event B1: agreement ends without title passing\n- 168 Subsection 160‑16(1) Change of a loss carry back choice\n- 170 Subsection 165‑115ZA(2) Reduction in respect of reduced cost base etc. of debt disregarded if commercial debt forgiveness provisions apply\n- 173 Division 250 Asset is put to a tax preferred use by a tax preferred end user\n- 174 Section 295‑25 Commissioner makes an assessment as if an entity were a complying superannuation entity or a pooled superannuation trust for the income year and:(a) the entity does not become one; or(b) the Australian Prudential Regulation Authority (APRA) does not receive certain documents about the entity within a specified period\n- 175 Section 295‑30 Notice under section 342 of the Superannuation Industry (Supervision) Act 1993 or under regulations made for the purposes of that section is revoked, or the decision to give the notice is set aside\n- 176 Subsection 295‑195(3) An amount is excluded from the assessable income of a complying superannuation fund or an RSA provider because of the exercise of an option by the trustee or provider\n- 177 Section 295‑270 Commissioner makes an assessment on the basis of an amount of pre‑1 July 88 funding credits being anticipated for an income year and:(a) it becomes clear that those credits will not be available; or(b) APRA does not receive certain documents within a specified period\n- 178 295‑490(2) Deduction is denied because financial assistance funding levy is remitted or there is a refund of an overpayment of the levy\n- 185 Former Subdivision 375‑H Deductions for shares in a film licensed investment company\n- 190 Subdivision 385‑E Primary producer elects to spread or defer tax on profit from forced disposal or death of live stock\n- 200 Section 385‑160 Disentitling event happens in relation to your primary production business\n- 210 Division 393 Farm management deposits\n\n(10AB) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of reflecting information contained in an AMMA statement (within the meaning of the Income Tax Assessment Act 1997) if:","sortOrder":1000083},{"sectionNumber":"full-source-retrieval-0085","sectionType":"document_chunk","heading":"Document excerpt 85","content":"(a) the statement is given by an AMIT for a year of income to an entity that is or was a member of the AMIT in respect of the year of income; and\n\n(b) the statement is so given later than 3 months after the end of the year of income.\n\n(11) Nothing in this section prevents the amendment, at any time, of an assessment to decrease the liability of a taxpayer for the purpose of giving effect to section 24 of the International Tax Agreements Act 1953.\n\n(12) Nothing in this section prevents the amendment, at any time, of an assessment to increase the liability of a taxpayer if:\n\n(a) the Commissioner amends a DPT assessment to decrease the liability of the taxpayer to diverted profits tax; and\n\n(b) that increase is attributable to that decrease.\n\nDefinitions\n\n(14) In this section, unless the contrary intention appears:\n\nDPT assessment has the meaning given by the Income Tax Assessment Act 1997.\n\nlimited amendment period, for an assessment, means the period within which the Commissioner may amend the assessment:\n\n(a) under item 1, 2, 3 or 4 of the table in subsection (1); or\n\n(b) under paragraph (3)(a) or (b).\n\nmedium business entity, for a year of income, means an entity (within the meaning of the Income Tax Assessment Act 1997) who:\n\n(a) is not a small business entity for the year of income; and\n\n(b) would be a small business entity for the year of income if:\n\n(i) each reference in Subdivision 328‑C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and\n\n(ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity (within the meaning of that Act) covered by this definition.\n\nscheme has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nscheme benefit has the meaning given by section 284‑150 in Schedule 1 to the Taxation Administration Act 1953.\n\n170A  Amendment of assessments—interaction with other Acts\n\nScope\n\n(1) This section applies if a law other than section 170 or this section provides that section 170 does not prohibit the amendment of an assessment if the amendment is made:\n\n(a) for a particular purpose; and\n\n(b) within a particular period (the later amendment period).\n\nExtensions—applications by taxpayer\n\n(2) Section 170 does not prevent the Commissioner amending the assessment even though the later amendment period has ended if the taxpayer applies:\n\n(a) before the end of the later amendment period; and\n\n(b) in the approved form mentioned in subsection 170(5);\n\nfor an amendment for the purpose mentioned in paragraph (1)(a) of this section. The Commissioner may amend the assessment to give effect to the decision on the application.\n\nExtensions—giving effect to private rulings\n\n(3) The Commissioner may amend an assessment even though the later amendment period has ended if:\n\n(a) the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953:\n\n(i) before the end of the later amendment period; and\n\n(ii) for the purpose mentioned in paragraph (1)(a); and\n\n(b) the Commissioner makes a private ruling under that Division because of the application.\n\nThe Commissioner may amend the assessment to give effect to the ruling.\n\nExtensions—Federal Court orders or taxpayer consent\n\n(4) If:\n\n(a) the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment for the purpose mentioned in paragraph (1)(a); and\n\n(b) the Commissioner has not completed the examination before the end of the later amendment period or that period as extended;\n\nthe later amendment period may be extended as follows:\n\n- Extensions of later amendment period\n- In this case: The position is:\n- 1 The Commissioner, before the end of the later amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the later amendment period The Court may order an extension of the later amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the later amendment period, or that period as extended, because of:(a) any action taken by the taxpayer; or(b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take.\n- 2 The Commissioner, before the end of the later amendment period or that period as extended, requests the taxpayer to consent to extending the later amendment period The taxpayer may, by notice in writing, consent to extending the later amendment period for a specified period.\n\n(5) The later amendment period for an assessment may be extended more than once under subsection (4).\n\n170B  Protection for anticipation of certain discontinued announcements\n\nLimit on amending assessments\n\n(1) The Commissioner cannot amend an assessment of a taxpayer about a particular in a way that would produce a less favourable result for the taxpayer if:\n\n(a) the taxpayer has anticipated amendments (see subsection (3)); and\n\n(b) in making the assessment, the particular was ascertained on the basis of the taxpayer’s anticipated amendments having been made; and\n\n(c) that way of amending the assessment would instead ascertain the particular on the basis of the anticipated amendments not having been made.\n\nAnticipation not to give rise to administrative overpayment\n\n(2) If ascertaining that particular on the basis of the taxpayer’s anticipated amendments not having been made:\n\n(a) would not result in an amendment of the assessment; but\n\n(b) would, apart from this subsection, result in an amount the Commissioner paid to the taxpayer on the basis of the assessment being an administrative overpayment (within the meaning of section 8AAZN of the Taxation Administration Act 1953);\n\nthe amount of the administrative overpayment is taken, for the purposes of the taxation law, to be an amount to which the taxpayer is entitled.\n\nMeaning of anticipated amendments\n\n(3) One or more hypothetical amendments of the taxation law, taken together, are anticipated amendments a taxpayer has if:\n\n(a) the amendments, if made, would reasonably reflect an announcement mentioned in the table in subsection (8); and\n\n(b) a statement made by or on behalf of the taxpayer:\n\n(i) is consistent with the amendments having been made; and\n\n(ii) is made in good faith; and\n\n(iii) meets the timing requirement in column 2 of an applicable item of the following table.\n\n- Timing requirements for statements\n- Item Column 1 In this case: Column 2 The timing requirement is:\n- 1 The statement is made in a return lodged on or before 14 December 2013 The return:(a) is lodged in the period that the announcement is on foot (see subsection (8)); and(b) was not required to be lodged before the start of that period.\n- 2 The statement is made otherwise than in a return The statement is made in the period that the announcement is on foot.\n- 3 All of the following apply:(a) the statement is made in a return of the taxpayer lodged after 14 December 2013;(b) the return was not required to be lodged on or before that date;(c) just before the statement is made, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the year of income to which the statement relates The statement relates to the application of the taxation law (as hypothetically amended by the amendments) to events or circumstances:(a) that happened or existed on or before 14 December 2013; or(b) to the happening or existence of which the taxpayer had definitively committed on or before 14 December 2013.\n\n(4) In determining, for the purpose of paragraph (3)(a), whether amendments would reasonably reflect an announcement, have regard to the following:\n\n(a) the terms of the announcement;\n\n(b) any related document published after the announcement on behalf of the Commonwealth Government, the Department of the Treasury or the Commissioner;\n\n(c) if the announcement proposes to apply to a particular kind of scheme or practice—that kind of scheme or practice;\n\n(d) existing provisions of the taxation law, if:\n\n(i) the announcement proposes to effect a particular result in relation to the operation of the taxation law; and\n\n(ii) those existing provisions effect that result, or a substantially similar result, in relation to another matter;\n\n(e) any other relevant matter.\n\nOperation of section\n\n(5) Subsections (1) and (2) apply despite any other provision of the taxation law, apart from subsections (6) and (7), (which are about exceptions).\n\nExceptions\n\n(6) Subsection (1) does not prevent an amendment if:\n\n(a) the taxpayer applies for the amendment; or\n\n(b) the Commissioner may make the amendment in accordance with item 6 (objection, review or appeal) of the table in subsection 170(1).\n\n(7) Subsections (1) and (2) do not apply in relation to a particular ascertained on the basis of a taxpayer’s anticipated amendments, in any year of income, if:\n\n(a) the taxpayer makes a statement (in a return of income or otherwise) for a later year of income that is not consistent with the taxpayer’s anticipated amendments; and\n\n(b) if the assessment for the later year of income was to be made on the basis of the taxpayer’s anticipated amendments, instead of on the basis of the statement, the result would be less favourable to the taxpayer in that year of income.\n\nNote: An amendment of an assessment can be made at any time to give effect to this subsection (see item 27A of the table in subsection 170(10)).\n\nTable of discontinued announcements\n\n(8) The following table lists the announcements to which this section applies. An announcement is on foot during the period:\n\n(a) starting on the day mentioned in column 2 of the table for the announcement; and\n\n(b) ending on 14 December 2013.\n\n- Discontinued announcements\n- Item Column 1 Announcement Column 2 Announcement date\n- 1 Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Bad debts—ensuring consistent treatment in related party financing arrangements”. 8 May 2012\n- 2 Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Capital gains tax—refinements to the income tax law in relation to deceased estates”, second dot point (which is about modifying application dates for 2 minor changes from the 2011‑12 Budget). 8 May 2012\n- 3 The following constitute the announcement:(a) Media Release No. 137, issued by the then Assistant Treasurer on 9 October 2011, titled “No Capital Gains Tax for Properties in Natural Disaster Land Swap Programs”;(b) Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Capital gains tax—broadening relief for taxpayers affected by natural disasters”. 9 October 2011\n- 4 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Income tax relief for water reforms”. 10 May 2011\n- 5 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Capital gains tax and other roll‑overs for amalgamations of indigenous corporations”. 10 May 2011\n- 6 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Securities lending arrangements tax rules—extending the scope to address insolvency issues”. 10 May 2011\n- 7 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Capital gains tax—exemption for incentives related to renewable resources or for preserving environmental benefits”. 10 May 2011\n- 8 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Improvements to the company loss recoupment rules”, but not the sentence stating “This measure will modify the continuity of ownership test so that ownership does not need to be traced through certain superannuation entities.”. 10 May 2011\n- 9 Mid‑Year Economic and Fiscal Outlook 2010‑11, Appendix A, Part 2, topic headed “Consolidation—operation of the rules following a demerger”. 9 November 2010\n- 10 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2009‑10, Part 1, topic headed “Uniform capital allowance regime—technical changes”;(b) Media Release No. 048, issued by the then Assistant Treasurer on 12 May 2009, Attachment D headed “Technical changes to uniform capital allowance regime”. 12 May 2009\n- 11 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2007‑08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”;(b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Extension of the single entity rule and entry history rule for certain CGT integrity provisions affecting third parties”. 8 May 2007\n- 12 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2007‑08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”;(b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Trusts joining or leaving a consolidated group or MEC group part way through an income year”. 8 May 2007\n- 13 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2006‑07, Part 1, topic headed “Simplified imputation system—franking credits available to life tenants”;(b) Media Release No. 010, issued by the then Minister for Revenue and Assistant Treasurer on 20 March 2006, titled “Franking credits available to life tenants”. 20 March 2006\n\n(9) In this section:\n\nanticipated amendments, in relation to a taxpayer, has the meaning given by subsection (3).\n\non foot, in relation to an announcement, has the meaning given by subsection (8).\n\ntaxation law has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\n170C  Power of Commissioner to reduce amount of tax payable in certain cases\n\nFor the purposes of the making of an assessment on or after 1 July 1966, the Commissioner may reduce by One cent the amount of tax that would, but for this section, be payable by a taxpayer being a person other than a company or being a company in the capacity of a trustee, before deducting any rebate or credit to which the taxpayer is entitled.\n\n171  Where no notice of assessment served\n\n(1) Where a taxpayer has duly furnished to the Commissioner a return of income, or of profits or gains of a capital nature, and no notice of assessment in respect thereof has been served within 12 months thereafter, the taxpayer may in writing by registered post request the Commissioner to make an assessment.\n\n(2) If within 3 months after the receipt by the Commissioner of the request a notice of assessment is not served upon the taxpayer, any assessment issued thereafter in respect of that income, or of those profits or gains, shall be deemed to be an amended assessment, and for the purpose of determining whether such amended assessment may be made, the taxpayer shall be deemed to have been served on the last day of the 3 months with a notice of assessment in respect of which income tax was payable on that day.\n\n171A  Limited period to make assessments for nil liability returns for the 2003‑04 year of income or earlier\n\n(1) If the circumstances set out in column 2 of the following table apply to a taxpayer in relation to the 2003‑04 year of income (a nil year) or an earlier year of income (also a nil year), the Commissioner cannot make an original assessment for that taxpayer for that year in the circumstances set out in column 3:","sortOrder":1000084},{"sectionNumber":"full-source-retrieval-0086","sectionType":"document_chunk","heading":"Document excerpt 86","content":"- Making assessments\n- Column 1 Item Column 2 In this case: Column 3 the position is:\n- 1 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following:(a) the taxpayer had an amount of taxable income, and that no tax was payable;(b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income;and the taxpayer did not deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the later of the following:(a) 31 October 2008;(b) the period of 4 years beginning on the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.\n- 2 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following:(a) the taxpayer had an amount of taxable income, and that no tax was payable;(b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income;and the taxpayer did deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004‑05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.\n- 3 The taxpayer had a tax loss in a nil year, none of which has been carried forward to the 2004‑05 year of income The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004‑05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.\n- 4 (a) the taxpayer had a tax loss in a nil year, some or all of which has been carried forward to the 2004‑05 year of income; and(b) the taxpayer or, if the taxpayer is a member of a consolidated group at the end of the 2004‑05 year of income, the head company notifies the Commissioner, in the approved form, that the taxpayer or the head company had a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the Commissioner received the notification;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.\n\n(2) Subsection (1) does not apply in relation to a nil year if:\n\n(a) the Commissioner is of the opinion there has been fraud or evasion; or\n\n(b) had the Commissioner made an assessment, in accordance with the taxpayer’s return of income, that the taxpayer had no taxable income or that no tax was payable by the taxpayer (assuming that such an assessment could have been made)—this Act would not have prevented the Commissioner amending the assessment at any time.\n\n172  Refunds of amounts overpaid\n\n(1) Where, by reason of an amendment of an assessment, a person’s liability to tax (the earlier liability) is reduced:\n\n(a) the amount by which the tax is so reduced is taken never to have been payable for the purposes of:\n\n(i) provisions of this Act that apply the general interest charge; and\n\n(ii) Division 280 in Schedule 1 to the Taxation Administration Act 1953 (which applies the shortfall interest charge); and\n\n(b) the Commissioner must apply the amount of any tax overpaid in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953.\n\n(1A) However, if a later amendment of an assessment is made and all or some of the person’s earlier liability in relation to a particular is reinstated, paragraph (1)(a) is taken not to have applied, or not to have applied to the extent that the earlier liability is reinstated.\n\n(2) In subsection (1), unless the contrary intention appears, tax includes the general interest charge under a provision of this Act, additional tax under Part VII and shortfall interest charge.\n\nNote 1: The general interest charge is worked out under of Part IIA of the Taxation Administration Act 1953.\n\nNote 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.\n\n172A  Consequences of amendment of assessments of tax offset refunds\n\nAmendment increases total of tax offset refunds\n\n(1) If, by reason of an amendment of an assessment, the total of a person’s tax offset refunds is increased, the Commissioner must apply the amount of the increase in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953.\n\nNote: Interest on the amount of the increase may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983.\n\nAmendment reduces total of tax offset refunds\n\n(2) If:\n\n(a) by reason of an amendment of an assessment, the total of a person’s tax offset refunds is reduced; and\n\n(b) as a result, an amount applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 before the amendment was excessive;\n\nthe person is liable to pay to the Commonwealth the amount of the excess. The amount is due 21 days after the Commissioner gives the person notice of the amended assessment.\n\nNote: For provisions about collection and recovery of the amount, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\nShortfall interest charge\n\n(2A) If:\n\n(a) a person is liable to pay an amount under subsection (2); and\n\n(b) as a result, the person is liable to pay shortfall interest charge on that amount under section 280‑102F in Schedule 1 to the Taxation Administration Act 1953;\n\nthen the shortfall interest charge is due and payable 21 days after the day on which the Commissioner gives the person notice of the charge.\n\nNote: Shortfall interest charge is worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.\n\nGeneral interest charge\n\n(3) If any of the amount (the overpayment) the person is liable to pay under subsection (2), or any amount of shortfall interest charge on the overpayment, remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n\n(a) starts at the beginning of the day on which the overpayment or shortfall interest charge was due to be paid; and\n\n(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n\n(i) the overpayment or shortfall interest charge;\n\n(ii) general interest charge on any of the overpayment or shortfall interest charge.\n\nNote: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n173  Amended assessment to be an assessment\n\nExcept as otherwise provided every amended assessment shall be an assessment for all the purposes of this Act.\n\n174  Notice of assessment\n\n(1) As soon as conveniently may be after any assessment is made, the Commissioner shall serve notice thereof in writing by post or otherwise upon the person liable to pay the tax.\n\n(3) In subsection (1), tax includes additional tax under Part VII.\n\n175  Validity of assessment\n\nThe validity of any assessment shall not be affected by reason that any of the provisions of this Act have not been complied with.\n\n175A  Objections against assessments\n\n(1) A taxpayer who is dissatisfied with an assessment made in relation to the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n(2) A taxpayer cannot object under subsection (1) against an assessment ascertaining that:\n\n(a) the taxpayer has no taxable income; or\n\n(b) the taxpayer has an amount of taxable income and no tax is payable.\n\n(3) Subsection (2) does not prevent the taxpayer from objecting against an assessment if the taxpayer is seeking an increase in:\n\n(a) the taxpayer’s liability; or\n\n(b) the total of the taxpayer’s tax offset refunds.\n\nPart IVA—Schemes to reduce income tax\n\n177A  Interpretation\n\n(1) In this Part, unless the contrary intention appears:\n\nassociate has the same meaning as in Part X.\n\nAustralian customer, of a foreign entity, means another entity who:\n\n(a) is in Australia, or is an Australian entity; and\n\n(b) if the foreign entity is a member of a global group—is not a member of that global group.\n\nAustralian entity has the same meaning as in Part X.\n\nAustralian permanent establishment of an entity means:\n\n(a) if:\n\n(i) the entity is a resident in a country that has entered into an international tax agreement (within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997) with Australia; and\n\n(ii) that agreement contains a permanent establishment article (within the meaning of that subsection);\n\na permanent establishment (within the meaning of that agreement) in Australia; or\n\n(b) otherwise—a permanent establishment of the person in Australia.\n\ncapital loss has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nCMPTI tax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\nDPT base amount has the meaning given by subsection 177P(2).\n\nDPT provisions means sections 177H, 177J, 177K, 177L, 177M, 177N, 177P, 177Q and 177R.\n\nDPT tax benefit has the meaning given by subsection 177J(1).\n\nentity has the meaning given by section 960‑100 of the Income Tax Assessment Act 1997.\n\nforeign entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nforeign entity participant:\n\n(a) if a beneficiary of a trust estate or a partner in a partnership is a foreign entity, the trust estate or partnership has a foreign entity participant; and\n\n(b) if a trust estate or partnership has a foreign entity participant (including through a previous operation of this paragraph):\n\n(i) a trust of which the trust estate or partnership is a beneficiary also has a foreign entity participant; and\n\n(ii) a partnership in which the trust estate or partnership is a partner also has a foreign entity participant.\n\nforeign income tax offset means a tax offset allowed under Division 770 of the Income Tax Assessment Act 1997.\n\nforeign law has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n\nglobal group means a group of entities, at least one of which is a foreign entity, that are consolidated for accounting purposes as a single group.\n\nhydrogen production tax offset has the same meaning as in the Income Tax Assessment Act 1997.\n\ninnovation tax offset means a tax offset allowed under:\n\n(a) Subdivision 61‑P (about early stage venture capital limited partnerships) of the Income Tax Assessment Act 1997; or\n\n(b) Subdivision 360‑A (about early stage investors in innovation companies) of that Act.\n\nnon‑refundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997, other than a refundable R&D tax offset.\n\nrefundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997 that is subject to the refundable tax offset rules under section 67‑30 of that Act.\n\nscheme means:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct.\n\nsignificant global entity has the meaning given by section 960‑555 of the Income Tax Assessment Act 1997.\n\nstandard corporate tax rate means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of the Income Tax Rates Act 1986.\n\nsupply has the meaning given by section 9‑10 of the GST Act, but does not include any of the following, or of any combination of 2 or more of the following:\n\n(a) a supply of an equity interest in an entity;\n\n(b) a supply of a debt interest in an entity;\n\n(c) a supply of an option for:\n\n(i) a supply of a kind referred to in paragraph (a) or (b); or\n\n(ii) any combination of 2 or more such supplies.\n\ntaxpayer includes a taxpayer in the capacity of a trustee.\n\n(2) The definition of taxpayer in subsection (1) shall not be taken to affect in any way the interpretation of that expression where it is used in this Act other than this Part.\n\n(3) The reference in the definition of scheme in subsection (1) to a scheme, plan, proposal, action, course of action or course of conduct shall be read as including a reference to a unilateral scheme, plan, proposal, action, course of action or course of conduct, as the case may be.\n\n(4) A reference in this Part to the carrying out of a scheme by a person shall be read as including a reference to the carrying out of a scheme by a person together with another person or other persons.\n\n(5) A reference in this Part (other than sections 177DA and 177J) to a scheme or a part of a scheme being entered into or carried out by a person for a particular purpose shall be read as including a reference to the scheme or the part of the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the dominant purpose.\n\n177B  Operation of Part\n\n(1) Nothing in the following limit the operation of this Part:\n\n(a) the provisions of this Act (other than this Part);\n\n(b) the International Tax Agreements Act 1953.\n\n(2) This Part does not affect the operation of Division 393 of the Income Tax Assessment Act 1997 (Farm management deposits).\n\n(3) Where a provision of this Act other than this Part is expressed to have effect where a deduction would be allowable to a taxpayer but for or apart from a provision or provisions of this Act, the reference to that provision or to those provisions, as the case may be, shall be read as including a reference to subsection 177F(1).\n\n(4) Where a provision of this Act other than this Part is expressed to have effect where a deduction would otherwise be allowable to a taxpayer, that provision shall be deemed to be expressed to have effect where a deduction would, but for subsection 177F(1), be otherwise allowable to the taxpayer.\n\n177C  Tax benefits\n\n(1) Subject to this section, a reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as a reference to:\n\n(a) an amount not being included in the assessable income of the taxpayer of a year of income where that amount would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out; or\n\n(b) a deduction being allowable to the taxpayer in relation to a year of income where the whole or a part of that deduction would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or\n\n(ba) a capital loss being incurred by the taxpayer during a year of income where the whole or a part of that capital loss would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out; or\n\n(baa) a loss carry back tax offset being allowable to the taxpayer where the whole or a part of that loss carry back tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or\n\n(bb) a foreign income tax offset being allowable to the taxpayer where the whole or a part of that foreign income tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or\n\n(bbaa) an innovation tax offset being allowable to the taxpayer where the whole or a part of that innovation tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or\n\n(bba) an exploration credit being issued to the taxpayer where the whole or a part of that exploration credit would not have been issued, or might reasonably be expected not to have been issued, to the taxpayer if the scheme had not been entered into or carried out; or\n\n(bc) the taxpayer not being liable to pay withholding tax on an amount where the taxpayer either would have, or might reasonably be expected to have, been liable to pay withholding tax on the amount if the scheme had not been entered into or carried out; or\n\n(bd) a refundable R&D tax offset, or a non‑refundable R&D tax offset, being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or\n\n(be) a CMPTI tax offset being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or","sortOrder":1000085},{"sectionNumber":"full-source-retrieval-0087","sectionType":"document_chunk","heading":"Document excerpt 87","content":"(bf) a hydrogen production tax offset being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out;\n\nand, for the purposes of this Part, the amount of the tax benefit shall be taken to be:\n\n(c) in a case to which paragraph (a) applies—the amount referred to in that paragraph; and\n\n(d) in a case to which paragraph (b) applies—the amount of the whole of the deduction or of the part of the deduction, as the case may be, referred to in that paragraph; and\n\n(e) in a case to which paragraph (ba) applies—the amount of the whole of the capital loss or of the part of the capital loss, as the case may be, referred to in that paragraph; and\n\n(ea) in a case where paragraph (baa) applies—the amount of the whole of the loss carry back tax offset or of the part of the loss carry back tax offset, as the case may be, referred to in that paragraph; and\n\n(f) in a case where paragraph (bb) applies—the amount of the whole of the foreign income tax offset or of the part of the foreign income tax offset, as the case may be, referred to in that paragraph; and\n\n(faa) in a case where paragraph (bbaa) applies—the amount of the whole of the innovation tax offset or of the part of the innovation tax offset, as the case may be, referred to in that paragraph; and\n\n(fa) in a case where paragraph (bba) applies—the amount of the whole of the exploration credit or of the part of the exploration credit, as the case may be, referred to in that paragraph; and\n\n(g) in a case to which paragraph (bc) applies—the amount referred to in that paragraph; and\n\n(h) in a case to which paragraph (bd) applies—the amount of the whole of the offset or of the part of the offset, as the case may be, referred to in that paragraph; and\n\n(i) in a case to which paragraph (be) applies—the amount of the whole of the CMPTI tax offset or of the part of the CMPTI tax offset, as the case may be, referred to in that paragraph; or\n\n(j) in a case to which paragraph (bf) applies—the amount of the whole of the hydrogen production tax offset or of the part of the hydrogen production tax offset, as the case may be, referred to in that paragraph.\n\n(2) A reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as not including a reference to:\n\n(a) the assessable income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out where:\n\n(i) the non‑inclusion of the amount in the assessable income of the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option (expressly provided for by this Act or the Income Tax Assessment Act 1997) by any person, except one under Subdivision 126‑B, 170‑B or 960‑D of the Income Tax Assessment Act 1997; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(b) a deduction being allowable to the taxpayer in relation to a year of income the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out where:\n\n(i) the allowance of the deduction to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act or the Income Tax Assessment Act 1997, except one under Subdivision 960‑D of the Income Tax Assessment Act 1997; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(c) a capital loss being incurred by the taxpayer during a year of income the whole or part of which would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out where:\n\n(i) the incurring of the capital loss by the taxpayer is attributable to the making of a declaration, agreement, choice, election or selection, the giving of a notice or the exercise of an option (expressly provided for by this Act or the Income Tax Assessment Act 1997) by any person, except one under Subdivision 126‑B, 170‑B or 960‑D of the Income Tax Assessment Act 1997; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, notice or option to be made, given or exercised, as the case may be; or\n\n(ca) a loss carry back tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the loss carry back tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(d) a foreign income tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the foreign income tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(e) an innovation tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the innovation tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(f) a refundable R&D tax offset, or a non‑refundable R&D tax offset, being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(g) a CMPTI tax offset being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or\n\n(h) a hydrogen production tax offset being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where:\n\n(i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and\n\n(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be.\n\n(2A) A reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme is to be read as not including a reference to:\n\n(a) the assessable income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out where:\n\n(i) the non‑inclusion of the amount in the assessable income of the taxpayer is attributable to the making of a choice under Subdivision 126‑B of the Income Tax Assessment Act 1997 or an agreement under Subdivision 170‑B of that Act; and\n\n(ii) the scheme consisted solely of the making of the agreement or election; or\n\n(b) a capital loss being incurred by the taxpayer during a year of income the whole or part of which would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out where:\n\n(i) the incurring of the capital loss by the taxpayer is attributable to the making of a choice under Subdivision 126‑B of the Income Tax Assessment Act 1997 or an agreement under Subdivision 170‑B of that Act; and\n\n(ii) the scheme consisted solely of the making of the agreement or election; or\n\n(c) an exploration credit being issued to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, issued to the taxpayer if the scheme had not been entered into or carried out, where:\n\n(i) the issuing of the exploration credit to the taxpayer is attributable to the making of a choice under Division 418 of the Income Tax Assessment Act 1997; and\n\n(ii) the scheme consisted solely of the making of the choice.\n\n(3) For the purposes of subparagraph (2)(a)(i), (b)(i), (c)(i), (ca)(i), (d)(i), (e)(i), (f)(i), (g)(i) or (h)(i) or (2A)(a)(i), (b)(i) or (c)(i):\n\n(a) the non‑inclusion of an amount in the assessable income of a taxpayer; or\n\n(b) the allowance of a deduction to a taxpayer; or\n\n(c) the incurring of a capital loss by a taxpayer; or\n\n(ca) the allowance of a foreign income tax offset to a taxpayer; or\n\n(caa) the allowance of an innovation tax offset to a taxpayer; or\n\n(cab) the allowance of a loss carry back tax offset to a taxpayer; or\n\n(cb) the issuing of an exploration credit to a taxpayer; or\n\n(cc) the allowance of a refundable R&D tax offset, or a non‑refundable R&D tax offset, to a taxpayer; or\n\n(cd) the allowance of a CMPTI tax offset to a taxpayer; or\n\n(ce) the allowance of a hydrogen production tax offset to a taxpayer;\n\nis taken to be attributable to the making of a declaration, election, agreement or selection, the giving of a notice or the exercise of an option where, if the declaration, election, agreement, selection, notice or option had not been made, given or exercised, as the case may be:\n\n(d) the amount would have been included in that assessable income; or\n\n(e) the deduction would not have been allowable; or\n\n(f) the capital loss would not have been incurred; or\n\n(fa) the loss carry back tax offset would not have been allowable; or\n\n(g) the foreign income tax offset would not have been allowable; or\n\n(ga) the innovation tax offset would not have been allowable; or\n\n(h) the exploration credit would not have been issued; or\n\n(i) the refundable R&D tax offset, or non‑refundable R&D tax offset, would not have been allowable; or\n\n(j) the CMPTI tax offset would not have been allowable; or\n\n(k) the hydrogen production tax offset would not have been allowable.\n\n(4) To avoid doubt, paragraph (1)(a) applies to a scheme if:\n\n(a) an amount of income is not included in the assessable income of the taxpayer of a year of income; and\n\n(b) an amount would have been included, or might reasonably be expected to have been included, in the assessable income if the scheme had not been entered into or carried out; and\n\n(c) instead, the taxpayer or any other taxpayer makes a discount capital gain (within the meaning of the Income Tax Assessment Act 1997) for that or any other year of income.\n\n(5) Subsection (4) does not limit the generality of any other provision of this Part.\n\n177CB  The bases for identifying tax benefits\n\n(1) This section applies to deciding, under section 177C, whether any of the following (tax effects) would have occurred, or might reasonably be expected to have occurred, if a scheme had not been entered into or carried out:\n\n(a) an amount being included in the assessable income of the taxpayer;\n\n(b) the whole or a part of a deduction not being allowable to the taxpayer;\n\n(c) the whole or a part of a capital loss not being incurred by the taxpayer;\n\n(ca) the whole or a part of a loss carry back tax offset not being allowable to the taxpayer;\n\n(d) the whole or a part of a foreign income tax offset not being allowable to the taxpayer;\n\n(daa) the whole or a part of an innovation tax offset not being allowable to the taxpayer;\n\n(da) the whole or a part of an exploration credit not being issued to the taxpayer;\n\n(e) the taxpayer being liable to pay withholding tax on an amount;\n\n(f) the whole or a part of a refundable R&D tax offset, or of a non‑refundable tax offset, not being allowable to the taxpayer;\n\n(g) the whole or a part of a CMPTI tax offset not being allowable to the taxpayer;\n\n(h) the whole or a part of a hydrogen production tax offset not being allowable to the taxpayer.\n\n(2) A decision that a tax effect would have occurred if the scheme had not been entered into or carried out must be based on a postulate that comprises only the events or circumstances that actually happened or existed (other than those that form part of the scheme).\n\n(3) A decision that a tax effect might reasonably be expected to have occurred if the scheme had not been entered into or carried out must be based on a postulate that is a reasonable alternative to entering into or carrying out the scheme.\n\n(4) In determining for the purposes of subsection (3) whether a postulate is such a reasonable alternative:\n\n(a) have particular regard to:\n\n(i) the substance of the scheme; and\n\n(ii) any result or consequence for the taxpayer that is or would be achieved by the scheme (other than a result in relation to the operation of this Act); but\n\n(b) disregard any result in relation to the operation of this Act that would be achieved by the postulate for any person (whether or not a party to the scheme).\n\n(5) Subsection (4) applies in relation to the scheme as if references in that subsection to the operation of this Act included references to the operation of any foreign law relating to taxation:\n\n(a) if this Part applies to the scheme because of section 177DA or 177J; or","sortOrder":1000086},{"sectionNumber":"full-source-retrieval-0088","sectionType":"document_chunk","heading":"Document excerpt 88","content":"(b) for the purposes of determining whether this Part applies to the scheme because of section 177DA or 177J.\n\n177D  Schemes to which this Part applies\n\nScheme for purpose of obtaining a tax benefit\n\n(1) This Part applies to a scheme if it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for the purpose of:\n\n(a) enabling a taxpayer (a relevant taxpayer) to obtain a tax benefit in connection with the scheme; or\n\n(b) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit in connection with the scheme;\n\nwhether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers.\n\nHave regard to certain matters\n\n(2) For the purpose of subsection (1), have regard to the following matters:\n\n(a) the manner in which the scheme was entered into or carried out;\n\n(b) the form and substance of the scheme;\n\n(c) the time at which the scheme was entered into and the length of the period during which the scheme was carried out;\n\n(d) the result in relation to the operation of this Act that, but for this Part, would be achieved by the scheme;\n\n(e) any change in the financial position of the relevant taxpayer that has resulted, will result, or may reasonably be expected to result, from the scheme;\n\n(f) any change in the financial position of any person who has, or has had, any connection (whether of a business, family or other nature) with the relevant taxpayer, being a change that has resulted, will result or may reasonably be expected to result, from the scheme;\n\n(g) any other consequence for the relevant taxpayer, or for any person referred to in paragraph (f), of the scheme having been entered into or carried out;\n\n(h) the nature of any connection (whether of a business, family or other nature) between the relevant taxpayer and any person referred to in paragraph (f).\n\nNote: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining family relationships for the purposes of paragraphs (f) and (h).\n\nTax benefit\n\n(3) Despite subsection (1), this Part applies to the scheme only if the relevant taxpayer has obtained, or would but for section 177F obtain, a tax benefit in connection with the scheme.\n\nWhen schemes entered into etc.\n\n(4) Despite subsection (1), this Part applies to the scheme only if:\n\n(a) the scheme has been or is entered into after 27 May 1981; or\n\n(b) the scheme has been or is carried out or commenced to be carried out after that day (and is not a scheme that was entered into on or before that day).\n\nSchemes outside Australia\n\n(5) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.\n\n177DA  Schemes that limit a taxable presence in Australia\n\nScheme for a purpose including obtaining a tax benefit etc.\n\n(1) Without limiting section 177D, this Part also applies to a scheme if:\n\n(a) under, or in connection with, the scheme:\n\n(i) a foreign entity makes a supply to an Australian customer of the foreign entity; and\n\n(ii) activities are undertaken in Australia directly in connection with the supply; and\n\n(iii) some or all of those activities are undertaken by an Australian entity who, or are undertaken at or through an Australian permanent establishment of an entity who, is an associate of or is commercially dependent on the foreign entity; and\n\n(iv) the foreign entity derives ordinary income, or statutory income, from the supply; and\n\n(v) some or all of that income is not attributable to an Australian permanent establishment of the foreign entity; and\n\n(b) it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a principal purpose of, or for more than one principal purpose that includes a purpose of:\n\n(i) enabling a taxpayer (a relevant taxpayer) to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of the relevant taxpayer’s liabilities to tax under a foreign law, in connection with the scheme; or\n\n(ii) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of their liabilities to tax under a foreign law, in connection with the scheme;\n\nwhether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers; and\n\n(c) the foreign entity is a significant global entity for a year of income in which the relevant taxpayer, or one or more other taxpayers, would (but for this Part):\n\n(i) obtain a tax benefit; or\n\n(ii) reduce one or more of their liabilities to tax under a foreign law;\n\nin connection with the scheme.\n\nHave regard to certain matters\n\n(2) For the purposes of paragraph (1)(b), have regard to the following matters:\n\n(a) the matters in subsection 177D(2);\n\n(b) the extent to which the activities that contribute to bringing about the contract for the supply are performed, and are able to be performed, by:\n\n(i) the foreign entity; or\n\n(ii) another entity referred to in subparagraph (1)(a)(iii); or\n\n(iii) any other entities;\n\n(c) the result, in relation to the operation of any foreign law relating to taxation, that (but for this Part) would be achieved by the scheme.\n\nDeferral of foreign tax liabilities\n\n(3) For the purposes of paragraph (1)(b), a deferral of a taxpayer’s liabilities to tax under a foreign law is taken to be a reduction of those liabilities, unless there are reasonable commercial grounds for the deferral.\n\nTax benefit\n\n(4) Despite subsection (1), this Part applies to the scheme because of this section only if the relevant taxpayer has obtained, or would but for section 177F obtain, a tax benefit in connection with the scheme.\n\nCommissioner not required to enquire into foreign tax matters\n\n(5) The Commissioner is required to have regard to a matter referred to in paragraph (2)(c) only so far as information relevant to that matter is available to the Commissioner, and is not required to acquire further information in order to have regard to that matter.\n\nSchemes outside Australia\n\n(6) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.\n\nIncome from supply by trust estate or partnership\n\n(7) Subsection (8) applies if:\n\n(a) both of the following conditions are satisfied:\n\n(i) a trust estate or partnership makes a supply to an entity;\n\n(ii) that entity would be an Australian customer of the trust estate or partnership if the trust estate or partnership were a foreign entity; and\n\n(b) because of the supply, an amount of ordinary income, or statutory income, is included in the assessable income of the trust estate or partnership (as worked out for the purposes of working out its net income for a year of income); and\n\n(c) the trust estate or partnership has a foreign entity participant at any time in that year of income; and\n\n(d) any of the following conditions are satisfied at the time the supply is made:\n\n(i) the trust estate or partnership is connected with (within the meaning of the Income Tax Assessment Act 1997) a foreign entity;\n\n(ii) the trust estate or partnership would be an affiliate (within the meaning of that Act) of a foreign entity if the trust estate or partnership were an individual or a company;\n\n(iii) the trust estate or partnership and a foreign entity are members of the same global group.\n\n(8) For the purposes of this section:\n\n(a) treat the foreign entity mentioned in paragraph (7)(d) as having made the supply; and\n\n(b) treat the entity mentioned in subparagraph (7)(a)(ii) as being an Australian customer of the foreign entity; and\n\n(c) treat the foreign entity as having derived the ordinary income, or statutory income, from the supply.\n\n177E  Stripping of company profits\n\n(1) Where:\n\n(a) as a result of a scheme that is, in relation to a company:\n\n(i) a scheme by way of or in the nature of dividend stripping; or\n\n(ii) a scheme having substantially the effect of a scheme by way of or in the nature of a dividend stripping;\n\nany property of the company is disposed of;\n\n(b) in the opinion of the Commissioner, the disposal of that property represents, in whole or in part, a distribution (whether to a shareholder or another person) of profits of the company (whether of the accounting period in which the disposal occurred or of any earlier or later accounting period);\n\n(c) if, immediately before the scheme was entered into, the company had paid a dividend out of profits of an amount equal to the amount determined by the Commissioner to be the amount of profits the distribution of which is, in his or her opinion, represented by the disposal of the property referred to in paragraph (a), an amount (in this subsection referred to as the notional amount) would have been included, or might reasonably be expected to have been included, by reason of the payment of that dividend, in the assessable income of a taxpayer of a year of income; and\n\n(d) the scheme has been or is entered into after 27 May 1981, whether in Australia or outside Australia;\n\nthe following provisions have effect:\n\n(e) the scheme shall be taken to be a scheme to which this Part applies;\n\n(f) for the purposes of section 177F, the taxpayer shall be taken to have obtained a tax benefit in connection with the scheme that is referable to the notional amount not being included in the assessable income of the taxpayer of the year of income; and\n\n(g) the amount of that tax benefit shall be taken to be the notional amount.\n\n(2) Without limiting the generality of subsection (1), a reference in that subsection to the disposal of property of a company shall be read as including a reference to:\n\n(a) the payment of a dividend by the company;\n\n(b) the making of a loan by the company (whether or not it is intended or likely that the loan will be repaid);\n\n(c) a bailment of property by the company; and\n\n(d) any transaction having the effect, directly or indirectly, of diminishing the value of any property of the company.\n\n(2A) This section:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a dividend.\n\n(3) In this section, property includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.\n\n177EA  Creation of franking debit or cancellation of franking credits\n\n(1) In this section, unless the contrary intention appears:\n\nrelevant circumstances has a meaning affected by subsection (17).\n\nrelevant taxpayer has the meaning given by subsection (3).\n\nscheme for a disposition, in relation to membership interests or an interest in membership interests, has a meaning affected by subsection (14).\n\n(2) An expression used in this section that is defined in the Income Tax Assessment Act 1997 has the same meaning as in that Act, except to the extent that its meaning is extended by subsection (16), (18) or (19), or affected by subsection (15).\n\nApplication of section\n\n(3) This section applies if:\n\n(a) there is a scheme for a disposition of membership interests, or an interest in membership interests, in a corporate tax entity; and\n\n(b) either:\n\n(i) a frankable distribution has been paid, or is payable or expected to be payable, to a person in respect of the membership interests; or\n\n(ii) a frankable distribution has flowed indirectly, or flows indirectly or is expected to flow indirectly, to a person in respect of the interest in membership interests, as the case may be; and\n\n(c) the distribution was, or is expected to be, a franked distribution or a distribution franked with an exempting credit; and\n\n(d) except for this section, the person (the relevant taxpayer) would receive, or could reasonably be expected to receive, imputation benefits as a result of the distribution; and\n\n(e) having regard to the relevant circumstances of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling the relevant taxpayer to obtain an imputation benefit.\n\nBare acquisition of membership interests or interest in membership interests\n\n(4) It is not to be concluded for the purposes of paragraph (3)(e) that a person entered into or carried out a scheme for a purpose mentioned in that paragraph merely because the person acquired membership interests, or an interest in membership interests, in the entity.\n\nCommissioner to determine franking debit or deny franking credit\n\n(5) The Commissioner may make, in writing, either of the following determinations:\n\n(a) if the corporate tax entity is a party to the scheme, a determination that a franking debit or exempting debit of the entity arises in respect of each distribution made to the relevant taxpayer or that flows indirectly to the relevant taxpayer;\n\n(b) a determination that no imputation benefit is to arise in respect of a distribution or a specified part of a distribution that is made, or that flows indirectly, to the relevant taxpayer.\n\nA determination does not form part of an assessment.\n\nNotice of determination\n\n(6) If the Commissioner makes a determination under subsection (5), the Commissioner must:\n\n(a) in respect of a determination made under paragraph (5)(a)—serve notice in writing of the determination on the corporate tax entity; or\n\n(b) in respect of a determination made under paragraph (5)(b)—serve notice in writing of the determination on the relevant taxpayer.\n\nPublication of determination in relation to listed public company denying imputation benefit\n\n(7) If the Commissioner makes a determination under paragraph (5)(b), in respect of a distribution made by a listed public company, the Commissioner is taken to have served notice in writing of the determination on the relevant taxpayer if the Commissioner causes the notice to be published in a manner that results in the notice being accessible to the public and reasonably prominent. The notice is taken to have been served on the day on which the publication takes place.\n\nObjections\n\n(9) If a taxpayer to whom a determination relates is dissatisfied with the determination, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\nEffect of determination of franking debit or exempting debit\n\n(10) If the Commissioner makes a determination under paragraph (5)(a):\n\n(a) on the day on which notice in writing of the determination is served on the entity, a franking debit or exempting debit of the corporate tax entity arises in respect of the distribution; and\n\n(b) the amount of the franking debit or exempting debit is such amount as is stated in the Commissioner’s determination, being an amount that:\n\n(i) the Commissioner considers reasonable in the circumstances; and\n\n(ii) does not exceed the amount of the franking debit or exempting debit of the entity arising under item 1 of the table in section 205‑30 of the Income Tax Assessment 1997 or item 2 of the table in section 208‑120 of that Act in respect of the distribution.\n\nEffect of determination that no imputation benefit is to arise\n\n(11) If the Commissioner makes a determination under paragraph (5)(b), the determination has effect according to its terms.\n\nApplication of section to non‑share dividends\n\n(12) This section:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a membership interest; and\n\n(b) applies to an equity holder in the same way as it applies to a member; and\n\n(c) applies to a non‑share dividend in the same way as it applies to a distribution.\n\nMeaning of interest in membership interests\n\n(13) A person has an interest in membership interests if:\n\n(a) the person has any legal or equitable interest in the membership interests; or\n\n(b) the person is a partner in a partnership and:\n\n(i) the assets of the partnership include, or will include, the membership interests; or\n\n(ii) the partnership derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests; or\n\n(c) the person is a beneficiary of a trust (including a potential beneficiary of a discretionary trust) and:\n\n(i) the membership interests form, or will form, part of the trust estate; or\n\n(ii) the trust derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests.\n\nMeaning of scheme for a disposition\n\n(14) A scheme for a disposition of membership interests or an interest in membership interests includes, but is not limited to, a scheme that involves any of the following:\n\n(a) issuing the membership interests or creating the interest in membership interests;\n\n(b) entering into any contract, arrangement, transaction or dealing that changes or otherwise affects the legal or equitable ownership of the membership interests or interest in membership interests;\n\n(c) creating, varying or revoking a trust in relation to the membership interests or interest in membership interests;\n\n(d) creating, altering or extinguishing a right, power or liability attaching to, or otherwise relating to, the membership interests or interest in membership interests;","sortOrder":1000087},{"sectionNumber":"full-source-retrieval-0089","sectionType":"document_chunk","heading":"Document excerpt 89","content":"(e) substantially altering any of the risks of loss, or opportunities for profit or gain, involved in holding or owning the membership interests or having the interest in membership interests;\n\n(f) the membership interests or interest in membership interests beginning to be included, or ceasing to be included, in any of the insurance funds of a life assurance company.\n\n(15) In determining whether a distribution flows indirectly to a person, assume that the following provisions of the Income Tax Assessment Act 1997 had not been enacted:\n\n(a) section 295‑385 (about income from assets set aside to meet current pension liabilities), section 295‑390 (about income from other assets used to meet current pension liabilities) and 295‑400 (about income of a PST attributable to current pension liabilities); or\n\n(b) paragraph 320‑37(1)(a) (about segregated exempt assets) or paragraph 320‑37(1)(d) (about income bonds, funeral policies and scholarship plans).\n\nWhen imputation benefit is received\n\n(16) A taxpayer to whom a distribution flows indirectly receives an imputation benefit as a result of the distribution if:\n\n(a) the taxpayer is entitled to a tax offset under Division 207 of the Income Tax Assessment Act 1997 as a result of the distribution; or\n\n(b) where the taxpayer is a corporate tax entity—a franking credit would arise in the franking account of the taxpayer as a result of the distribution.\n\nNote: Where the distribution is made directly to the taxpayer, see subsection 204‑30(6) of the Income Tax Assessment Act 1997 for a definition of imputation benefit.\n\nMeaning of relevant circumstances of scheme\n\n(17) The relevant circumstances of a scheme include the following:\n\n(a) the extent and duration of the risks of loss, and the opportunities for profit or gain, from holding membership interests, or having interests in membership interests, in the corporate tax entity that are respectively borne by or accrue to the parties to the scheme, and whether there has been any change in those risks and opportunities for the relevant taxpayer or any other party to the scheme (for example, a change resulting from the making of any contract, the granting of any option or the entering into of any arrangement with respect to any membership interests, or interests in membership interests, in the corporate tax entity);\n\n(b) whether the relevant taxpayer would, in the year of income in which the distribution is made, or if the distribution flows indirectly to the relevant taxpayer, in the year in which the distribution flows indirectly to the relevant taxpayer, derive a greater benefit from franking credits than other entities who hold membership interests, or have interests in membership interests, in the corporate tax entity;\n\n(c) whether, apart from the scheme, the corporate tax entity would have retained the franking credits or exempting credits or would have used the franking credits or exempting credits to pay a franked distribution to another entity referred to in paragraph (b);\n\n(d) whether, apart from the scheme, a franked distribution would have flowed indirectly to another entity referred to in paragraph (b);\n\n(e) if the scheme involves the issue of a non‑share equity interest to which section 215‑10 of the Income Tax Assessment Act 1997 applies—whether the corporate tax entity has issued, or is likely to issue, equity interests in the corporate tax entity:\n\n(i) that are similar, from a commercial point of view, to the non‑share equity interest; and\n\n(ii) distributions in respect of which are frankable;\n\n(f) whether any consideration paid or given by or on behalf of, or received by or on behalf of, the relevant taxpayer in connection with the scheme (for example, the amount of any interest on a loan) was calculated by reference to the imputation benefits to be received by the relevant taxpayer;\n\n(g) whether a deduction is allowable or a capital loss is incurred in connection with a distribution that is made or that flows indirectly under the scheme;\n\n(ga) whether a distribution that is made or that flows indirectly under the scheme to the relevant taxpayer is sourced, directly or indirectly, from unrealised or untaxed profits;\n\n(h) whether a distribution that is made or that flows indirectly under the scheme to the relevant taxpayer is equivalent to the receipt by the relevant taxpayer of interest or of an amount in the nature of, or similar to, interest;\n\n(i) the period for which the relevant taxpayer held membership interests, or had an interest in membership interests, in the corporate tax entity;\n\n(j) any of the matters referred to in subsection 177D(2).\n\nMeaning of greater benefit from franking credits\n\n(18) The following subsection lists some of the cases in which a taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b). It is not an exhaustive list.\n\n(19) A taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b) if any of the following circumstances exist in relation to that entity in the year of income in which the distribution giving rise to the benefit is made, and not in relation to the taxpayer if:\n\n(a) the entity is not an Australian resident; or\n\n(b) the entity would not be entitled to any tax offset under Division 207 of the Income Tax Assessment Act 1997 because of the distribution; or\n\n(c) the amount of income tax that would be payable by the entity because of the distribution is less than the tax offset to which the entity would be entitled; or\n\n(d) the entity is a corporate tax entity at the time the distribution is made, but no franking credit arises for the entity as a result of the distribution; or\n\n(e) the entity is a corporate tax entity at the time the distribution is made, but cannot use franking credits received on the distribution to frank distributions to its own members because:\n\n(i) it is not a franking entity; or\n\n(ii) it is unable to make frankable distributions.\n\nNote: Where the distribution is made directly to the taxpayer, see subsections 204‑30(7), (8), (9) and (10) of the Income Tax Assessment Act 1997 for a list of circumstances in which the taxpayer will be treated as deriving a greater benefit from franking credits than another entity.\n\n177EB  Cancellation of franking credits—consolidated groups\n\nExpressions to have same meanings as in section 177EA and Income Tax Assessment Act 1997\n\n(1) Unless the contrary intention appears, expressions used in this section:\n\n(a) if those expressions are defined in section 177EA—have the same meanings as in that section (subject to subsection (10) of this section); and\n\n(b) otherwise—have the same meanings as in the Income Tax Assessment Act 1997.\n\nThis section and section 177EA do not limit each other\n\n(2) This section does not limit the operation of section 177EA, and section 177EA does not limit the operation of this section.\n\nApplication of section\n\n(3) This section applies if:\n\n(a) there is a scheme for a disposition of membership interests in an entity (the joining entity); and\n\n(b) as a result of the disposition, the joining entity becomes a subsidiary member of a consolidated group; and\n\n(c) a credit arises in the franking account of the head company of the group because of the joining entity becoming a subsidiary member of the group; and\n\n(d) having regard to the relevant circumstances of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling the credit referred to in paragraph (c) to arise in the head company’s franking account.\n\nBare acquisition of membership interests\n\n(4) It is not to be concluded for the purposes of paragraph (3)(d) that a person entered into or carried out a scheme for a purpose mentioned in that paragraph merely because the person acquired membership interests in the joining entity.\n\nCommissioner to determine no franking credit\n\n(5) The Commissioner may make, in writing, a determination that no credit is to arise in the head company’s franking account because of the joining entity becoming a subsidiary member of the consolidated group. A determination does not form part of an assessment.\n\nEffect of determination\n\n(6) A determination under subsection (5) has effect according to its terms.\n\nNotice of determination\n\n(7) If the Commissioner makes a determination under subsection (5), the Commissioner must serve notice in writing of the determination on the head company.\n\nObjections\n\n(9) If a taxpayer to whom a determination relates is dissatisfied with the determination, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\nRelevant circumstances\n\n(10) The relevant circumstances of a scheme include the following:\n\n(a) the extent and duration of the risks of loss, and the opportunities for profit or gain, from holding membership interests in the joining entity that are respectively borne by or accrue to the parties to the scheme, and whether there has been any change in those risks and opportunities for the head company or any other party to the scheme (for example, a change resulting from the making of any contract, the granting of any option or the entering into of any arrangement with respect to any membership interests in the joining entity);\n\n(b) whether the head company, or a person holding membership interests in the head company, would, in the year of income in which the joining entity became a subsidiary member of the group or any later year of income, derive a greater benefit from franking credits than other persons who held membership interests in the joining entity immediately before it became a subsidiary member of the group;\n\n(c) the extent (if any) to which the joining entity was able to pay a franked dividend or distribution immediately before it became a subsidiary member of the group;\n\n(d) whether any consideration paid or given by or on behalf of, or received by or on behalf of, the head company in connection with the scheme (for example, the amount of any interest on a loan) was calculated by reference to the franking credit benefits to be received by the head company;\n\n(e) the period for which the head company held membership interests in the joining entity;\n\n(f) any of the matters referred to in subsection 177D(2).\n\nSection to apply to exempting credits\n\n(11) This section applies to exempting credits arising in the exempting account of the head company of a consolidated group in the same way that it applies to credits arising in the head company’s franking account.\n\n177F  Cancellation of tax benefits etc.\n\n(1) Where this Part applies to a scheme in connection with which a tax benefit has been obtained, or would but for this section be obtained, the Commissioner may:\n\n(a) in the case of a tax benefit that is referable to an amount not being included in the assessable income of the taxpayer of a year of income—determine that the whole or a part of that amount shall be included in the assessable income of the taxpayer of that year of income; or\n\n(b) in the case of a tax benefit that is referable to a deduction or a part of a deduction being allowable to the taxpayer in relation to a year of income—determine that the whole or a part of the deduction or of the part of the deduction, as the case may be, shall not be allowable to the taxpayer in relation to that year of income; or\n\n(c) in the case of a tax benefit that is referable to a capital loss or a part of a capital loss being incurred by the taxpayer during a year of income—determine that the whole or a part of the capital loss or of the part of the capital loss, as the case may be, was not incurred by the taxpayer during that year of income; or\n\n(ca) in the case of a tax benefit that is referable to a loss carry back tax offset, or a part of a loss carry back tax offset, being allowable to the taxpayer—determine that the whole or a part of the loss carry back tax offset, or the part of the loss carry back tax offset, as the case may be, is not to be allowable to the taxpayer; or\n\n(d) in the case of a tax benefit that is referable to a foreign income tax offset, or a part of a foreign income tax offset, being allowable to the taxpayer—determine that the whole or a part of the foreign income tax offset, or the part of the foreign income tax offset, as the case may be, is not to be allowable to the taxpayer; or\n\n(da) in the case of a tax benefit that is referable to an innovation tax offset, or a part of an innovation tax offset, being allowable to the taxpayer—determine that the whole or a part of the innovation tax offset, or the part of the innovation tax offset, as the case may be, is not to be allowable to the taxpayer; or\n\n(e) in the case of a tax benefit that is referable to an exploration credit, or a part of an exploration credit, being issued to the taxpayer—determine that:\n\n(i) the whole or a part of a junior minerals exploration incentive tax offset that would otherwise be allowable to the taxpayer in relation to the exploration credit, or the part of the exploration credit, as the case may be, is not to be allowable to the taxpayer; or\n\n(ii) the whole or a part of a franking credit that would otherwise arise in the franking account of the taxpayer in relation to the exploration credit, or the part of the exploration credit, as the case may be, is not to arise in the franking account of the taxpayer; or\n\n(f) in the case of a tax benefit that is referable to:\n\n(i) a refundable R&D tax offset; or\n\n(ii) a non‑refundable R&D tax offset; or\n\n(iii) a part of a refundable R&D tax offset; or\n\n(iv) a part of a non‑refundable R&D tax offset;\n\nbeing allowable to the taxpayer in relation to a year of income—determine that the whole or a part of the offset, or the part of the offset, as the case may be, is not to be allowable to the taxpayer in relation to that year of income; or\n\n(g) in the case of a tax benefit that is referable to a CMPTI tax offset, or a part of a CMPTI tax offset, being allowable to the taxpayer—determine that the whole or a part of the CMPTI tax offset, or the part of the CMPTI tax offset, as the case may be, is not to be allowable to the taxpayer; or\n\n(h) in the case of a tax benefit that is referable to a hydrogen production tax offset, or a part of a hydrogen production tax offset, being allowable to the taxpayer in relation to a year of income—determine that the whole or a part of the offset, or the part of the offset, as the case may be, is not to be allowable to the taxpayer in relation to that year of income;\n\nand, where the Commissioner makes such a determination, he or she shall take such action as he or she considers necessary to give effect to that determination.\n\n(2) Where the Commissioner determines under paragraph (1)(a) that an amount is to be included in the assessable income of a taxpayer of a year of income, that amount shall be deemed to be included in that assessable income by virtue of such provision of this Act as the Commissioner determines.\n\n(2A) Where a tax benefit that is covered by paragraph 177C(1)(bc) has been obtained, or would but for this section be obtained, by a taxpayer in connection with a scheme to which this Part applies:\n\n(a) the Commissioner may determine that the taxpayer is subject to withholding tax under section 128B on the whole or a part of that amount; and\n\n(b) if the Commissioner makes such a determination, he or she must take such action as he or she considers necessary to give effect to that determination.\n\n(2B) A determination under paragraph (1)(c) or subsection (2A) must be in writing.\n\n(2C) Notice of the determination must be given to the taxpayer and, in the case of a determination under subsection (2A), to the person who paid the amount.\n\n(2E) A failure to comply with subsection (2C) does not affect the validity of a determination.\n\n(2F) If the Commissioner makes a determination under subsection (2A), the amount that the Commissioner determines is taken to be subject to withholding tax is taken to have been subject to withholding tax at all times by virtue of such provision of section 128B as the Commissioner determines.\n\n(2G) If the taxpayer is dissatisfied with a determination under paragraph (1)(c) or subsection (2A), the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n(3) Where the Commissioner has made a determination under subsection (1) or (2A) in respect of a taxpayer in relation to a scheme to which this Part applies, or the Commissioner has made a DPT assessment in respect of a taxpayer in relation to a scheme to which this Part applies, the Commissioner may, in relation to any taxpayer (in this subsection referred to as the relevant taxpayer):\n\n(a) if, in the opinion of the Commissioner:\n\n(i) there has been included, or would but for this subsection be included, in the assessable income of the relevant taxpayer of a year of income an amount that would not have been included or would not be included, as the case may be, in the assessable income of the relevant taxpayer of that year of income if the scheme had not been entered into or carried out; and\n\n(ii) it is fair and reasonable that that amount or a part of that amount should not be included in the assessable income of the relevant taxpayer of that year of income;\n\ndetermine that that amount or that part of that amount, as the case may be, should not have been included or shall not be included, as the case may be, in the assessable income of the relevant taxpayer of that year of income; or\n\n(b) if, in the opinion of the Commissioner:","sortOrder":1000088},{"sectionNumber":"full-source-retrieval-0090","sectionType":"document_chunk","heading":"Document excerpt 90","content":"(i) an amount would have been allowed or would be allowable to the relevant taxpayer as a deduction in relation to a year of income if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, but for this subsection, be allowable, as the case may be, as a deduction to the relevant taxpayer in relation to that year of income; and\n\n(ii) it is fair and reasonable that that amount or a part of that amount should be allowable as a deduction to the relevant taxpayer in relation to that year of income;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or shall be allowable, as the case may be, as a deduction to the relevant taxpayer in relation to that year of income; or\n\n(c) if, in the opinion of the Commissioner:\n\n(i) a capital loss would have been incurred by the relevant taxpayer during a year of income if the scheme had not been entered into or carried out, being a capital loss that was not incurred or would not, but for this subsection, be incurred, as the case may be, by the relevant taxpayer during that year of income; and\n\n(ii) it is fair and reasonable that the capital loss or a part of that capital loss should be incurred by the relevant taxpayer during that year of income;\n\ndetermine that the capital loss or the part, as the case may be, should be incurred by the relevant taxpayer during that year of income; or\n\n(ca) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a loss carry back tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a loss carry back tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a loss carry back tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a loss carry back tax offset to the relevant taxpayer; or\n\n(d) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a foreign income tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a foreign income tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a foreign income tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a foreign income tax offset to the relevant taxpayer; or\n\n(da) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as an innovation tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as an innovation tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as an innovation tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as an innovation tax offset to the relevant taxpayer; or\n\n(e) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a junior minerals exploration incentive tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a junior minerals exploration incentive tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a junior minerals exploration incentive tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as an exploration development incentive tax offset to the relevant taxpayer; or\n\n(f) if, in the opinion of the Commissioner:\n\n(i) an amount of a franking credit would have arisen, or would arise, in the franking account of the relevant taxpayer in relation to an exploration credit, being an amount that did not arise, or would not, apart from this subsection, have arisen, as the case may be, in the franking account of the relevant taxpayer in relation to the exploration credit; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should arise, in the franking account of the relevant taxpayer in relation to the exploration credit;\n\ndetermine that that amount or that part, as the case may be, should have arisen, or arises, as the case may be, in the franking account of the relevant taxpayer in relation to the exploration credit or\n\n(g) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a refundable R&D tax offset, or a non‑refundable R&D tax offset, in relation to a year of income if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a refundable R&D tax offset, or a non‑refundable R&D tax offset, as the case may be, to the relevant taxpayer in relation to that year of income; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a refundable R&D tax offset, or a non‑refundable R&D tax offset, as the case may be, to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a refundable R&D tax offset, or a non‑refundable R&D tax offset, as the case may be, to the relevant taxpayer in relation to that year of income; or\n\n(h) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a CMPTI tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a CMPTI tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a CMPTI tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a CMPTI tax offset to the relevant taxpayer; or\n\n(i) if, in the opinion of the Commissioner:\n\n(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a hydrogen production tax offset if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a hydrogen production tax offset to the relevant taxpayer; and\n\n(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a hydrogen production tax offset to the relevant taxpayer;\n\ndetermine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a hydrogen production tax offset to the relevant taxpayer;\n\nand the Commissioner shall take such action as he or she considers necessary to give effect to any such determination.\n\n(4) Where the Commissioner makes a determination under subsection (3) by virtue of which an amount is allowed as a deduction to a taxpayer in relation to a year of income, that amount shall be deemed to be so allowed as a deduction by virtue of such provision of this Act as the Commissioner determines.\n\n(5) Where, at any time, a taxpayer considers that the Commissioner ought to make a determination under subsection (3) in relation to the taxpayer in relation to a year of income, the taxpayer may post to or lodge with the Commissioner a request in writing for the making by the Commissioner of a determination under that subsection.\n\n(5A) Subsection (5B) applies if the taxpayer considers that the Commissioner ought to make the determination under subsection (3) because the Commissioner has made a DPT assessment in respect of a taxpayer in relation to a scheme to which this Part applies.\n\n(5B) Despite subsection (5), the request may be posted to or lodged with the Commissioner only after the end of the period of review (within the meaning of section 145‑15 in Schedule 1 to the Taxation Administration Act 1953) for the DPT assessment.\n\n(6) The Commissioner shall consider the request and serve on the taxpayer, by post or otherwise, a written notice of the Commissioner’s decision on the request.\n\n(7) If the taxpayer is dissatisfied with the Commissioner’s decision on the request, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n177G  Amendment of assessments\n\nNothing in section 170 prevents the amendment of an assessment at any time if the amendment is for the purpose of giving effect to subsection 177F(3).\n\n177H  Diverted profits tax—objects\n\n(1) The primary objects of the DPT provisions are:\n\n(a) to ensure that the Australian tax payable by significant global entities properly reflects the economic substance of the activities that those entities carry on in Australia; and\n\n(b) to prevent those entities from reducing the amount of Australian tax they pay by diverting profits offshore through contrived arrangements between related parties.\n\n(2) In addition, the DPT provisions (in combination with Division 145 in Schedule 1 to the Taxation Administration Act 1953) have the object of encouraging significant global entities to provide sufficient information to the Commissioner to allow for the timely resolution of disputes about Australian tax.\n\n177J  Diverted profits tax—application\n\nScheme for a purpose including obtaining a tax benefit etc.\n\n(1) This Part also applies to a scheme, in relation to a tax benefit (the DPT tax benefit) if:\n\n(a) a taxpayer (a relevant taxpayer) has obtained, or would but for section 177F obtain, the DPT tax benefit in connection with the scheme, in a year of income; and\n\n(b) it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a principal purpose of, or for more than one principal purpose that includes a purpose of:\n\n(i) enabling the relevant taxpayer to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of the relevant taxpayer’s liabilities to tax under a foreign law, in connection with the scheme; or\n\n(ii) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of their liabilities to tax under a foreign law, in connection with the scheme;\n\nwhether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers; and\n\n(c) the relevant taxpayer is a significant global entity for the year of income mentioned in paragraph (a); and\n\n(d) a foreign entity is an associate (within the meaning of section 318) of the relevant taxpayer at any time in the year of income mentioned in paragraph (a); and\n\n(e) that foreign entity:\n\n(i) is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or\n\n(ii) is otherwise connected with the scheme or any part of the scheme; and\n\n(f) the relevant taxpayer is not any of the following:\n\n(i) a managed investment trust (within the meaning of the Income Tax Assessment Act 1997);\n\n(ii) an entity covered by paragraph 275‑20(4)(f) of that Act (foreign collective investment vehicle with a wide membership);\n\n(iii) an entity covered by paragraph 275‑20(4)(h) of that Act (entity owned by foreign government etc.) that is a foreign entity;\n\n(iv) a complying superannuation entity (within the meaning of that Act);\n\n(v) a foreign pension fund (within the meaning of that Act); and\n\n(g) it is reasonable to conclude that none of the following sections apply in relation to the relevant taxpayer, in relation to the DPT tax benefit:\n\n(i) section 177K ($25 million income test);\n\n(ii) section 177L (sufficient foreign tax test);\n\n(iii) section 177M (sufficient economic substance test).\n\nHave regard to certain matters\n\n(2) For the purposes of paragraph (1)(b), have regard to the following matters:\n\n(a) the matters in subsection 177D(2);\n\n(b) without limiting subsection 177D(2), the extent to which non‑tax financial benefits that are quantifiable have resulted, will result, or may reasonably be expected to result, from the scheme;\n\n(c) the result, in relation to the operation of any foreign law relating to taxation, that (but for this Part) would be achieved by the scheme;\n\n(d) the amount of the tax benefit mentioned in paragraph (1)(b).\n\nDeferral of foreign tax liabilities\n\n(3) For the purposes of paragraph (1)(b), a deferral of a taxpayer’s liabilities to tax under a foreign law is taken to be a reduction of those liabilities, unless there are reasonable commercial grounds for the deferral.\n\nModification where thin capitalisation provisions apply\n\n(4) Subsection (5) applies if:\n\n(a) Division 820 of the Income Tax Assessment Act 1997 (about thin capitalisation) applies to the relevant taxpayer for the year of income mentioned in paragraph (1)(a); and\n\n(b) the DPT tax benefit includes all or part of a debt deduction (within the meaning of that Act); and\n\n(c) the calculation of the amount of the DPT tax benefit involves applying a rate to a debt interest (within the meaning of that Act).\n\n(5) For the purposes of the DPT provisions, in calculating the amount of the DPT tax benefit, apply the rate to the debt interest the entity actually issued (rather than the debt interest that would have existed if the scheme had not been entered into or carried out).\n\nModification where foreign entity is CFC\n\n(6) Subsection (6A) applies if:\n\n(a) the foreign entity mentioned in paragraph (1)(d) is a CFC (within the meaning of Part X); and\n\n(b) an amount of attributable income (within the meaning of that Part) of the foreign entity has been included as a result of the operation of that Part in the assessable income of:\n\n(i) the relevant taxpayer; or\n\n(ii) an associate (within the meaning given by section 318) of the relevant taxpayer, if the associate is a Part X Australian resident (within the meaning of that Part) and is not a trust or partnership.\n\n(6A) For the purposes of the DPT provisions, reduce the DPT tax benefit to the extent to which the amount included in assessable income as mentioned in paragraph (6)(b):\n\n(a) would not have been so included if the scheme had not been entered into or carried out; and\n\n(b) is directly referable to the DPT tax benefit.\n\nSchemes outside Australia\n\n(7) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.\n\nNon‑limitation in relation to other provisions in this Part\n\n(8) This section:\n\n(a) does not limit section 177D, 177DA, 177E, 177EA or 177EB; and\n\n(b) is not limited by those sections.\n\n177K  Diverted profits tax—$25 million income test\n\n(1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the sum of the following does not exceed $25 million:\n\n(a) the assessable income of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a);\n\n(b) the exempt income of the relevant taxpayer for that year of income;\n\n(c) the non‑assessable non‑exempt income of the relevant taxpayer for that year of income;\n\n(d) the assessable income of each entity covered by subsection (2) for that year of income;\n\n(e) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a)—the amount of the DPT tax benefit.\n\n(2) An entity is covered by this subsection if for the year of income mentioned in paragraph 177J(1)(a):\n\n(a) the entity is an associate (within the meaning given by section 318) of the relevant taxpayer; and\n\n(b) both the entity and the relevant taxpayer:\n\n(i) are members of the same global group; and\n\n(ii) are significant global entities because they are members of that group.\n\n177L  Diverted profits tax—sufficient foreign tax test\n\n(1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the amount worked out under subsection (2) (foreign tax liability) equals or exceeds 80% of the amount worked out under subsection (6) (reduced Australian tax liability).\n\nForeign tax liability\n\n(2) The amount is the total of the increases in liability for foreign income tax (within the meaning of the Income Tax Assessment Act 1997) of each entity covered by subsection (5) that results, will result, or may reasonably be expected to result, from the scheme during a foreign tax period that corresponds to the year of income mentioned in paragraph 177J(1)(a).\n\n(3) The regulations may provide for a method of working out increases in foreign tax liability for the purposes of subsection (2):\n\n(a) for all situations; or\n\n(b) for specified situations.\n\n(4) If the regulations provide for such a method, apply that method in working out increases in foreign tax liability for the purposes of subsection (2) in relevant situations.","sortOrder":1000089},{"sectionNumber":"full-source-retrieval-0091","sectionType":"document_chunk","heading":"Document excerpt 91","content":"(5) An entity is covered by this subsection if:\n\n(a) the entity is a foreign entity; and\n\n(b) the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and\n\n(c) the entity:\n\n(i) is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or\n\n(ii) is otherwise connected with the scheme or any part of the scheme.\n\nReduced Australian tax liability\n\n(6) The amount is:\n\n(a) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the tax benefit multiplied by the standard corporate tax rate; or\n\n(b) otherwise—the amount of the DPT tax benefit.\n\n(7) If the relevant taxpayer must withhold an amount in respect of withholding tax as a result of the tax benefit, reduce the amount worked out under subsection (6) by the amount withheld.\n\n177M  Diverted profits tax—sufficient economic substance test\n\n(1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the profit made as a result of the scheme by each entity covered by subsection (2) reasonably reflects the economic substance of the entity’s activities in connection with the scheme.\n\n(2) This subsection covers an entity if:\n\n(a) the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and\n\n(b) any of the following apply:\n\n(i) the entity entered into or carried out the scheme or any part of the scheme;\n\n(ii) the entity is otherwise connected with the scheme or any part of the scheme.\n\n(3) However, subsection (2) does not cover an entity if the entity’s role in the scheme is minor or ancillary.\n\n(4) In determining whether the profit made as a result of the scheme by an entity reasonably reflects the economic substance of the entity’s activities in connection with the scheme, have regard to:\n\n(a) the functions that the entity performs in connection with the scheme, taking into account assets used and risks assumed by the entity in connection with the scheme; and\n\n(b) the documents covered by section 815‑135 of the Income Tax Assessment Act 1997, to the extent that they are relevant to the matters mentioned in paragraph (a) or to any other aspect of the determination; and\n\n(c) any other relevant matters.\n\n177N  Diverted profits tax—consequences\n\nIf this Part applies to a scheme because of section 177J:\n\n(a) section 177P applies to the relevant taxpayer mentioned in section 177J; and\n\n(b) the Commissioner cannot make a determination under subsection 177F(1) or (2A) in relation to the scheme merely because of section 177J.\n\n177P  Diverted profits tax—liability\n\n(1) The relevant taxpayer is liable to pay tax at the rate declared by the Parliament on:\n\n(a) if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to one DPT tax benefit—the DPT base amount for that DPT tax benefit; or\n\n(b) if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to more than one DPT tax benefit—the sum of the DPT base amounts for those DPT tax benefits.\n\nNote: The tax is imposed by the Diverted Profits Tax Act 2017 and the rate of the tax is set out in that Act.\n\n(2) The DPT base amount for a DPT tax benefit is:\n\n(a) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the DPT tax benefit; or\n\n(b) otherwise—the amount of the DPT tax benefit divided by the standard corporate tax rate.\n\n(3) The tax is due and payable at the end of 21 days after the Commissioner gives the relevant taxpayer notice of the assessment of the amount of the tax for the year of income mentioned in paragraph 177J(1)(a).\n\nNote: For assessments of the amount of the tax see Divisions 145 and 155 in Schedule 1 to the Taxation Administration Act 1953.\n\n177Q  Diverted profits tax—general interest charge on unpaid diverted profits tax or shortfall interest charge\n\nIf an amount of diverted profits tax or shortfall interest charge that an entity is liable to pay remains unpaid after the time by which it is due to be paid, the entity is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n\n(a) starts at the beginning of the day by which the amount was due to be paid; and\n\n(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n\n(i) the diverted profits tax or shortfall interest charge;\n\n(ii) general interest charge on any of the diverted profits tax or shortfall interest charge.\n\nNote: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n177R  Diverted profits tax—when shortfall interest charge is payable\n\nAn amount of shortfall interest charge that an entity is liable to pay under section 280‑102C in Schedule 1 to the Taxation Administration Act 1953 is due and payable 21 days after the day on which the Commissioner gives the entity notice of the charge.\n\nPart VA—Tax file numbers\n\nDivision 1—Preliminary\n\n202  Objects of this Part\n\nThe objects of this Part are, by means of the establishment of a system of tax file numbers:\n\n(a) to increase the effectiveness and efficiency of the matching of information contained in reports given to the Commissioner under this Act or the regulations with information disclosed in income tax returns by taxpayers; and\n\n(b) to prevent evasion of liability to taxation under the laws of the Commonwealth relating to income tax; and\n\n(c) to facilitate the administration of any legislation enacted by the Parliament under which benefits are provided by the Commonwealth to students in relation to contributions or charges payable by students in respect of the costs of courses of study provided by institutions of higher education or vocational education and training, or in respect of the costs of other services and amenities available to students in connection with such institutions; and\n\n(d) to facilitate the administration of any legislation enacted by the Parliament to impose charge equal to any shortfall in the amount spent by employers on training employees; and\n\n(e) to facilitate the administration of a provision of an Act, being a provision which authorises the collection of a tax file number as a condition to the giving of personal assistance within the meaning of the Data‑matching Program (Assistance and Tax) Act 1990; and\n\n(f) to facilitate the administration of the Data‑matching Program (Assistance and Tax) Act 1990; and\n\n(g) to facilitate the administration of any legislation enacted by the Parliament in relation to the imposition of charge on an employer’s superannuation guarantee shortfall; and\n\n(ga) to facilitate the administration of the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988; and\n\n(gaa) to facilitate the administration of Part 2 of the Student Assistance Act 1973, which deals with ABSTUDY student start‑up loans and debts in relation to those loans; and\n\n(h) to facilitate the administration of Division 6 of Part 4A of the Student Assistance Act 1973; and\n\n(hab) to facilitate the administration of Chapter 2AA of the Social Security Act 1991, which deals with student start‑up loans and debts in relation to those loans; and\n\n(hac) to facilitate the administration of the Australian Apprenticeship Support Loans Act 2014; and\n\n(ha) to facilitate the administration of:\n\n(i) Part 2B.3 of the Social Security Act 1991; or\n\n(ii) a provision of an instrument under Chapter 2B of the Social Security Act 1991 (as in force before the commencement of Schedule 2 to the Youth Allowance Consolidation Act 2000) establishing a Student Financial Supplement Scheme, being a provision relating to the recovery through the taxation system of a student’s outstanding indebtedness in respect of financial supplement paid to the student in accordance with the Scheme; and\n\n(hb) to facilitate the administration of Part 3.18 of the Social Security Act 1991; and\n\n(hc) to facilitate the administration of Division 11A of Part IIIB of the Veterans’ Entitlements Act 1986; and\n\n(i) to facilitate:\n\n(i) the administration of Part 25A of the Superannuation Industry (Supervision) Act 1993 in relation to individuals; and\n\n(ii) the administration of that Act in relation to superannuation entities (within the meaning of that Act) or regulated exempt public sector superannuation schemes (within the meaning of Part 25A of that Act); and\n\n(ia) to facilitate the administration of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (including the administration of registers by State or Territory authorities (within the meaning of that Act) in accordance with section 18 of that Act); and\n\n(j) to facilitate the administration of the Small Superannuation Accounts Act 1995; and\n\n(ka) to facilitate:\n\n(i) the administration of Part 11 of the Retirement Savings Accounts Act 1997 in relation to individuals; and\n\n(ii) the administration of that Act in relation to RSA providers; and\n\n(l) to facilitate the administration of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997; and\n\n(la) to facilitate the administration of the Paid Parental Leave Act 2010; and\n\n(m) to facilitate the administration of the A New Tax System (Family Assistance) (Administration) Act 1999 and section 5 of the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999; and\n\n(o) to facilitate the administration of section 204A of the Social Security (Administration) Act 1999; and\n\n(p) to facilitate the administration of the fuel tax law (within the meaning of section 110‑5 of the Fuel Tax Act 2006); and\n\n(q) to facilitate the administration of Division 2AA of Part II of the Banking Act 1959; and\n\n(r) to facilitate investigations under the Inspector‑General of Taxation Act 2003 (and provisions of the Ombudsman Act 1976 to the extent that they are applied by the Inspector‑General of Taxation Act 2003); and\n\n(s) to facilitate the administration of Subdivision 14‑D in Schedule 1 to the Taxation Administration Act 1953; and\n\n(sa) to facilitate the administration of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020; and\n\n(t) to facilitate the administration of the Migration Act 1958; and\n\n(u) to facilitate the administration of Part 9.1A of the Corporations Act 2001 and Part 6‑7A of the Corporations (Aboriginal and Torres Strait Islander) Act 2006.\n\n202A  Interpretation\n\nIn this Part, unless the contrary intention appears:\n\nalienated personal services payment has the meaning given by section 13‑10 in Schedule 1 to the Taxation Administration Act 1953.\n\napplicant, in relation to an application for the issue of a tax file number, means the person specified in the application as the person by whom or on whose behalf the issue of a tax file number is sought.\n\nbank means:\n\n(a) the Reserve Bank of Australia;\n\n(b) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959; or\n\n(c) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution.\n\nchild means a person who is less than 16 years of age.\n\nco‑operative housing society means a society registered or incorporated as a co‑operative housing society or similar society under a law of a State or Territory.\n\ndata processing device means any article or material from which information is capable of being reproduced with or without the aid of any other article or device.\n\neligible PAYG payment means:\n\n(a) a payment from which an amount must be withheld under Subdivision 12‑B (other than section 12‑55), Subdivision 12‑C or Subdivision 12‑D in Schedule 1 to the Taxation Administration Act 1953; or\n\n(aa) an alienated personal services payment in respect of which Division 13 in Schedule 1 to the Taxation Administration Act 1953 requires an amount to be paid to the Commissioner; or\n\n(b) a non‑cash benefit in respect of which an amount is payable to the Commissioner under section 14‑5 in Schedule 1 to the Taxation Administration Act 1953 because of the application of that section in relation to Subdivision 12‑B, 12‑C or 12‑D of that Schedule;\n\nand has a meaning affected by section 202AA.\n\nentity means a body corporate or unincorporated association, but does not include a natural person or a partnership.\n\nfinancial institution means:\n\n(a) a bank; or\n\n(b) a co‑operative housing society.\n\ngovernment body means the Commonwealth, a State, a Territory or an authority of the Commonwealth or of a State or Territory.\n\ninterest‑bearing account means any facility, other than an RSA, by which a financial institution:\n\n(a) does any one or more of the following:\n\n(i) accepts deposits of money to the credit of a person;\n\n(ii) allows withdrawals from the money deposited;\n\n(iii) pays cheques or payment orders drawn on the institution by, or collects cheques or payment orders on behalf of, the person; and\n\n(b) pays or credits interest, or amounts in the nature of interest, on the balance standing to the credit of the person from time to time.\n\ninterest‑bearing deposit means a deposit of money, other than into an RSA, with a financial institution, in consideration of which the financial institution pays or credits interest, or amounts in the nature of interest, to a person.\n\ninvestment body means a person who is an investment body within the meaning of section 202D.\n\ninvestment to which this Part applies means an investment of a kind mentioned in section 202D.\n\ninvestor means a person who is an investor within the meaning of section 202D.\n\npayer means:\n\n(a) a person who makes an eligible PAYG payment (other than an alienated personal services payment), or is likely to make such a payment; or\n\n(b) a person who receives an alienated personal services payment, or is likely to receive such a payment.\n\nperson includes a partnership, a company and a person in the capacity of trustee of a trust estate.\n\npublic company means a public company within the meaning of the Corporations Act 2001.\n\nrecipient means:\n\n(a) a person who receives an eligible PAYG payment (other than an alienated personal services payment), or is likely to receive such a payment; or\n\n(b) a person in relation to whose personal services income (within the meaning of the Income Tax Assessment Act 1997) a payer receives an alienated personal services payment, or is likely to receive such a payment.\n\nsecurities dealer has the same meaning as in the Income Tax Assessment Act 1997.\n\nsolicitor means a solicitor, barrister and solicitor or legal practitioner of the High Court or of the Supreme Court of a State or Territory.\n\ntax file number, in relation to a person, means a number issued to the person by the Commissioner, being a number that is either:\n\n(a) a number issued to the person under Division 2; or\n\n(aa) a number issued to a person under section 44 or 48 of the Higher Education Funding Act 1988; or\n\n(b) a number notified, before the commencement of this section, to the person as the person’s income tax file number.\n\nTFN declaration means a declaration made for the purposes of section 202C.\n\nunit trust means a trust to which a unit trust scheme relates, and includes:\n\n(a) a cash management trust;\n\n(b) a property trust;\n\n(c) an arrangement declared by the Minister under section 202AB to be a unit trust for the purposes of this definition;\n\nbut does not include any arrangement declared by the Minister under section 202AB not to be a unit trust for the purposes of this definition.\n\nunit trust scheme means an arrangement made for the purpose, or having the effect, of providing, for a person who has funds available for investment, facilities for participation by the person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust.\n\n202AA  Definition of eligible PAYG payment\n\nIn applying the definition of eligible PAYG payment in section 202A:\n\n(a) a requirement to withhold a nil amount is treated as a requirement to withhold an amount; and\n\n(b) a requirement to pay a nil amount to the Commissioner is treated as a requirement to pay an amount to the Commissioner; and\n\n(c) the following provisions in Schedule 1 to the Taxation Administration Act 1953 are to be disregarded, namely: section 12‑1, subsection 12‑45(2), subsection 12‑110(2) and subsection 12‑115(2).\n\n202AB  Declaration that an arrangement is, or is not, a unit trust\n\nThe Minister may, by legislative instrument, declare that an arrangement is, or is not, a unit trust for the purposes of the definition of that term in section 202A.\n\nDivision 2—Issuing of tax file numbers\n\n202B  Application for tax file number\n\n(1) A person may apply to the Commissioner for the issue of a tax file number.\n\n(2) An application must be in the approved form. The approved form may require the application to include documentary evidence of the applicant’s identity.\n\n202BA  Issuing of tax file numbers\n\n(1) Subject to subsection (3), if, on an application for a tax file number, the Commissioner is satisfied that the applicant’s identity has been established, the Commissioner shall issue a tax file number to the applicant.\n\n(2) If, on such an application, the Commissioner is not satisfied as to the applicant’s true identity, the Commissioner may refuse the application.\n\n(3) If, on such an application, the Commissioner is satisfied that:\n\n(a) the applicant already has a tax file number; or\n\n(b) a notice under section 202BD in relation to the applicant is in force;\n\nthe Commissioner shall refuse the application.","sortOrder":1000090},{"sectionNumber":"full-source-retrieval-0092","sectionType":"document_chunk","heading":"Document excerpt 92","content":"(4) The Commissioner may, without an application being made, issue a tax file number to a person whenever it is necessary to do so in connection with the performance of a function of the Commissioner under a law of the Commonwealth relating to taxation.\n\n(5) The Commissioner shall issue a tax file number to a person by giving the person a written notice of the number.\n\n(6) The Commissioner shall refuse an application for a tax file number by giving the applicant a written notice of the refusal and of the reasons for the refusal.\n\n202BB  Current tax file number\n\nOn the issue of a tax file number to a person, any tax file number previously issued to the person and not already cancelled or withdrawn ceases to have effect.\n\n202BC  Deemed refusal by Commissioner\n\n(1) If the Commissioner has not decided an application for a tax file number within 28 days after the application is made, the applicant may, at any time, give to the Commissioner written notice that the applicant wishes to treat the application as having been refused.\n\n(2) If in the application the applicant has stated the name and address of one or more payers of the applicant, subsection (1) does not apply at a particular time if at that time a notice has been issued to each such payer under section 202BD in relation to the applicant and each such notice is in force.\n\n(3) For the purposes of Division 6, where an applicant gives notice under subsection (1), the Commissioner shall be taken to have refused the application for a tax file number on the day on which the notice was given.\n\n202BD  Interim notices\n\n(1) Where an application for a tax file number states the name and address of a payer of the applicant, the Commissioner may give to the payer a notice under this section in relation to the applicant.\n\n(2) The notice remains in force for the period of 28 days commencing on the day specified in the notice.\n\n(3) The notice shall specify:\n\n(a) the applicant’s name as shown in the application; and\n\n(b) the last day of the period for which the notice remains in force.\n\n(4) On giving the notice, the Commissioner shall inform the applicant that the notice has been given.\n\n(5) The notice may be given to take effect on the expiration of a notice previously given to the payer under this section in relation to the applicant.\n\n(6) Where, while an application for a tax file number is pending, the applicant notifies the Commissioner, in writing, of the name and address of a payer of the applicant (being a payer whose name and address is not stated on the application), the payer’s name and address shall, at the end of the period of 7 days after the notification, be taken to have been stated on the application.\n\n202BE  Cancellation of tax file numbers\n\n(1) Where the Commissioner concludes that a tax file number was issued to a person under an identity that is not the person’s true identity, the Commissioner may, by written notice given to the person, cancel the tax file number.\n\n(2) The Commissioner shall set out in the notice the reasons for the Commissioner’s conclusion.\n\n202BF  Alteration of tax file numbers\n\nThe Commissioner may, at any time, by written notice given to a person who has a tax file number:\n\n(a) withdraw that number; and\n\n(b) issue to the person a new tax file number in place of the withdrawn number.\n\nDivision 3—Quotation of tax file numbers by recipients of eligible PAYG payments\n\n202C  TFN declarations by recipients of eligible PAYG payments\n\n(1) A person who is a recipient of a payer, or expects to become a recipient of a payer, may make a TFN declaration in relation to the payer.\n\n(2) To be effective, the declaration must be made to the payer or the Commissioner, and must be made in the approved form.\n\n202CA  Operation of TFN declaration\n\n(1) Subject to this Division, a TFN declaration commences to have effect when it is made.\n\nNote: Under section 202CB, a TFN declaration is not effective unless the tax file number of the recipient is stated in the declaration.\n\n(1A) A TFN declaration ceases to have effect when the recipient makes another TFN declaration in relation to the payer.\n\n(1B) A TFN declaration ceases to have effect 12 months after it is made if no eligible PAYG payment is made by the payer to the recipient during that 12 month period.\n\n(1C) If:\n\n(a) the payer makes an eligible PAYG payment to the recipient after the TFN declaration is made; and\n\n(b) a period of 12 months then elapses without any further eligible PAYG payment being made by the payer to the recipient;\n\nthen the TFN declaration ceases to have effect at the end of that period of 12 months.\n\n(2) A TFN declaration to which a determination under subsection (3) applies ceases to have effect at the end of the day fixed by the determination.\n\n(3) The Commissioner may, by legislative instrument, determine that:\n\n(a) all TFN declarations; or\n\n(b) a specified class of TFN declarations;\n\nshall cease to have effect at the end of the day specified in the determination.\n\n202CB  Quotation of tax file number in TFN declaration\n\n(1) Subject to subsections (2) and (4) and subsection 202CE(2), a TFN declaration is not effective for the purposes of this Part unless the tax file number of the recipient is stated in the declaration.\n\n(2) For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration if the declaration includes a statement:\n\n(a) that an application by the recipient for a tax file number is pending; or\n\n(b) that the recipient has a tax file number but does not know what it is and has asked the Commissioner to inform him or her of the number.\n\n(3) Where:\n\n(a) a TFN declaration includes such a statement; and\n\n(b) the recipient who made the declaration fails to inform the payer of the recipient’s tax file number within 28 days after making the declaration;\n\nsubsection (2) does not apply to the declaration in respect of any time after the end of the period of 28 days.\n\n(4) For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration in relation to a payer while a notice under section 202BD given to the payer in relation to the recipient is in force.\n\n(5) If:\n\n(a) the tax file number of a recipient is withdrawn under section 202BF; and\n\n(b) at the time of the withdrawal, the number is stated in a TFN declaration;\n\nthe declaration is taken to state the tax file number of the recipient in spite of the withdrawal of the number.\n\n(6) Subsections (2) to (4) do not apply to a TFN declaration given to the Student Assistance Secretary, to the Employment Secretary or to the Chief Executive Centrelink:\n\n(a) by a person who is an applicant for an austudy payment, a jobseeker payment or a youth allowance under the Social Security Act 1991; or\n\n(aaa) by a person who is not a member of a couple and is an applicant for a parenting payment under the Social Security Act 1991; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a).\n\nPersons receiving benefits under Veterans’ Entitlements Act\n\n(7) Subsections (2) to (4) do not apply to a TFN declaration given to the Veterans’ Affairs Secretary:\n\n(a) by a person who is an applicant for a pension or allowance under the Veterans’ Entitlements Act 1986; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a pension, veteran payment (within the meaning of that Act) or allowance under that Act.\n\nPersons receiving benefits under Military Rehabilitation and Compensation Act\n\n(8) Subsections (2) to (4) do not apply to a TFN declaration given to the Military Rehabilitation and Compensation Commission:\n\n(a) by a person who is an applicant for compensation or an allowance under the Military Rehabilitation and Compensation Act 2004; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such compensation or allowance.\n\n202CC  Making a replacement TFN declaration in place of an ineffective declaration\n\nNothing in this Division prevents a recipient making a new TFN declaration in place of a TFN declaration that is ineffective under subsection 202CB(1).\n\n202CD  Sending of TFN declaration to Commissioner\n\n(1) Where a recipient gives a payer a TFN declaration, the payer shall:\n\n(a) countersign the original of the declaration;\n\n(b) within 14 days after the declaration is made, send the original to the office of a Deputy Commissioner; and\n\n(c) retain the copy of the declaration in accordance with subsection (6).\n\nPenalty: 10 penalty units.\n\n(4) If:\n\n(a) a TFN declaration, when given to a payer, does not quote the recipient’s tax file number; and\n\n(b) before the payer sends the declaration to the Deputy Commissioner, the recipient informs the payer of the recipient’s tax file number;\n\nthe payer shall write the number on the declaration and on the copy.\n\nPenalty: 10 penalty units.\n\n(5) Where a tax file number has been written on a declaration under subsection (4), the declaration shall be regarded as stating that number as the tax file number of the recipient who made the declaration.\n\n(5A) A payer who fails to comply with subsection (1) or (4) is liable to pay to the Commissioner a penalty of 10 penalty units.\n\nNote 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.\n\nNote 2: Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.\n\n(6) The payer shall retain the copy of a TFN declaration until the second 1 July after the day on which the declaration ceases to have effect.\n\n202CE  Effect of incorrect quotation of tax file number\n\n(1) If the Commissioner is satisfied:\n\n(a) that the tax file number stated in a TFN declaration:\n\n(i) has been cancelled or withdrawn since the declaration was given; or\n\n(ii) is otherwise wrong; and\n\n(b) that the recipient has a tax file number;\n\nthe Commissioner may give to the payer concerned written notice of the incorrect statement and the recipient’s tax file number.\n\n(2) If a notice is given under subsection (1), the TFN declaration shall be regarded, for the purposes of this Part, as having always stated the recipient’s tax file number.\n\n(3) If:\n\n(a) the Commissioner is satisfied that the tax file number stated in a TFN declaration:\n\n(i) has been cancelled since the declaration was given; or\n\n(ii) is for any other reason not the recipient’s tax file number; and\n\n(b) the Commissioner is not satisfied that the recipient has a tax file number;\n\nthe Commissioner may, by written notice given to the payer, inform the payer accordingly.\n\n(4) A notice under subsection (3) takes effect on the day specified in the notice, being a day not earlier than the day on which a copy of the notice is given to the recipient under subsection (5).\n\n(5) The Commissioner shall give a copy of any notice under subsection (3) to the recipient concerned, together with a written statement of the reasons for the decision to give the notice.\n\n(6) On and from the day on which a notice under subsection (3) takes effect, the TFN declaration concerned shall be taken not to state the tax file number of the recipient concerned.\n\n(7) Subsection (6) does not apply to a TFN declaration given to the Employment Secretary or to the Chief Executive Centrelink:\n\n(a) by a person who is an applicant for an austudy payment, a jobseeker payment or a youth allowance under the Social Security Act 1991; or\n\n(aaa) by a person who is not a member of a couple and is an applicant for a parenting payment under the Social Security Act 1991; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a).\n\nPersons receiving benefits under Veterans’ Entitlements Act\n\n(8) Subsection (6) does not apply to a TFN declaration given to the Veterans’ Affairs Secretary:\n\n(a) by a person who is an applicant for a pension or allowance under the Veterans’ Entitlements Act 1986; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a pension, veteran payment (within the meaning of that Act) or allowance under that Act.\n\n(9) Subsection (6) does not apply to a TFN declaration given to the Military Rehabilitation and Compensation Commission:\n\n(a) by a person who is an applicant for compensation or an allowance under the Military Rehabilitation and Compensation Act 2004; or\n\n(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such compensation or allowance.\n\n202CEA  Validation notices\n\n(1) The Commissioner may give a payer a notice under subsection (2) if:\n\n(a) the payer gives the Commissioner information that the payer believes to be:\n\n(i) the full name, tax file number and date of birth of a person; or\n\n(ii) the full name, tax file number, date of birth and address of a person; and\n\n(b) the Commissioner is satisfied that:\n\n(i) the person is a recipient of the payer; and\n\n(ii) the recipient has made a TFN declaration in relation to the payer; and\n\n(c) the Commissioner is satisfied, having regard to the information (if any) that the Commissioner has recorded for the tax file number given, that it is reasonable to give the notice.\n\n(2) The notice must state whether or not the Commissioner is able to validate the information given.\n\n(3) To avoid doubt, a notice that the Commissioner is not able to validate the information is not a notice under subsection 202CE(3).\n\n(4) If a person states his or her tax file number in a TFN declaration in relation to the payer, the payer may use the tax file number in a manner connecting it with the person’s identity for the purpose of asking the Commissioner to validate information about the person under this section.\n\n202CF  Payer must notify Commissioner if no TFN declaration by recipient\n\n(1) If, after the commencement of this section, a person (the payer) commences a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, within 14 days after the commencement of the relationship, unless a TFN declaration made by the recipient to the payer is in effect at the end of that 14 day period.\n\n(1A) However, subsection (1) does not apply if the recipient’s tax file number has been disclosed to the payer under section 202CG before the end of that 14 day period.\n\n(2) If, at the commencement of this section, a person (the payer) has a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, not later than 31 October 2000, unless a TFN declaration made by the recipient to the payer is in effect on 31 October 2000.\n\n(3) A payer who fails to comply with subsection (1) or (2) is liable to pay to the Commissioner a penalty of 10 penalty units.\n\nNote 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.\n\nNote 2: Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.\n\n202CG  Disclosing recipients’ tax file numbers to payers\n\nA taxation officer (within the meaning of the Income Tax Assessment Act 1997) may disclose a recipient’s tax file number to a payer of the recipient if:\n\n(a) the recipient provided the number in a TFN declaration to the Commissioner in relation to the payer; or\n\n(b) the recipient made a TFN declaration to the Commissioner in relation to the payer that included a statement referred to in subsection 202CB(2).\n\nDivision 4—Quotation of tax file numbers in connection with certain investments\n\n202D  Explanation of terms: investment, investor, investment body\n\n(1A) This section:\n\n(a) applies to a non‑share equity interest in the same way as it applies to a share; and\n\n(b) applies to an equity holder in the same way as it applies to a shareholder.\n\n(1) Investments of the kinds mentioned in column 1 of the following table are investments to which this Part applies, whether or not the investments come into existence before the commencement of this section.\n\nTable","sortOrder":1000091},{"sectionNumber":"full-source-retrieval-0093","sectionType":"document_chunk","heading":"Document excerpt 93","content":"| Item No. | Column 1  Investment | Column 2  Investor | Column 3   Investment body |\n| --- | --- | --- | --- |\n| 1 | Interest‑bearing account with a financial institution | The person in whose name the account is held | The financial institution |\n| 2 | Interest‑bearing deposit (other than a deposit to the credit of an account) with a financial institution | The person in whose name the deposit is made | The financial institution |\n| 3 | Loan of money to a government body or to a body corporate (other than a deposit to the credit of an account referred to in item 1, a deposit to which item 2 applies or a loan made in the ordinary course of the business of providing business or consumer finance by a person who carries on that business) | The person in whose name the money is lent | The government body or body corporate |\n| 4 | Deposit of money with a solicitor for the purpose of:<br>(a) being invested by the solicitor; or<br>(b) being lent under an agreement to be arranged by or on behalf of the solicitor | The person for whose benefit the money is to be invested or lent | The solicitor |\n| 5 | Units in a unit trust | The person in whose name the units are held | The manager of the unit trust |\n| 6 | Shares in a public company | The shareholder | The company |\n| 7 | An investment‑related betting chance | The betting investor | The betting investment body |\n\n(2) In relation to an investment of a kind mentioned in column 1 of an item in the table in subsection (1):\n\n(a) the investor is the person specified in column 2 of the item; and\n\n(b) the investment body is the person specified in column 3 of the item.\n\n(3) Where:\n\n(a) by virtue of subsection (2), a body corporate other than an entrepot nominee company is the investor in relation to an investment; and\n\n(b) another person is entitled to receive from the body corporate all or part of the income from the investment;\n\nthe person’s right to receive the income or part of the income is an investment to which this Part applies.\n\n(3A) In the case of an investment that is a relevant Part VA investment for the purposes of section 221YHZLA, subsection (3) does not apply to a person’s right to receive income if:\n\n(a) the body corporate concerned has received a payment of the kind referred to in paragraph 221YHZLA(2)(a); and\n\n(b) the circumstances referred to in subparagraph 221YHZLA(2)(c)(i) or (ii) in relation to an applicant exist in relation to the body corporate.\n\n(4) In relation to an investment referred to in subsection (3):\n\n(a) the person entitled to receive income is the investor; and\n\n(b) the body corporate is the investment body.\n\n(5) Subsection (4) does not affect a person’s status or obligations as an investor by virtue of subsection (2).\n\n(6) In determining whether a person in the capacity of trustee of a trust estate is an investor in relation to an investment, it is irrelevant that the name of the trust estate, the name of any actual or potential beneficiary or any other indication of trust is shown on any documentation in connection with the investment.\n\n(7) Subsection (6) is enacted for the guidance and information of investors and investment bodies and does not, by implication, affect the meaning of other provisions of this Act dealing with trustees and trust estates.\n\n(8) If subparagraph 26AJ(1)(a)(ii) and paragraphs 26AJ(1)(b), (c), (d), (e), (f) and (g) apply in relation to the payment or crediting of an amount to a person, being the taxpayer referred to in subsection 26AJ(1), then:\n\n(a) for the purposes of this section:\n\n(i) the betting chance referred to in paragraph 26AJ(1)(c) is an investment‑related betting chance; and\n\n(ii) the person is the betting investor in relation to the investment‑related betting chance; and\n\n(iii) the investment body referred to in paragraph 26AJ(1)(c) is the betting investment body in relation to the investment‑related betting chance; and\n\n(b) for the purposes of this Part, and for the purposes of Subdivision 12‑E in Schedule 1 to the Taxation Administration Act 1953:\n\n(i) the betting chance referred to in paragraph 26AJ(1)(c) is taken to be an investment; and\n\n(ii) the amount paid or credited is taken to be income in respect of the investment.\n\n(9) For the purposes of subsection (3), an entrepot nominee company is a body corporate that is:\n\n(a) controlled solely by a securities dealer or by 2 or more persons each of whom is a securities dealer; and\n\n(b) operated for the sole purpose of facilitating settlement of security transactions.\n\n202DB  Quotation of tax file numbers in connection with investments\n\n(1) A person who is an investor in relation to an investment to which this Part applies may quote the person’s tax file number to the investment body in connection with the investment.\n\n(2) Where:\n\n(a) a person holds an investment on behalf of another person; and\n\n(b) the first‑mentioned person does not have a tax file number in his or her capacity of trustee of a trust estate in relation to the investment;\n\nthe first‑mentioned person may quote his or her tax file number to the investment body in connection with the investment and, for the purposes of this Part, that person is to be taken to have quoted the investor’s tax file number in connection with the investment.\n\n202DC  Method of quoting tax file number\n\n(1) A person quotes a tax file number to an investment body by informing the body of the number in a manner approved by the Commissioner.\n\n(2) The investment body may be so informed by the person or by another person acting for that person.\n\n(3) If a person becomes an investor as a result of a transaction carried out through a securities dealer, the person shall be taken to have quoted the person’s tax file number to the investment body concerned if the dealer is informed of the number.\n\n202DD  Investor excused from quoting tax file number in certain circumstances\n\nWhere:\n\n(a) at a particular time a person becomes an investor in relation to an investment to which this Part applies by virtue of acquiring shares in a public company; and\n\n(b) at that time, the person has quoted, or is taken to have quoted, a tax file number in connection with an existing investment consisting of a shareholding in that company; and\n\n(c) the company has not, since the quotation of the number in connection with the existing investment, informed the person that the company has lost the person’s tax file number;\n\nthe person is to be taken to have quoted a tax file number in connection with the first‑mentioned investment.\n\n202DDB  Quotation of tax file number in connection with indirectly held investment\n\n(1) If, apart from this section:\n\n(a) either of the following subparagraphs applies:\n\n(i) both of the following conditions are satisfied:\n\n(A) a body corporate (in this section called the  interposed entity) is the investor in relation to an investment (in this section called the secondary investment) with an investment body (in this section called the secondary investment body);\n\n(B) another person (in this section called the  primary investor) is entitled to receive from the interposed entity all or part of the income from the secondary investment (which right to receive the income or part of the income is in this section called primary investment);\n\n(ii) both of the following conditions are satisfied:\n\n(A) a person (in this section also called the primary investor) is the investor in relation to an investment (in this section also called the primary investment) covered by item 4 in the table in subsection 202D(1), being a deposit of money with a solicitor (in this section also called the interposed entity);\n\n(B) as a result of carrying out the purpose for which that investment was made, the interposed entity is the investor in relation to another investment (in this section also called the secondary investment) with an investment body (in this section also called the secondary investment body); and\n\n(b) either:\n\n(i) the secondary investment has a descriptive title which identifies all the primary investors; or\n\n(ii) the conditions set out in the regulations are satisfied;\n\nthe following provisions have effect for the purposes of this Part and Subdivision 12‑E in Schedule 1 to the Taxation Administration Act 1953:\n\n(c) the primary investor may quote his or her tax file number under section 202DB to the secondary investment body in connection with the secondary investment as if he or she were the investor in relation to the secondary investment;\n\n(d) if the primary investor quotes his or her tax file number as mentioned in paragraph (c)—the interposed entity is taken to have quoted his or her tax file number to the secondary investment body in connection with the secondary investment;\n\n(e) the interposed entity is not entitled to actually quote his or her tax file number to the secondary investment body in connection with the secondary investment;\n\n(f) the interposed entity is taken not to be an investment body in relation to the primary investment.\n\n(2) If there are 2 or more primary investors in relation to a primary investment, all the primary investors are taken to have quoted their tax file numbers as mentioned in paragraph (1)(c) if, and only if:\n\n(a) all of those primary investors are persons who, for the purposes of this Part, are taken, by section 202EE, to have quoted their tax file numbers under this Division in connection with the primary investment; or\n\n(b) if:\n\n(i) paragraph (a) does not apply; and\n\n(ii) all of those primary investors are covered by any or all of the following categories:\n\n(A) persons who, for the purpose of this Part, are taken, under section 202EE, to have quoted their tax file numbers under this Division in connection with the primary investment;\n\n(B) persons to whom section 202EB applies;\n\n(C) entities mentioned in paragraph 202EC(1)(a); and\n\n(iii) all of the following conditions are satisfied in relation to at least one of those primary investors:\n\n(A) the primary investor is covered by sub‑subparagraph (ii)(B) or (C);\n\n(B) the primary investor gives to the secondary investment body the information mentioned in subsection 202EB(1) or 202EC(1) as if the primary investor were the investor in relation to the secondary investment;\n\n(C) as a result of the giving of that information, the primary investor would be taken, under section 202EB or 202EC, to have quoted his or her tax file number under this Division in connection with the secondary investment; or\n\n(c) at least one of those primary investors:\n\n(i) has a tax file number; and\n\n(ii) has quoted that number under section 202DB to the secondary investment body in connection with the secondary investment as if he or she were the investor in relation to the secondary investment.\n\n202DE  Securities dealer to inform the investment body of tax file number\n\nWhere:\n\n(a) a person becomes an investor as a result of a transaction carried out through a securities dealer; and\n\n(b) the person informs the dealer of the person’s tax file number;\n\nthe dealer shall inform the investment body concerned of the person’s tax file number.\n\n202DF  Effect of incorrect quotation of tax file number\n\n(1) If the Commissioner is satisfied:\n\n(a) that the tax file number quoted to an investment body in relation to an investment:\n\n(i) has been cancelled or withdrawn since it was quoted; or\n\n(ii) is otherwise wrong; and\n\n(b) that the investor has a tax file number;\n\nthe Commissioner may give to the investment body concerned notice of the incorrect statement and the investor’s tax file number.\n\n(2) If a notice is given under subsection (1), the investor shall be regarded, for the purposes of this Part, as having always stated the investor’s tax file number in connection with the investment.\n\n(3) If:\n\n(a) the Commissioner is satisfied that the tax file number quoted to an investment body in relation to an investment:\n\n(i) has been cancelled since it was quoted; or\n\n(ii) is for any other reason not the investor’s tax file number; and\n\n(b) the Commissioner is not satisfied that the investor has a tax file number;\n\nthe Commissioner may, by written notice given to the investment body concerned, inform the investment body accordingly.\n\n(4) A notice under subsection (3) takes effect on the day specified in the notice, being a day not earlier than the day on which a copy of the notice is given to the investor under subsection (5).\n\n(5) The Commissioner shall give a copy of any notice under subsection (3) to the investor concerned, together with a written statement of the reasons for the decision to give the notice.\n\n(6) On and from the day on which a notice under subsection (3) takes effect, the investor concerned shall be taken not to have quoted the investor’s tax file number in connection with the investment.\n\n202DG  Investments held jointly\n\n(1) Where 2 persons are jointly entitled to the property or rights that constitute an investment to which this Part applies, neither person shall be taken to have quoted the person’s tax file number in connection with the investment unless both persons have quoted their tax file numbers under this Division in connection with the investment.\n\n(2) Where more than 2 persons are jointly entitled to the property or rights that constitute an investment to which this Part applies, all of the persons are to be taken to have quoted their tax file numbers in connection with the investment if and only if:\n\n(a) where one of those persons has a tax file number and is not an exempt person in relation to the investment—that person has quoted that number, and at least one of the other persons is, for the purposes of this Part, to be taken to have quoted his or her tax file number, under this Division in connection with the investment; or\n\n(b) where 2 or more of those persons have tax file numbers and are not exempt persons in relation to the investment—at least 2 of those persons have quoted their own tax file numbers under this Division in connection with the investment; or\n\n(c) in any other case—at least 2 of those persons are, for the purposes of this Part, to be taken to have quoted their tax file numbers under this Division in connection with the investment.\n\n(2A) A reference in subsection (2) to an exempt person in relation to an investment is a reference to a person who, for the purposes of this Part, is to be taken to have quoted his or her tax file number under this Division in connection with the investment although the person has not actually done so.\n\n(3) This section does not apply in relation to persons who are jointly entitled to property or rights merely because they are partners in a partnership.\n\n(4) This section does not apply in relation to investments covered by section 202DDB.\n\n202DH  Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments\n\n(1) If a person (the first person) who is a beneficiary of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme has quoted his or her tax file number to the trustee of the entity or scheme in connection with the operation or possible future operation of the Superannuation Industry (Supervision) Act 1993, the Superannuation Contributions Tax (Assessment and Collection) Act 1997, the Superannuation (Unclaimed Money and Lost Members) Act 1999 or the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997, the first person is taken, so long as he or she continues to be such a beneficiary, to have made a TFN declaration in relation to the trustee that has effect under Division 3.\n\n(2) In this section and section 202DHA:\n\neligible superannuation entity has the same meaning as in the Superannuation Industry (Supervision) Act 1993.\n\nregulated exempt public sector superannuation scheme has the same meaning as in Part 25A of the Superannuation Industry (Supervision) Act 1993.\n\n202DHA  Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes\n\nIf:\n\n(a) a person has on or after 1 July 2007 made a TFN declaration in relation to a payer; and\n\n(b) the person is a beneficiary of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme or is an RSA holder; and\n\n(c) the payer makes a contribution to the person’s eligible superannuation entity or regulated exempt public sector superannuation scheme or RSA for the benefit of the person;\n\nthe person is taken to have authorised the payer to inform the trustee of the superannuation entity or scheme or the RSA provider of the person’s tax file number.\n\n202DI  Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits\n\nIf a person (the first person) who is the holder of an RSA has quoted his or her tax file number to the provider of the RSA in connection with the operation or possible future operation of the Retirement Savings Accounts Act 1997, the first person is taken, so long as he or she continues to be the holder of the RSA, to have made a TFN declaration in relation to the provider of the RSA that has effect under Division 3.\n\n202DJ  Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes\n\n(1) If a person who is:\n\n(a) a beneficiary of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme; or\n\n(b) a member of a constitutionally protected superannuation fund; or\n\n(c) the holder of an RSA;","sortOrder":1000092},{"sectionNumber":"full-source-retrieval-0094","sectionType":"document_chunk","heading":"Document excerpt 94","content":"has made a TFN declaration in relation to the trustee of the entity, scheme or fund, or the RSA provider, that states his or her tax file number, and has effect under Division 3 (except a declaration that includes a statement mentioned in subsection 202CB(2)), the person is taken, so long as he or she continues to be such a beneficiary, member or holder, to have quoted that tax file number to the trustee of the entity, scheme or fund or to the RSA provider, as the case may be, in connection with the operation or possible future operation of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.\n\n(2) In this section:\n\nconstitutionally protected superannuation fund has the same meaning as constitutionally protected fund has in the Income Tax Assessment Act 1997.\n\neligible superannuation entity has the same meaning as in the Superannuation Industry (Supervision) Act 1993.\n\nregulated exempt public sector superannuation scheme has the same meaning as in Part 25A of the Superannuation Industry (Supervision) Act 1993.\n\nDivision 4A—Quotation of tax file numbers in connection with farm management deposits\n\n202DL  Quotation of tax file number\n\nA depositor of a farm management deposit quotes the owner’s tax file number to the FMD provider in connection with the deposit by:\n\n(a) stating the number in the form mentioned in subsection 393‑20(2) of the Income Tax Assessment Act 1997 in relation to the deposit; or\n\n(b) informing the FMD provider of the number in any other manner approved by the Commissioner in connection with the deposit.\n\nNote: If a farm management deposit was made by a trustee on behalf of a beneficiary who was under a legal disability when the deposit was made, and the beneficiary is no longer under a legal disability, this Division applies as if the beneficiary had made the deposit: see section 393‑28 of the Income Tax Assessment Act 1997.\n\n202DM  Effect of incorrect quotation of tax file number\n\nCommissioner may notify FMD provider of correct tax file number\n\n(1) If the Commissioner is satisfied:\n\n(a) that the tax file number quoted to an FMD provider in connection with a farm management deposit:\n\n(i) has been cancelled or withdrawn since it was quoted; or\n\n(ii) is otherwise wrong; and\n\n(b) that the owner has a tax file number;\n\nthe Commissioner may give the FMD provider notice in writing of the owner’s correct tax file number.\n\nCommissioner may notify FMD provider if owner does not have a tax file number etc.\n\n(3) If:\n\n(a) the Commissioner is satisfied that the tax file number quoted to an FMD provider in connection with a farm management deposit:\n\n(i) has been cancelled since it was quoted; or\n\n(ii) is for any other reason not the owner’s tax file number; and\n\n(b) the Commissioner is not satisfied that the owner has a tax file number;\n\nthe Commissioner may give the FMD provider notice in writing accordingly.\n\nCommissioner to give owner copy of notice\n\n(4) If a notice is given under subsection (3), the Commissioner must give the depositor a copy of the notice, together with a written statement of the reasons for the decision to give the notice.\n\nNotice takes effect when given to owner\n\n(5) The notice takes effect on the day specified in the notice, being a day not earlier than the day on which the copy of the notice is given to the depositor.\n\nTax file number deemed not quoted\n\n(6) On and from the day on which the notice takes effect, the depositor is taken not to have quoted the owner’s tax file number in connection with the deposit.\n\nDivision 4B—Quotation of tax file numbers in connection with certain closely held trusts\n\n202DN  Application of Division\n\nThis Division applies to both the trustee of a trust and to a beneficiary of the trust, if:\n\n(a) paragraph 12‑175(1)(c) in Schedule 1 to the Taxation Administration Act 1953 applies to the trust; and\n\nNote: That paragraph applies to certain closely held trusts.\n\n(b) paragraph 12‑175(1)(d) in that Schedule applies to the beneficiary.\n\n202DO  Quotation of tax file numbers\n\n(1) The beneficiary may quote the beneficiary’s tax file number to the trustee.\n\n(2) The beneficiary quotes the beneficiary’s tax file number to the trustee if the beneficiary, or another person acting for the beneficiary, informs the trustee of the number in a manner approved by the Commissioner.\n\n202DP  Trustee must report quoted tax file numbers\n\n(1) The trustee must report the beneficiary’s tax file number to the Commissioner, in the approved form, if:\n\n(a) the beneficiary quotes the beneficiary’s tax file number to the trustee during a quarter (within the meaning of the Income Tax Assessment Act 1997); and\n\n(b) the beneficiary has not quoted the beneficiary’s tax file number to the trustee in connection with an investment to which this Part applies; and\n\n(c) the trustee has not reported, and is not required to report, the beneficiary’s tax file number to the Commissioner under Division 6D of Part III of this Act (about trustee beneficiary non‑disclosure tax).\n\n(2) The trustee must give the report to the Commissioner within:\n\n(a) one month after the end of the quarter to which it relates; or\n\n(b) within such further time as the Commissioner allows.\n\n(3) The Commissioner may, by notice in writing given to the trustee, inform the trustee that the period specified in the notice (being a period greater than 3 months) is to be the trustee’s reporting period for the purposes of this section. If the Commissioner does so, a reference in this section to a quarter is taken to be a reference to the period specified in the notice.\n\n(4) For the purposes of this section, disregard subsection 202DR(3).\n\nNote: Refusal or failure to report to the Commissioner as required by this section is an offence under section 8C of the Taxation Administration Act 1953.\n\n202DR  Effect of incorrect quotation of tax file number\n\nCommissioner may notify trustee of correct tax file number\n\n(1) If the Commissioner is satisfied:\n\n(a) that the tax file number quoted to the trustee:\n\n(i) has been cancelled or withdrawn since it was quoted; or\n\n(ii) is otherwise wrong; and\n\n(b) that the beneficiary has a tax file number;\n\nthe Commissioner may give the trustee notice in writing of the beneficiary’s correct tax file number.\n\n(2) The notice given under subsection (1) is taken to have taken effect on the day on which the cancelled or withdrawn tax file number was quoted to the trustee as mentioned in paragraph (1)(a).\n\n(3) On and from the day on which the notice given under subsection (1) took effect, the beneficiary is taken to have quoted the beneficiary’s correct tax file number to the trustee.\n\nCommissioner may notify trustee if beneficiary does not have a tax file number etc.\n\n(4) If:\n\n(a) the Commissioner is satisfied that the tax file number quoted to the trustee:\n\n(i) has been cancelled or withdrawn since it was quoted; or\n\n(ii) is for any other reason not the beneficiary’s tax file number; and\n\n(b) the Commissioner is not satisfied that the beneficiary has a tax file number;\n\nthe Commissioner must give the trustee written notice accordingly.\n\n(5) The Commissioner must give the beneficiary a copy of the notice given under subsection (4), together with a written statement of the reasons for the decision to give the notice.\n\n(6) The notice given under subsection (4) takes effect on the day specified in the notice, being a day not earlier than the day on which the copy of the notice is given to the beneficiary.\n\n(7) On and from the day on which the notice given under subsection (4) takes effect, the beneficiary is taken not to have quoted the beneficiary’s tax file number to the trustee.\n\nNote: The trustee may be required to withhold an amount from a payment to the beneficiary if the beneficiary has not quoted the beneficiary’s tax file number to the trustee at the time the payment is made: see sections 12‑175 and 12‑180 in Schedule 1 to the Taxation Administration Act 1953.\n\nAs such, the trustee may be required to withhold if a notice under subsection (4) of this section is in effect on the day on which the payment is made.\n\nDivision 5—Exemptions\n\n202EA  Persons receiving certain pensions etc.—employment\n\n(1) Nothing in this Part shall be taken to provide for a person who is a recipient because the person receives, or expects to receive, a pension or benefit referred to in subsection (5) to make a TFN declaration, or to quote his or her tax file number, in connection with the payment of that pension, benefit or allowance.\n\n(2) For the purposes of this Part, a person who is being paid a pension or benefit referred to in subsection (5) shall be taken to have quoted his or her tax file number in a TFN declaration given to a payer of the person if a statement is made in the declaration to the effect that the person is being paid such a pension or benefit.\n\n(3) A person who, as a person who is being paid a pension or benefit referred to in subsection (5), is taken, because of this section, to have quoted his or her tax file number in a TFN declaration shall continue to be taken to have, because of this section, quoted the number in the declaration until the Commissioner gives a written notice to the person to the effect that the person is no longer entitled to exemption under this section.\n\n(4) The Commissioner may not give a notice under subsection (3) until the person has ceased to be paid any pension or benefit referred to in subsection (5).\n\n(5) This section applies in relation to the following:\n\n(a) an age pension under Part 2.2 of the Social Security Act 1991;\n\n(b) a disability support pension under Part 2.3 of that Act;\n\n(d) a carer payment under Part 2.5 of that Act;\n\n(fa) a parenting payment that is a pension PP (single) under Part 2.10 of that Act;\n\n(g) a special benefit under Part 2.15 of that Act;\n\n(h) a special needs pension under Part 2.16 of that Act;\n\n(i) a pension under Part III of the Veterans’ Entitlements Act 1986;\n\n(ia) income support supplement under Part IIIA of the Veterans’ Entitlements Act 1986.\n\n202EB  Persons receiving certain pensions etc.—investments\n\n(1) For the purposes of this Part, a person to whom this section applies shall be taken to have quoted his or her tax file number under Division 4 in connection with the investment if the investment body concerned is given the following information by the person in a manner approved by the Commissioner:\n\n(a) the person’s full name;\n\n(b) the nature of the pension, benefit or allowance by virtue of the payment of which the person is a person to whom this section applies.\n\n(3) A person who, as a person to whom this section applies, is taken, because of this section, to have quoted his or her tax file number in connection with an investment shall continue to be taken to have, because of this section, quoted the number in connection with the investment until the Commissioner gives a written notice to the person to the effect that the person is no longer entitled to exemption under this section.\n\n(4) The Commissioner may not give a notice under subsection (3) until the person has ceased to be a person to whom this section applies.\n\n(5) A person to whom this section applies is a person who is being paid:\n\n(a) one of the following:\n\n(i) an age pension under Part 2.2 of the Social Security Act 1991;\n\n(ii) a disability support pension under Part 2.3 of that Act;\n\n(iv) a carer payment under Part 2.5 of that Act;\n\n(via) a parenting payment that is a pension PP (single) under Part 2.10 of that Act;\n\n(vii) a special benefit under Part 2.15 of that Act;\n\n(viii) a special needs pension under Part 2.16 of that Act; or\n\n(c) a pension under Part III of the Veterans’ Entitlements Act 1986; or\n\n(d) income support supplement under Part IIIA of the Veterans’ Entitlements Act 1986.\n\n202EC  Entities not required to lodge income tax returns\n\n(1) For the purposes of this Part, where:\n\n(a) an entity that is not required to furnish to the Commissioner a return under section 161 in respect of a year of income is, at any time during that year, an investor in relation to an investment to which this Part applies; and\n\n(b) the entity does not have a tax file number;\n\nthe entity shall be taken to have quoted its tax file number in connection with the investment if the investment body concerned is given the following information by the eligible representative in a manner approved by the Commissioner:\n\n(c) the name and address of the entity;\n\n(d) the reason why the entity is not obliged to furnish to the Commissioner a return under section 161 in respect of the year of income.\n\n(3) An entity that, as an entity that is not required to furnish to the Commissioner a return under section 161 in respect of a year of income, is to be taken, because of this section, to have quoted its tax file number in connection with an investment shall continue to be taken to have, because of this section, quoted the number in connection with the investment until 2 months after the end of the first year of income, following the time at which the entity is to be taken to have quoted the number, in respect of which the entity is required so to furnish a return.\n\n(4) Where an entity in respect of which information has been given to an investment body under subsection (1) in connection with an investment becomes obliged under section 161 to furnish a return in respect of a year of income, the person who is the public officer of the entity for the purposes of this Act commits an offence if:\n\n(a) the entity is, at the end of the year of income, still an investor in relation to the investment; and\n\n(b) the investment body is not, within 2 months after the end of the year of income, informed of the entity’s tax file number or informed that the entity is obliged to furnish the return.\n\nPenalty: 10 penalty units.\n\n(5) For the purposes of this section, a person is an eligible representative of an entity if the person is:\n\n(a) where the entity is a body corporate—a person who is any one or more of the following:\n\n(i) the public officer of the body corporate for the purposes of this Act;\n\n(ii) an officer of the body corporate within the meaning of section 8Y of the Taxation Administration Act 1953;\n\n(iii) a receiver of property of the body corporate, whether appointed by a court or otherwise and whether or not also a manager;\n\n(iv) a liquidator of the body corporate appointed by a court;\n\n(v) in the case of a foreign company within the meaning of the Corporations Act 2001—a local agent of the company within the meaning of that Act;\n\n(vi) an employee of the body corporate in relation to whom there is in force a written authorisation to act as an eligible representative of the body corporate, being an authorisation by a person who, when the authorisation was given, was an eligible representative of the body corporate by virtue of one or more of the preceding subparagraphs; or\n\n(b) where the entity is an unincorporated association—a person who is any one or more of the following:\n\n(i) the public officer of the unincorporated association for the purposes of this Act;\n\n(ii) a director, secretary, office‑holder, liquidator, receiver or trustee of the association;\n\n(iii) an employee or member of the unincorporated association in relation to whom there is in force a written authorisation to act as an eligible representative of the unincorporated association, being an authorisation by a person who, when the authorisation was given, was an eligible representative of the unincorporated association by virtue of either or both of the preceding subparagraphs.\n\n202EE  Non‑residents\n\n(1) For the purposes of this Part, where:\n\n(a) a non‑resident is an investor in relation to an investment to which this Part applies; and\n\n(b) at a particular time, the investment body pays an amount to the non‑resident by way of income derived from the investment;\n\nthe non‑resident is taken to have quoted the non‑resident’s tax file number in connection with the investment at that time if:\n\n(c) the investment body is required:\n\n(i) to withhold an amount under Subdivision 12‑F or 12‑H in Schedule 1 to the Taxation Administration Act 1953 from the payment; or\n\n(ii) to pay the Commissioner an amount under Subdivision 12A‑C in that Schedule in respect of the payment; or\n\n(d) the investment body would have been required to withhold such an amount but for the operation of paragraph 128B(3)(a), (ga) or (jb) or subparagraph 128B(3)(h)(iv) of this Act or subsection 802‑15(1) of the Income Tax Assessment Act 1997.\n\n(2) If:\n\n(a) a person who was a non‑resident and an investor in relation to an investment to which this Part applies becomes a resident of Australia at a particular time; and\n\n(b) the person is, at that time, still an investor in relation to the investment; and\n\n(c) the investment body concerned is not, within one month after that time, informed of the person’s tax file number or informed that the person has become such a resident;\n\nthe person commits an offence.\n\nPenalty: 10 penalty units.\n\n(3) Nothing in this section affects the person’s liability to pay withholding tax.\n\n202EG  Manner of completing declarations\n\nWhere a person is unable to make a declaration under this Division, the declaration may be made by another person on behalf of the first‑mentioned person.\n\n202EH  Declarations under this Division to be retained in certain circumstances\n\nThe Commissioner may, by legislative instrument, direct an investment body to retain declarations, or declarations of a particular kind, made under this Division for such time as is specified in the direction.\n\nDivision 6—Review of decisions\n\n202F  Review of decisions\n\n(1) Applications may be made to the Tribunal for review of the following decisions of the Commissioner:","sortOrder":1000093},{"sectionNumber":"full-source-retrieval-0095","sectionType":"document_chunk","heading":"Document excerpt 95","content":"(a) a decision refusing an application for the issue of a tax file number under section 202BA (including a decision that is to be taken to have been made by virtue of section 202BC);\n\n(b) a decision to cancel a tax file number under section 202BE;\n\n(c) a decision to give a notice under subsection 202CE(3);\n\n(d) a decision to give a notice under subsection 202DF(3);\n\n(da) a decision to give a notice under subsection 202DM(3);\n\n(db) a decision to give a notice under subsection 202DR(4);\n\n(e) a decision to give a notice under subsection 202EB(3);\n\n(fa) a decision to give a notice under subsection 190‑15(1) or (1A) of the Higher Education Support Act 2003;\n\n(fb) a decision to give a notice under subsection 190‑20(1) or (1A) of the Higher Education Support Act 2003;\n\n(fc) a decision to give a notice under subsection 1061ZVJD(1) of the Social Security Act 1991;\n\n(fd) a decision to give a notice under subsection 1061ZVJF(1) of the Social Security Act 1991;\n\n(fe) a decision to give a notice under subsection 11D(1) of the Student Assistance Act 1973;\n\n(ff) a decision to give a notice under subsection 11F(1) of the Student Assistance Act 1973;\n\n(fg) a decision to give a notice under subsection 68(1) of the Australian Apprenticeship Support Loans Act 2014;\n\n(fh) a decision to give a notice under subsection 70(1) of the Australian Apprenticeship Support Loans Act 2014;\n\n(g) a decision stated by the regulations to be a reviewable decision for the purposes of this section.\n\n(2) Where an application has been made to the Tribunal for review of a decision referred to in paragraph (1)(a), the orders that may be made under section 32 of the Administrative Review Tribunal Act 2024 staying or otherwise affecting the operation or implementation of the decision include an order that the Commissioner issue a tax file number to the applicant pending the determination of the application for review.\n\n(3) A tax file number issued in accordance with an order referred to in subsection (2) ceases to have effect when the application is finally disposed of.\n\n(4) When a tax file number ceases to have effect under subsection (3), this Part (other than this section) applies as if the number had been cancelled.\n\n202FA  Statements to accompany notification of decisions\n\n(1) Where a decision of a kind referred to in section 202F is made and notice in writing of the decision is given to a person whose interests are affected by the decision, that notice shall include a statement to the effect that, if the person is dissatisfied with the decision, application may, subject to the Administrative Review Tribunal Act 2024:\n\n(a) be made to the Tribunal for review of the decision; and\n\n(b) include a statement to the effect that the person may request a statement of reasons under that Act.\n\n(2) A failure to comply with subsection (1) does not affect the validity of the decision.\n\nDivision 8—Tax file number sharing and verification\n\n203  Verification of tax file numbers\n\n(1) This section applies if an Agency (within the meaning of the Public Service Act 1999) obtains or has obtained, in accordance with a law of the Commonwealth, a number that any of the following (the relevant official) believes to be the tax file number of a person (the relevant person):\n\n(a) the Agency Head (within the meaning of that Act);\n\n(b) an SES employee, or acting SES employee, in the Agency.\n\nNote: For example, the Agency may have received the number in a TFN declaration made by the relevant person in relation to an assistance payment, or from another person in accordance with a law that provides for an official to ask the other person to provide the relevant person’s tax file number.\n\n(2) The relevant official may give the Commissioner a notice, in writing, asking the Commissioner to verify the number under this section.\n\n(3) A notice under subsection (2):\n\n(a) must include the number; and\n\n(b) must include the full name and date of birth of the relevant person; and\n\n(c) may include any other information that the relevant official considers may assist in identifying the relevant person.\n\n(4) If the Commissioner is satisfied, having regard to the information (if any) that the Commissioner has recorded for the number, that it is reasonable to do so, the Commissioner may give the Agency a notice, in writing, that states whether or not the Commissioner is able to verify the information given.\n\n(5) If:\n\n(a) the Commissioner is not satisfied that the number is the tax file number of the relevant person; but\n\n(b) the Commissioner is satisfied, having regard to the information (if any) that the Commissioner has recorded for the number, that another number (the correct number) is the tax file number of the relevant person;\n\nthe notice under subsection (4) may state the correct number.\n\n(6) If the notice under subsection (4) states the correct number, the correct number is taken to be the number that was obtained by the Agency as mentioned in subsection (1).\n\n(7) This section does not limit, and is not limited by, section 202CEA or any other provision, in this or any other law of the Commonwealth, that provides for the sharing or verification of tax file numbers.\n\nNotices are not legislative instruments\n\n(8) A notice given under subsection (2) or (4) is not a legislative instrument.\n\n204  Disclosure of tax file numbers to certain registrars\n\n(1) If:\n\n(a) the Commissioner is appointed as the Commonwealth Registrar (within the meaning of the Corporations (Aboriginal and Torres Strait Islander) Act 2006); and\n\n(b) no other person or body is appointed as that registrar;\n\nthe Commissioner may disclose the tax file number of a person to that registrar if the disclosure is made for the purposes of facilitating the administration of Part 6‑7A of that Act.\n\n(2) If:\n\n(a) the Commissioner is appointed as the Registrar (within the meaning of the Corporations Act 2001); and\n\n(b) no other person or body is appointed as that registrar;\n\nthe Commissioner may disclose the tax file number of a person to that registrar if the disclosure is made for the purposes of facilitating the administration of Part 9.1A of that Act.\n\n(2A) The Commissioner may disclose the tax file number of a person to a registrar specified in subsection 355‑67(2) in Schedule 1 to the Taxation Administration Act 1953 if:\n\n(a) the Commissioner is appointed as that registrar; and\n\n(b) no other person or body is appointed as that registrar; and\n\n(c) the disclosure is made through use of a computer application or system that is used for the performance of functions, or the exercise of powers, of both the Commissioner and that registrar; and\n\n(d) use of the application or system by that registrar is on the condition that tax file numbers disclosed through use of the application or system are only to be recorded, used, divulged, disclosed or communicated to the extent reasonably necessary for the application or system to be used for the performance of that registrar’s functions, or the exercise of that registrar’s powers.\n\n(3) To avoid doubt, subsection (1), (2) or (2A) applies to the disclosure of the person’s tax file number whether or not that registrar has requested the person, or the Commissioner, to give the tax file number to that registrar.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1-78A\n\nVolume 2: sections 79A-121L\n\nVolume 3: sections 124ZM-204\n\nVolume 4: sections 251R-468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1-4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart VIIB—Medicare levy and Medicare levy surcharge\n\n251R Interpretation\n\n251S Medicare levy\n\n251T Medicare levy (other than Medicare levy surcharge) not payable by prescribed persons or by certain trustees\n\n251U Prescribed persons\n\n251V Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to Medicare levy surcharge\n\n251VA Subsection 251U(3) not to apply for Medicare levy surcharge\n\n251W Regulations\n\n251X Notice of assessment to set out Medicare levy and surcharge\n\n251Z Administration of Medicare levy (fringe benefits) surcharge Act\n\nPart VIII—Miscellaneous\n\n252 Public officer of company\n\n252A Public officer of trust estate\n\n253 Notifying and serving companies\n\n254 Agents and trustees\n\n255 Person in receipt or control of money from non‑resident\n\n257 Payment of tax by banker\n\n260 Contracts to evade tax void\n\n262 Periodical payments in the nature of income\n\n262A Keeping of records\n\n264BB Commissioner may require private health insurers to provide information\n\n265A Release of liability of members of the Defence Force on death\n\n265B Notices in relation to certain securities\n\n266 Regulations\n\nPart X—Attribution of income in respect of controlled foreign companies\n\nDivision 1—Preliminary\n\n316 Object of Part\n\n317 Interpretation\n\n318 Associates\n\n319 Statutory accounting period of a company\n\n320 Listed countries and unlisted countries\n\n321 Each listed country and each unlisted country to be treated as a separate foreign country\n\n322 Meaning of entitled to acquire\n\n323 State foreign taxes may be treated as federal foreign taxes\n\n324 When income or profits subject to tax in a listed country\n\n325 When dividends etc. taxed in a country at normal company tax rate\n\n326 AFI subsidiary\n\n327 Eligible finance shares\n\n327A Widely distributed finance shares\n\n327B Transitional finance shares\n\n328 Non‑resident family trusts\n\n329 Public unit trusts\n\n330 Tax detriment\n\n331 Company deemed to be treated as a resident of a listed country or an unlisted country for the purposes of the tax law of that country\n\n332 Companies that are residents of listed countries\n\n333 Companies that are residents of unlisted countries\n\n334A Voting interests in companies\n\n335 References extend to pre‑commencement matters and things\n\nDivision 2—Types of entity\n\nSubdivision A—Australian entities\n\n336 Australian entity\n\n337 Australian partnership\n\n338 Australian trust\n\nSubdivision B—Controlled foreign entities (CFEs)\n\n339 Controlled foreign entity (CFE)\n\n340 Controlled foreign company (CFC)\n\n341 Controlled foreign partnership (CFP)\n\n342 Controlled foreign trust (CFT)\n\nSubdivision C—Eligible transferors in relation to trusts\n\n343 Interpretation\n\n344 References to transfer of property or services\n\n345 Deemed transfers of property or services\n\n346 Circumstances in which a transfer of property or services is an eligible business transaction\n\n347 Eligible transferor in relation to a discretionary trust\n\n348 Eligible transferor in relation to a non‑discretionary trust or a public unit trust\n\nDivision 3—Control interests, attribution interests, attributable taxpayers and attribution percentages\n\nSubdivision A—Control interests\n\n349 Associate‑inclusive control interest in a company or trust\n\n350 Direct control interest in a company\n\n351 Direct control interest in a trust\n\n352 Indirect control interest in a company or trust\n\n353 Control tracing interest in a company\n\n354 Control tracing interest in a CFP\n\n355 Control tracing interest in a CFT\n\nSubdivision B—Attribution interests\n\n356 Direct attribution interest in a CFC or CFT\n\n357 Indirect attribution interest in a CFC or CFT\n\n358 Attribution tracing interest in a CFC\n\n359 Attribution tracing interest in a CFP\n\n360 Attribution tracing interest in a CFT\n\nSubdivision C—Attributable taxpayers and attribution percentages\n\n361 Attributable taxpayer in relation to a CFC or a CFT\n\n362 Attribution percentage of an attributable taxpayer\n\nDivision 4—Attribution accounts\n\n363 Attribution account entity\n\n364 Attribution account percentage\n\n365 Attribution account payment\n\n366 Direct attribution account interest in a company\n\n367 Direct attribution account interest in a partnership\n\n368 Direct attribution account interest in a trust\n\n369 Indirect attribution account interest in an entity\n\n370 Attribution surplus\n\n371 Attribution credit\n\n372 Attribution debit\n\n373 Grossed‑up amount of an attribution debit\n\nDivision 7—Calculation of attributable income of CFC\n\nSubdivision A—Basic principles\n\n381 Separate attributable income for each attributable taxpayer\n\n382 Attributable income is taxable income calculated on certain assumptions\n\n383 Basic assumptions\n\n384 Additional assumption for unlisted country CFC\n\n385 Additional assumption for listed country CFC\n\n386 Adjusted tainted income\n\n387 Reduction of attributable income because of interim dividends\n\nSubdivision B—General modifications of Australian tax law\n\n388 Double tax agreements to be disregarded\n\n389 Certain provisions to be disregarded in calculating attributable income\n\n389A Other provisions to be disregarded in calculating attributable income\n\n390 Elections to be made by eligible taxpayer\n\n392 Notional assessable amounts are to be pre‑tax\n\n393 Notional allowable deduction for taxes paid\n\n394 Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends\n\n395 Expenditure incurred to produce income or profits in later statutory accounting periods\n\n396 Modified application of sections 25A and 52\n\n397 Modified application of trading stock provisions\n\n398 Modified application of depreciation provisions\n\n398A Application of Division 3A of Part III\n\n399 Modifications of net income of partnerships and trusts\n\n399A Modified application of bad debt etc. provisions\n\n400 Modified cross‑border requirement for transfer pricing\n\n401 Reduction of disposal consideration or capital proceeds if attributed income not distributed\n\n402 Additional notional exempt income—unlisted or listed country CFC\n\n403 Additional notional exempt income—unlisted country CFC\n\n404 Application of Subdivision 768‑A of the Income Tax Assessment Act 1997\n\nSubdivision C—Modifications relating to Australian capital gains tax\n\n405 Interpretation\n\n406 Meaning of commencing day and commencing day asset\n\n408 Certain capital gains and losses disregarded\n\n408A Certain events before commencing day ignored\n\n409 Losses before 30 June 1990 to be disregarded\n\n410 General modifications—CGT\n\n411 Commencing day assets taken to have been acquired on commencing day\n\n412 Cost base of commencing day asset\n\n413 Adjustment of cost base as at commencing day—return of capital\n\n414 Exercise of rights\n\n418 Options\n\n418A Effect of change of residence from Australia to listed or unlisted country\n\n419 Modified application of Subdivision 126‑B of the Income Tax Assessment Act 1997\n\n421 Elections under CGT roll‑over provisions\n\n422 Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country\n\n423 Adjustment of capital proceeds where section 47A applies to rolled‑over assets\n\nSubdivision D—Modifications relating to losses\n\n425 Sometimes‑exempt income etc.\n\n426 Creation of loss\n\n427 Certain provisions to be disregarded\n\n428 Subdivision to apply as if there were always a requirement to calculate attributable income\n\n429 Notional allowable deduction for (sometimes‑exempt income) loss\n\n431 Deduction etc. for previous period loss\n\nDivision 8—Active income test\n\nSubdivision A—Basic conditions for passing the active income test\n\n432 Active income test\n\nSubdivision B—Tainted income ratio\n\n433 Tainted income ratio\n\n434 Gross turnover\n\n435 Gross tainted turnover\n\n436 Amounts excluded from active income test\n\nSubdivision C—Treatment of partnership income\n\n437 Treatment of partnership income\n\nSubdivision D—General interpretive provisions\n\n438 Roll‑overs—asset disposals\n\n439 When currency exchange gains or losses relate to active income transactions\n\n440 Asset disposals—revaluations and arm’s length amounts\n\n441 Hire‑purchase and other property financing transactions\n\n442 Assumption of rights of lender under a loan\n\n443 Net tainted commodity gains\n\n444 Net tainted currency exchange gains\n\n445 Net gains—disposal of tainted assets\n\nSubdivision E—Passive income, tainted sales income and tainted services income\n\n446 Passive income\n\n447 Tainted sales income\n\n448 Tainted services income","sortOrder":1000094},{"sectionNumber":"full-source-retrieval-0096","sectionType":"document_chunk","heading":"Document excerpt 96","content":"Subdivision F—Special rules relating to AFI subsidiaries carrying on financial intermediary business\n\n449 AFI subsidiaries—interest income\n\n450 AFI subsidiaries—asset disposals and currency transactions\n\nSubdivision G—Substantiation requirements\n\n451 Active income test—substantiation requirements for company\n\n452 Active income test—substantiation requirements for partnership\n\n453 Active income test—substantiation requirements for attributable taxpayer\n\n454 Assessment on assumption—retention of accounts etc. and compliance with information notices\n\n455 Amendment of assessments\n\nDivision 9—Attribution of attributable income and other amounts\n\n456 Assessability in respect of CFC’s attributable income\n\n456A Reduction of section 456 assessability where item subject to foreign accruals tax\n\n457 Assessability where CFC changes residence from unlisted country to listed country or to Australia\n\n459A Assessability where CFC or CFT has interest in certain attributable taxpayers\n\n460 Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution\n\n460A Effect of reducing section CGT event J1 amount\n\nDivision 10—Post‑attribution asset disposals\n\n461 Reduction of disposal consideration or capital proceeds if attributed income not distributed\n\nDivision 11—Keeping of records\n\n462 Keeping of records—section 456\n\n462A Keeping of records—section 457\n\n464A Keeping of records—section 459A\n\n465 Offence of failing to keep records\n\n466 Manner in which records required to be kept\n\n467 Circumstances where records not required to be kept—reasonable excuse etc.\n\n468 Treatment of partnerships\n\nPart VIIB—Medicare levy and Medicare levy surcharge\n\n251R  Interpretation\n\n(2) If, during any period, 2 persons (whether of the same sex or different sexes):\n\n(a) had a relationship that was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or\n\n(b) lived together in a relationship as a couple on a genuine domestic basis, although not legally married to each other;\n\nthis Part and any Act imposing Medicare levy has effect in relation to the period as if the persons were married to each other.\n\n(2A) If, during the period, either or both of the persons was legally married to another person, or in a relationship mentioned in paragraph (2)(a) with another person, this Part and any Act imposing Medicare levy has effect as if the person or persons were not legally married to, or in a relationship mentioned in paragraph (2)(a) with, the other person or persons.\n\n(3) Subject to subsections (4), (5), (6), (6B), (6C) and (6D), a person shall be taken to have been a dependant of another person for the purposes of this Part during any part of the year of income in which:\n\n(a) the first‑mentioned person was a resident of Australia;\n\n(b) the first‑mentioned person was:\n\n(i) the spouse of the other person;\n\n(ii) a child of the other person less than 21 years of age; or\n\n(iii) a child of the other person not less than 21 years of age but less than 25 years of age and receiving full‑time education at a school, college or university; and\n\n(c) the other person contributed to the maintenance of the first‑mentioned person.\n\n(4) A child referred to in subparagraph (3)(b)(iii) shall not be taken to have been a dependant of a person for the purposes of this Part during a period being the whole or a part of a year of income unless the person is entitled to a notional tax offset in respect of that child under Subdivision 961‑A of the Income Tax Assessment Act 1997.\n\n(5) If, in relation to a period, being the whole or a part of a year of income:\n\n(a) the parents of a child referred to in paragraph (3)(b) lived separately and apart from each other; and\n\n(b) the child would, but for this subsection, be taken, for the purposes of this Part, to be a dependant of each of his or her parents in respect of that period; and\n\n(c) both of the parents or their spouses, being partners as defined in the A New Tax System (Family Assistance) Act 1999, are eligible for family tax benefit at the Part A rate under that Act in respect of that child (whether the child is an FTB child or a regular care child within the meaning of that Act) in respect of the period; and\n\n(d) the Families Secretary has determined, under Subdivision D of Division 1 of Part 3 of that Act, each parent’s or spouse’s percentage of care for the child during a care period (within the meaning of that Act);\n\nthe child is to be taken to be a dependant of each parent for the purposes of Part VIIB of this Act, for so much only of that period as corresponds with that percentage of care.\n\n(6) For the purposes of paragraph (3)(c), a person shall be taken to have contributed to the maintenance of another person during any period during which the person and that other person resided together, unless the contrary is established to the satisfaction of the Commissioner.\n\n(6A) A reference in subsections (6B), (6C) and (6D) to an eligible prescribed person in relation to a period is a reference to a person who would, apart from subsections 251U(2) and (3), be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during that period by virtue of paragraph 251U(1)(a), (b), (ca), (caa) or (cb).\n\n(6B) For the purposes of this Part, where:\n\n(a) a person (in this subsection called the first person) was an eligible prescribed person in relation to a period in a year of income; and\n\n(b) apart from this subsection, another person (in this subsection called the leviable person) would be a dependant of the first person during that period; and\n\n(c) Medicare levy is payable by the leviable person upon the taxable income of the year of income;\n\nthe leviable person is not to be taken to have been a dependant of the first person during that period.\n\n(6C) For the purposes of this Part, where:\n\n(a) a person (in this subsection called the first person) was an eligible prescribed person in relation to a period in a year of income; and\n\n(b) another person (in this subsection called the spouse) was the spouse of the first person during the whole of that period; and\n\n(c) the spouse was not an eligible prescribed person in relation to that period; and\n\n(d) Medicare levy is payable by the spouse upon the taxable income of the year of income; and\n\n(e) apart from this subsection, a child of both the first person and the spouse would be a dependant of both the first person and the spouse during that period;\n\nthat child is not to be taken to have been a dependant of the first person during that period.\n\n(6D) Subject to subsection (6F), for the purposes of this Part, where:\n\n(a) a person (in this subsection and subsections (6E) to (6H) (inclusive) called the first person) was an eligible prescribed person in relation to a period in a year of income; and\n\n(b) another person (in this subsection called the spouse) was the spouse of the first person during the whole of that period; and\n\n(c) the spouse was an eligible prescribed person in relation to that period; and\n\n(d) apart from this subsection, Medicare levy would be payable by both the first person and the spouse upon their respective taxable incomes of the year of income; and\n\n(e) apart from this subsection, a child of both the first person and the spouse would be a dependant of both the first person and the spouse during that period; and\n\n(f) the first person and the spouse have entered into an agreement (in subsections (6E) to (6H) (inclusive) called the family agreement) stating that, for Medicare levy purposes, that child:\n\n(i) is not to be treated as a dependant of the first person during that period; and\n\n(ii) is to be treated as a dependant of the spouse during that period;\n\nthat child is not to be taken to be a dependant of the first person during that period.\n\n(6E) The family agreement must be entered into on or before the date of lodgment of the return of income of the first person for the year of income concerned or within such further time as the Commissioner allows.\n\n(6F) Subsection (6D) does not apply, and is taken never to have applied, if the first person fails to retain the family agreement until the end of:\n\n(a) 5 years beginning on the date of lodgment of the first person’s return of income for the year of income concerned; or\n\n(b) a shorter period determined by the Commissioner in writing for the first person; or\n\n(c) a shorter period determined by the Commissioner by legislative instrument for a class of persons that includes the first person.\n\n(6FA) A determination under paragraph (6F)(c) may specify different periods for different classes of taxpayers.\n\n(6G) Where the family agreement is lost or destroyed and the Commissioner is satisfied that the first person has a document (in this subsection called the substitute family agreement) that:\n\n(a) is a copy of the family agreement; or\n\n(b) properly records all the matters set out in the family agreement and was in existence when the family agreement was lost or destroyed;\n\nthe substitute family agreement is to be taken, for the purposes of this section, to be, and to have been at all times after the family agreement was lost or destroyed, the family agreement.\n\n(6H) Where the family agreement is lost or destroyed and the Commissioner is satisfied that:\n\n(a) the family agreement was lost or destroyed because of circumstances beyond the control of the first person; and\n\n(b) subsection (6G) does not apply;\n\nsubsection (6F) does not apply and is to be taken never to have applied.\n\n(6J) Section 170 does not prevent the amendment of an assessment at any time for the purposes of giving effect to subsection (6F), (6G) or (6H).\n\n(7) In this Act (other than this Part, the definition of year of tax in subsection 6(1) and Division 17 of Part III), unless the contrary intention appears, income tax or tax includes Medicare levy payable in accordance with this Part and Medicare levy (fringe benefits) surcharge.\n\n(8) In determining for the purposes of this Part and of any Act imposing levy whether a person was, or but for subsection 251U(2) would have been, or was not, a prescribed person during the whole or a part of the year of income that commenced on 1 July 1983, that year of income shall be deemed to be constituted by the period commencing on 1 February 1984 and ending on 30 June 1984.\n\n251S  Medicare levy\n\n(1) Subject to this Part, a levy by the name of Medicare levy is levied, and shall be paid, at the rate applicable under the relevant Act imposing the levy for a financial year upon:\n\n(a) the taxable income of the year of income of a person, not being a company or a person in the capacity of a trustee, who, at any time during the year of income, was a resident of Australia;\n\n(b) if the trustee of a trust estate is required to be assessed in pursuance of section 98 in respect of a share of the net income of the trust estate of the year of income, being a share to which a beneficiary who, at any time during the year of income, was a resident of Australia is presently entitled—that share of that net income; and\n\n(c) if the trustee of a trust estate (other than a trust estate of a deceased person) is required to be assessed, and is liable to pay tax, in pursuance of section 99 or 99A in respect of the whole or a part of the net income of the trust estate of the year of income—that net income or that part of that net income, as the case may be; and\n\n(d) if the trustee of an AMIT is required to be assessed in pursuance of subsection 276‑405(2) of the Income Tax Assessment Act 1997 in respect of an amount mentioned in that subsection—that amount; and\n\n(e) if the trustee of an AMIT is required to be assessed in pursuance of subsection 276‑415(2) of the Income Tax Assessment Act 1997 in respect of an amount mentioned in that subsection—that amount; and\n\n(f) if the trustee of an AMIT is required to be assessed in pursuance of subsection 276‑420(2) of the Income Tax Assessment Act 1997 in respect of an amount mentioned in that subsection—that amount.\n\nNote 1: Subdivision 61‑L (tax offset for Medicare levy surcharge (lump sum payments in arrears)) of the Income Tax Assessment Act 1997 might provide a tax offset for a person if Medicare levy surcharge (within the meaning of that Act) is payable by the person.\n\nNote 2: The tax offset for foreign income tax under Division 770 of the Income Tax Assessment Act 1997 can be applied against your liability to pay Medicare levy or Medicare levy (fringe benefits) surcharge: see item 22 of the table in subsection 63‑10(1) of that Act.\n\n(1A) If the taxpayer is entitled to a tax offset under subsection 301‑20(2) of the Income Tax Assessment Act 1997 for a year of income, paragraph (1)(a) of this section applies as if the taxable income of the taxpayer of the year of income were reduced by the amount mentioned in subsection 301‑20(3) of that Act for the person for the year.\n\n(2) Levy payable by a person in accordance with this Part is payable in addition to any tax payable by the person in accordance with any other provision of this Act.\n\n251T  Medicare levy (other than Medicare levy surcharge) not payable by prescribed persons or by certain trustees\n\nNotwithstanding anything contained in section 251S, Medicare levy (other than an increase in the levy payable under section 8B, 8C, 8D, 8E, 8F or 8G of the Medicare Levy Act 1986) is not payable by:\n\n(a) a person (not being a person in the capacity of a trustee) who was a prescribed person during the whole of the year of income; or\n\n(c) a person in the capacity of a trustee of a trust, in respect of a share of the net income of the trust estate of the year of income (being a share to which a beneficiary who was a prescribed person during the whole of the year of income is presently entitled) in respect of which the trustee is required to be assessed in pursuance of section 98.\n\n251U  Prescribed persons\n\n(1) Subject to this section, a person shall be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during a particular period if:\n\n(a) the person was entitled to free medical treatment during the whole of that period in respect of every incapacity, disease or disabling condition because the person was a member of the Defence Force or was a relative of, or was otherwise associated with, a member of the Defence Force; or\n\n(b) the person was entitled under the Veterans’ Entitlements Act 1986, the Military Rehabilitation and Compensation Act 2004, the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019 to free medical treatment during the whole of that period in respect of every incapacity, disease or disabling condition; or\n\n(ca) the person was, during the whole of that period, a recipient of:\n\n(i) an age pension under Part 2.2 of the Social Security Act 1991; or\n\n(ii) a disability support pension under Part 2.3 of the Social Security Act 1991;\n\nwhere the rate of the pension was calculated under section 1065 of the Social Security Act 1991; or\n\n(caa) the person was, during the whole of that period, a recipient of a disability support pension under Part 2.3 of the Social Security Act 1991 where the rate of the pension was calculated under section 1066B of the Social Security Act 1991; or\n\n(cb) the person was, during the whole of that period, a recipient of:\n\n(i) an age service pension under Division 3 of Part III of the Veterans’ Entitlements Act 1986; or\n\n(ii) an invalidity service pension under Division 4 of Part III of the Veterans’ Entitlements Act 1986; or\n\n(iii) a partner service pension under Division 5 of Part III of the Veterans’ Entitlements Act 1986;\n\nwhere the rate of the pension was calculated under Method statement 2 in subpoint SCH6‑A1(3), or Method statement 4 in subpoint SCH6‑A1(5), in Schedule 6 to the Veterans’ Entitlements Act 1986; or\n\n(cc) during the whole of that period:\n\n(i) the person was receiving income support supplement under Part IIIA of the Veterans’ Entitlements Act 1986; and\n\n(ii) the rate of the person’s income support supplement was worked out under Method statement 6 in subpoint SCH6‑A1(7) in Schedule 6 to the Veterans’ Entitlements Act 1986; or\n\n(d) during the whole of that period the person was a non‑resident; or\n\n(e) during the whole of that period the person was:\n\n(i) the head of a diplomatic mission, or the head of a consular post, established in Australia; or\n\n(ii) a member of the staff of a diplomatic mission, or a member of the consular staff of a consular post, established in Australia; or\n\n(iii) a member of the family of a person referred to in subparagraph (i) or (ii), being a member who forms part of the household of that person;\n\nand was not an Australian citizen and was not ordinarily resident in Australia; or\n\n(f) the Health Minister has certified that, had any service, treatment or care to which Medicare benefits under the Health Insurance Act 1973 relate been rendered to the person or to another person during that period, the first‑mentioned person would not have been entitled to Medicare benefits in respect of that service, treatment or care.\n\nNote: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining family relationships for the purposes of subparagraph (1)(e)(iii).\n\n(2) A person shall not be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during a particular period unless every person who was a dependant of the first‑mentioned person during that period is to be taken, or but for this subsection would be taken, to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during that period.\n\n(3) Where:","sortOrder":1000095},{"sectionNumber":"full-source-retrieval-0097","sectionType":"document_chunk","heading":"Document excerpt 97","content":"(a) a person would not, but for this subsection, be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during a particular period; and\n\n(b) the person would, but for subsection (2), be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during that period by virtue of paragraph (1)(a), (b), (ca), (caa) or (cb);\n\nthe person shall be taken to have been a prescribed person, for the purposes of this Part and of any Act imposing Medicare levy, during one‑half of that period.\n\n(4) In this section:\n\n(a) expressions that are defined by the Vienna Convention on Diplomatic Relations referred to in the  Diplomatic Privileges and Immunities Act 1967 have the same respective meanings as in that Convention; and\n\n(b) expressions that are defined by the Vienna Convention on Consular Relations referred to in the Consular Privileges and Immunities Act 1972 have the same respective meanings as in that Convention.\n\n251V  Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to Medicare levy surcharge\n\n(1) This section applies to a person during a period if, apart from this section, another person would be taken under subsection 251R(4), (5), (6B), (6C) or (6D) not to have been a dependant of the first‑mentioned person during the period.\n\n(2) For the purposes of working out the amount of the increase in the Medicare levy (if any) payable by:\n\n(a) the first‑mentioned person under section 8B, 8C or 8D of the Medicare Levy Act 1986; or\n\n(b) a trustee under section 8E, 8F or 8G of that Act in relation to a share of the net income of the trust estate to which the first‑mentioned person is presently entitled;\n\nsubsection 251R(4), (5), (6B), (6C) or (6D), as the case requires, does not apply to the other person.\n\n251VA  Subsection 251U(3) not to apply for Medicare levy surcharge\n\n(1) This section applies to a person, whether or not the person is a person to whom section 251V applies, during a period if, apart from this section, the person would be taken under subsection 251U(3) to be a prescribed person during one‑half of the period.\n\n(2) For the purposes of working out the amount of the increase in the Medicare levy (if any) payable by:\n\n(a) the person under section 8B, 8C or 8D of the Medicare Levy Act 1986; or\n\n(b) a trustee under section 8E, 8F or 8G of that Act in relation to a share of the net income of the trust estate to which the person is presently entitled;\n\nthe person is taken not to be a prescribed person during the whole of the period.\n\n251W  Regulations\n\n(1) The regulations may make provision for and in relation to requiring any person to supply to the Commissioner for the purposes of this Part or of any Act imposing Medicare levy or Medicare levy (fringe benefits) surcharge such information as is prescribed, being information that is in the possession of the person or to which the person has access.\n\n(2) In subsection (1), person includes any authority or officer of the Commonwealth or of a State.\n\n251X  Notice of assessment to set out Medicare levy and surcharge\n\nThe notice of assessment to be served under section 174 on a taxpayer who must pay Medicare levy or Medicare levy (fringe benefits) surcharge for a year of income must specify the total of levy and surcharge (if any) payable by the taxpayer for the year of income.\n\n251Z  Administration of Medicare levy (fringe benefits) surcharge Act\n\nThe Commissioner has the general administration of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999.\n\nPart VIII—Miscellaneous\n\n252  Public officer of company\n\n(1) Every company carrying on business in Australia, or deriving in Australia income from property, shall at all times, unless exempted by the Commissioner, be represented for the purposes of this Act by a public officer duly appointed by the company or by its duly authorized agent or attorney, and with respect to every such company and public officer the following provisions shall apply:\n\n(a) The company, if it has not appointed a public officer before the commencement of this Act, shall appoint a public officer within three months after the commencement of this Act or after the company commences to carry on business or derive income in Australia.\n\n(b) The company shall keep the office of the public officer constantly filled.\n\n(c) No appointment of a public officer shall be deemed to be duly made until after notice thereof in writing, specifying the name of the officer and an address for service upon the officer has been given to the Commissioner.\n\n(d) The company shall duly appoint a public officer when and as often as such an appointment becomes necessary.\n\n(e) Service of any document at the address for service, or on the public officer of the company, shall be sufficient service upon the company for all the purposes of this Act or the regulations, and if at any time there is no public officer then service upon any person acting or appearing to act in the business of the company shall be sufficient.\n\nNote: See section 253 for alternative ways to give a notice to, or serve a process on, a company (through its officers, attorneys or agents).\n\n(f) The public officer shall be answerable for the doing of all such things as are required to be done by the company under this Act or the regulations, and in case of default shall be liable to the same penalties.\n\n(g) Everything done by the public officer which the officer is required to do in the officer’s representative capacity shall be deemed to have been done by the company. The absence or non‑appointment of a public officer shall not excuse the company from the necessity of complying with any of the provisions of this Act or the regulations, or from any penalty for refusal or failure to comply therewith, but the company shall be liable to the provisions of this Act as if there were no requirement to appoint a public officer.\n\n(h) Any notice given to or requisition made upon the public officer shall be deemed to be given to or made upon the company.\n\n(i) Any proceedings under this Act taken against the public officer shall be deemed to have been taken against the company, and the company shall be liable jointly with the public officer for any penalty imposed upon the officer.\n\n(2) A person is not capable of being a public officer of a company at a particular time unless the person:\n\n(a) is a natural person who has attained the age of 18 years; and\n\n(b) is ordinarily resident in Australia; and\n\n(c) is capable of understanding the nature of the person’s appointment as the public officer of the company.\n\n(3) A company that contravenes paragraph (1)(d) commits, in respect of each day on which it contravenes that paragraph (including the day of a conviction of an offence against this subsection or any subsequent day), an offence punishable on conviction by a fine not exceeding 1 penalty unit.\n\n(4) An offence under subsection (3) is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.\n\n(5) A reference in subsection (1) (other than in paragraph (a)) to this Act or the regulations includes a reference to Part III of the Taxation Administration Act 1953 to the extent to which that Part of that Act relates to this Act or the regulations.\n\n252A  Public officer of trust estate\n\n(1) Where, at any time after the expiration of the period of 90 days after the commencement of this section:\n\n(a) any business of a trust estate is carried on in Australia or any income from property (not being solely income in respect of which tax is payable under Division 11A of Part III) is derived by a trust estate from sources in Australia;\n\n(b) there is not a trustee of the trust estate who is a resident;\n\n(c) there is not in force in relation to the trust estate an exemption granted by the Commissioner under subsection (3); and\n\n(d) there is not in force in relation to the trust estate an appointment of a public officer made in accordance with subsection (5);\n\neach person who, at that time, is a trustee of the trust estate is, in respect of each day on which the circumstances set out in paragraphs (a), (b), (c) and (d) are in existence (including the day of a conviction of an offence against this subsection or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding 1 penalty unit.\n\n(1A) An offence under subsection (1) is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.\n\n(2) A reference in subsection (1) to the period of 90 days after the commencement of this section shall, in the application of that subsection in relation to a trust estate that, before the commencement of this section, did not carry on any business in Australia or derive income from property (not being solely income in respect of which tax is payable under Division 11A of Part III) from sources in Australia, be read as a reference to the period of 90 days after the date on which any business of the trust estate is commenced to be carried on in Australia, or the date on which the trust estate commences to derive such income from sources in Australia, whichever first occurs.\n\n(2A) A person is not capable of being a public officer of a trust estate at a particular time unless the person:\n\n(a) is a natural person who has attained the age of 18 years; and\n\n(b) is ordinarily resident in Australia; and\n\n(c) is capable of understanding the nature of the person’s appointment as the public officer of the trust estate.\n\n(3) The Commissioner may, by writing signed by him or her, grant to the trustee of a trust estate an exemption from the provisions of subsection (1) in relation to the trust estate.\n\n(4) An exemption under subsection (3) may be granted unconditionally or on such conditions as the Commissioner thinks fit and may be granted without limitation as to time or may be granted in respect of a period specified in the exemption.\n\n(5) An appointment of a public officer of a trust estate for the purposes of this section shall be made by giving notice in writing to the Commissioner:\n\n(a) that is signed by a trustee of the trust estate or by a duly authorized agent or attorney of a trustee of a trust estate; and\n\n(b) that specifies the name of the public officer and an address in Australia for service upon the public officer of any documents that are required or permitted by or under this Act or the regulations to be served upon the public officer of the trust estate.\n\n(6) The appointment of a public officer of a trust estate ceases to be in force if the public officer dies or lodges with the Commissioner a notice of the officer’s resignation as public officer of the trust estate.\n\n(7) Where, by or under this Act or the regulations:\n\n(a) a document is permitted to be served upon or given to the trustee of a trust estate; or\n\n(b) a requisition is permitted or required to be made upon the trustee of a trust estate;\n\nthat document shall be deemed to have been served upon or given to the trustee if it is served upon the public officer of the trust estate or at the address for service of the public officer of the trust estate, or that requisition shall be deemed to have been made upon the trustee if it is made upon the public officer of the trust estate, as the case may be.\n\n(8) A reference in subsection (7) to the service of a document upon the public officer of a trust estate, or the making of a requisition upon the public officer of a trust estate, shall, if there is not in force an appointment under this section of a public officer in relation to the trust estate, be read as a reference to any person acting or appearing to act in the business of the trust estate.\n\n(9) The public officer of a trust estate shall be answerable for the doing of all such things as are required to be done by the trustee of the trust estate under this Act or the regulations, and in case of default shall be liable to the same penalties.\n\n(10) Where any proceedings for an offence against this Act or the regulations are taken against the public officer, those proceedings shall be deemed to have also been taken against the trustee or trustees of the trust estate and the trustee or trustees shall be liable jointly with the public officer for any penalty in respect of the offence.\n\n(11) Notwithstanding the preceding provisions of this section and without affecting any of the obligations or liabilities of the public officer of a trust estate, any notice, process or proceeding that, under this Act or the regulations, may be given to, served upon or taken against the trustee or public officer of the trust estate may, if the Commissioner thinks fit, be given to, served upon or taken against any agent or attorney of the trustee of the trust estate and that agent or attorney shall have the same liability in respect of that notice, process or proceeding as the trustee or public officer would have had if it had been given to, served upon or taken against the trustee or public officer.\n\n(12) Everything done by the public officer of a trust estate that the officer is required to do in the officer’s capacity of public officer shall be deemed to have been done by the trustee of the trust estate.\n\n(13) The absence or non‑appointment of a public officer shall not excuse the trustee of a trust estate from the necessity of complying with any of the provisions of this Act or the regulations, or from any penalty for refusal or failure to comply with any of those provisions, but the trustee shall be liable to the provisions of this Act and the regulations as if there were no requirement to appoint a public officer.\n\n(14) A reference in this section to this Act or the regulations includes a reference to Part III of the Taxation Administration Act 1953 to the extent to which that Part of that Act relates to this Act or the regulations.\n\n253  Notifying and serving companies\n\nFor the purposes of this Act, or a regulation under this Act, if the Commissioner thinks fit, a notice or process may be given to, or served on, a company by giving the notice to, or serving the process on:\n\n(a) a director, the secretary or another officer of the company; or\n\n(b) an attorney or agent of the company.\n\nNote: See paragraph 252(1)(e) for alternative ways to serve documents on a company (through its public officer or someone else acting or appearing to act for the company).\n\n254  Agents and trustees\n\n(1) With respect to every agent and with respect also to every trustee, the following provisions shall apply:\n\n(a) He or she shall be answerable as taxpayer for the doing of all such things as are required to be done by virtue of this Act in respect of the income, or any profits or gains of a capital nature, derived by him or her in his or her representative capacity, or derived by the principal by virtue of his or her agency, and for the payment of tax thereon.\n\n(b) He or she shall in respect of that income, or those profits or gains, make the returns and be assessed thereon, but in his or her representative capacity only, and each return and assessment shall, except as otherwise provided by this Act, be separate and distinct from any other.\n\n(c) If he or she is a trustee of the estate of a deceased person, the returns shall be the same as far as practicable as the deceased person, if living, would have been liable to make.\n\n(d) He or she is hereby authorized and required to retain from time to time out of any money which comes to him or her in his or her representative capacity so much as is sufficient to pay tax which is or will become due in respect of the income, profits or gains.\n\n(e) He or she is hereby made personally liable for the tax payable in respect of the income, profits or gains to the extent of any amount that he or she has retained, or should have retained, under paragraph (d); but he or she shall not be otherwise personally liable for the tax.\n\n(f) He or she is hereby indemnified for all payments which he or she makes in pursuance of this Act or of any requirement of the Commissioner.\n\n(g) Where as one of 2 or more joint agents or trustees he or she pays any amount for which they are jointly liable, each other one is liable to pay him or her an equal share of the amount so paid.\n\n(h) For the purpose of insuring the payment of tax the Commissioner shall have the same remedies against attachable property of any kind vested in or under the control or management or in the possession of any agent or trustee, as the Commissioner would have against the property of any other taxpayer in respect of tax.\n\n(2) Subsection (1) applies to the following in the same way as it applies to tax:\n\n(a) the general interest charge under:\n\n(i) former section 163AA, former section 170AA, former subsection 204(3), former subsection 221AZMAA(1), former subsection 221AZP(1), former subsection 221YD(3) or former section 221YDB of this Act;\n\n(ii) section 5‑15 of the Income Tax Assessment Act 1997;\n\n(b) additional tax under former Part VII of this Act;\n\n(c) shortfall interest charge.\n\nNote 1: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 and shortfall interest charge is worked out under Division 280 in Schedule 1 to that Act.\n\nNote 2: Subsection 8AAB(4) of that Act lists the provisions that apply the general interest charge.\n\n(3) In paragraphs (1)(d) and (e), and in its first occurrence in paragraph (1)(h), tax includes, in addition to the things mentioned in subsection (2):\n\n(a) trustee beneficiary non‑disclosure tax within the meaning of Division 6D of Part III; and\n\n(b) general interest charge payable under section 102UP in respect of such tax.\n\n255  Person in receipt or control of money from non‑resident","sortOrder":1000096},{"sectionNumber":"full-source-retrieval-0098","sectionType":"document_chunk","heading":"Document excerpt 98","content":"(1) With respect to every person having the receipt control or disposal of money belonging to a non‑resident, who derives income, or profits or gains of a capital nature, from a source in Australia or who is a shareholder, debenture holder, or depositor in a company deriving income, or profits or gains of a capital nature, from a source in Australia, the following provisions shall, subject to this Act, apply:\n\n(a) the person shall when required by the Commissioner pay the tax due and payable by the non‑resident;\n\n(b) the person is hereby authorized and required to retain from time to time out of any money which comes to the person on behalf of the non‑resident so much as is sufficient to pay the tax which is or will become due by the non‑resident;\n\n(c) the person is hereby made personally liable for the tax payable by the person on behalf of the non‑resident to the extent of any amount that the person has retained, or should have retained, under paragraph (b); but the person shall not be otherwise personally liable for the tax;\n\n(d) the person is hereby indemnified for all payments which the person makes in pursuance of this Act or of any requirement of the Commissioner.\n\n(2) Every person who is liable to pay money to a non‑resident shall be deemed to be a person having the control of money belonging to the non‑resident, and, subject to subsection (2A), all money due by the person to the non‑resident shall be deemed to be money which comes to the person on behalf of the non‑resident.\n\n(2A) For the purposes of this section, money due by a person to a non‑resident from which an amount must be withheld under section 12‑325 in Schedule 1 to the Taxation Administration Act 1953 (about natural resource payments) or Subdivision 12‑H in that Schedule (about distributions to foreign residents from withholding MITs) shall be deemed not to be money which comes to the person on behalf of the non‑resident.\n\n(2B) For the purposes of subsection (2A), if an entity must pay an amount to the Commissioner under Subdivision 12A‑C in Schedule 1 to the Taxation Administration Act 1953 in respect of money due by the entity to a non‑resident, treat that amount as being an amount that must be withheld from the money under Subdivision 12‑H in that Schedule.\n\n(3) Where the Commonwealth, a State or an authority of the Commonwealth or a State has the receipt, control or disposal of money belonging to a non‑resident, this section (other than paragraph (1)(c)) applies to and in relation to the Commonwealth, the State or the authority, as the case may be, in the same manner as it applies to and in relation to any other person.\n\n(4) This section applies to the following in the same way as it applies to tax:\n\n(a) the general interest charge under:\n\n(i) former section 163AA, former section 170AA, former subsection 204(3), former subsection 221AZMAA(1), former subsection 221AZP(1), former subsection 221YD(3) or former section 221YDB of this Act;\n\n(ii) section 5‑15 of the Income Tax Assessment Act 1997;\n\n(b) additional tax under former Part VII of this Act;\n\n(c) shortfall interest charge.\n\nNote 1: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 and shortfall interest charge is worked out under Division 280 in Schedule 1 to that Act.\n\nNote 2: Subsection 8AAB(4) of that Act lists the provisions that apply the general interest charge.\n\n(5) This section applies to an equity holder in the same way as it applies to a shareholder.\n\n257  Payment of tax by banker\n\nWhere any income of any person out of Australia is paid, or any proceeds of the disposal of an asset of any person out of Australia are paid, into the account of that person with a banker, the Commissioner may, by notice in writing to the banker, appoint the banker to be the person’s agent in respect of the money so paid so long as the banker is indebted in respect thereof, and thereupon the banker shall accordingly be that person’s agent.\n\n260  Contracts to evade tax void\n\n(1) Every contract, agreement, or arrangement made or entered into, orally or in writing, whether before or after the commencement of this Act, shall so far as it has or purports to have the purpose or effect of in any way, directly or indirectly:\n\n(a) altering the incidence of any income tax;\n\n(b) relieving any person from liability to pay any income tax or make any return;\n\n(c) defeating, evading, or avoiding any duty or liability imposed on any person by this Act; or\n\n(d) preventing the operation of this Act in any respect;\n\nbe absolutely void, as against the Commissioner, or in regard to any proceeding under this Act, but without prejudice to such validity as it may have in any other respect or for any other purpose.\n\n(2) This section does not apply to any contract, agreement or arrangement made or entered into after 27 May 1981.\n\n262  Periodical payments in the nature of income\n\nWhere under any contract agreement or arrangement made or entered into orally or in writing, either before or after the commencement of this Act, a person assigns, conveys, transfers or disposes of any property on terms and conditions which include the payment for the assignment, conveyance, transfer or disposal of the property by periodical payments which, in the opinion of the Commissioner, are either wholly or in part really in the nature of income of that person such of those payments as are derived in the year of income shall, to the extent to which they are in that opinion in the nature of income, be included in the person’s assessable income.\n\n262A  Keeping of records\n\n(1) Subject to this section, a person carrying on a business must keep records that record and explain all transactions and other acts engaged in by the person that are relevant for any purpose of this Act.\n\nNote: There is an administrative penalty if you do not keep or retain records as required by this section: see section 288‑25 in Schedule 1 to the Taxation Administration Act 1953.\n\n(1A) Without limiting subsection (1), if the person is an OBU (within the meaning of Division 9A of Part III), the person must, subject to this section, maintain the same accounting records in respect of, and separately account for, money used in its OB activities (within the meaning of that Division) as it would if it were a bank conducting banking activities with another person.\n\n(1AA) Subsection (1A) does not require an OBU to maintain a separate nostro account or vostro account for its OBU activities. Nostro accounts and vostro accounts are accounts held or maintained by the OBU for the sole purpose of settling international transactions.\n\nNote: A defendant bears an evidential burden in relation to the matters in subsection (1AA), see subsection 13.3(3) of the Criminal Code.\n\n(1B) Without limiting subsection (1), a foreign bank must maintain accounting records in respect of, and separately account for, money used in the activities of a permanent establishment in Australia through which the bank carries on banking business.\n\n(1BA) Without limiting subsection (1), a foreign entity (as defined in the Income Tax Assessment Act 1997) that is a financial entity (as defined in that Act) must maintain accounting records in respect of, and separately account for, money used in the activities of a permanent establishment in Australia of the entity.\n\n(1C) Without limiting subsection (1), if a trust is taken to be 2 separate trusts under section 50‑80 of the Income Tax Assessment Act 1997, the trustee must maintain accounting records in respect of, and separately account for, those 2 trusts.\n\n(1D) A taxpayer who is a full self‑assessment taxpayer must:\n\n(a) keep a record containing particulars of the basis of the calculation of the amounts that the taxpayer specified under section 161AA in a return for a year of income; and\n\n(b) produce to the Commissioner, when and as required by the Commissioner under this Act, a document containing those particulars.\n\n(2) The records to be kept under subsection (1) include:\n\n(a) any documents that are relevant for the purpose of ascertaining the person’s income and expenditure; and\n\n(b) documents containing particulars of any election, choice, estimate, determination or calculation made by the person under this Act and, in the case of an estimate, determination or calculation, particulars showing the basis on which and method by which the estimate, determination or calculation was made.\n\n(2AAA) Subsection (1) applies to a participant in a forestry managed investment scheme in relation to the scheme even if the participant is not carrying on a business in relation to the scheme.\n\n(2AAB) Subsection (2AAC) applies to the forestry manager of a forestry managed investment scheme if:\n\n(a) the forestry manager (or an associate of the forestry manager) receives an amount under the scheme; and\n\n(b) the amount is included in the forestry manager’s (or the associate’s) assessable income under section 15‑46 of the Income Tax Assessment Act 1997.\n\n(2AAC) The records to be kept under subsection (1) by the forestry manager include records about the basis on which the scheme satisfies the requirement in paragraph 394‑10(1)(c) of the Income Tax Assessment Act 1997 (the 70% DFE rule).\n\n(2AAD) Subsection (1) applies to a person who has a Division 230 financial arrangement even if the person is not carrying on a business in relation to the arrangement. However, that subsection only requires the person to keep records that, for the purposes of this Act, are relevant to the arrangement.\n\n(2AAE) To avoid doubt, for the purposes of subsection (4), if the records mentioned in that subsection relate to a Division 230 financial arrangement that a person has, the transactions or acts mentioned in that subsection are taken to be completed at:\n\n(a) the end of the year of income in which the person ceases to have the arrangement; or\n\n(b) if:\n\n(i) the person applies the hedging financial arrangement method in Subdivision 230‑E of the Income Tax Assessment Act 1997 to determine the amount of one or more gains or losses the person makes from the arrangement; and\n\n(ii) determining the way in which those gains or losses are dealt with in accordance with subsection 230‑310(4) of that Act is possible only at a time after the end of the income year mentioned in paragraph (a);\n\nthe end of the year of income in which that time occurs.\n\n(2AA) The records to be kept under subsection (1) include records required to be kept for the purposes of section 820‑960, 820‑980 or 820‑985 of the Income Tax Assessment Act 1997.\n\n(2A) If an entity is required to withhold an amount under Division 12 in Schedule 1 to the Taxation Administration Act 1953, or to pay an amount to the Commissioner under Division 13 or 14 of that Schedule, the entity must keep records that record and explain all transactions and other acts engaged in by the entity that are relevant for the purposes of that Schedule.\n\n(3) A person who is required by this section to keep records must:\n\n(a) keep the records in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and\n\n(b) keep the records so as to enable the person’s liability under this Act to be readily ascertained; and\n\n(c) for records required to be kept under section 820‑960 of the Income Tax Assessment Act 1997—comply with the applicable provisions of that section; and\n\n(ca) for records required to be kept under section 230‑355 of the Income Tax Assessment Act 1997—comply with the applicable provisions of that section; and\n\n(d) for records required to be kept under section 820‑980 of that Act—comply with subsections (2) and (3) of that section; and\n\n(e) for records required to be kept under section 820‑985 of that Act—comply with subsections (2) and (3) of that section.\n\n(4) A person who has possession of any records kept or obtained under or for the purposes of this Act must retain those records until:\n\n(a) in a case to which paragraph (b) does not apply—the end of 5 years after those records were prepared or obtained, or the completion of the transactions or acts to which those records relate, whichever is the later; or\n\n(b) if the period (in this paragraph called the assessment period) within which the Commissioner may, under section 170, amend an assessment in respect of the person’s income of the year of income to which those records relate, or in which a transaction or act to which those records relate was completed, is extended under subsection 170(7):\n\n(i) the end of the period of 5 years referred to in paragraph (a); or\n\n(ii) the end of the assessment period as so extended;\n\nwhichever is the later.\n\n(4AAA) Subsection (4) does not apply to any record required to be kept by a provision in Schedule 1 to the Taxation Administration Act 1953.\n\nNote: A defendant bears an evidential burden in relation to the matters in subsection (4AAA), see subsection 13.3(3) of the Criminal Code.\n\n(4A) A person who makes an election under subsection 371(8) must retain the election until the end of 5 years after the election was made.\n\n(4AA) A person who is a party to a joint election for roll‑over relief made under former section 59AA, 122R, 123F, 124AO or 124W must retain the election, or a copy, until the end of 5 years after the earlier of:\n\n(a) the disposal by the person of the property; or\n\n(b) the loss or destruction of the property.\n\n(4ACA) Subsection (4AC) does not apply in relation to a disposal of property:\n\n(a) to which former subsection 58(1), 122JAA(1), 122JG(1), 123BBA(1), 123BF(1), 124AMAA(1), 124GA(1) or 124JD(1) applies; and\n\n(b) that occurs in the 1997‑98 year of income or a later year of income.\n\nNote: A defendant bears an evidential burden in relation to the matters in subsection (4ACA), see subsection 13.3(3) of the Criminal Code.\n\n(4AC) If former subsection 58(1), subsection 73AA(1), or former subsection 122JAA(1), 122JG(1), 123BBA(1), 123BF(1), 124AMAA(1), 124GA(1), 124JD(1) or 124PA(1) applies to the disposal of property by the transferor referred to in that subsection to the transferee referred to in that subsection:\n\n(a) the transferor must give to the transferee, within the period specified in subsection (4AD), a notice containing such information about the transferor’s holding of the property as will enable the transferee to work out how former section 58, section 73AA, or former section 122JAA, 122JG, 123BBA, 123BF, 124AMAA, 124GA, 124JD or 124PA, as the case may be, will apply to the transferee’s holding of the property; and\n\n(b) the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of:\n\n(i) the disposal by the person of the property; or\n\n(ii) the loss or destruction of the property.\n\n(4AD) The notice referred to in subsection (4AC) must be given within 6 months after the later of the following:\n\n(a) the end of the year of income of the transferee in which the disposal occurred;\n\n(b) the commencement of subsection (4AC);\n\nor within such further period as the Commissioner allows.\n\n(4AE) A person who made an election under former paragraph 54A(1)(a) in relation to a unit of property must retain the election, or a copy, until the end of 5 years after the earlier of:\n\n(a) the disposal by the person of the property; or\n\n(b) the loss or destruction of the property.\n\n(4AF) If:\n\n(a) a person (the transferor) disposes of, or of a lease of, any part of a building within the meaning of former Division 10C of Part III to another person (the transferee); and\n\n(b) either:\n\n(i) one or more deductions have been allowed to the transferor under former subsection 124ZC(2A) or (4A) in respect of qualifying hotel expenditure or qualifying apartment expenditure in respect of the building; or\n\n(ii) if there have been one or more prior successive owners or lessees of the building—one or more deductions have been allowed to any of the prior successive owners or lessees under former subsection 124ZC(2A) or (4A) in respect of qualifying hotel expenditure or qualifying apartment expenditure in respect of the building;\n\nthen:\n\n(c) the transferor must give to the transferee, within the period specified in subsection (4AG), a notice containing such information about the transferor’s holding or lease of the building as will enable the transferee to work out how former Division 10C of Part III applies to the transferee’s holding or lease of the building; and\n\n(d) the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of:\n\n(i) the transferee ceasing to be the owner or lessee of the part of the building; or\n\n(ii) the destruction of the building.\n\n(4AG) The notice referred to in subsection (4AF) must be given within 6 months after the later of the following:\n\n(a) the end of the year of income of the transferee in which the disposal occurred;\n\n(b) the commencement of subsection (4AF);\n\nor within such further period as the Commissioner allows.\n\n(4AH) If:\n\n(a) a person (the transferor) disposes of, or of a lease of, any part of a building within the meaning of former Division 10D of Part III to another person (the transferee); and\n\n(b) either:\n\n(i) one or more deductions have been allowed to the transferor under former subsection 124ZH(2A) in respect of qualifying expenditure in respect of the building; or\n\n(ii) if there have been one or more prior successive owners or lessees of the building—one or more deductions have been allowed to any of the prior successive owners or lessees under former subsection 124ZH(2A) in respect of qualifying expenditure in respect of the building;\n\nthen:\n\n(c) the transferor must give to the transferee, within the period specified in subsection (4AJ), a notice containing such information about the transferor’s holding or lease of the building as will enable the transferee to work out how former Division 10D of Part III applies to the transferee’s holding or lease of the building; and","sortOrder":1000097},{"sectionNumber":"full-source-retrieval-0099","sectionType":"document_chunk","heading":"Document excerpt 99","content":"(d) the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of:\n\n(i) the transferee ceasing to be the owner or lessee of the part of the building; or\n\n(ii) the destruction of the building.\n\n(4AJ) The notice referred to in subsection (4AH) must be given within 6 months after the later of the following:\n\n(a) the end of the year of income of the transferee in which the disposal occurred;\n\n(b) the commencement of subsection (4AH);\n\nor within such further period as the Commissioner allows.\n\n(4AJA) If:\n\n(a) a person (the transferor) disposes of capital works within the meaning of Division 43 of the Income Tax Assessment Act 1997, being capital works begun after 26 February 1992, to another person (the transferee); and\n\n(b) a deduction has been allowed under former Division 10C or 10D of Part III of this Act, or under Division 43 of the Income Tax Assessment Act 1997, in respect of those capital works;\n\nthen:\n\n(c) the transferor must give the transferee, within 6 months after the end of the year of income in which the disposal occurred or within a further period allowed by the Commissioner, a notice containing such information as will allow the transferee to work out how Division 43 of the Income Tax Assessment Act 1997 will apply to the transferee in respect of the capital works; and\n\n(d) the transferee must retain the notice or a copy of it until the end of 5 years after the transferee disposes of the capital works or the capital works are destroyed, whichever is the earlier.\n\n(4AL) A person who makes an election in accordance with subitem 22(3), 22A(3), 23(3) or 23A(2) of the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 must retain the election until the end of 5 years after the election was made.\n\n(5) Nothing in this section requires a person to retain records or an election where:\n\n(a) the Commissioner has notified the person that retention of the records or election is not required; or\n\n(b) the person is a company that has gone into liquidation and finally ceased to exist.\n\nNote: A defendant bears an evidential burden in relation to the matters in subsection (5), see subsection 13.3(3) of the Criminal Code.\n\n(5A) An offence under this section is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.\n\n(6) In this section:\n\nassociate has the same meaning as in the Income Tax Assessment Act 1997.\n\nforeign bank means body corporate that is a foreign ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.\n\nforestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.\n\nforestry manager of a forestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.\n\nparticipant in a forestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.\n\nPenalty: 30 penalty units.\n\nNote: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.\n\n264BB  Commissioner may require private health insurers to provide information\n\n(1) The Commissioner may, by notice in writing, require a private health insurer to provide information relevant to the operation of this Act about each person who is covered at any time during a financial year specified in the notice by a complying health insurance policy issued by the insurer or who paid premiums under such a policy.\n\n(2) The information that the Commissioner may require the private health insurer to provide includes the following:\n\n(a) the name, address and date of birth of each person mentioned in subsection (1);\n\n(b) the membership number of the policy;\n\n(c) the name, address and date of birth of any spouse of a person covered by the policy (other than a spouse permanently living separately and apart from the person);\n\n(d) whether the policy covers hospital treatment, general treatment or both;\n\n(e) the date on which the policy was issued;\n\n(f) whether the policy has terminated or been suspended, and, if it has, the date on which it terminated or was suspended;\n\n(g) the amount of the premium payable under the policy;\n\n(ga) whether the premium has been reduced under section 23‑1 of the Private Health Insurance Act 2007, and if so, the amount of the reduction;\n\n(gb) the name, address and date of birth of a participant (within the meaning of the Private Health Insurance Act 2007) in the premiums reduction scheme (within the meaning of that Act) in respect of the policy;\n\n(gc) whether the premium has been increased in accordance with Division 34 of the Private Health Insurance Act 2007, and if so, the amount of the increase;\n\n(h) the period to which the premium relates;\n\n(i) any increase or decrease in the premium;\n\n(j) whether a payment in respect of a premium that was due within a period specified by the Commissioner was not paid.\n\n(3) The information required by a notice under subsection (1) is to be provided:\n\n(a) in a form (including an electronic form) approved by the Commissioner; and\n\n(b) within the period specified in the notice.\n\n(4) In this section, the following terms have the same meanings as in the Private Health Insurance Act 2007:\n\ncomplying health insurance policy\n\ngeneral treatment\n\nhospital treatment\n\nprivate health insurer\n\n265A  Release of liability of members of the Defence Force on death\n\n(1) Subject to subsection (2), where, in respect of the income of any year of income, income tax is payable by the trustee of the estate of a deceased person who has been a member of the Defence Force, the trustee shall, by force of this section, be released from the payment of so much of that tax as remains after deducting any tax deductions unapplied:\n\n(a) where the assessable income of the year of income consists solely of pay and allowances earned as a member of the Defence Force—from the amount of income tax so payable by the trustee; or\n\n(b) where the assessable income of the year of income includes income other than such pay and allowances:\n\n(i) from the amount of income tax so payable by the trustee; or\n\n(ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of such pay and allowances in the assessable income of that year;\n\nwhichever is the less.\n\n(2) Nothing in subsection (1) shall be construed so as to authorize or require the Commissioner to refund any amount paid as or for income tax by or on behalf of the taxpayer or his trustee.\n\n(3) The provisions of subsection (1) do not apply in any case where the death of the taxpayer has occurred in circumstances (including the circumstances of his or her service) in which the Commonwealth would not be liable to pay pensions or compensation:\n\n(a) under Part II or IV of the Veterans’ Entitlements Act 1986 to the dependants of deceased members of the Forces or veterans; or\n\n(b) mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 to the wholly dependent partners of deceased members (within the meaning of that Act).\n\n(4) Any decision of an authority constituted under the Repatriation Act 1920‑1962 on any question affecting the right of any dependants of a deceased member of the Forces to a pension under that Act or under the Repatriation (Far East Strategic Reserve) Act 1956‑1962 or the Repatriation (Special Overseas Service) Act 1962, or any decision of an authority constituted under the Veterans’ Entitlements Act 1986 on a question affecting the right of a dependant of a deceased veteran to a pension under Part II or IV of that Act, or any decision of the Military Rehabilitation and Compensation Commission established under section 361 of the Military Rehabilitation and Compensation Act 2004 on a question affecting the right of a dependant of a deceased member (within the meaning of that Act) to compensation under Chapter 5 of that Act, in respect of his or her death shall, so long as that decision has not been reversed or overruled, be conclusive evidence of the matters of fact or law so decided for the purposes of the application of subsection (3) in relation to that deceased member of the Forces.\n\n(5) In this section:\n\ntax deductions unapplied, in relation to a deceased person, means the total of any amounts withheld under paragraph 12‑45(1)(c) in Schedule 1 to the Taxation Administration Act 1953 from amounts earned by the deceased person as a member of the Defence Force where:\n\n(a) the amounts have not been credited in payment of income tax; and\n\n(b) the Commissioner has not made a payment in respect of them.\n\n265B  Notices in relation to certain securities\n\n(1) Subject to subsection (2), for the purposes of this section:\n\n(a) expressions used in this section that are also used in Division 16E of Part III have the same respective meanings as in that Division; and\n\n(b) sections 159GV (other than subsection 159GV(2)) and 159GZ apply as if references in those sections to this Division were references to section 265B.\n\n(2) Subsection (1) applies as if paragraph (c) of the definition of qualifying security in subsection 159GP(1) were omitted.\n\n(3) The holder of a security may apply at any time to the issuer for a notice under this section in relation to the security.\n\n(4) Where the issuer of a security receives an application under subsection (3) in relation to the security, the issuer shall within 21 days of receipt of the application issue a notice in writing to the applicant, expressed to be issued under this section and identifying the security, that states that the notice was issued at a specified time on a specified date and:\n\n(a) where the security is not a qualifying security—that the security is not a qualifying security; or\n\n(b) where the security is a qualifying security—that:\n\n(i) the security is a qualifying security;\n\n(ii) the security was issued for a specified consideration;\n\n(iii) where the security was partially redeemed on one or more occasions before the time of issue of the notice—that the security was partially redeemed by a specified amount or amounts on a specified date or dates; and\n\n(iv) where the security was varied to become a qualifying security—the security was varied, for a specified consideration, to become a qualifying security.\n\n266  Regulations\n\n(1) The Governor‑General may make regulations, not inconsistent with this Act or the Income Tax Assessment Act 1997, prescribing all matters which by this Act or the Income Tax Assessment Act 1997 are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to this Act or the Income Tax Assessment Act 1997, and for prescribing penalties not exceeding a fine of 5 penalty units for offences against the regulations.\n\nPart X—Attribution of income in respect of controlled foreign companies\n\nDivision 1—Preliminary\n\n316  Object of Part\n\n(1) The object of this Part is to provide for certain amounts to be included in a taxpayer’s assessable income (Division 9) in respect of:\n\n(a) the attributable income of a CFC (section 456); and\n\n(b) certain changes of residence by a CFC (section 457).\n\n(2) To that end (and for other purposes of this Act) this Part contains rules relating to the following:\n\n(a) interpretation (Division 1);\n\n(b) types of entities (Division 2);\n\n(c) control interests, attribution interests, attributable taxpayers and attribution percentages (Division 3);\n\n(d) attribution accounts (Division 4);\n\n(g) the calculation of attributable income of a CFC (Division 7);\n\n(h) the active income test (Division 8);\n\n(j) post‑attribution asset disposals (Division 10);\n\n(k) the keeping of records (Division 11).\n\n317  Interpretation\n\n(1) In this Part, unless the contrary intention appears:\n\naccounting period, in relation to company, means an accounting period used by the company in the accounts by reference to which it distributes dividends.\n\naccounting records includes invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes, vouchers and other documents of prime entry and also includes such working papers and other documents as are necessary to explain the methods and calculations by which accounts are made up.\n\naccounts means ledgers, journals, profit and loss accounts and balance‑sheets, and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.\n\naccruals tax law, in relation to a listed country, means a law of the listed country that is declared by regulations for the purposes of this definition to be an accruals tax law.\n\nactive income test has the meaning given by section 432.\n\nadjusted tainted income has the meaning given by section 386.\n\nAFI or Australian financial institution means any of the following Australian entities:\n\n(a) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959;\n\n(b) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution;\n\n(c) a registered entity under the Financial Sector (Collection of Data) Act 2001;\n\n(d) a life assurance company.\n\nAFI subsidiary or Australian financial institution subsidiary has the meaning given by section 326.\n\naircraft means a machine or apparatus that can derive support in the atmosphere from the reactions of the air or from buoyancy, but does not include an air‑cushion vehicle.\n\nassociate has the meaning given by section 318.\n\nassociate‑inclusive control interest has the meaning given by section 349.\n\nattributable income has the meaning given by Division 7.\n\nattributable taxpayer, has the meaning given by section 361.\n\nattribution account entity has the meaning given by section 363.\n\nattribution account payment has the meaning given by section 365.\n\nattribution credit has the meaning given by section 371.\n\nattribution debit has the meaning given by section 372.\n\nattribution percentage has the meaning given by section 362.\n\nattribution tracing interest:\n\n(a) in relation to a CFC—has the meaning given by section 358; and\n\n(b) in relation to a CFP—has the meaning given by section 359; and\n\n(c) in relation to a CFT—has the meaning given by section 360.\n\nAustralian 1% entity, in relation to a company or trust, means an Australian entity whose associate‑inclusive control interest in the company or trust is at least 1%.\n\nAustralian entity has the meaning given by section 336.\n\nAustralian partnership has the meaning given by section 337.\n\nAustralian tax means income tax or withholding tax.\n\nAustralian trust has the meaning given by section 338.\n\nCFC or controlled foreign company has the meaning given by section 340.\n\nCFE or controlled foreign entity has the meaning given by section 339.\n\nCFP or controlled foreign partnership has the meaning given by section 341.\n\nCFT or controlled foreign trust has the meaning given by section 342.\n\nCGT roll‑over provisions means former section 160ZZF and Divisions 5A, 5B, 7A and 17 of former Part IIIA of this Act or Divisions 122, 124 and 126, and section 118‑350, of the Income Tax Assessment Act 1997.\n\ncommodity means any thing that is capable of delivery under an agreement for its delivery, but does not include an instrument creating or evidencing a chose in action.\n\ncommodity investment means:\n\n(a) either of the following contracts:\n\n(i) a forward contract in respect of a commodity;\n\n(ii) a futures contract in respect of a commodity; or\n\n(b) a right or option in respect of such a contract.\n\ncompany does not include a company in the capacity of trustee.\n\ncompany title interest, in relation to land, means a right of occupancy of the land, or of a building or part of a building erected on the land, arising by virtue of the holding of shares, or by virtue of a contract to purchase shares, in a company that owns the land or building.\n\ncontrol tracing interest:\n\n(a) in relation to a CFC—has the meaning given by section 353; or\n\n(b) in relation to a CFP—has the meaning given by section 354; or\n\n(c) in relation to a CFT—has the meaning given by section 355.\n\ncurrency exchange gain, in relation to a company, in relation to a statutory accounting period, means a currency gain realised by the company in the statutory accounting period, to the extent to which it is attributable to currency exchange rate fluctuations.\n\ncurrency exchange loss, in relation to a company, in relation to a statutory accounting period, means a currency loss realised by the company in the statutory accounting period, to the extent to which it is attributable to currency exchange rate fluctuations.\n\nde facto relationship means:\n\n(a) a relationship between 2 persons (whether of the same sex or different sexes) that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or\n\n(b) a relationship between 2 persons (whether of the same sex or different sexes) who, although not legally married to each other, live with each other on a genuine domestic basis in a relationship as a couple.\n\ndepreciation provision means:\n\n(a) any of former sections 54 to 62 of Division 3 of Part III of this Act, any provision of former Divisions 10, 10AAA, 10AA, 10A, 10C and 10D of that Part; or\n\n(b) any provision of Division 40 of the Income Tax Assessment Act 1997 (other than Subdivision 40‑E) or of Division 43 of that Act; or\n\n(c) any provision of the former Division 42 of that Act (other than Subdivisions 42‑L and 42‑M), or the former Subdivisions 330‑A, 330‑C, 330‑H and 387‑G of that Act.\n\ndesignated concession income, in relation to a listed country, means:\n\n(a) income or profits of a kind specified in the regulations if:\n\n(i) foreign tax imposed by a tax law of the country is not payable in respect of the income or profits because of a particular feature; or","sortOrder":1000098},{"sectionNumber":"full-source-retrieval-0100","sectionType":"document_chunk","heading":"Document excerpt 100","content":"(ii) foreign tax imposed by a tax law of the country is payable in respect of the income or profits but there is a feature in relation to that tax;\n\nand the feature is of a kind specified in the regulations; or\n\n(b) capital gains that would be made because of CGT event J1, if the assumptions in paragraphs 383(a) to (c) applied.\n\nNote 1: CGT event J1 is about companies ceasing to be related after a roll‑over.\n\nNote 2: Basically, the effect of those assumptions is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.\n\ndirect attribution account interest has the meaning given by section 366.\n\ndirect attribution interest has the meaning given by section 356.\n\ndirect control interest:\n\n(a) in relation to a company—has the meaning given by section 350;\n\n(b) in relation to a trust—has the meaning given by section 351.\n\ndiscretionary trust means a trust where:\n\n(a) both of the following conditions are satisfied:\n\n(i) a person (who may include the trustee) is empowered (either unconditionally or on the fulfilment of a condition) to exercise any power of appointment or other discretion;\n\n(ii) the exercise of the power or discretion, or the failure to exercise the power or discretion, has the effect of determining, to any extent, either or both of the following:\n\n(A) the identities of those who may benefit under the trust;\n\n(B) how beneficiaries are to benefit, as between themselves, under the trust; or\n\n(b) one or more of the beneficiaries under the trust have a contingent or defeasible interest in some or all of the corpus or income of the trust; or\n\n(c) the trustee of another trust, being a trust where both of the conditions in paragraph (a) are satisfied, benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the first‑mentioned trust.\n\ndisposal of an asset includes:\n\n(a) redemption; and\n\n(b) CGT event J1 happening in relation to the asset (about companies ceasing to be related after a roll‑over) if the assumptions in paragraphs 383(a) to (c) applied.\n\nNote: Basically, the effect of those assumptions is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.\n\ndistributable profits, in relation to a company, means the amount, whether of an income or capital nature, that, having regard to the accounts of the company and such other matters as may reasonably be regarded as relevant, constitutes profits of the company that would be available for distribution by the company by way of dividends if there were disregarded any requirement of the constituent document, or of any resolution or decision, of the company restricting the availability of the profits for distribution in that way, other than any requirement providing for an eligible provision or reserve.\n\ndouble tax agreement, in relation to a foreign country, means:\n\n(a) if there is only one agreement (within the meaning of the International Tax Agreements Act 1953) in force in respect of the foreign country—that agreement; or\n\n(b) if there are 2 or more agreements (within the meaning of that Act) in force in respect of the foreign country—the agreement that is expressed to be:\n\n(i) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; or; or\n\n(ia) concerning the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; or\n\n(ii) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital; or\n\n(iii) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital; or\n\n(iv) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains; or\n\n(v) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to certain other taxes.\n\neligible designated concession income, in relation to a listed country, in relation to a particular period (in this definition called the income period), means designated concession income in relation to the listed country:\n\n(a) that is not subject to tax in another listed country in a tax accounting period:\n\n(i) ending before the end of the income period; or\n\n(ii) commencing during the income period; or\n\n(b) that is:\n\n(i) subject to tax in another listed country in a tax accounting period:\n\n(A) ending before the end of the income period; or\n\n(B) commencing during the income period; and\n\n(ii) designated concession income in relation to that other listed country.\n\neligible finance share has the meaning given by section 327.\n\neligible finance share dividend means a dividend in respect of an eligible finance share.\n\neligible provision or reserve means:\n\n(a) a provision or reserve required to be maintained by law; or\n\n(b) a provision for any liability in respect of foreign tax or Australian tax; or\n\n(c) a reserve maintained for the purpose of qualifying for relief from foreign tax; or\n\n(d) a provision or reserve for depreciation, bad or doubtful debts or leave payments; or\n\n(e) any other provision or reserve of a kind prescribed by regulations for the purposes of this paragraph.\n\neligible transferor has the meaning given by sections 347 and 348.\n\nentitled to acquire has the meaning given by section 322.\n\nentity means any of the following:\n\n(a) a company;\n\n(b) a partnership;\n\n(c) a person in the capacity of trustee;\n\n(d) any other person.\n\nfactoring income means income derived from carrying on a business of factoring.\n\nfinancial intermediary business means:\n\n(a) banking business; or\n\n(b) a business whose income is principally derived from the lending of money.\n\ngeneral insurance company means a company whose sole or principal business is insurance business within the meaning of subsection 3(1) of the Insurance Act 1973, but does not include a life assurance company.\n\ngoods includes:\n\n(a) ships, aircraft and other vehicles; and\n\n(b) animals, including fish; and\n\n(c) minerals, trees and crops, whether on, under or attached to land or not; and\n\n(d) gas and electricity.\n\ngrossed‑up amount, in relation to an attribution debit, has the meaning given by section 373.\n\ngross tainted turnover has the meaning given by section 435.\n\ngross turnover has the meaning given by section 434.\n\ngroup includes:\n\n(a) one entity alone; and\n\n(b) a number of entities the members of which are not in any way associated with each other nor acting together.\n\nincome interest in a partnership means an interest in the profits of the partnership.\n\nincome interest in a trust means an interest in the income of the trust.\n\nindirect attribution account interest has the meaning given by section 369.\n\nindirect attribution interest has the meaning given by section 357.\n\nindirect control interest has the meaning given by section 352.\n\nIP time means 7.30 p.m., by standard time in the Australian Capital Territory, on 12 April 1989.\n\nlaw, in relation to a listed country or an unlisted country, means a law of that listed country or unlisted country, or of any part of, or place in, that listed country or unlisted country.\n\nlease includes a sublease and, in relation to a company title interest in land, includes an agreement similar to a lease or sublease.\n\nleased includes let on hire (including a letting on hire that is described in the relevant agreement as a lease) under an agreement other than a hire‑purchase agreement.\n\nlisted country has the meaning given by section 320.\n\nnet tainted commodity gains has the meaning given by section 443.\n\nnet tainted currency exchange gains has the meaning given by section 444.\n\nnon‑attributable income period, in relation to a taxpayer in relation to a company in relation to the application of a provision of this Act in accordance with Division 7, means a statutory accounting period of the company for which:\n\n(a) there is no requirement to calculate under Division 7 the attributable income of the company in relation to the taxpayer; or\n\n(b) there is a requirement to calculate under Division 7 the attributable income of the company in relation to the taxpayer, but the particular provision is not relevant to that calculation.\n\nnon‑discretionary trust means a trust other than a discretionary trust.\n\nnon‑portfolio dividend means a dividend (other than an eligible finance share dividend or a widely distributed finance share dividend) paid to a company where that company has a voting interest, within the meaning of section 334A, amounting to at least 10% of the voting power, within the meaning of that section, in the company paying the dividend.\n\nnon‑resident family trust has the meaning given by section 328.\n\nnon‑share forward contract means a forward contract that is not in respect of shares or a share price index.\n\nnon‑share futures contract means a futures contract that is not in respect of shares or a share price index.\n\nnotional allowable deduction has the meaning given by subsection 382(2).\n\nnotional assessable income has the meaning given by subsection 382(2).\n\nnotional exempt income has the meaning given by subsection 382(2).\n\nPart X Australian resident means a resident within the meaning of section 6, but does not include an entity where:\n\n(a) there is a double tax agreement in force in respect of a foreign country; and\n\n(b) that agreement contains a provision that is expressed to apply where, apart from the provision, the entity would, for the purposes of the agreement, be both a resident of Australia and a resident of the foreign country; and\n\n(c) that provision has the effect that the entity is, for the purposes of the agreement, a resident solely of the foreign country.\n\npassive income has the meaning given by section 446.\n\npremium income means:\n\n(a) premiums in respect of insurance or reinsurance; or\n\n(b) life assurance premiums.\n\nprofits includes gains, whether of an income or capital nature.\n\nproperty management services includes any of the following services:\n\n(a) cleaning;\n\n(b) secretarial;\n\n(c) catering.\n\nprovide, in relation to services, includes allow, confer, give, grant or perform.\n\npublic unit trust has the meaning given by section 329.\n\nrecognised accounts:\n\n(a) in relation to a company, in relation to a statutory accounting period, means the accounts referred to in subparagraph 432(1)(c) that are prepared by the company for the statutory accounting period; or\n\n(b) in relation to a partnership in which a company is a partner at any time during a statutory accounting period, means the accounts referred to in paragraph 437(1)(b) that are prepared by the partnership for the statutory accounting period.\n\nrent means any consideration (in this definition called a rental consideration) paid or given by a lessee under a lease and includes consideration (whether paid or given by a lessee or another person) in the nature of a rental consideration.\n\nresidency assumption, in relation to a CFC, means the assumption about the residence of the CFC that is made in paragraph 383(a).\n\nretention period, in relation to a statutory accounting period, means the period of 5 years commencing at the end of the statutory accounting period.\n\nsale, in relation to goods, includes exchange or hire‑purchase and purchase, when used in relation to goods, has a corresponding meaning.\n\nservices includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a right, benefit, privilege, service or facility that is, or is to be, provided under:\n\n(a) an arrangement for or in relation to:\n\n(i) the performance of work (including work of a professional nature), whether with or without the provision of property; or\n\n(ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or\n\n(iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or\n\n(b) a contract of insurance; or\n\n(c) an arrangement for or in relation to the lending of money.\n\nship means a vessel or boat of any description, and includes:\n\n(a) an air‑cushion vehicle; and\n\n(b) any floating structure.\n\nspecial excluded rental income, in relation to a company, in relation to a statutory accounting period, means income derived by the company in the statutory accounting period by way of rent, where:\n\n(a) the income was derived by the company from a CFC; and\n\n(b) at all times during the statutory accounting period when the income accrued:\n\n(i) the CFC was an associate of the company; and\n\n(ii) the company was a resident of a particular listed country or a particular unlisted country; and\n\n(iii) the CFC was also a resident of that listed country or that unlisted country, as the case may be; and\n\n(c) the income was taxed in that listed country or that unlisted country, as the case may be, at the country’s normal company tax rate (see section 325); and\n\n(d) the income would not have been, in whole or in part, a notional allowable deduction of the CFC if it were assumed that the CFC had failed to pass the active income test in relation to any statutory accounting period of the CFC.\n\nstatutory accounting period has the meaning given by section 319.\n\nsubject to tax has the meaning given by section 324.\n\ntainted asset, in relation to a company, means:\n\n(a) any of the following:\n\n(i) loans (including deposits with a bank or other financial institution);\n\n(ii) debenture stock, bonds, debentures, certificates of entitlement, bills of exchange, promissory notes or other securities;\n\n(iii) shares in a company;\n\n(iv) an interest in a trust or partnership;\n\n(v) futures contracts;\n\n(vi) forward contracts;\n\n(vii) interest rate swap contracts;\n\n(viii) currency swap contracts;\n\n(ix) forward exchange rate contracts;\n\n(x) forward interest rate contracts;\n\n(xi) life assurance policies;\n\n(xii) a right or option in respect of such a loan, security, share, interest, contract or policy;\n\n(xiii) any similar financial instrument; or\n\n(b) an asset that was held by the company solely or principally for the purpose of deriving tainted rental income; or\n\n(c) an asset other than:\n\n(i) trading stock; or\n\n(ii) any other asset used solely in carrying on a business;\n\nbut does not include a commodity investment.\n\ntainted commodity gain, in relation to a company, in relation to a statutory accounting period, means:\n\n(a) a gain realised by the company in the statutory accounting period from disposing of a tainted commodity investment; or\n\n(b) a capital gain that the company would have made in the statutory accounting period because CGT event J1 would have happened in relation to a tainted commodity investment, if the assumptions in paragraphs 383(a) to (c) applied.\n\nNote: Basically, the effect of those assumptions is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.\n\ntainted commodity investment, in relation to a company, means:\n\n(a) either of the following contracts:\n\n(i) a forward contract in respect of a commodity;\n\n(ii) a futures contract in respect of a commodity; or\n\n(b) a right or option in respect of such a contract;\n\nexcept where either of the following conditions is satisfied:\n\n(c) both of the following subparagraphs apply:\n\n(i) the company carries on:\n\n(A) a business of producing or processing the commodity; or\n\n(B) a business that involves the use of the commodity as a raw material in a production process;\n\n(ii) the contract, right or option relates to the carrying on of that business;\n\n(d) both of the following subparagraphs apply in relation to the contract:\n\n(i) the contract was entered into by the company for the sole purpose of eliminating or reducing the risk of adverse financial consequences that might result for the company, under another contract, from fluctuations in the price of the commodity;\n\n(ii) the company does not and will not derive tainted sales income from a transaction under that other contract.\n\ntainted commodity loss, in relation to a company, in relation to a statutory accounting period, means:\n\n(a) a loss realised by the company in the statutory accounting period from disposing of a tainted commodity investment; or\n\n(b) a capital loss that the company would have made in the statutory accounting period because CGT event J1 would have happened in relation to a tainted commodity investment, if the assumptions in paragraphs 383(a) to (c) applied.\n\nNote: Basically, the effect of those assumptions is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.\n\ntainted currency exchange gain, in relation to a company, in relation to a statutory accounting period, means a currency exchange gain realised by the company in the statutory accounting period except where the gain related to an active income transaction (within the meaning of section 439).\n\ntainted currency exchange loss, in relation to a company, in relation to a statutory accounting period, means a currency exchange loss realised by the company during the statutory accounting period except where the loss related to an active income transaction (within the meaning of section 439).\n\ntainted income ratio has the meaning given by section 433.\n\ntainted interest income, in relation to a company, means:\n\n(a) interest or a payment in the nature of interest; or\n\n(b) an amount that, if the company were a resident within the meaning of section 6, would be included in assessable income under Division 16E of Part III (or would be so included if Division 230 of the Income Tax Assessment Act 1997 did not apply); or\n\n(c) factoring income;\n\nbut does not include:","sortOrder":1000099},{"sectionNumber":"full-source-retrieval-0101","sectionType":"document_chunk","heading":"Document excerpt 101","content":"(d) income (being interest, fees, commission or other amounts) derived by a person in respect of offshore banking transfers of the person; or\n\n(e) income consisting of dividends or non‑share dividends paid to a person by a company out of profits derived from the making of offshore banking transfers.\n\ntainted rental income (other than special excluded rental income), in relation to a company, in relation to a statutory accounting period, means income derived by the company in the statutory accounting period by way of rent in respect of any of the following:\n\n(a) a lease to which an associate of the company was a party at the time the income was derived;\n\n(b) a lease where any or all of the rent was paid or given by an associate of the company;\n\n(c) a lease of land, except where the following conditions are satisfied:\n\n(i) the land is situated in a listed country or in an unlisted country;\n\n(ii) at all times during the period when the income accrued, the company was a resident of that country;\n\n(d) a lease of land where the following conditions are satisfied:\n\n(i) the land is situated in a listed country or in an unlisted country;\n\n(ii) at all times during the period when the income accrued, the company was a resident of that country;\n\n(iii) it is not the case that a substantial part of the income is attributable to the provision of labour‑intensive property management services in connection with the land, being services provided by directors or employees of the company;\n\n(e) a lease of either of the following:\n\n(i) a ship;\n\n(ii) an aircraft;\n\nexcept where a substantial part of the income is attributable to the provision by the directors or employees of the company of any of the following in relation to the ship or aircraft concerned:\n\n(iii) operating crew services;\n\n(iv) maintenance services;\n\n(v) management services;\n\n(f) a lease of either of the following:\n\n(i) a cargo container designed or intended for use on ships or aircraft as part of a containerised cargo handling system;\n\n(ii) plant or equipment designed or intended for use on board ships;\n\nexcept where a substantial part of the income is attributable to the provision by the directors or employees of the company of either of the following in relation to the container, plant or equipment concerned:\n\n(iii) maintenance services;\n\n(iv) management services.\n\ntainted royalty income, in relation to a company, means royalties derived by the company except where all of the following conditions are satisfied:\n\n(a) the royalties are derived in the course of a business carried on by the company;\n\n(b) at the time the royalties were derived, the entity liable to pay the royalties was not an associate of the company;\n\n(c) either of the following subparagraphs applies:\n\n(i) the matter or thing in respect of which the royalty is consideration originated with the company;\n\n(ii) the company has substantially developed, altered or improved that matter or thing with the result that its market value was substantially enhanced.\n\ntainted sales income has the meaning given by section 447.\n\ntainted services income has the meaning given by section 448.\n\ntax accounting period, in relation to an entity, in relation to a foreign tax imposed by a tax law of a listed country, means the accounting period used by the entity for the purposes of determining the tax base under that law.\n\ntax detriment has the meaning given by section 330.\n\ntax law, in relation to a listed country or an unlisted country, means:\n\n(a) if the listed country or the unlisted country has federal foreign tax and either or both of the following:\n\n(i) State foreign tax;\n\n(ii) municipal foreign tax;\n\nthe law of the listed country or the unlisted country that imposes the federal foreign tax; or\n\n(b) in any other case—the law of the listed country or the unlisted country that imposes foreign tax.\n\ntransitional finance share has the meaning given by section 327B.\n\ntransitional finance share dividend means a dividend in respect of a transitional finance share.\n\ntrust means:\n\n(a) an entity in the capacity of trustee (including an entity that manages a trust if there is no trustee); or\n\n(b) as the case requires, a trust or trust estate.\n\nunlisted country has the meaning given by section 320.\n\nwidely distributed finance share has the meaning given by section 327A.\n\nwidely distributed finance share dividend means a dividend in respect of a widely distributed finance share.\n\n(2) Where, if all offshore borrowings made by persons when they were offshore banking units were taken to be tax exempt loan money of the persons for the purposes of Division 11A of Part III, an offshore loan, or other transfer, of an amount by a person would, for the purposes of that Division, be an offshore loan, or other transfer, of tax exempt loan money of the person, the offshore loan, or other transfer, of the amount is an offshore banking transfer of the person for the purposes of the definition of tainted interest income.\n\n318  Associates\n\n(1) For the purposes of this Part, the following are associates of an entity (in this subsection called the primary entity) that is a natural person (otherwise than in the capacity of trustee):\n\n(a) a relative of the primary entity;\n\n(b) a partner of the primary entity or a partnership in which the primary entity is a partner;\n\n(c) if a partner of the primary entity is a natural person otherwise than in the capacity of trustee—the spouse or a child of that partner;\n\n(d) a trustee of a trust where the primary entity, or another entity that is an associate of the primary entity because of another paragraph of this subsection, benefits under the trust;\n\n(e) a company where:\n\n(i) the company is sufficiently influenced by:\n\n(A) the primary entity; or\n\n(B) another entity that is an associate of the primary entity because of another paragraph of this subsection; or\n\n(C) another company that is an associate of the primary entity because of another application of this paragraph; or\n\n(D) 2 or more entities covered by the preceding sub‑subparagraphs; or\n\n(ii) a majority voting interest in the company is held by:\n\n(A) the primary entity; or\n\n(B) the entities that are associates of the primary entity because of subparagraph (i) of this paragraph and the preceding paragraphs of this subsection; or\n\n(C) the primary entity and the entities that are associates of the primary entity because of subparagraph (i) of this paragraph and because of the preceding paragraphs of this subsection.\n\n(2) For the purposes of this Part, the following are associates of a company (in this subsection called the primary entity):\n\n(a) a partner of the primary entity or a partnership in which the primary entity is a partner;\n\n(b) if a partner of the primary entity is a natural person otherwise than in the capacity of trustee—the spouse or a child of that partner;\n\n(c) a trustee of a trust where the primary entity, or another entity that is an associate of the primary entity because of another paragraph of this subsection, benefits under the trust;\n\n(d) another entity (in this paragraph called the controlling entity) where:\n\n(i) the primary entity is sufficiently influenced by:\n\n(A) the controlling entity; or\n\n(B) the controlling entity and another entity or entities; or\n\n(ii) a majority voting interest in the primary entity is held by:\n\n(A) the controlling entity; or\n\n(B) the controlling entity and the entities that, if the controlling entity were the primary entity, would be associates of the controlling entity because of subsection (1), because of subparagraph (i) of this paragraph, because of another paragraph of this subsection or because of subsection (3);\n\n(e) another company (in this paragraph called the controlled company) where:\n\n(i) the controlled company is sufficiently influenced by:\n\n(A) the primary entity; or\n\n(B) another entity that is an associate of the primary entity because of another paragraph of this subsection; or\n\n(C) a company that is an associate of the primary entity because of another application of this paragraph; or\n\n(D) 2 or more entities covered by the preceding sub‑subparagraphs; or\n\n(ii) a majority voting interest in the controlled company is held by:\n\n(A) the primary entity; or\n\n(B) the entities that are associates of the primary entity because of subparagraph (i) of this paragraph and the other paragraphs of this subsection; or\n\n(C) the primary entity and the entities that are associates of the primary entity because of subparagraph (i) of this paragraph and the other paragraphs of this subsection;\n\n(f) any other entity that, if a third entity that is an associate of the primary entity because of paragraph (d) of this subsection were the primary entity, would be an associate of that third entity because of subsection (1), because of another paragraph of this subsection or because of subsection (3).\n\n(3) For the purposes of this Part, the following are associates of a trustee (in this subsection called the primary entity):\n\n(a) any entity that benefits under the trust;\n\n(b) if a natural person benefits under the trust—any entity that, if the natural person were the primary entity, would be an associate of that natural person because of subsection (1) or because of this subsection;\n\n(c) if a company is an associate of the primary entity because of paragraph (a) or (b) of this subsection—any entity that, if the company were the primary entity, would be an associate of the company because of subsection (2) or because of this subsection.\n\n(4) For the purposes of this Part, the following are associates of a partnership (in this subsection called the primary entity):\n\n(a) a partner in the partnership;\n\n(b) if a partner in the partnership is a natural person—any entity that, if that natural person were the primary entity, would be an associate of that natural person because of subsection (1) or (3);\n\n(c) if a partner in the partnership is a company—any entity that, if the company were the primary entity, would be an associate of the company because of subsection (2) or (3).\n\n(5) In determining, for the purposes of this section, whether an entity is an associate of another entity at a particular time (in this subsection called the test time):\n\n(a) an entity (in this subsection called the public unit trust entity) that, apart from this subsection, is the trustee of a public unit trust at the test time is to be treated as if it were a company instead of a trustee; and\n\n(b) the public unit trust entity is taken to be sufficiently influenced by another entity or other entities if the public unit trust entity is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the other entity or other entities (whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed companies, partnerships or trusts); and\n\n(c) another entity or other entities are taken to hold a majority voting interest in the public unit trust entity if either of the following percentages is not less than 50%:\n\n(i) the percentage of the income of the trust represented by the share of the income to which the other entity or other entities are entitled, or that the other entity or other entities are entitled to acquire;\n\n(ii) the percentage of the corpus of the trust represented by the share of the corpus to which the other entity or other entities are entitled, or that the other entity or other entities are entitled to acquire.\n\n(6) For the purposes of this section:\n\n(a) a reference to an entity benefiting under a trust is a reference to the entity benefiting, or being capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust, either directly or through any interposed companies, partnerships or trusts; and\n\n(b) a company is sufficiently influenced by an entity or entities if the company, or its directors, are accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the entity or entities (whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed companies, partnerships or trusts); and\n\n(c) an entity or entities hold a majority voting interest in a company if the entity or entities are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company.\n\n(7) In this section and any other provision of this Act that has effect for the purposes of this section, a reference to the spouse of a person does not include:\n\n(a) a spouse who is legally married to the person but living separately and apart from the person on a permanent basis; or\n\n(b) a spouse within the meaning of paragraph (a) of the definition of spouse in subsection 995‑1(1) of the Income Tax Assessment Act 1997 who is living separately and apart from the person on a permanent basis.\n\n319  Statutory accounting period of a company\n\n(1) Subject to this section, each period of 12 months finishing at the end of 30 June is a statutory accounting period of a company.\n\n(2) A company may, by notice in writing to the Commissioner, elect that a day (in this section called the new day) is to be the last day of its statutory accounting period instead of the day (in this section called the old day) that would otherwise apply under this section.\n\n(3) The new day must be:\n\n(a) if:\n\n(i) the company has not previously given a notice under this section; and\n\n(ii) the company regularly uses:\n\n(A) an accounting period of 12 months finishing at the end of a day other than 30 June for the purposes of complying with the requirements of a tax law of any country; or\n\n(B) an accounting period of 12 months finishing at the end of a day other than 30 June for the purposes of reporting to its shareholders;\n\neither of those days; or\n\n(b) if the company has previously given a notice under this section—30 June or either of the days that, but for the giving of the notice, would be applicable under paragraph (a).\n\n(4) Subject to any further application of subsection (2) and to subsections (4A) and (5):\n\n(a) the first statutory accounting period using the new day is the period that begins immediately after the end of the statutory accounting period (using the old day) during which the election was made; and\n\n(b) later statutory accounting periods are the successive periods of 12 months finishing at the end of the new day.\n\n(4A) Subject to subsection (5), if:\n\n(a) the election is made in the company’s statutory accounting period in which the company first became a CFC; and\n\n(b) the new day occurs after the election is made but before the old day;\n\nthen, subject to any further application of subsection (2):\n\n(c) that statutory accounting period finishes at the end of the new day; and\n\n(d) later statutory accounting periods are the successive periods of 12 months finishing at the end of the new day.\n\n(5) Where, when it makes the election, it is less than 12 months since the company was incorporated or otherwise established:\n\n(a) the reference in subparagraph (3)(a)(ii) to the company regularly using an accounting period is instead a reference to the company proposing to use the accounting period; and\n\n(b) subject to any further application of subsection (2):\n\n(i) the first statutory accounting period of the company is the period beginning at the time of incorporation or establishment and ending at the end of the new day; and\n\n(ii) later statutory accounting periods are the successive periods of 12 months finishing at the end of the new day.\n\n(6) If:\n\n(a) the company is a CFC at the beginning of what is, disregarding this subsection, a statutory accounting period; and\n\n(b) the company ceases to exist before the end of the statutory accounting period;\n\nthe statutory accounting period ends immediately before the company ceases to exist.\n\n(7) For the purposes of applying this section to a company, if:\n\n(a) the company is a CFC at a particular time; and\n\n(b) an entity is the only attributable taxpayer in relation to the company at that time; and\n\n(c) the entity’s attribution percentage in relation to the company is 100% at that time;\n\nthen, instead of a notice being given under subsection (2) by the company at that time, the notice may be given at that time by the entity.\n\n320  Listed countries and unlisted countries\n\n(1) In this Part:\n\nlisted country means a foreign country, or a part of a foreign country, that is declared by the regulations to be a listed country for the purposes of this Part.\n\nunlisted country means:\n\n(a) a foreign country that does not (either in whole or in part) consist of a listed country or listed countries; or\n\n(b) if one or more parts of a foreign country are listed countries—the remainder of that foreign country.\n\n(2) Subject to this section, for the purposes of this section, if, apart from this section:\n\n(a) a colony, overseas territory or protectorate of a foreign country; or\n\n(b) an overseas territory for the international relations of which a foreign country is responsible;\n\nis not a foreign country in its own right, the colony, territory or protectorate is taken to be a foreign country in its own right.\n\n(3) Subject to subsection (4), for the purposes of this section, if, apart from this subsection and subsection (4), there are 2 or more foreign countries with a common income tax system, those countries are to be treated as the same country.","sortOrder":1000100},{"sectionNumber":"full-source-retrieval-0102","sectionType":"document_chunk","heading":"Document excerpt 102","content":"(4) For the purposes of this section, if, apart from this subsection, one or more parts of a particular foreign country are excluded (either expressly or by implication) from the operation of a double tax agreement in force in relation to the foreign country, the part or parts so excluded are to be taken to constitute a separate foreign country.\n\n321  Each listed country and each unlisted country to be treated as a separate foreign country\n\nFor the purposes of the application of section 6AB to this Part, each listed country and each unlisted country is to be treated as a separate foreign country.\n\n322  Meaning of entitled to acquire\n\nFor the purposes of this Part, an entity is entitled to acquire anything that the entity is absolutely or contingently entitled to acquire, whether because of any constituent document of a company, the exercise of any right or option or for any other reason.\n\n323  State foreign taxes may be treated as federal foreign taxes\n\nIf, apart from this section, a listed country or an unlisted country has both:\n\n(a) federal foreign tax; and\n\n(b) State foreign tax;\n\nthe regulations may provide that a specified State foreign tax is to be treated, for the purposes of this Part, as if it were an additional federal foreign tax of the listed country or the unlisted country.\n\n324  When income or profits subject to tax in a listed country\n\n(1) Subject to this section, for the purposes of this Part, a particular item of income or profits derived by an entity is taken to be subject to tax in a listed country in a particular tax accounting period if, and only if, foreign tax (other than a withholding‑type tax) is payable under a tax law of the listed country in respect of the item because the item is included in the tax base of that law for the tax accounting period.\n\n(2) If:\n\n(a) apart from this subsection and subsections (3) and (4), a particular item of income or profits derived by an entity is not subject to tax in a listed country in a particular tax accounting period; and\n\n(b) apart from a feature of a kind specified in the regulations, the item would have been subject to tax in the listed country in the tax accounting period;\n\nthe regulations may provide that the item is to be treated, for the purposes of this Part or one or more specified provisions of this Part, as if it were subject to tax in the listed country in the tax accounting period.\n\n(3) Where:\n\n(a) an entity becomes a resident of a particular listed country (in this section called the current listed country) at a particular time (in this section called the residence‑change time); and\n\n(b) the entity owns an asset at the residence‑change time; and\n\n(c) the entity disposes of the asset while a resident of the current listed country;\n\nthen, for the purposes of this Part:\n\n(d) if, apart from this paragraph, the only part of a capital gain on the disposal of the asset that is subject to tax in the listed country is the part that relates to the period after the residence‑change time—the whole of the capital gain, whether it relates to the period before or after the residence‑change time, is, subject to subsection (4), taken to be subject to tax in the current listed country; and\n\n(e) subsection (4) applies.\n\n(4) Where:\n\n(a) a capital gain on the disposal of the asset would, apart from this subsection and whether or not paragraph (3)(d) applies, be subject to tax in the current listed country; and\n\n(b) at a time or times when it owned the asset before the residence‑change time (but disregarding any time or times before a change of residence from an unlisted country to a listed country), the entity was a resident of one or more listed countries (each of which is in this subsection called a  previous listed country); and\n\n(c) if the entity had disposed of the asset when it ceased to be a resident of a particular previous listed country (in this subsection called the non‑taxing listed country), any capital gain on the disposal would not have been subject to tax in that country; and\n\n(d) if the entity had disposed of the asset when it ceased to be a resident of another previous listed country after the non‑taxing listed country, any capital gain on the disposal would not have been subject to tax in that other previous listed country to the extent that it relates to the period of residence by the entity in the non‑taxing listed country;\n\nthen, for the purposes of this Part, so much of the gain as relates to the period of residence in the non‑taxing listed country is taken not to be subject to tax in the current listed country.\n\nNote: Section 830‑75 of the Income Tax Assessment Act 1997 sets out additional circumstances, relating to entities that are foreign hybrids, in which a gain or profit is subject to tax in a listed country.\n\n(5) For the purposes of this section, treat foreign GloBE tax (within the meaning of the Income Tax Assessment Act 1997) as not being foreign tax.\n\n325  When dividends etc. taxed in a country at normal company tax rate\n\n(1) For the purposes of this Part, a dividend or other amount of a particular kind is to be taken to be taxed in a listed country at the country’s normal company tax rate if, and only if:\n\n(a) foreign tax is payable under a tax law of the listed country in respect of the dividend or the other amount of a particular kind at the same rate as, or a higher rate than, is payable under the tax law in respect of non‑dividend income, or non‑dividend amounts not of that particular kind, as the case may be, included in the tax base of a company that is a resident of the listed country; and\n\n(b) the tax law of the listed country does not provide for any credit, rebate or other tax concession in respect of the dividend or the other amount of a particular kind, other than for foreign tax payable under a tax law of a different listed or an unlisted country.\n\n(2) For the purposes of this Part, a dividend or other amount of a particular kind is taken to be taxed in an unlisted country at the country’s normal tax rate if, and only if:\n\n(a) foreign tax is payable under a tax law of the unlisted country in respect of the dividend or the other amount of a particular kind at the same rate as, or a higher rate than, is payable under the tax law in respect of non‑dividend income, or non‑dividend amounts not of that particular kind, as the case may be, included in the tax base of a company that is a resident of the unlisted country; and\n\n(b) the tax law of the unlisted country does not provide for any credit, rebate or other tax concession in respect of the dividend or the other amount of a particular kind, other than for foreign tax payable under a tax law of a different unlisted or a listed country.\n\n(3) For the purposes of this section, treat foreign GloBE tax (within the meaning of the Income Tax Assessment Act 1997) as not being foreign tax.\n\n326  AFI subsidiary\n\n(1) For the purposes of this Part, a company is an AFI subsidiary (or an Australian financial institution subsidiary) at a particular time if either of the following paragraphs applies:\n\n(a) at that time, there is a group of 5 or fewer AFI entities the aggregate of whose direct control interests and indirect control interests in the company is not less than 50%;\n\n(b) both of the following subparagraphs apply:\n\n(i) at that time, there is a single AFI entity (in this paragraph called the assumed controller) the aggregate of whose direct control interests and indirect control interests in the company is not less than 40%;\n\n(ii) at that time, the company is not controlled by a group of entities not being or including the assumed controller or any of its associates.\n\n(2) A reference in this section to an AFI entity is a reference to:\n\n(a) a company that is an AFI; or\n\n(b) a 100% subsidiary of such a company.\n\n(3) For the purposes of this section, a company (in this subsection called the subsidiary company) is taken to be the 100% subsidiary of another company (in this subsection called the holding company) at a particular time if:\n\n(a) at that time, all the shares in the subsidiary company were beneficially owned by:\n\n(i) the holding company; or\n\n(ii) a company that is, or 2 or more companies each of which is, a 100% subsidiary of the holding company; or\n\n(iii) the holding company and a company that is, or 2 or more companies each of which is, a 100% subsidiary of the holding company; and\n\n(b) there was no agreement, arrangement or understanding in force at that time by virtue of which any person was in a position, or would be in a position after that time, to affect rights of the holding company or of a 100% subsidiary of the holding company in relation to the subsidiary company.\n\n(4) For the purposes of this section, where a company is a 100% subsidiary of another company (including a company that is such a 100% subsidiary by virtue of another application or other applications of this subsection), every company that is a 100% subsidiary of the first‑mentioned company is taken to be a 100% subsidiary of that other company.\n\n(5) For the purposes of subsection (3), a person is taken to be in a position at a particular time to affect any rights of a company in relation to another company if, at that time, that person has a right, power or option (whether by virtue of any provision of the constituent document of either of those companies or by virtue of any agreement or instrument or otherwise) to acquire those rights or do an act or thing that would prevent the first‑mentioned company from exercising those rights for its own benefit or receiving any benefits accruing by reason of those rights.\n\n327  Eligible finance shares\n\nFor the purposes of this Part, a share in a company is an eligible finance share if all the following conditions are satisfied:\n\n(a) the shareholder is an AFI or an AFI subsidiary;\n\n(b) the share was issued to the shareholder by the company in the ordinary course of business carried on by the shareholder;\n\n(c) the shareholder is not an associate of the company;\n\n(d) having regard to:\n\n(i) the manner in which the amount of dividends in respect of the share are to be calculated; and\n\n(ii) the conditions applicable to the payment of dividends in respect of the share; and\n\n(iii) any other relevant matters;\n\nthe payment of the dividends in respect of the share may reasonably be regarded as equivalent to the payment of interest on a loan where the interest accrues at intervals not exceeding 12 months and is paid not later than 12 months after it accrues.\n\n327A  Widely distributed finance shares\n\nMeaning of widely distributed finance shares\n\n(1) For the purposes of this Part, a share in a company is a widely distributed finance share if both:\n\n(a) either:\n\n(i) the company is an eligible listed company; or\n\n(ii) the aggregate of the eligible share interests in the company held by an eligible listed company is 90% or more; and\n\n(b) the share is a recognised finance share.\n\nExtended meaning of widely distributed finance shares—funding of transitional finance shares\n\n(1A) For the purposes of this Part, if:\n\n(a) apart from this subsection, shares (in this subsection called the test shares) in a company are not widely distributed finance shares; and\n\n(b) as a result of the operation of subsection 327B(3) in relation to the shares:\n\n(i) the shares are taken to be widely distributed finance shares for the purposes of section 327B; and\n\n(ii) shares in another company are transitional finance shares;\n\nthe test shares are taken to be, and to have been, widely distributed finance shares.\n\nMeaning of eligible listed company\n\n(2) For the purposes of this section, a company is an eligible listed company at a particular time during a statutory accounting period of the company if:\n\n(a) shares in the company (other than shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) are listed for quotation in the official list of a stock exchange in Australia or elsewhere; and\n\n(b) none of the following subparagraphs apply:\n\n(i) at any time during the statutory accounting period, a single entity, or less than 21 entities, held, or were entitled to acquire, 75% or more of the paid‑up share capital of the company (other than capital represented by shares entitled to a fixed rate of dividend only);\n\n(ii) at any time during the statutory accounting period, a single entity, or less than 21 entities held, or were entitled to acquire, 75% or more of the total rights (other than rights arising in respect of shares entitled to a fixed rate of dividend only) of shareholders to vote, or participate in any decision‑making, concerning any of the following:\n\n(A) the making of distributions of capital or profits of the company to its shareholders;\n\n(B) the constituent document of the company;\n\n(C) any variation of the share capital of the company;\n\n(iii) 75% or more of the total amount of all of the dividends paid by the company (other than dividends paid in respect of shares entitled to a fixed rate of dividend only) during the statutory accounting period was paid to a single entity or to less than 21 entities;\n\n(iv) dividends (other than dividends paid in respect of shares entitled to a fixed rate of dividend only) were not paid by the company during the statutory accounting period but it would be concluded that, if such dividends had been paid by the company during the statutory accounting period, 75% or more of those dividends would have been paid to a single entity or to less than 21 entities.\n\nMeaning of recognised finance shares\n\n(3) For the purposes of this section, shares in a company are recognised finance shares if all the following conditions are satisfied:\n\n(a) the shareholder is not an associate of the company;\n\n(b) having regard to:\n\n(i) the manner in which the amount of dividends in respect of the shares are to be calculated; and\n\n(ii) the conditions applicable to the payment of dividends in respect of the shares; and\n\n(iii) any other relevant matters;\n\nthe payment of the dividends in respect of the shares may reasonably be regarded as equivalent to the payment of interest on a loan;\n\n(c) having regard to:\n\n(i) the arrangements under which the shares were offered for subscription; and\n\n(ii) the ordinary business practices of brokers, agents, underwriters or other persons who took part in the arrangements for the issue of the shares; and\n\n(iii) the arrangements that were made for dealing with applications that were made for subscription of the shares; and\n\n(iv) any circumstances indicating the existence, at the time of the issue of the shares, of any arrangement for any of the shares to be offered for subscription, or purchased after subscription, by entities connected:\n\n(A) with each other; or\n\n(B) with the company issuing the shares; or\n\n(C) with a person by whom the amounts raised by the subscription, or amounts derived directly or indirectly from those amounts, were intended to be used;\n\nit is reasonable to regard the shares as having been issued with a view to public subscription or purchase or other wide distribution among investors.\n\nMeaning of eligible share interest\n\n(4) For the purposes of this section, a person holds an eligible share interest in a company at a particular time equal to the percentage of the company’s total paid‑up share capital (excluding recognised finance shares) beneficially owned by the person at that time.\n\nExtended meaning of eligible share interest: tiers of companies\n\n(5) For the purposes of this section, if:\n\n(a) a person holds an eligible share interest (including an eligible share interest that is taken to be held because of one or more previous applications of this subsection) in a company (in this subsection called the first level company); and\n\n(b) the first level company holds an eligible share interest in another company (in this subsection called the second level company);\n\nthe person is taken to hold an eligible share interest in the second level company equal to the percentage calculated using the formula:\n\n![Start formula First level percentage times Second level percentage end formula](image.002.png)\n\nwhere:\n\nFirst level percentage means the percentage of the eligible share interest held by the person in the first level company.\n\nSecond level percentage means the percentage of the eligible share interest held by the first level company in the second level company.\n\nDefinitions\n\n(6) In this section:\n\neligible listed company has the meaning given by subsection (2).\n\neligible share interest  has the meaning given by subsections (4) and (5).\n\nrecognised finance share has the meaning given by subsection (3).\n\n327B  Transitional finance shares\n\nMeaning of transitional finance shares\n\n(1) For the purposes of this Part, shares (in this subsection called the test shares) in a company (in this subsection called the second company) are transitional finance shares at a particular time (in this subsection called the test time) if all of the following conditions are satisfied:\n\n(a) the test time is before 1 July 1998;\n\n(b) the test shares are finance shares;\n\n(c) during a period (in this subsection called the primary issue period) ending before the IP time, another company (in this subsection called the first company) issued widely distributed finance shares;\n\n(d) the issue of the widely distributed finance shares comprised the whole of a common issue of shares by the first company;\n\n(e) the issue of the test shares comprised the whole of a common issue of shares by the second company;\n\n(f) the test shares were simultaneously issued to the first company by the second company at, or within a reasonable time after, the end of the primary issue period;\n\n(g) the widely distributed finance shares were issued by the first company for the sole purpose of funding the first company’s acquisition of the test shares;","sortOrder":1000101},{"sectionNumber":"full-source-retrieval-0103","sectionType":"document_chunk","heading":"Document excerpt 103","content":"(h) assuming that the test shares had been issued at the end of the primary issue period, the following conditions would have been satisfied at all times during the period commencing at the end of the primary issue period and ending at the test time:\n\n(i) the rights and obligations relating to the widely distributed finance shares are substantially similar to the rights and obligations relating to the test shares;\n\n(ii) the first company and the second company are under common ownership;\n\n(i) if, on the assumption that the dividends in respect of the test shares were instead payments of the interest, referred to in subsection (2), to which they may reasonably be regarded as equivalent, the following conditions would have been satisfied in relation to that interest:\n\n(i) the interest that accrued during the 24‑month period ending at the test time accrued at intervals not exceeding 12 months;\n\n(ii) the interest that accrued during the 12‑month period commencing 24 months before the test time was paid not later than 12 months after it accrued;\n\n(iii) the dividends paid in respect of the widely distributed finance shares during the 12‑month period ending at the test time are wholly attributable to the interest that accrued during the 12‑month period ending at the time the dividends were paid;\n\n(iv) the total amount of dividends paid in respect of the widely distributed finance shares during the 12‑month period ending at the test time is equal to, or approximately equal to, the total amount of interest to which the dividends are attributable.\n\nMeaning of finance shares\n\n(2) For the purposes of this section, shares in a company are finance shares if, and only if, having regard to:\n\n(a) the manner in which the amount of dividends in respect of the shares was to be calculated; and\n\n(b) the conditions applicable to the payment of dividends in respect of the shares; and\n\n(c) any other relevant matters;\n\nthe payment of the dividends in respect of the shares may reasonably be regarded as equivalent to the payment of interest on a loan.\n\nModification of widely distributed finance shares\n\n(3) For the purposes of this section, in determining whether shares are widely distributed finance shares, if an asset is held by an entity as trustee for another entity who is absolutely entitled to the asset against the trustee, paragraph 327A(2)(b) has effect as if:\n\n(a) the asset were vested in the other entity instead of the trustee; and\n\n(b) if the asset is a share—any dividends paid in respect of the share were paid to the other entity instead of to the trustee.\n\nMeaning of under common ownership\n\n(4) For the purposes of this section, 2 companies are under common ownership at a particular time if, and only if:\n\n(a) another company (in this subsection called the third company) holds eligible share interests in each of the companies; and\n\n(b) the aggregate of the eligible share interests in each company held by the third company is 90% or more.\n\nMeaning of eligible share interest\n\n(5) For the purposes of this section, a person holds an eligible share interest in a company at a particular time equal to the percentage of the company’s total paid‑up share capital (excluding finance shares) beneficially owned by the person at that time.\n\nExtended meaning of eligible share interest: tiers of companies\n\n(6) For the purposes of this section, if:\n\n(a) a person holds an eligible share interest (including an eligible share interest that is taken to be held because of one or more previous applications of this subsection) in a company (in this subsection called the first level company); and\n\n(b) the first level company holds an eligible share interest in another company (in this subsection called the second level company);\n\nthe person is taken to hold an eligible share interest in the second level company equal to the percentage calculated using the formula:\n\n![Start formula First level percentage times Second level percentage end formula](image.003.png)\n\nwhere:\n\nFirst level percentage means the percentage of the eligible share interest held by the person in the first level company.\n\nSecond level percentage means the percentage of the eligible share interest held by the first level company in the second level company.\n\nDefinitions\n\n(7) In this section:\n\neligible share interest has the meaning given by subsections (5) and (6).\n\nfinance share has the meaning given by subsection (2).\n\nunder common ownership has the meaning given by subsection (4).\n\nwidely distributed finance share has a meaning affected by subsection (3).\n\n328  Non‑resident family trusts\n\n(1) Subject to subsections (4) and (5), for the purposes of this Part, a trust is a non‑resident family trust in relation to a natural person at a particular time if, and only if, at that time:\n\n(a) the trust is either:\n\n(i) a post‑marital or post‑relationship family trust in relation to the natural person; or\n\n(ii) a family relief trust in relation to the natural person; and\n\n(b) the trust is constituted by:\n\n(i) a deed of trust or other instrument; or\n\n(ii) an order or declaration of a court.\n\n(2) For the purposes of this section, a trust is a post‑marital or post‑relationship family trust in relation to a natural person at a particular time if:\n\n(a) either of the following conditions is satisfied:\n\n(i) the trust was created pursuant to:\n\n(A) a decree or order of dissolution or annulment of marriage, being a dissolution or annulment that, because of the Family Law Act 1975, has effect, or continues to have effect in Australia or is recognised as valid in Australia; or\n\n(B) a decree or order of judicial separation or a similar decree or order;\n\n(ii) the trust was created in consequence of the break‑down of a de facto relationship; and\n\n(b) at that time, the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust (which persons are in subsections (4) and (5) called the primary potential beneficiaries) are natural persons who:\n\n(i) are not Part X Australian residents at that time; and\n\n(ii) are covered by any of the following categories:\n\n(A) the spouse or former spouse of the natural person;\n\n(B) a child of the natural person;\n\n(C) a child of the former spouse of the natural person, being a child who was such a child at a time when the former spouse was the spouse of the natural person;\n\n(D) a child of the spouse of the natural person.\n\n(3) For the purposes of this section, a trust is a family relief trust in relation to a natural person at a particular time (in this subsection called the test time) if:\n\n(a) the only persons who benefit, or are capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust (which persons are in subsections (4) and (5) called the primary potential beneficiaries) are natural persons who:\n\n(i) are identified by name in the trust deed or instrument, or in the court order or declaration, constituting the trust; and\n\n(ii) are not Part X Australian residents at that time; and\n\n(iii) are covered by any of the following categories:\n\n(A) the spouse or former spouse of the natural person;\n\n(B) a parent of the natural person or of the natural person’s spouse or former spouse;\n\n(C) a child of the natural person or of the natural person’s spouse or former spouse;\n\n(D) a grandparent of the natural person;\n\n(E) a grandchild of the natural person;\n\n(F) a brother or sister of the natural person or of the natural person’s spouse or former spouse;\n\n(G) a child of a brother or sister mentioned in sub‑subparagraph (F); and\n\n(b) the trust was established, and is operated, for the relief of persons who are in necessitous circumstances; and\n\n(c) any of the following conditions is satisfied:\n\n(i) at the test time, the assets of the trust are not excessive having regard to the requirements, or likely requirements, of the primary potential beneficiaries;\n\n(ii) no transfers of property or services to the trust were made during the period (in this paragraph called the test period) commencing at the IP time and ending at the test time;\n\n(iii) immediately after each transfer of property or services to the trust made during the test period, the assets of the trust were not excessive having regard to the requirements, or likely requirements, of the beneficiaries at the time of the transfer.\n\nNote: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining relationships for the purposes of subparagraph (3)(a)(iii).\n\n(4) Subsection (1) does not prevent a trust from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of a particular primary potential beneficiary at that time, one or more natural persons (which persons are in subsection (5) called the secondary potential beneficiaries) who:\n\n(a) are not Part X Australian residents at that time; and\n\n(b) are children of the primary potential beneficiary;\n\nwould benefit, or be capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.\n\n(5) Subsections (1) and (4) do not prevent a trust from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of all of the primary potential beneficiaries and all of the secondary potential beneficiaries at that time, there are one or more deductible gift recipients covered by an item in any of the tables in Subdivision 30‑B of the Income Tax Assessment Act 1997, or item 2 of the table in section 30‑15 of that Act, that would benefit, or be capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.\n\n(6) For the purposes of this section, if, at a particular time, an entity holds an interest in, or right to benefit under, a trust that is dependent on the death of one or more natural persons, then, the entity is taken to be an entity who, in the event of the death of that natural person or those natural persons immediately after that time, would benefit under the trust.\n\n(7) A reference in this section to a natural person does not include a reference to a natural person in the capacity of a trustee.\n\n329  Public unit trusts\n\nFor the purposes of this Part, a unit trust is a public unit trust at a particular time if, assuming that the 12 month period ending at that time had been a year of income, the unit trust would have been a public unit trust at all times during the year of income for the purposes of Division 6AAA of Part III.\n\n330  Tax detriment\n\n(1) For the purposes of this Part, each of the following is a tax detriment to a partner in a partnership:\n\n(a) an increase in an amount included under section 92 in the partner’s assessable income in respect of an interest in the net income of the partnership;\n\n(b) a reduction in an amount allowable under section 92 as a deduction to the partner in respect of the partner’s interest in a partnership loss of the partnership;\n\n(c) a combination of such a reduction to nil and such an increase.\n\n(2) For the purposes of this Part, an increase in an amount included under section 97, 98A or 100 in the assessable income of a beneficiary in respect of a share of the net income of a trust is a tax detriment to the beneficiary.\n\n(3) For the purposes of this Part, an increase (including from nil) in an amount assessable to a trustee under section 98 in respect of a beneficiary’s share of, or under section 99 or 99A in respect of the whole or a part of, the net income of a trust is a tax detriment to the trustee.\n\n(4) The amount of the tax detriment is equal to the amount of the increase or reduction or, where paragraph (1)(c) applies, the sum of the amounts of the reduction and increase.\n\n331  Company deemed to be treated as a resident of a listed country or an unlisted country for the purposes of the tax law of that country\n\nIf the tax law of a listed country or an unlisted country adopts some criterion other than treatment as a resident as the criterion for applying a worldwide source tax base to a company, then, sections 332, 332A and 333 have effect, in relation to that tax law, as if that criterion were the same as treatment as a resident of the listed country or the unlisted country for the purposes of that tax law.\n\n332  Companies that are residents of listed countries\n\n(1) For the purposes of this Part, a company is a resident of a listed country at a particular time if, and only if, the company is, in accordance with subsection (2), a resident of a particular listed country at that time.\n\n(2) For the purposes of this Part, a company is a resident of a particular listed country at a particular time if, and only if, both of the following conditions are satisfied at that time:\n\n(a) the company is not a Part X Australian resident;\n\n(b) the company is treated as a resident of the listed country for the purposes of the tax law of the listed country.\n\n333  Companies that are residents of unlisted countries\n\n(1) For the purposes of this Part, a company is a resident of an unlisted country at a particular time if, and only if:\n\n(a) the company is, in accordance with subsection (2), a resident of a particular unlisted country at that time; or\n\n(b) paragraph (a) does not apply and the company is at that time neither:\n\n(i) a Part X Australian resident; nor\n\n(ii) a resident of a particular listed country.\n\n(2) For the purposes of this Part, a company is a resident of a particular unlisted country (in this section called the unlisted country of residence) at a particular time if, and only if:\n\n(a) the company is not a Part X Australian resident at that time; and\n\n(b) the company is not treated as a resident of a listed country at that time for the purposes of the tax law of the listed country; and\n\n(c) any of the following subparagraphs applies:\n\n(i) both of the following conditions are satisfied at that time:\n\n(A) the company is treated as a resident of the unlisted country of residence for the purposes of the tax law of the unlisted country of residence;\n\n(B) the company is not treated as a resident of any other unlisted country for the purposes of the tax law of the unlisted country;\n\n(ii) both of the following conditions are satisfied at that time:\n\n(A) the company is treated as a resident of the unlisted country of residence and at least one other unlisted country for the purposes of the tax laws of each of those unlisted countries;\n\n(B) the company is incorporated in the unlisted country of residence;\n\n(iii) both of the following conditions are satisfied at that time:\n\n(A) the company is not treated as a resident of any unlisted country for the purposes of the tax law of the unlisted country;\n\n(B) the company’s management and control is solely or principally located in the unlisted country of residence.\n\n(iv) all of the following conditions are satisfied at that time:\n\n(A) the company is not treated as a resident of any unlisted country for the purposes of the tax law of the unlisted country;\n\n(B) the company’s management and control is not solely or principally located in the unlisted country of residence;\n\n(C) the company is incorporated in the unlisted country of residence.\n\n334A  Voting interests in companies\n\n(1) For the purposes of this section, a company is taken to have a voting interest in another company if:\n\n(a) the first‑mentioned company is the beneficial owner of shares (other than eligible finance shares or widely distributed finance shares) in the other company that carry the right to exercise any of the voting power in the other company; and\n\n(b) there is no arrangement in force at the relevant time by virtue of which any person is in a position, or may become in a position, to affect that right;\n\nand the extent of the voting interest is taken to be the total number of votes that, by virtue of that right, can be cast on a poll at, or arising out of, a general meeting of the other company as regards all questions that could be submitted to such a poll.\n\n(2) For the purposes of paragraph (1)(b), a person is taken to be in a position to affect a right of a company if that person has a right, power or option (whether by virtue of any provision in the constituent document of any company or by virtue of any agreement or instrument or otherwise) to acquire that right or do an act or thing that would prevent the first‑mentioned company from exercising that right or receiving any benefits accruing by reason of that right.\n\n(3) Despite paragraph (1)(b) and subsection (2), in determining for the purposes of this section:\n\n(a) whether a company has a voting interest in another company; and\n\n(b) the extent of that interest;\n\nany appointment of a liquidator in respect of the other company is to be disregarded.\n\n(4) For the purposes of this section, the voting power in a company is the maximum number of votes that can be cast on a poll at, or arising out of, a general meeting of a company as regards all questions that can be submitted to such a poll.\n\n(5) In this section, arrangement includes:\n\n(a) any agreement, arrangement, understanding, promise or undertaking, whether expressed or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and\n\n(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.\n\n335  References extend to pre‑commencement matters and things\n\nUnless otherwise expressly provided, references in this Part are to matters and things whether occurring before or after the commencement of this Part.\n\nDivision 2—Types of entity\n\nSubdivision A—Australian entities\n\n336  Australian entity\n\nFor the purposes of this Part, each of the following is an Australian entity:\n\n(a) an Australian partnership;\n\n(b) an Australian trust;\n\n(c) an entity (other than a partnership or trust) that is a Part X Australian resident.\n\n337  Australian partnership","sortOrder":1000102},{"sectionNumber":"full-source-retrieval-0104","sectionType":"document_chunk","heading":"Document excerpt 104","content":"For the purposes of this Part, a partnership is an Australian partnership at a particular time if at least one of the partners is an Australian entity at that time.\n\n338  Australian trust\n\nFor the purposes of this Part, a trust is an Australian trust at a particular time (in this section called the test time) if:\n\n(a) at any time in the period of 12 months immediately before the test time:\n\n(i) any trustee of the trust was a Part X Australian resident; or\n\n(ii) the central management and control of the trust was in Australia; or\n\n(b) the trust is a public trading trust for the purposes of Division 6C of Part III, in relation to the year of income of the trust in which the test time occurs.\n\nSubdivision B—Controlled foreign entities (CFEs)\n\n339  Controlled foreign entity (CFE)\n\nEach of the following is a CFE (or controlled foreign entity):\n\n(a) a CFC (or controlled foreign company);\n\n(b) a CFP (or controlled foreign partnership);\n\n(c) a CFT (or controlled foreign trust).\n\n340  Controlled foreign company (CFC)\n\nA company is a CFC at a particular time if, at that time, the company is a resident of a listed country or of an unlisted country and any of the following paragraphs applies:\n\n(a) at that time, there is a group of 5 or fewer Australian 1% entities the aggregate of whose associate‑inclusive control interests in the company is not less than 50%;\n\n(b) both of the following subparagraphs apply:\n\n(i) at that time, there is a single Australian entity (in this paragraph called the assumed controller) whose associate‑inclusive control interest in the company is not less than 40%;\n\n(ii) at that time, the company is not controlled by a group of entities not being or including the assumed controller or any of its associates;\n\n(c) at that time, the company is controlled by a group of 5 or fewer Australian entities, either alone or together with associates (whether or not any associate is also an Australian entity).\n\n341  Controlled foreign partnership (CFP)\n\nA partnership is a CFP at a particular time if:\n\n(a) the partnership is not an Australian partnership at that time; and\n\n(b) at least one of the partners is a CFE at that time.\n\n342  Controlled foreign trust (CFT)\n\nA trust is a CFT at a particular time if, at that time, the trust is not an Australian trust and:\n\n(a) there is an eligible transferor in respect of the trust; or\n\n(b) there is a group of 5 or fewer Australian 1% entities the aggregate of whose associate‑inclusive control interests in the trust is not less than 50%.\n\nSubdivision C—Eligible transferors in relation to trusts\n\n343  Interpretation\n\nIn this Subdivision, unless the contrary intention appears:\n\nactual transfer, in relation to property or services, means a transfer of the property or services other than a transfer that is taken to have been made because of subsection 345(1), (2), (5), (6), (8), (10) or (11).\n\nproperty includes money.\n\nscheme has the same meaning as in Division 6AAA of Part III.\n\nservices has the same meaning as in Division 6AAA of Part III.\n\ntransfer has the same meaning as in Division 6AAA of Part III.\n\nunderlying transfer, in relation to a transfer of property or services to a trust, means:\n\n(a) if that transfer was an actual transfer—the actual transfer; or\n\n(b) if that transfer was taken to have been made because of subsection 345(1)—the actual transfer referred to in that subsection; or\n\n(c) if that transfer was taken to have been made because of subsection 345(2)—the actual transfer referred to in paragraph 345(2)(d); or\n\n(d) if that transfer was taken to have been made because of subsection 345(5)—the actual transfer referred to in paragraph 345(5)(b); or\n\n(e) if that transfer was taken to have been made because of the application of subsection 345(6) or (8) to an actual transfer—the actual transfer; or\n\n(f) if that transfer was taken to have been made because of the application of subsection 345(6) or (8) to a transfer that was taken to have been made because of subsection 345(1)—the actual transfer referred to in subsection 345(1); or\n\n(g) if that transfer was taken to have been made because of the application of subsection 345(6) or (8) to a transfer that was taken to have been made because of subsection 345(5)—the actual transfer referred to in paragraph 345(5)(b); or\n\n(h) if that transfer was taken to have been made because of subsection 345(10)—the actual transfer referred to in paragraph 345(10)(b); or\n\n(j) if that transfer was taken to have been made because of one or more applications of subsection 345(11) to an actual transfer—the actual transfer; or\n\n(k) if that transfer was taken to have been made because of one or more applications of subsection 345(11) to a transfer (in this paragraph called the deemed transfer) that was taken to have been made because of subsection 345(1), (2), (5), (6), (8) or (10)—the actual transfer that, under a preceding paragraph of this definition, is the underlying transfer in relation to the deemed transfer.\n\n344  References to transfer of property or services\n\n(1) A reference in this Subdivision to the transfer of property or services to a trust includes a reference to the transfer of property or services by way of the creation of the trust.\n\n(2) For the purposes of this Subdivision, where an entity acquires property that did not previously exist, the property is taken to have existed immediately before the acquisition and to have been acquired from the entity who created the property.\n\n(3) For the purposes of this Subdivision, property or services are to be taken to have been transferred to an entity if the property or services have been applied for the benefit of, or in accordance with the directions of, the entity.\n\n(4) Without limiting the generality of subsection (3), a reference in that subsection to the application of property or services for the benefit of an entity includes a reference to the application of property or services in the discharge, in whole or in part, of a debt due by the entity.\n\n(5) A reference in this Subdivision to a transfer of property or services to an entity includes a reference to a transfer made before the commencement of this Subdivision.\n\n(6) A reference in this Subdivision to the transfer of property or services to a trust does not include a reference to a transfer made by the trustee of the estate of a deceased person under:\n\n(a) the terms of the deceased person’s will or codicil; or\n\n(b) an order of a court that varied or modified the provisions of a deceased person’s will or codicil;\n\nunless:\n\n(c) the transfer was made in or as a result of the exercise (by the trustee or any other person) of a power of appointment or any other discretion; or\n\n(d) under subsection 345(1), the property or services are taken to have been transferred by an entity other than the trustee, instead of by the trustee; or\n\n(e) under subsection 345(5), the Commissioner treats the property or services as having been (to any extent) transferred by an entity other than the trustee, instead of by the trustee.\n\n345  Deemed transfers of property or services\n\n(1) For the purposes of this Subdivision, where an entity (in this subsection called the prime entity) causes another entity to actually transfer property or services to a trust, the prime entity (instead of the other entity) is to be taken to have transferred the property or services to the trust.\n\n(2) For the purposes of this Subdivision, where:\n\n(a) the trustee of a trust issues units in the trust to an entity (in this subsection called the first entity) in the first entity’s capacity as a manager, underwriter or dealer in relation to the marketing or placement of the units; and\n\n(b) in the course of the marketing or placement of the units, the units are disposed of by the first entity to another entity (in this subsection called the second entity); and\n\n(c) at a particular time (in this subsection called the second entity’s transfer time), the second entity transfers property or services to the first entity as consideration for the acquisition of the units; and\n\n(d) the first entity has actually transferred, or actually transfers, property or services (in this subsection called the original property or services) to the trust for the sole purpose of acquiring the units;\n\nthe second entity is taken to have transferred the original property or services (instead of the first entity) at the second entity’s transfer time.\n\n(3) A reference in subsection (2) to a unit in a trust is a reference to an interest (however described) in any of the income or property of the trust.\n\n(4) Subsections (1) and (2) do not limit the operation of subsection (5).\n\n(5) Where, under a scheme:\n\n(a) an entity (in this subsection called the scheme entity) actually transfers property or services to another entity; and\n\n(b) property or services are actually transferred to a trust at a particular time otherwise than by the scheme entity;\n\nthe Commissioner may, for the purposes of this Subdivision, treat the property or services mentioned in paragraph (b) as having been transferred by the scheme entity (instead of by any other entity) to the trust at that time.\n\n(6) Where:\n\n(a) apart from subsections (8), (10) and (11), a partnership transfers property or services to a trust at a particular time (in this subsection called the transfer time); and\n\n(b) at a later time (in this subsection called the cessation time), the partnership ceases to exist for the purposes of this Act;\n\nthen, for the purpose of determining whether an entity that was a partner in the partnership immediately before the cessation time is an eligible transferor in relation to the trust at a time after the cessation time, each such partner is to be taken to have transferred the original property or services to the trust at the transfer time.\n\n(7) Nothing in subsection (6) affects the application of this Subdivision to the transfer made by the partnership concerned.\n\n(8) For the purposes of this Subdivision, if:\n\n(a) apart from this subsection and subsections (6), (10) and (11), a discretionary trust (in this subsection called the transferor trust) transfers property or services (in this subsection called the original property or services) to another trust (in this subsection called the transferee trust) at a particular time (in this subsection called the transfer time); and\n\n(b) at a later time (in this subsection called the cessation time), the transferor trust commences to be wound up or ceases to exist for the purposes of this Act; and\n\n(c) apart from this subsection and subsections (6), (10) and (11), one or more other entities transferred property or services to the transferor trust at or before the transfer time;\n\neach of those other entities is to be taken to have transferred the original property or services to the transferee trust at the transfer time.\n\n(9) Nothing in subsection (8) affects the application of this Subdivision to the transfer mentioned in paragraph (8)(a).\n\n(10) For the purposes of this Subdivision, where:\n\n(a) any of the following subparagraphs applies:\n\n(i) any of the following events occurs in relation to a company (which company is in this subsection called the transferor):\n\n(A) the company passes a resolution for its winding‑up;\n\n(B) an order is made for the winding‑up of the company;\n\n(C) any similar event;\n\n(ii) a partnership (in this subsection also called the transferor) ceases to exist for the purposes of this Act;\n\n(iii) either of the following sub‑subparagraphs applies in relation to the trustee of a trust (in this subsection also called the transferor):\n\n(A) the trust commences to be wound‑up;\n\n(B) the trust estate ceases to exist for the purposes of this Act; and\n\n(b) an actual transfer of property or services is made to a trust (in this subsection called the transferee) as a consequence of the transferor being wound‑up or ceasing to exist;\n\nthe transferor is taken to have transferred to the transferee the property or services concerned.\n\n(11) Where:\n\n(a) the following subparagraphs apply to an entity (in this subsection called the defunct entity):\n\n(i) the defunct entity is a company, partnership or trust;\n\n(ii) the defunct entity transferred property or services (in this subsection called the original property or services) to a trust (including a transfer that was taken to have been made because of another application or applications of this subsection) at a particular time (in this subsection called the transfer time);\n\n(iii) if the defunct entity is a company—the company passes a resolution for its winding‑up, an order is made for the winding‑up of the company or a similar event occurs;\n\n(iv) if the defunct entity is a partnership—the partnership ceases to exist for the purposes of this Act;\n\n(v) if the defunct entity is a trust—the trust commences to be wound up or ceases to exist for the purposes of this Act; and\n\n(b) the Commissioner is satisfied that an entity (in this subsection called the successor entity) has benefited or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting (either directly or indirectly through one or more interposed companies, partnerships or trusts) as a result of a transfer of property or services made by the defunct entity or a transfer of property or services made as a consequence of the defunct entity being wound up or ceasing to exist; and\n\n(c) the Commissioner is of the opinion that it is appropriate to apply this subsection to the successor entity;\n\nthen, for the purpose of determining whether the successor entity is an eligible transferor in relation to the trust referred to in subparagraph (a)(ii) at a time after the transfer time, the successor entity is to be taken to have transferred the original property or services to that trust.\n\n346  Circumstances in which a transfer of property or services is an eligible business transaction\n\nAn underlying transfer of property or services to a trust is an eligible business transaction if, and only if, at or about the time of the transfer, identical or similar property or services were transferred by the transferor in the ordinary course of business to ordinary clients or customers under arm’s length transactions in similar circumstances and subject to identical or similar terms and conditions as those that applied in relation to the underlying transfer of the property or services concerned.\n\n347  Eligible transferor in relation to a discretionary trust\n\n(1) An entity (in this section called the transferor entity) is an eligible transferor in relation to a discretionary trust at a particular time (in this section called the test time) if the trust is not a public unit trust at the test time and:\n\n(a) all of the following subparagraphs apply:\n\n(i) the transferor entity transferred property or services to the trust at a time (in this subparagraph called the transfer time) at or after the IP time and before the test time;\n\n(ii) if the underlying transfer was made in the course of carrying on a business—the underlying transfer was not an eligible business transaction;\n\n(iii) if the underlying transfer was made under an arm’s length transaction otherwise than in the course of carrying on a business—the transferor entity was in a position, at any time after the transfer time and before the test time, to control the trust; or\n\n(b) all of the following subparagraphs apply:\n\n(i) the transferor entity transferred property or services to the trust at any time before the IP time;\n\n(ii) the underlying transfer was not an eligible business transaction;\n\n(iii) at any time after the IP time and before the test time, the entity was in a position to control the trust;\n\nand, at the test time, the transferor entity is an Australian entity or a CFE.\n\n(2) For the purposes of this section, an entity is taken to be in a position to control a trust if, and only if:\n\n(a) a group in relation to the entity had the power by means of the exercise by the group of any power of appointment or revocation or otherwise, to obtain, with or without the consent of any other entity, the beneficial enjoyment of the corpus or income of the trust; or\n\n(b) a group in relation to the entity was able in any manner whatsoever, whether directly or indirectly, to control the application of the corpus or income of the trust; or\n\n(c) a group in relation to the entity was capable under a scheme of gaining the enjoyment or the control referred to in paragraph (a) or (b); or\n\n(d) a trustee of the trust was accustomed or under an obligation (whether formally or informally) or might reasonably be expected to act in accordance with the directions, instructions or wishes of a group in relation to the entity; or\n\n(e) a group in relation to the entity was able to remove or appoint the trustee, or any of the trustees, of the trust.\n\n(3) A reference in subsection (2) to a group in relation to an entity is a reference to any of the following:\n\n(a) the entity acting alone;\n\n(b) an associate of the entity acting alone;\n\n(c) the entity and one or more associates of the entity acting together;\n\n(d) 2 or more associates of the entity acting together.\n\n348  Eligible transferor in relation to a non‑discretionary trust or a public unit trust\n\n(1) An entity is an eligible transferor in relation to a non‑discretionary trust or a public unit trust at a particular time (in this section called the test time) if:\n\n(a) the transferor entity transferred property or services to the trust at or after the IP time and before the test time; and\n\n(b) the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer; and\n\n(c) it is not the case that the sole purpose of the underlying transfer was the acquisition of units in the trust where the parties to the underlying transfer were at arm’s length with each other in relation to the underlying transfer and the trust was a public unit trust at the test time;","sortOrder":1000103},{"sectionNumber":"full-source-retrieval-0105","sectionType":"document_chunk","heading":"Document excerpt 105","content":"and, at the test time, the transferor entity is an Australian entity or a CFE.\n\n(2) For the purposes of subsection (1), the arm’s length amount in relation to a transfer of property or services to a trust is the amount that the trustee could reasonably be expected to have been required to pay to obtain the property or services concerned from the transferor under a transaction where the parties were dealing with each other at arm’s length in relation to the transaction.\n\nDivision 3—Control interests, attribution interests, attributable taxpayers and attribution percentages\n\nSubdivision A—Control interests\n\n349  Associate‑inclusive control interest in a company or trust\n\n(1) Subject to this section, the associate‑inclusive control interest that an entity (in this section called the lower entity) holds in a company or trust at a particular time is the aggregate of:\n\n(a) the direct control interest in the company or trust that the lower entity holds at that time; and\n\n(b) the indirect control interests in the company or trust that the lower entity holds at that time; and\n\n(c) the direct control interests in the company or trust held at that time by associates of the lower entity; and\n\n(d) the indirect control interests in the company or trust held at that time by associates of the lower entity.\n\n(2) In calculating the associate‑inclusive control interest that the lower entity holds in the company or trust:\n\n(a) an indirect control interest of the lower entity is not to be counted under paragraph (1)(b) to the extent to which it is calculated by reference to:\n\n(i) a direct control interest in the company or trust that is taken into account under paragraph (1)(c); or\n\n(ii) an indirect control interest in the company or trust that is taken into account under paragraph (1)(d); and\n\n(b) an indirect control interest of an associate of the lower entity is not to be counted under paragraph (1)(d) to the extent to which it is calculated by reference to:\n\n(i) a direct control interest in the company or trust that is taken into account under paragraph (1)(a) or (c); or\n\n(ii) an indirect control interest in the company or trust that is taken into account under paragraph (1)(b) or (d).\n\n(3) If, apart from this subsection, both of the following things would be counted in calculating the associate‑inclusive control interest that the lower entity holds in the company or trust:\n\n(a) the holding of a direct control interest by the lower entity or any other entity;\n\n(b) an entitlement to acquire that direct control interest;\n\nonly one of those things is to be taken into account.\n\n(4) For the purpose of determining any of the following matters:\n\n(a) whether the aggregate of the associate‑inclusive control interests that a group of entities holds in a company is not less than 50%;\n\n(b) whether a single Australian entity has an associate‑inclusive control interest in a company of not less than 40%;\n\n(c) whether the aggregate of the associate‑inclusive control interests that a group of entities holds in a trust is not less than 50%;\n\n(d) whether the associate‑inclusive control interest that an Australian entity holds in a CFC is not less than 10%;\n\n(e) whether the associate‑inclusive control interest that an Australian entity holds in a company is not less than 1%;\n\nif, apart from this subsection, an entity, or each of 2 or more entities, would hold a direct control interest, or control tracing interest, in another entity (in this subsection called the higher entity) equal to 100%:\n\n(f) only one of those entities is to be taken to hold a direct control interest, or control tracing interest, as the case may be, in the higher entity equal to 100%; and\n\n(g) no other entity (whether or not the entity would, apart from this subsection hold a direct control interest, or control tracing interest, of 100%) is to be taken to hold any direct control interest, or control tracing interest, as the case may be, in the higher entity.\n\n(5) For the purpose of calculating the aggregate of the associate‑inclusive control interests that a group of entities holds in a company or trust:\n\n(a) if a particular direct control interest or indirect control interest that an entity holds in another entity would be counted more than once because the entity is an associate of one or more other entities in the group, that interest is to be counted only once; and\n\n(b) if both of the following things would, but for this subsection, be counted in calculating the aggregate of the associate‑inclusive control interests that a group of entities holds in a company or trust:\n\n(i) the holding of a direct control interest by an entity;\n\n(ii) an entitlement to acquire that direct control interest;\n\nonly one of those things is to be counted.\n\n(6) If it is necessary for the purposes of this section to decide:\n\n(a) which one of 2 things is to be taken into account for the purposes of subsection (3) or (5); or\n\n(b) which one of 2 or more entities is to be chosen for the purposes of paragraph (4)(f);\n\nthe Commissioner may make that decision.\n\n350  Direct control interest in a company\n\n(1) Subject to subsection (7), an entity holds a direct control interest in a company at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of:\n\n(a) the total paid‑up share capital of the company; or\n\n(b) the total rights of shareholders to vote, or participate in any decision‑making, concerning any of the following:\n\n(i) the making of distributions of capital or profits of the company to its shareholders;\n\n(ii) the constituent document of the company;\n\n(iii) any variation of the share capital of the company; or\n\n(c) the total rights to distributions of capital or profits of the company to its shareholders on winding‑up; or\n\n(d) the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up;\n\nor, if different percentages are applicable under the preceding paragraphs, the greater or greatest of those percentages.\n\n(2) If the percentage of total rights to vote or participate in decision‑making differs as between differing types of decision‑making, the highest of those percentages applies for the purposes of paragraph (1)(b).\n\n(3) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders on winding‑up is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:\n\n(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(4) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up, is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:\n\n(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(5) Eligible finance shares in a company are to be ignored for the purposes of the application of subsection (1) to the company.\n\n(6) If, at a particular time, a company is controlled by a group of 5 or fewer Australian entities, either alone or together with associates (whether or not any associate is also an Australian entity), each Australian entity in that group of 5 or fewer holds a direct control interest in the company equal to 100%.\n\n(7) An entity that holds a direct control interest in a company at a particular time because of subsection (6) is not to be taken to hold any direct control interest in the company at that time because of subsection (1).\n\n351  Direct control interest in a trust\n\n(1) An entity that is a beneficiary in a trust holds a direct control interest in the trust at a particular time equal to:\n\n(a) the percentage of the income of the trust represented by the share of the income to which the beneficiary is entitled, or that the beneficiary is entitled to acquire; or\n\n(b) the percentage of the corpus of the trust represented by the share of the corpus to which the beneficiary is entitled, or that the beneficiary is entitled to acquire;\n\nor, if those percentages differ, the greater of those percentages.\n\n(2) For the purposes of the application of subsection (1) to a trust:\n\n(a) the percentage of the income of the trust represented by the share of the income to which the beneficiary is entitled, or that the beneficiary is entitled to acquire; or\n\n(b) the percentage of the corpus of the trust represented by the share of the corpus to which the beneficiary is entitled, or that the beneficiary is entitled to acquire;\n\nat a particular time (in this subsection called the test time) in a year of income of the trust, is to be worked out by:\n\n(c) ascertaining whichever of the following is applicable:\n\n(i) the income of the trust for the year of income;\n\n(ii) the corpus of the trust as at the end of the year of income; and\n\n(d) assuming that the share to which the entity is entitled, or that the entity is entitled to acquire, at the test time was the same at all other times during the year of income; and\n\n(e) ascertaining the percentage concerned:\n\n(i) at the end of the year of income instead of at the test time; and\n\n(ii) on that assumption.\n\n(3) Each entity that is an eligible transferor in relation to a trust at a particular time holds a direct control interest in the trust at that time equal to 100%.\n\n(4) An entity that holds a direct control interest in a trust at a particular time because of subsection (3) is not to be taken to hold any direct control interest in the trust at that time because of subsection (1).\n\n352  Indirect control interest in a company or trust\n\n(1) An indirect control interest that an entity (in this section called the bottom entity) holds in a company or trust at a particular time is calculated in accordance with this section.\n\n(2) An interposed entity is not to be taken into account in calculating an indirect control interest unless the entity is a CFE.\n\n(3) If there is only one entity interposed between the bottom entity and the company or trust, the indirect control interest is calculated by multiplying the control tracing interest that the bottom entity holds in the interposed entity by the control tracing interest that the interposed entity holds in the company or trust.\n\n(4) If there are 2 entities interposed between the bottom entity and the company or trust, the indirect control interest is calculated:\n\n(a) by multiplying the control tracing interest that the bottom entity holds in the first interposed entity by the control tracing interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the calculation referred to in paragraph (a) by the control tracing interest that the second interposed entity holds in the company or trust.\n\n(5) If there are 3 or more entities interposed between the bottom entity and the company or trust, the indirect control interest is calculated:\n\n(a) by multiplying the control tracing interest that the bottom entity holds in the first interposed entity by the control tracing interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the calculation referred to in paragraph (a) by the control tracing interest that the second interposed entity holds in the third interposed entity;\n\nand so on, ending with a multiplication by the control tracing interest that the last interposed entity holds in the company or trust.\n\n(6) For the purposes of this section, an entity (in this subsection called the second entity) is interposed between 2 other entities (in this subsection called the first entity and the third entity respectively) if, and only if:\n\n(a) the first entity has a control tracing interest in the second entity; and\n\n(b) the second entity has a control tracing interest in the third entity.\n\n353  Control tracing interest in a company\n\n(1) Subject to this section, an entity (in this subsection called the lower entity) holds a control tracing interest in a company at a particular time equal to the direct control interest in the company that the lower entity holds at that time.\n\n(2) An entity (in this subsection called the lower entity) holds a control tracing interest in a company at a particular time equal to 100% if:\n\n(a) the aggregate of the direct control interests in the company held at that time by the lower entity and its associates is not less than 50%; or\n\n(b) both of the following conditions are satisfied:\n\n(i) the aggregate of the direct control interests in the company held at that time by the lower entity and its associates is not less than 40%;\n\n(ii) at that time, the company is not controlled by a group of entities not being or including the lower entity or any of its associates; or\n\n(c) at that time, the company is controlled by the lower entity, either alone or together with associates.\n\n354  Control tracing interest in a CFP\n\nEach partner in a CFP holds a control tracing interest in the CFP equal to 100%.\n\n355  Control tracing interest in a CFT\n\n(1) An entity that is an eligible transferor at a particular time in relation to a CFT holds a control tracing interest in the CFT at that time equal to 100%.\n\n(2) Subject to subsection (4), an entity (in this subsection called the lower entity) that is a beneficiary in a CFT holds a control tracing interest in the trust at a particular time equal to:\n\n(a) the percentage of the income of the CFT represented by the share of the income to which the lower entity is entitled, or that the lower entity is entitled to acquire; or\n\n(b) the percentage of the corpus of the CFT represented by the share of the corpus to which the lower entity is entitled, or that the lower entity is entitled to acquire;\n\nor, if those percentages differ, the greater of those percentages.\n\n(3) For the purposes of the application of subsection (2) to a trust:\n\n(a) the percentage of the income of the trust represented by the share of the income to which the beneficiary is entitled, or that the beneficiary is entitled to acquire; or\n\n(b) the percentage of the corpus of the trust represented by the share of the corpus to which the beneficiary is entitled, or that the beneficiary is entitled to acquire;\n\nat a particular time (in this subsection called the test time) in a year of income of the trust, is to be worked out by:\n\n(c) ascertaining whichever of the following is applicable:\n\n(i) the income of the trust for the year of income;\n\n(ii) the corpus of the trust as at the end of the year of income; and\n\n(d) assuming that the share to which the entity is entitled, or that the entity is entitled to acquire, at the test time was the same at all other times during the year of income; and\n\n(e) ascertaining the percentage concerned:\n\n(i) at the end of the year of income instead of at the test time; and\n\n(ii) on that assumption.\n\n(4) If the percentage calculated under subsection (2) is not less than 50%, the lower entity holds a control tracing interest in the CFT equal to 100%.\n\n(5) An entity that holds a control tracing interest in a CFT at a particular time because of subsection (1) is not to be taken to hold any control tracing interest in the CFT at that time because of subsection (2) or (4).\n\nSubdivision B—Attribution interests\n\n356  Direct attribution interest in a CFC or CFT\n\n(1) An entity holds a direct attribution interest in a CFC at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of:\n\n(a) the total paid‑up share capital of the CFC; or\n\n(b) the total rights of shareholders to vote, or participate in any decision‑making, concerning any of the following:\n\n(i) the making of distributions of capital or profits of the CFC to its shareholders;\n\n(ii) the constituent document of the CFC;\n\n(iii) any variation of the share capital of the CFC; or\n\n(c) the total rights to distributions of capital or profits of the CFC to its shareholders on winding‑up; or\n\n(d) the total rights to distributions of capital or profits of the CFC to its shareholders, otherwise than on winding‑up;\n\nor, if different percentages are applicable under the preceding paragraphs, the greater or greatest of those percentages.\n\n(2) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders on winding‑up is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:","sortOrder":1000104},{"sectionNumber":"full-source-retrieval-0106","sectionType":"document_chunk","heading":"Document excerpt 106","content":"(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(3) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up, is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:\n\n(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(4) Eligible finance shares, widely distributed finance shares and transitional finance shares in a company are to be ignored for the purposes of the application of subsection (1) to the company.\n\n(4A) Shares in a company that is treated as a real estate investment trust for the purposes of the Internal Revenue Code 1986 of the United States of America are to be ignored for the purposes of the application of subsection (1) to the company if the conditions in subsection (4B) or (4C) are satisfied.\n\n(4B) The condition in this subsection is that the taxpayer who holds the shares satisfies the Commissioner that:\n\n(a) the shares that the taxpayer holds at the end of the entity’s statutory accounting period are held for the sole purpose of investing directly, or indirectly through one or more interposed entities, in:\n\n(i) a business conducted in the United States of America; or\n\n(ii) real property located in the United States of America; and\n\n(b) the company does not directly, or indirectly through one or more interposed entities:\n\n(i) have an interest in income or gains derived from sources outside the United States of America; or\n\n(ii) hold an interest in a FIF (within the meaning of former Part XI) that is not resident in the United States of America; or\n\n(iii) hold real property that is not located in the United States of America.\n\n(4C) The condition in this subsection is that the taxpayer who holds the shares satisfies the Commissioner that:\n\n(a) the shares that the taxpayer holds at the end of the entity’s statutory accounting period are held for the sole purpose of investing directly, or indirectly through one or more interposed entities, in:\n\n(i) a business conducted in the United States of America; or\n\n(ii) real property located in the United States of America; and\n\n(b) throughout the entity’s statutory accounting period, the total value of:\n\n(i) any interests that the company has in income or gains derived from sources outside the United States of America; and\n\n(ii) any interests that the company has in FIFs (within the meaning of former Part XI) that are not resident in the United States of America; and\n\n(iii) any real property held by the company that is not located in the United States of America;\n\ndoes not exceed 5% of the total value of all interests held by the company in other entities; and\n\n(c) throughout the entity’s statutory accounting period, the total value of assets held by the company that:\n\n(i) produce income from sources outside the United States of America; or\n\n(ii) if disposed of would give rise to a gain from a source outside the United States of America;\n\ndoes not exceed 5% of the total value of all the assets held by the company.\n\n(4D) For the purposes of subsection (4C), the value of interests and the value of assets is to be determined using the accounting records of the company.\n\n(5) An entity that is an eligible transferor at a particular time in relation to a CFT holds a direct attribution interest in the CFT at that time equal to 100%.\n\n(6) Subsection (5) does not apply if:\n\n(a) the eligible transferor is a natural person (other than a natural person in the capacity of a trustee); and\n\n(b) the CFT is a non‑resident family trust in relation to the natural person.\n\n(7) An entity (in this subsection called the lower entity) that is a beneficiary in a CFT holds a direct attribution interest in the CFT at a particular time equal to:\n\n(a) the percentage of the income of the CFT represented by the share of the income to which the lower entity is entitled, or that the lower entity is entitled to acquire; or\n\n(b) the percentage of the corpus of the CFT represented by the share of the corpus to which the lower entity is entitled, or that the lower entity is entitled to acquire;\n\nor, if those percentages differ, the greater of those percentages.\n\n(8) An entity that holds a direct attribution interest in a CFT at a particular time because of subsection (5) is not to be taken to hold any direct attribution interest in the CFT at that time because of subsection (7).\n\n357  Indirect attribution interest in a CFC or CFT\n\n(1) An indirect attribution interest that an entity (in this section called the bottom entity) holds in a CFC or CFT (in this section called the top entity) at a particular time is calculated in accordance with this section.\n\n(2) An interposed entity is not to be taken into account in calculating an indirect attribution interest unless the entity is a CFE.\n\n(3) If there is only one entity interposed between the bottom entity and the top entity, the indirect attribution interest is calculated by multiplying the attribution tracing interest that the bottom entity holds in the interposed entity by the attribution tracing interest that the interposed entity holds in the top entity.\n\n(4) If there are 2 entities interposed between the bottom entity and the top entity, the indirect attribution interest is calculated:\n\n(a) by multiplying the attribution tracing interest that the bottom entity holds in the first interposed entity by the attribution tracing interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the calculation referred to in paragraph (a) by the attribution tracing interest that the second interposed entity holds in the top entity.\n\n(5) If there are 3 or more entities interposed between the bottom entity and the top entity, the indirect attribution interest is calculated:\n\n(a) by multiplying the attribution tracing interest that the bottom entity holds in the first interposed entity by the attribution tracing interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the calculation referred to in paragraph (a) by the attribution tracing interest that the second interposed entity holds in the third interposed entity;\n\nand so on, ending with a multiplication by the attribution tracing interest that the last interposed entity holds in the top entity.\n\n(6) For the purposes of this section, an entity (in this subsection called the second entity) is interposed between 2 other entities (in this subsection called the first entity and the third entity respectively) if, and only if:\n\n(a) the first entity has an attribution tracing interest in the second entity; and\n\n(b) the second entity has an attribution tracing interest in the third entity.\n\n358  Attribution tracing interest in a CFC\n\nAn entity holds an attribution tracing interest in a CFC at a particular time equal to the direct attribution interest in the CFC that the entity holds at that time.\n\n359  Attribution tracing interest in a CFP\n\nAn entity that is a partner in a CFP holds an attribution tracing interest in the CFP at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of:\n\n(a) the total interests in the profits of the CFP; or\n\n(b) the total interests in the CFP property;\n\nor, if those percentages differ, the greater of those percentages.\n\n360  Attribution tracing interest in a CFT\n\n(1) An entity that is an eligible transferor at a particular time in relation to a CFT holds an attribution tracing interest in the CFT at that time equal to 100%.\n\n(2) Subsection (1) does not apply if:\n\n(a) the eligible transferor is a natural person (other than a natural person in the capacity of a trustee); and\n\n(b) the CFT is a non‑resident family trust in relation to the natural person.\n\n(3) An entity (in this subsection called the lower entity) that is a beneficiary in a CFT holds an attribution tracing interest in the CFT at a particular time equal to:\n\n(a) the percentage of the income of the CFT represented by the share of the income to which the lower entity is entitled, or that the lower entity is entitled to acquire; or\n\n(b) the percentage of the corpus of the CFT represented by the share of the corpus to which the lower entity is entitled, or that the lower entity is entitled to acquire;\n\nor, if those percentages differ, the greater of those percentages.\n\n(4) An entity that holds an attribution tracing interest in a CFT at a particular time because of subsection (1) is not to be taken to hold any attribution tracing interest in the CFT at that time because of subsection (3).\n\nSubdivision C—Attributable taxpayers and attribution percentages\n\n361  Attributable taxpayer in relation to a CFC or a CFT\n\n(1) An entity (in this subsection called the test entity) is an attributable taxpayer in relation to a CFC at a particular time if, at that time:\n\n(a) the test entity is an Australian entity whose associate‑inclusive control interest in the CFC is at least 10%; or\n\n(b) all of the following subparagraphs apply:\n\n(i) the CFC is a CFC at that time only because of paragraph 340(c);\n\n(ii) the CFC is controlled by any group of 5 or fewer Australian entities, either alone or together with associates (whether or not any associate is also an Australian entity);\n\n(iii) the test entity is an Australian 1% entity and is included in that group of 5 or fewer Australian entities.\n\n(2) An entity (in this subsection called the test entity) is an attributable taxpayer in relation to a CFT at a particular time if, at that time, the test entity is an Australian entity whose associate‑inclusive control interest in the CFT is at least 10%.\n\n(3) Subsections (1) and (2) have effect subject to section 768‑960 of the Income Tax Assessment Act 1997.\n\n362  Attribution percentage of an attributable taxpayer\n\n(1) Subject to this section, the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time is the sum of:\n\n(a) the direct attribution interest in the CFC or CFT held by the taxpayer at that time; and\n\n(b) the aggregate of the indirect attribution interests in the CFC or CFT held by the taxpayer at that time.\n\n(2) If, apart from this subsection, both of the following things would be counted in calculating the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time:\n\n(a) the holding of a direct attribution interest in an entity by any other entity;\n\n(b) an entitlement to acquire that direct attribution interest;\n\nonly one of those things is to be taken into account.\n\n(3) If:\n\n(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFC at a particular time (in this subsection called the test time) regard was had to an attribution tracing interest of an eligible transferor in relation to a CFT, being an attribution tracing interest determined under subsection 360(1); and\n\n(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 360(1); and\n\n(c) there are other eligible transferors in relation to the CFT at the test time; and\n\n(d) the attributable taxpayer gives to the Commissioner, in accordance with a form approved, in writing, by the Commissioner, such information as is required by the form to be given;\n\nthe Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.\n\n(4) If:\n\n(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFT (in this subsection called the attributing CFT) at a particular time (in this subsection called the test time) regard was had to:\n\n(i) a direct attribution interest of the attributable taxpayer in relation to the attributing CFT, being direct attribution interest determined under subsection 356(2); or\n\n(ii) an attribution tracing interest of an eligible transferor in relation to another CFT (in this subsection called the interposed CFT); and\n\n(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 356(2) or 360(1), as the case may be; and\n\n(c) at the test time, there are other eligible transferors in relation to the attributing CFT or the interposed CFT, as the case may be; and\n\n(d) the attributable taxpayer gives to the Commissioner such information, and produces to the Commissioner such documents, as the Commissioner requires in connection with the operation of this subsection;\n\nthe Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.\n\n(5) If, apart from this subsection, the aggregate of the attribution percentages of all the attributable taxpayers in relation to a CFC or CFT at a particular time would exceed 100%, the attribution percentage of each of those attributable taxpayers is the percentage calculated using the formula:\n\n![Start formula start fraction Individual percentage over Total percentage end fraction times 100 end formula](image.004.png)\n\nwhere:\n\nIndividual percentage  means the percentage that would, apart from this subsection, be the attribution percentage of the attributable taxpayer concerned.\n\nTotal percentage  means the aggregate of the percentages that would, apart from this subsection, be the attribution percentages of all the attributable taxpayers.\n\nDivision 4—Attribution accounts\n\n363  Attribution account entity\n\n(1) Each of the following is an attribution account entity:\n\n(a) a company that is not a Part X Australian resident;\n\n(b) a partnership;\n\n(c) a trust.\n\n(2) If:\n\n(a) a company ceases to be resident in an unlisted country and becomes a Part X Australian resident; and\n\n(b) a taxpayer is an attributable taxpayer in relation to the company immediately before the time of the change of residence;\n\nin determining whether an attribution debit arises for the company in relation to the taxpayer in respect of an attribution account payment made to the taxpayer or another attribution account entity, the company is taken to be an attribution account entity.\n\n364  Attribution account percentage\n\nThe attribution account percentage of a taxpayer in relation to an entity is the sum of the taxpayer’s direct attribution account interest and indirect attribution account interest or interests in the entity.\n\n365  Attribution account payment\n\n(1) Each of the following is an attribution account payment:\n\n(a) a dividend paid by a company to a shareholder;\n\n(b) the individual interest of a partner in the net income (within the meaning of section 90) of a partnership of a year of income;\n\n(c) where a beneficiary of a trust is presently entitled to a share of the income of the trust—that share of the net income (within the meaning of section 95) of the trust of a year of income;\n\n(ca) where a beneficiary of a trust is specifically entitled to an amount of a capital gain or a franked distribution of the trust for a year of income:\n\n(i) in the case of a capital gain—the amount mentioned in subsection 115‑225(1) in respect of the beneficiary; or\n\n(ii) in the case of a franked distribution—the amount mentioned in subsection 207‑37(1) in respect of the beneficiary;\n\nto the extent that it is not covered under paragraph (c);\n\n(d) the whole or part of the net income of a trust of a year of income that is assessable to the trustee under section 99 or 99A;\n\n(e) an amount of trust property that would be included in the assessable income of a beneficiary of a year of income under section 99B if:\n\n(i) the beneficiary were a resident, within the meaning of section 6, at a time during the year of income; and\n\n(ii) paragraph 99B(2)(c) were replaced by a paragraph referring to any attribution account payment under paragraph (c) or (d) of this subsection.\n\n(2) The attribution account payment is taken to be made:\n\n(a) in a paragraph (1)(b) case—by the partnership to the partner; and\n\n(b) in a paragraph (1)(c) or (e) case—by the trust to the beneficiary; and\n\n(c) in a paragraph (1)(d) case—by the trust to the trustee;\n\nand, in any such case, to be made at the end of the year of income.\n\n(3) Where:\n\n(a) an attribution credit arises for a company in relation to a taxpayer under paragraph 371(1)(b) as a result of a change of residence whereby the company becomes a Part X Australian resident; and","sortOrder":1000105},{"sectionNumber":"full-source-retrieval-0107","sectionType":"document_chunk","heading":"Document excerpt 107","content":"(b) the company makes an attribution account payment consisting of a frankable distribution that has been franked in accordance with section 202‑5 of the Income Tax Assessment Act 1997, or that has been franked with an exempting credit in accordance with section 208‑60 of that Act; and\n\n(c) immediately before the attribution account payment is made, there is an attribution surplus for the company in relation to the taxpayer that is attributable to the attribution credit;\n\nthen, for the purposes of applying section 23AI and Divisions 4 and 5 of this Part in relation to the taxpayer, the attribution account payment is taken to be reduced to the extent that it is franked.\n\n366  Direct attribution account interest in a company\n\n(1) An entity holds a direct attribution account interest in a company at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of:\n\n(a) the total paid‑up share capital of the company; or\n\n(b) the total rights of shareholders to vote, or participate in any decision‑making, concerning any of the following:\n\n(i) the making of distributions of capital or profits of the company to its shareholders;\n\n(ii) the constituent document of the company;\n\n(iii) any variation of the share capital of the company; or\n\n(c) the total rights to distributions of capital or profits of the company to its shareholders on winding‑up; or\n\n(d) the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up;\n\nor, if different percentages are applicable under the preceding paragraphs, the greater or greatest of those percentages.\n\n(2) If the percentage of total rights to vote or participate in decision‑making differs as between differing types of decision‑making, the highest of those percentages applies for the purposes of paragraph (1)(b).\n\n(3) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders on winding‑up is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:\n\n(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(4) For the purposes of the application of subsection (1) to a company, the percentage that an entity holds, or is entitled to acquire, at a particular time (in this subsection called the test time) in a statutory accounting period of the company, of the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up, is to be worked out by:\n\n(a) ascertaining whichever of the following is applicable:\n\n(i) the capital of the company as at the end of the statutory accounting period;\n\n(ii) the profits of the company for the statutory accounting period; and\n\n(b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and\n\n(c) ascertaining the percentage concerned:\n\n(i) at the end of the statutory accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(5) Eligible finance shares, widely distributed finance shares and transitional finance shares in a company are to be ignored for the purposes of the application of subsection (1) to the company.\n\n367  Direct attribution account interest in a partnership\n\n(1) An entity that is a partner in a partnership holds a direct attribution account interest in the partnership at a particular time equal to the percentage that the partner holds, or is entitled to acquire, of:\n\n(a) the total interests in the profits of the partnership; or\n\n(b) the total interests in the property of the partnership;\n\nor, if those percentages differ, the greater of those percentages.\n\n(2) For the purposes of the application of subsection (1) to a partnership:\n\n(a) the percentage that the partner holds, or is entitled to acquire, of the total interests in the profits of the partnership; or\n\n(b) the percentage that the partner holds, or is entitled to acquire, of the total interests in the property of the partnership;\n\nat a particular time (in this subsection called the test time) in an accounting period of the partnership is to be worked out by:\n\n(c) ascertaining whichever of the following is applicable:\n\n(i) the profits of the partnership for the accounting period;\n\n(ii) the property of the partnership as at the end of the accounting period; and\n\n(d) assuming that the percentage that the partner holds, or that the partner is entitled to acquire, at the test time was the same at all other times during the accounting period; and\n\n(e) ascertaining the percentage concerned:\n\n(i) at the end of the accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n368  Direct attribution account interest in a trust\n\n(1) A beneficiary in a trust holds a direct attribution account interest in the trust at a particular time equal to:\n\n(a) the percentage of the income of the trust represented by the share of the income to which the beneficiary is entitled, or that the beneficiary is entitled to acquire; or\n\n(b) the percentage of the corpus of the trust represented by the share of the corpus to which the beneficiary is entitled, or that the beneficiary is entitled to acquire;\n\nor, if those percentages differ, the greater of those percentages.\n\n(2) For the purposes of the application of subsection (1) to a trust:\n\n(a) the percentage of the income of the trust represented by the share of the income to which the beneficiary is entitled, or that the beneficiary is entitled to acquire; or\n\n(b) the percentage of the corpus of the trust represented by the share of the corpus to which the beneficiary is entitled, or that the beneficiary is entitled to acquire;\n\nat a particular time (in this subsection called the test time) in an accounting period of the trust, is to be worked out by:\n\n(c) ascertaining whichever of the following is applicable:\n\n(i) the income of the trust for the accounting period;\n\n(ii) the corpus of the trust as at the end of the accounting period; and\n\n(d) assuming that the share to which the entity is entitled, or that the entity is entitled to acquire, at the test time was the same at all other times during the accounting period; and\n\n(e) ascertaining the percentage concerned:\n\n(i) at the end of the accounting period instead of at the test time; and\n\n(ii) on that assumption.\n\n(3) Each entity that is an eligible transferor in relation to a trust at a particular time holds a direct attribution account interest in the trust at that time equal to:\n\n(a) if paragraph (b) does not apply—100%; or\n\n(b) if, because there are 2 or more eligible transferors in relation to the trust, the Commissioner reduces an attribution percentage under subsection 362(3) or (4) or subsection 362(5) applies—such lower percentage as the Commissioner considers reasonable in the circumstances.\n\n(4) An entity that holds a direct attribution account interest in a trust at a particular time because of subsection (3) is not taken to hold any direct attribution account interest in the trust at that particular time because of subsection (1).\n\n369  Indirect attribution account interest in an entity\n\n(1) The indirect attribution account interest that an entity (in this section called the bottom entity) holds in another entity (in this section called the top entity) is calculated in accordance with this section.\n\n(2) An interposed entity is not to be taken into account in calculating the indirect attribution account interest unless the entity is an attribution account entity.\n\n(3) If there is only one entity interposed between the bottom entity and the top entity, the indirect attribution account interest is calculated by multiplying the direct attribution account interest that the bottom entity holds in the interposed entity by the direct attribution account interest that the interposed entity holds in the top entity.\n\n(4) If there are 2 entities interposed between the bottom entity and the top entity, the indirect attribution account interest is calculated:\n\n(a) by multiplying the direct attribution account interest that the bottom entity holds in the first interposed entity by the direct attribution account interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the calculation in paragraph (a) by the direct attribution account interest that the second interposed entity holds in the top entity.\n\n(5) If there are 3 or more entities interposed between the bottom entity and the top entity, the indirect attribution account interest is calculated:\n\n(a) by multiplying the direct attribution account interest that the bottom entity holds in the first interposed entity by the direct attribution account interest that the first interposed entity holds in the second interposed entity; and\n\n(b) by multiplying the result of the multiplication referred to in paragraph (a) by the direct attribution account interest that the second interposed entity holds in the third interposed entity;\n\nand so on, ending with a multiplication by the direct attribution account interest that the last interposed entity holds in the top entity.\n\n(6) For the purposes of this section, an entity (in this subsection called the second entity) is interposed between 2 other entities (in this subsection called the first entity and the third entity respectively) if, and only if:\n\n(a) the first entity has a direct attribution account interest in the second entity; and\n\n(b) the second entity has a direct attribution account interest in the third entity.\n\n370  Attribution surplus\n\nAn attribution surplus for an attribution account entity in relation to a taxpayer exists at a particular time if the entity’s total attribution credits arising before that time in relation to the taxpayer exceed its total attribution debits arising before that time in relation to the taxpayer.\n\n371  Attribution credit\n\n(1) An attribution credit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if:\n\n(a) an amount is included in the taxpayer’s assessable income under section 456 in respect of the attributable income of the eligible entity for a statutory accounting period; or\n\n(b) an amount is included in the taxpayer’s assessable income under section 457 as a result of a change of residence by the eligible entity; or\n\n(d) an attribution account payment that requires an attribution debit for another entity in relation to the taxpayer is made to the eligible entity.\n\n(2) Subject to subsection (4), the amount of the attribution credit is equal to the amount included in assessable income or to the amount of the attribution debit, as the case may be.\n\n(4) Where:\n\n(a) the attribution credit arises under paragraph (1)(d) in relation to an attribution account payment consisting of a non‑portfolio dividend paid to the eligible entity, where the eligible entity is a company; and\n\n(b) the eligible entity is or will be liable to pay an amount of foreign tax on the attribution account payment or on amounts that include the attribution account payment;\n\nthen the amount of the attribution credit is reduced by the amount calculated using the formula:\n\n![Start formula Attribution account percentage times Foreign tax end formula](image.005.png)\n\nwhere:\n\nAttribution account percentage  means the taxpayer’s attribution account percentage for the attribution account entity.\n\nForeign tax  means the amount of foreign tax, to the extent that it is attributable to the attribution account payment.\n\n(5) The attribution credit arises:\n\n(a) in a paragraph (1)(a) case where subsection 319(6) does not apply to the statutory accounting period referred to in that paragraph—at the end of the statutory accounting period; or\n\n(aaa) in a paragraph (1)(a) case where subsection 319(6) applies to the statutory accounting period referred to in that paragraph—at the beginning of the statutory accounting period; or\n\n(b) in a paragraph (1)(b) case—subject to subsection (8), at the time of the change of residence referred to in that paragraph; or\n\n(d) in a paragraph (1)(d) case—when the attribution account payment referred to in that paragraph is made.\n\n(6) Where, apart from this subsection, an attribution credit would arise in relation to an attribution account entity for an Australian partnership or an Australian trust in respect of an amount included in the assessable income of the partnership or trust of a year of income under section 456 or 457, then, subject to subsection (7):\n\n(a) the attribution credit does not arise for the partnership or trust; and\n\n(b) an attribution credit arises in relation to the attribution account entity for:\n\n(i) any taxpayer for whom, as a result of the amount being so included, a tax detriment would arise in circumstances referred to in paragraphs 460(2)(a) and (b) or paragraphs 460(3)(a) and (b); and\n\n(ii) any taxpayer where, as a result of the amount being so included, a tax detriment would arise for the trustee of a trust in which the taxpayer is a beneficiary, in respect of an amount assessable to the trustee under section 98 in respect of the taxpayer’s share of the net income of the trust, in circumstances referred to in paragraph 460(4)(a); and\n\n(iii) any taxpayer in the capacity of trustee of a trust, where, as a result of the amount being so included, a tax detriment would arise for the taxpayer in respect of an amount assessable to the taxpayer under section 99 or 99A, in circumstances referred to in paragraph 460(4)(a); and\n\n(c) the amount of the attribution credit referred to in paragraph (b) equals the amount of the tax detriment, as reduced by any application of section 460; and\n\n(d) the attribution credit referred to in paragraph (b) arises at the time when the attribution credit referred to in paragraph (a) would, but for this subsection, have arisen.\n\n(7) Subsection (6) does not apply to an Australian trust that is, in relation to the year of income referred to in that subsection:\n\n(b) a public trading trust within the meaning of Division 6C of that Part; or\n\n(c) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust.\n\n(8) If:\n\n(a) a company ceases to be resident in an unlisted country and becomes a resident of a listed country; and\n\n(b) an amount (in this subsection called the section 457 amount) is included in a taxpayer’s assessable income under section 457 as a result of the change of residence; and\n\n(c) a particular part (in this subsection called the eligible part) of the section 457 amount is attributable to a hypothetical disposal of a particular asset of the company at the residence change time; and\n\n(d) it might reasonably be expected that, if and when the company actually disposes of the asset, so much of the gain derived by the company on the actual disposal of the asset that accrued before the residence change time will be subject to tax in the listed country;\n\nthe taxpayer may elect to defer the timing of so much of the paragraph (1)(b) attribution credit as is attributable to the eligible part from the time of the change of residence referred to in that paragraph until immediately before the payment by the company of a dividend out of the gain derived by the company on the actual disposal of the asset.\n\n(9) An election for the purposes of subsection (8):\n\n(b) is irrevocable; and\n\n(c) has no effect unless it is made:\n\n(i) within 6 months after the end of the later of the following years of income:\n\n(A) the year of income in which the residence change time took place;\n\n(B) the year of income in which this subsection commenced; or\n\n(ii) within such further period as the Commissioner allows.\n\n372  Attribution debit\n\n(1) An attribution debit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if:\n\n(a) the eligible entity makes an attribution account payment to the taxpayer or to another attribution account entity; and\n\n(b) immediately before the eligible entity makes the attribution account payment, there is an attribution surplus for the eligible entity in relation to the taxpayer.\n\n(2) Subject to subsection (4), the amount of the debit is the lesser of:\n\n(a) the attribution surplus; and\n\n(b) whichever of the following is applicable:\n\n(i) if the attribution account payment is made to the taxpayer—the attribution account payment;\n\n(ii) in any other case—the taxpayer’s attribution account percentage (for the attribution account entity to which the payment is made) of the attribution account payment.\n\n(4) Where:\n\n(a) the attribution account payment is made to an attribution account entity that is a trust; and\n\n(b) the attribution surplus, for the eligible entity, is in relation to the taxpayer in the capacity of trustee of the trust (because it is a surplus that resulted from an attribution credit or credits that arose under subparagraph 371(6)(b)(iii));\n\nthen the amount of the attribution debit is the lesser of:\n\n(c) the attribution surplus; and","sortOrder":1000106},{"sectionNumber":"full-source-retrieval-0108","sectionType":"document_chunk","heading":"Document excerpt 108","content":"(d) any amount assessable to the taxpayer under section 99 or 99A in relation to the net income of the trust of the year of income in which the attribution account payment is made.\n\n(5) The attribution debit arises when the attribution account payment is made.\n\n373  Grossed‑up amount of an attribution debit\n\nThe grossed‑up amount in relation to an attribution debit is:\n\n(a) where subparagraph 372(2)(b)(i) applied in relation to the debit—the amount of the debit; or\n\n(b) where subparagraph 372(2)(b)(ii) applied in relation to the debit—the amount of the debit, divided by the attribution account percentage referred to in that subparagraph.\n\nDivision 7—Calculation of attributable income of CFC\n\nSubdivision A—Basic principles\n\n381  Separate attributable income for each attributable taxpayer\n\nWhere, at the end of a statutory accounting period (in this Division called the eligible period) of a company:\n\n(a) the company is a CFC; and\n\n(b) there are one or more attributable taxpayers in relation to the company;\n\nthe attributable income of the company (in this Division called the eligible CFC) for the eligible period is calculated separately for each such attributable taxpayer (in this Division called the eligible taxpayer) in accordance with this Division.\n\n382  Attributable income is taxable income calculated on certain assumptions\n\n(1) The attributable income is the amount that would be the eligible CFC’s taxable income for the eligible period if certain assumptions were made.\n\n(2) For the purposes of describing those assumptions, amounts of assessable income, allowable deductions and exempt income that are to be taken into account in calculating the taxable income are referred to respectively as notional assessable income, notional allowable deductions and notional exempt income.\n\n383  Basic assumptions\n\nThe assumptions are:\n\n(a) that the eligible CFC is a taxpayer and a resident, within the meaning of section 6, during the whole of the eligible period; and\n\n(b) that the eligible period is a year of income, being the year of income of the eligible taxpayer in which the eligible period ends; and\n\n(c) that this Act is modified in accordance with Subdivisions B to E; and\n\n(d) whichever of the assumptions in section 384 or 385 applies.\n\n384  Additional assumption for unlisted country CFC\n\n(1) Where the eligible CFC is a resident of an unlisted country at the end of the eligible period, it is to be assumed:\n\n(a) that the only amounts of notional assessable income are those to which subsection (2) applies; and\n\n(b) that all other income is notional exempt income.\n\n(2) The amounts of notional assessable income are:\n\n(a) where the eligible CFC does not pass the active income test for the eligible period in relation to the eligible taxpayer—amounts that would be included in its notional assessable income for the eligible period under this Act as modified in accordance with Subdivisions B to E if the only income or other amounts derived by it during the eligible period, and any earlier statutory accounting period, were adjusted tainted income (within the meaning of section 386); and\n\n(b) amounts included in the notional assessable income of the eligible CFC for the eligible period under section 102AAZD of this Act as modified in accordance with Subdivisions B to E; and\n\n(c) amounts included in the notional assessable income of the eligible CFC for the eligible period under Division 6 of Part III of this Act as so modified; and\n\n(d) amounts that would be included in the notional assessable income of the eligible CFC for the eligible period under Division 5 of Part III of this Act, as modified in accordance with Subdivisions B to E of this Division, in relation to any partnership if its net income included only:\n\n(i) where the eligible CFC does not pass the active income test for the eligible period in relation to the eligible taxpayer—amounts that would be included if the partnership derived only adjusted tainted income (within the meaning of section 386); and\n\n(ii) amounts included under section 102AAZD of this Act as modified in accordance with Subdivisions B to E of this Division; and\n\n(iii) amounts included under Division 6 of Part III of this Act as so modified.\n\n385  Additional assumption for listed country CFC\n\n(1) Where the eligible CFC is a resident of a listed country at the end of the eligible period, it is to be assumed:\n\n(a) that the only amounts of notional assessable income are those to which subsection (2) applies; and\n\n(b) that all other income is notional exempt income.\n\n(2) Subject to subsection (4), the amounts of notional assessable income are:\n\n(a) amounts that would be included in the notional assessable income of the eligible CFC for the eligible period under this Act as modified in accordance with Subdivisions B to D if the only income or other amounts derived during the eligible period, and any earlier statutory accounting period, by the eligible CFC were:\n\n(i) where the eligible CFC does not pass the active income test for the eligible period in relation to the eligible taxpayer—adjusted tainted income (within the meaning of section 386) that is eligible designated concession income in relation to the listed country or any other listed country; and\n\n(ii) income or other amounts, of a kind specified in the regulations, that:\n\n(A) are not eligible designated concession income of the eligible CFC in relation to the listed country or any other listed country; and\n\n(B) are not treated as derived from sources in the listed country for the purposes of the tax law of the listed country; and\n\n(C) pass the test set out in subsection (2A); and\n\n(b) amounts included in the notional assessable income of the eligible CFC for the eligible period under section 102AAZD of this Act as modified in accordance with Subdivisions B to D; and\n\n(c) amounts included in the notional assessable income of the eligible CFC for the eligible period under Division 6 of Part III of this Act as so modified, where either of the following conditions (but not necessarily the same condition) is satisfied in relation to the listed country and each other listed country:\n\n(i) the amounts are not subject to tax in that listed country in a tax accounting period ending before the end of the eligible period or commencing during the eligible period;\n\n(ii) the amounts are subject to tax in that listed country in such a tax accounting period and are designated concession income in relation to the listed country; and\n\n(d) amounts that would be included in the notional assessable income of the eligible CFC for the eligible period under Division 5 of Part III of this Act, as modified in accordance with Subdivisions B to D of this Division, in relation to any partnership if its net income included only:\n\n(i) where the eligible CFC does not pass the active income test for the eligible period in relation to the eligible taxpayer—amounts that would be included if the partnership derived only adjusted tainted income (within the meaning of section 386) that is eligible designated concession income in relation to the listed country or any other listed country; and\n\n(ii) amounts that would be included if the partnership derived only income or other amounts, of a kind specified in the regulations, that:\n\n(A) are not eligible designated concession income of the partnership in relation to the listed country or any other listed country; and\n\n(B) are not treated as derived from sources in the listed country for the purposes of the tax law of the listed country; and\n\n(C) pass the test set out in subsection (2A); and\n\n(iii) amounts included under section 102AAZD of this Act as modified in accordance with Subdivisions B to D of this Division; and\n\n(iv) amounts included under Division 6 of Part III of this Act as so modified, where either of the following conditions (but not necessarily the same condition) is satisfied in relation to the listed country and each other listed country:\n\n(A) the amounts are not subject to tax in that listed country in a tax accounting period ending before the end of the eligible period or commencing during the eligible period;\n\n(B) the amounts are subject to tax in that listed country in such a tax accounting period and are designated concession income in relation to the listed country.\n\n(2A) For the purposes of sub‑subparagraphs (2)(a)(ii)(C) and (2)(d)(ii)(C), income or other amounts pass the test set out in this subsection if both:\n\n(a) the income or other amounts are adjusted tainted income (within the meaning of section 386); and\n\n(b) the income or other amounts are not subject to tax in the listed country or in any other listed country in a tax accounting period ending before the end of the eligible period or commencing during the eligible period.\n\n(3) For the purposes of paragraph (2)(c) or (d), a reference in that paragraph to an amount being not subject to tax or subject to tax, as the case may be, includes a reference to another amount included in the net income of a partnership or trust, to which the first‑mentioned amount is attributable, being not subject to tax or subject to tax.\n\n(4) Where the sum of the amounts to which paragraph (2)(a) would otherwise apply does not exceed the lesser of:\n\n(a) $50,000; and\n\n(b) 5% of the gross turnover of the eligible CFC for the eligible period;\n\nthen that paragraph does not apply to those amounts.\n\n(5) In determining for the purposes of paragraph (4)(b) the gross turnover of the eligible CFC for the eligible period, section 434 has effect as if:\n\n(a) subparagraph 434(1)(a)(i) were omitted; and\n\n(b) the words “, but not including amounts that are shown in those recognised accounts as amounts covered by section 436” were omitted from paragraphs 434(1)(b), (c) and (d); and\n\n(c) the words “(other than an exclusion of amounts shown in those recognised accounts as amounts covered by section 436)” were omitted from subsection 434(2).\n\n386  Adjusted tainted income\n\n(1) The references in sections 384, 385 and 457 to adjusted tainted income are references to amounts that would be passive income, tainted sales income or tainted services income if certain modifications were made to the provisions of Division 8.\n\n(2) The modifications are:\n\n(a) that paragraphs 446(1)(k), (m) and (n) are replaced with the following:\n\n“(k) amounts derived from the disposal of tainted assets;\n\n(m) amounts derived from the disposal of tainted commodity investments;\n\n(n) amounts derived that are attributable to currency exchange rate fluctuations, except where under section 439 the amounts would, if they were currency exchange gains, relate to an active income transaction;”; and\n\n(b) that paragraph 446(1)(k) as so replaced does not apply to an amount derived from the disposal of a tainted asset in the circumstances referred to in paragraphs 450(2)(a) to (c) or (5)(a) to (c); and\n\n(c) that paragraph 446(1)(n) as so replaced does not apply to an amount derived where, if it were a currency exchange gain, paragraphs 450(3)(a) and (b) would apply to it; and\n\n(d) that the reference in subsection 450(7) to net gains that accrued to the company in respect of the disposal of tainted assets is replaced with a reference to amounts derived by the company from the disposal of tainted assets.\n\n387  Reduction of attributable income because of interim dividends\n\n(1) Where:\n\n(a) during the eligible period, the eligible CFC pays a dividend to the eligible taxpayer or to another entity; and\n\n(b) if the dividend is paid to the eligible taxpayer—the whole or part of the dividend is included in the assessable income of the eligible taxpayer of a year of income; and\n\n(d) the whole or part of the grossed‑up assessable component of the dividend may reasonably be regarded as having been paid out of the attributable income of the eligible CFC for the eligible period;\n\nthen, for the purposes of this Part, the attributable income of the eligible CFC for the eligible period in relation to the eligible taxpayer is reduced by an amount equal to the whole or the part of the grossed‑up assessable component of the dividend.\n\n(2) In this section:\n\ngrossed‑up assessable component, in relation to a dividend the whole or part of which is included in the assessable income of the eligible taxpayer, means the amount of the whole or the part divided by the eligible taxpayer’s attribution percentage for the eligible CFC at the time of payment of the dividend.\n\nSubdivision B—General modifications of Australian tax law\n\n388  Double tax agreements to be disregarded\n\nIn calculating the attributable income of the eligible CFC, the International Tax Agreements Act 1953 is to be disregarded, except for the purpose of references in this Act to that Act.\n\n389  Certain provisions to be disregarded in calculating attributable income\n\nFor the purpose of applying this Act in calculating the attributable income of the eligible CFC, the following provisions are to be disregarded:\n\n(a) except for the purposes of a reference in any other provision of this Part—sections 23AH, 23AI, 23AK and 128D, Division 15 of Part III (other than subsection 148(1)) and sections 456, 457, 459A and 461;\n\n(b) except for the purposes of a reference in Division 6AAA of Part III or in any other provision of this Part—Part 3‑6 of the Income Tax Assessment Act 1997;\n\n(ba) Division 230 of the Income Tax Assessment Act 1997;\n\n(c) Division 820 of the Income Tax Assessment Act 1997;\n\n(d) Division 832 of the Income Tax Assessment Act 1997 (about hybrid mismatch rules).\n\n389A  Other provisions to be disregarded in calculating attributable income\n\nFor the purpose of applying this Act in calculating the attributable income of the eligible CFC, the following provisions are to be disregarded:\n\n(a) Division 974 of the Income Tax Assessment Act 1997; and\n\n(b) any provision of this Act to the extent to which the operation of the provision depends on an expression whose meaning is given by Division 974 of the Income Tax Assessment Act 1997.\n\n390  Elections to be made by eligible taxpayer\n\n(1) For the purpose of applying this Act in calculating the attributable income of the eligible CFC, any declaration, election, choice or selection that may be made, any notice that may be given or any option that may be exercised, under this Act by the eligible CFC apart from this section is not to be made, given or exercised by the eligible CFC but instead may be made, given or exercised by the eligible taxpayer.\n\n(2) The eligible taxpayer may make the declaration, election or selection, give the notice or exercise the option in the eligible taxpayer’s return of income of the year of income in which the eligible period ends or within such further period after the lodgment of the return as the Commissioner allows.\n\n(3) Subsection (1) does not apply to an election under the CGT roll‑over provisions.\n\n392  Notional assessable amounts are to be pre‑tax\n\n(1) An amount included in the notional assessable income of the eligible CFC is an amount before the payment of any foreign tax or Australian tax in respect of the amount.\n\n393  Notional allowable deduction for taxes paid\n\n(1) Foreign tax or Australian tax paid by the eligible CFC in respect of amounts included in the notional assessable income of the eligible CFC for the eligible period, whether paid before, during or after that period, is a notional allowable deduction from the notional assessable income of the eligible CFC for the eligible period.\n\n(2) For the purposes of subsection (1), foreign tax mentioned in that subsection does not include any of the following:\n\n(a) foreign IIR tax (within the meaning of the Income Tax Assessment Act 1997);\n\n(b) foreign UTPR tax (within the meaning of that Act);\n\n(c) a tax specified in regulations made for the purposes of this paragraph.\n\n(4) Where a person pays an amount of tax that the person is liable to pay under subsection 148(3) of this Act, in its application apart from this Part, in respect of premiums paid or credited to the eligible CFC, then, for the purposes of subsection (1), the amount is taken to be Australian tax paid by the eligible CFC in respect of the premiums.\n\n394  Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends\n\nWhere:\n\n(a) the eligible CFC pays an eligible finance share dividend, a widely distributed finance share dividend or a transitional finance share dividend during or after the eligible period; and\n\n(b) if, on the assumption that the dividend were instead a payment of the interest, referred to in paragraph 327(d) or 327A(3)(b) or subsection 327B(2), as the case requires, to which it may reasonably be regarded as equivalent, an amount (in this section called the interest equivalent) of that interest accruing during the eligible period would be a notional allowable deduction for the eligible period;\n\nthen the interest equivalent is a notional allowable deduction for the eligible period.\n\n395  Expenditure incurred to produce income or profits in later statutory accounting periods\n\nIn determining whether expenditure incurred by the eligible CFC during the eligible period for the purpose of gaining or producing income or profits in a later statutory accounting period is a notional allowable deduction under a particular provision, it is to be assumed that:\n\n(a) there will be a requirement under this Division to calculate the attributable income of the eligible CFC for that later statutory accounting period; and\n\n(b) for that purpose, the eligible CFC will always be a resident of the listed country or unlisted country, as the case may be.\n\n396  Modified application of sections 25A and 52","sortOrder":1000107},{"sectionNumber":"full-source-retrieval-0109","sectionType":"document_chunk","heading":"Document excerpt 109","content":"(1) For the purpose of applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of an eligible CFC, sections 25A and 52 of this Act and sections 15‑15 and 25‑40 of the Income Tax Assessment Act 1997 do not apply in respect of the disposal of a non‑taxable Australian asset of the eligible CFC.\n\n(2) A reference in subsection (1) to a non‑taxable Australian asset is a reference to a CGT asset other than one that has the necessary connection with Australia (within the meaning of the Income Tax Assessment Act 1997).\n\n(3) The residency assumption is to be ignored in determining whether an asset is a taxable Australian asset for the purposes of this section.\n\n397  Modified application of trading stock provisions\n\nWhen applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of the eligible CFC:\n\n(a) Subdivision B of Division 2 of Part III of this Act has effect as if the value of any article of trading stock to be taken into account at the beginning or end of a year of income were its cost price; and\n\n(b) Division 70 of the Income Tax Assessment Act 1997 has effect as if the value of any item of trading stock to be taken into account at the beginning or end of an income year were its cost.\n\n398  Modified application of depreciation provisions\n\n(1) Where property has been held by the eligible CFC in a non‑attributable income period in relation to the application of a depreciation provision to the property (in relation to the eligible CFC and the eligible taxpayer) prior to the eligible period, subsection (2) applies.\n\n(2) Such amount as the Commissioner considers appropriate to take account of the holding of the property as mentioned in subsection (1) is, under the depreciation provision:\n\n(a) a notional allowable deduction to the eligible CFC; or\n\n(b) included in the notional assessable income of the eligible CFC;\n\nas the case requires, for the eligible period in relation to the eligible taxpayer, in substitution for any amount that would otherwise be so included or allowable.\n\n(3) For the purpose of exercising his or her power under subsection (2) to determine a notional allowable deduction in relation to:\n\n(a) former sections 54 to 62 of this Act; or\n\n(b) the former Division 42 (Depreciation) of the Income Tax Assessment Act 1997 (other than Subdivisions 42‑L and 42‑M); or\n\n(c) Division 40 of that Act (other than Subdivision 40‑E);\n\nthe Commissioner must assume that the property was used by the eligible CFC during any non‑attributable income period wholly and exclusively for the purpose of producing notional assessable income.\n\n398A  Application of Division 3A of Part III\n\n(1) Subject to subsection (2), Division 3A of Part III applies in calculating the attributable income of the eligible CFC.\n\n(2) Section 82R does not apply, subject to subsection (3), to outgoings during the eligible period under a convertible note if:\n\n(a) the note was issued by the eligible CFC (whether or not the company concerned was a CFC at the time):\n\n(i) before 1 July 1990; or\n\n(ii) on or after 1 July 1990 and before 1 July 1992, where:\n\n(A) the terms of the issue of the note were publicly announced by the eligible CFC before 1 July 1990; or\n\n(B) the eligible CFC was, under a contract entered into before 1 July 1990, obliged to issue the note; and\n\n(b) at the end of each statutory accounting period of the eligible CFC preceding the eligible period and ending after 30 June 1990, the eligible taxpayer was an attributable taxpayer in relation to the eligible CFC; and\n\n(c) the eligible period begins before 1 July 2000.\n\n(3) If:\n\n(a) the terms of a note to which subsection (2) would, apart from this subsection, apply are varied (otherwise than because of a compromise or arrangement approved by a court); and\n\n(b) the Commissioner considers that the variation is substantial enough to represent a new loan;\n\nsubsection (2) does not apply to outgoings under the note after the time at which the variation takes place.\n\n399  Modifications of net income of partnerships and trusts\n\n(1) If, in calculating the attributable income of the eligible CFC, it is necessary to determine the net income of a partnership or trust under section 90 or 95, it is to be assumed that:\n\n(a) the modifications of this Act in this Division (other than excluded modifications) apply to the partnership or the trust in the same way as they apply to the eligible CFC (except where a provision modified only applies to companies); and\n\n(b) for the purpose of applying those modifications, the partnership or trust is taken to be a resident of the same listed or unlisted country as the eligible CFC; and\n\n(c) the Income Tax Assessment Act 1997 is further modified by disregarding section 855‑50; and\n\n(d) for the purposes of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 in accordance with the preceding paragraphs, the trust is a resident trust for CGT purposes.\n\n(2) In this section:\n\nexcluded modifications means modifications made by sections 411 to 418 (inclusive).\n\n399A  Modified application of bad debt etc. provisions\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC for the eligible period:\n\n(b) section 63D of this Act is to be disregarded; and\n\n(c) subsection (2) of this section has effect.\n\n(2) Where:\n\n(a) apart from this subsection, an amount would be a notional allowable deduction to the eligible CFC under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997 in respect of the writing off of a debt as bad; and\n\n(b) the debt was created or acquired in the ordinary course of a money‑lending business of the eligible CFC that carries on that business; and\n\n(c) assuming that income:\n\n(i) that has been derived by the eligible CFC in respect of the debt; or\n\n(ii) that would have been reasonably likely to have been derived by the eligible CFC in respect of the debt if it had not become bad;\n\nwere instead derived by the eligible CFC during periods to which it may reasonably be attributed, there would be a part or parts (which part or the total of which parts is in this subsection called the notional exempt income period) of the period (in this subsection called the eligible debt holding period) beginning when the debt was so created or acquired, and ending when it was written off, in respect of which some or all of that income would not be included in the notional assessable income of the eligible CFC for any statutory accounting period;\n\nthen only a proportion of the amount referred to in paragraph (a) is a notional allowable deduction, being the proportion calculated using the following formula:\n\n![Start formula start fraction Eligible debt holding period minus Notional exempt income period over Eligible debt term end fraction end formula](image.006.png)\n\nwhere:\n\nEligible debt holding period means the number of days in the eligible debt holding period.\n\nNotional exempt income period means the number of days in the notional exempt income period.\n\nEligible debt term means:\n\n(d) where the debt was acquired from a person other than an associate—the number of days in the eligible debt holding period; or\n\n(e) in any other case—the number of days in the period beginning on the day on which the debt was created (whether by the eligible CFC or another person) and ending at the end of the day on which it was written off.\n\n(3) For the purposes of subsection (2):\n\n(a) where a debt that is written off was acquired from another person, the creation and any previous acquisition of the debt is to be disregarded, other than for the purposes of paragraph (2)(e); and\n\n(b) if, on the assumption in paragraph (2)(c), income would be derived by the eligible CFC during a period before the first statutory accounting period of the eligible CFC beginning on or after 1 July 1990, then, in spite of anything in that paragraph, that income is taken not to be included in the notional assessable income of the eligible CFC for any statutory accounting period; and\n\n(c) it is to be assumed that, for any statutory accounting period for which there is no requirement to calculate the attributable income of the eligible CFC in relation to the eligible taxpayer, there is such a requirement.\n\n(4) Where a part of a debt is written off as bad, the preceding provisions of this section apply as if the part were an entire debt that is written off as bad.\n\n(5) This section has the same effect in relation to an allowable deduction under section 63E in respect of the whole or part of a debt that is extinguished as it has in relation to an allowable deduction under section 8‑1 or 25‑35  of the Income Tax Assessment Act 1997 in respect of the whole or part of a debt that is written off as bad.\n\n400  Modified cross‑border requirement for transfer pricing\n\n(1) This section applies in calculating the attributable income of the eligible CFC.\n\n(2) Conditions that operate between the eligible CFC and another entity do not satisfy the cross‑border test in subsection 815‑120(3) of the Income Tax Assessment Act 1997 if:\n\n(a) the other entity is a CFC; and\n\n(b) the eligible CFC and the other entity are residents of the same listed country (disregarding section 383 of this Act).\n\n401  Reduction of disposal consideration or capital proceeds if attributed income not distributed\n\n(1) If:\n\n(a) it is necessary, for the purposes of applying a provision of this Act in calculating the attributable income of the eligible CFC in relation to the eligible taxpayer, to take into account:\n\n(i) the amount of consideration received, entitled to be received or taken to have been received, by the eligible CFC in respect of the disposal of an asset; or\n\n(ii) the capital proceeds from a CGT event happening in relation to a CGT asset;\n\nbeing an asset that is an interest in an attribution account entity (the disposal entity); and\n\n(b) immediately before the disposal or CGT event takes place, either or both of the following conditions are satisfied:\n\n(i) there is an attribution surplus for the disposal entity in relation to the eligible taxpayer;\n\n(ii) there is an attribution surplus for one or more other attribution account entities in relation to the eligible taxpayer, where each such entity is one in which the eligible taxpayer has an indirect attribution account interest held through the disposal entity;\n\nthen:\n\n(c) for the purpose of calculating the attributable income, the consideration or capital proceeds that, apart from this section, would be taken into account under the provision referred to in paragraph (a) in respect of the disposal or CGT event is, subject to subsection (3), taken to be reduced by the grossed‑up amount of the attribution surplus, or the sum of the grossed‑up amounts of the attribution surpluses, as the case requires; and\n\n(d) for the purposes of this Act, attribution debits and credits arise in accordance with subsection (5).\n\n(3) For the purposes of paragraph (1)(c):\n\n(a) a reference to the grossed‑up amount of an attribution surplus is a reference to the amount of the surplus divided by the eligible taxpayer’s attribution account percentage for the eligible CFC; and\n\n(b) where the disposal of the asset, or the CGT event, causes the eligible taxpayer’s attribution account percentage for an attribution account entity in relation to which there is an attribution surplus to be reduced by a proportion, then only that proportion of the attribution surplus is, subject to this subsection, to be taken into account under that paragraph; and\n\n(c) where there is only one attribution surplus referred to in that paragraph and (after any application of paragraph (b) of this subsection) its grossed‑up amount exceeds the consideration in respect of the disposal or the capital proceeds from the CGT event, then the surplus is only to be taken into account to the extent that its grossed‑up amount equals the consideration or those capital proceeds; and\n\n(d) where there are 2 or more attribution surpluses referred to in paragraph (1)(c) and (after any application of paragraph (b) of this subsection) the sum of their grossed‑up amounts exceeds the consideration in respect of the disposal or the capital proceeds from the CGT event, then:\n\n(i) if the taxpayer makes an election that for the purposes of this paragraph, a part of each surplus (after any application of paragraph (b)) such that the sum of the grossed‑up amounts of the parts to which the election relates equals the consideration or those capital proceeds—only the part to which the election relates of each surplus is to be taken into account under paragraph (1)(c); or\n\n(ii) if subparagraph (i) does not apply—only a proportion of each surplus (after any application of paragraph (b)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:\n\n![Start formula start fraction Consideration over Total grossed-up surplus end fraction end formula](image.007.png)\n\nwhere:\n\nconsideration means the amount of the consideration or the capital proceeds.\n\ntotal grossed‑up surplus means the sum of the grossed‑up amounts of the attribution surpluses (after any application of paragraph (b)).\n\n(4) An election for the purposes of paragraph (3)(d) must be made on or before the date of lodgment of the eligible taxpayer’s return of income for the year of income in which the eligible period ends or within such further period after the lodgment of the return as the Commissioner allows.\n\n(5) For the purposes of this Act:\n\n(a) an attribution debit is taken to arise at the time of the disposal under section 372, in relation to the eligible taxpayer, for each attribution account entity (in this section called a surplus entity) in relation to which there is an attribution surplus to which paragraph (1)(c) applies; and\n\n(b) the amount of the attribution debit is equal to so much of the surplus as is taken into account under paragraph (1)(c); and\n\n(c) there is no grossed‑up amount in relation to the attribution debit under section 373; and\n\n(d) an attribution credit equal to the debit is taken to arise, at the time of the disposal or of the CGT event, under section 371 for the eligible CFC in relation to the eligible taxpayer.\n\n(6A) In determining, for the purposes of this section, whether there was an attribution surplus immediately before a CGT event, and the amount of such a surplus, also take into account any attribution credit that later arises because the CGT event caused section 104‑175 of the Income Tax Assessment Act 1997 (as it notionally applies to the CGT event entity under this Division) to operate.\n\n(7) In this section:\n\ninterest, in relation to an attribution account entity, means:\n\n(a) if the entity is a company—an interest in shares in the company, or an entitlement to acquire such an interest; or\n\n(b) if the entity is a partnership—an interest of a partner in the profits or property of the partnership, or an entitlement of a partner to acquire such an interest; or\n\n(c) if the entity is a trust—an entitlement of a beneficiary to a share of the income or corpus of the trust, or an entitlement of a beneficiary to acquire such an entitlement.\n\n402  Additional notional exempt income—unlisted or listed country CFC\n\n(1) This section applies where the eligible CFC is a resident of either a listed country or an unlisted country at the end of the eligible period.\n\n(2) Each of the following is notional exempt income of the eligible CFC in relation to the eligible period:\n\n(a) income or other amounts derived by the eligible CFC in the eligible period that are included in the assessable income of the eligible CFC of any year of income for the purposes of this Act apart from this Part, other than amounts that are so included under section 143 (where the proviso to that section does not apply);\n\n(b) so much of a frankable distribution, paid to the eligible CFC in the eligible period, as is either the franked part of the distribution, or the part of the distribution that has been franked with an exempting credit;\n\n(e) a premium paid or credited to the eligible CFC in the eligible period, where, because of the application of subsection 148 (1) for the purposes of this Act apart from this Part, the premium is not, for those purposes, allowable as a deduction to the person referred to in subparagraph 148(1)(a)(i) and is not included in the assessable income of the eligible CFC.\n\n(3) If:\n\n(a) an attribution account entity makes an attribution account payment to the eligible CFC in the eligible period; and\n\n(b) apart from this subsection, the whole or part of the attribution account payment would be included in the notional assessable income of the eligible CFC in relation to the eligible taxpayer for the eligible period; and\n\n(c) on the making of the attribution account payment, an attribution debit arises for the attribution account entity in relation to the eligible taxpayer;\n\nthen so much (if any) of the whole or the part of the attribution account payment as does not exceed the grossed‑up amount of the attribution debit is notional exempt income of the eligible CFC for the eligible period.\n\n(4) If:\n\n(a) a FIF attribution account entity (within the meaning of former Part XI) makes a FIF attribution account payment (within the meaning of former Part XI) to the eligible CFC in the eligible period; and\n\n(b) apart from this subsection, the whole or part of the FIF attribution account payment would be included in the notional assessable income of the eligible CFC in relation to the eligible taxpayer for the eligible period; and\n\n(c) on the making of the FIF attribution account payment, a post FIF abolition debit arises under section 23AK for the FIF attribution account entity in relation to the eligible taxpayer;","sortOrder":1000108},{"sectionNumber":"full-source-retrieval-0110","sectionType":"document_chunk","heading":"Document excerpt 110","content":"so much (if any) of the whole or the part of the FIF attribution account payment as does not exceed the grossed‑up amount of the post FIF abolition debit is notional exempt income of the eligible CFC for the eligible period.\n\n(5) For the purposes of subsection (4), the grossed‑up amount of the post FIF abolition debit is:\n\n(a) where subparagraph 23AK(3)(b)(i) applied in relation to the debit—the amount of the debit; or\n\n(b) where subparagraph 23AK(3)(b)(ii) applied in relation to the debit—the amount of the debit, divided by the FIF attribution account percentage referred to in that subparagraph.\n\n403  Additional notional exempt income—unlisted country CFC\n\nIf the eligible CFC is a resident of an unlisted country at the end of the eligible period, the notional exempt income of the eligible CFC in relation to the eligible period includes income or profits derived by the eligible CFC in the eligible period in or in connection with carrying on business in a listed country at or through a permanent establishment of the eligible CFC in that listed country, where the income or profits are not eligible designated concession income in relation to any listed country in relation to the eligible period.\n\n404  Application of Subdivision 768‑A of the Income Tax Assessment Act 1997\n\n(1) For the purpose of applying Subdivision 768‑A of the Income Tax Assessment Act 1997 (about returns on foreign investment) in calculating the attributable income of the eligible CFC, disregard section 389A of this Act (which is about disregarding Division 974 of the Income Tax Assessment Act 1997 and certain other provisions).\n\n(2) For the purpose of applying this Act in calculating the attributable income of the eligible CFC, disregard paragraph 768‑5(1)(d) of the Income Tax Assessment Act 1997 if:\n\n(a) the eligible CFC receives, either directly or indirectly through one or more interposed trusts or partnerships, a foreign equity distribution (within the meaning of the Income Tax Assessment Act 1997) from a company; and\n\n(b) at the time the distribution is made, both the eligible CFC and the company are residents of the same listed country or unlisted country.\n\nSubdivision C—Modifications relating to Australian capital gains tax\n\n405  Interpretation\n\n(1) In this Subdivision:\n\ncommencing day has the meaning given by section 406.\n\ncommencing day asset has the meaning given by section 406.\n\n(3) Some provisions of this Subdivision say that a payment can include giving property. To the extent that one does, use the market value of the property in working out the amount of the payment.\n\n406  Meaning of commencing day and commencing day asset\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the eligible CFC’s commencing day is the later of:\n\n(a) the last day of the most recent period during which there was not an attributable taxpayer with an attribution percentage (greater than nil) in relation to the eligible CFC; and\n\n(b) 30 June 1990.\n\nExample: If a taxpayer became an attributable taxpayer with an attribution percentage (greater than nil) in relation to the eligible CFC at 3 pm on 20 October 2004 and there were no other such attributable taxpayers at that time, the commencing day is 20 October 2004.\n\n(2) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, a commencing day asset of the eligible CFC is a CGT asset (other than one that is taxable Australian property) owned by the eligible CFC at the end of its commencing day.\n\n(3) In determining whether a CGT asset is taxable Australian property, disregard the residency assumption.\n\n408  Certain capital gains and losses disregarded\n\nIf a CFC makes a capital gain or capital loss from a CGT event that is not disregarded under Subdivision 855‑A of the Income Tax Assessment Act 1997, or would have made a capital gain from the event apart from indexation, disregard the CGT event in calculating the attributable income of the eligible CFC.\n\n408A  Certain events before commencing day ignored\n\nFor the purposes of applying this Act in calculating the attributable income of an eligible CFC, if the eligible CFC’s commencing day is after 30 June 1995, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply to CGT events involving the eligible CFC before the end of the commencing day.\n\n409  Losses before 30 June 1990 to be disregarded\n\nFor the purposes of applying this Act in calculating the attributable income of the eligible CFC, capital losses incurred before the end of 30 June 1990 are disregarded.\n\n410  General modifications—CGT\n\nFor the purposes of applying this Act in calculating the attributable income of the eligible CFC, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 apply as if these provisions were disregarded:\n\n(a) section 116‑85 (about section 47A of this Act applying to a rolled‑over asset);\n\n(b) section 116‑95 (about a company changing residence from an unlisted country);\n\n(c) section 118‑12 (about assets used to produce exempt income etc.);\n\n(d) section 855‑45 (about an individual or company becoming an Australian resident);\n\n(e) section 855‑55 (about a CFC becoming an Australian resident);\n\n(f) Subdivision 170‑B (about transfer of net capital losses within company groups).\n\n411  Commencing day assets taken to have been acquired on commencing day\n\n(1) Subject to this section, for the purposes of applying this Act in calculating the attributable income of the eligible CFC, a commencing day asset of the eligible CFC is taken to have been acquired, for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT), by it on its commencing day.\n\n(3) Subsection (1) does not apply for the purposes of determining the cost base to the eligible CFC of an asset.\n\n412  Cost base of commencing day asset\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect.\n\n(2) The first element of the cost base of each commencing day asset of the eligible CFC is the greater of the asset’s market value (at the end of the eligible CFC’s commencing day) and the asset’s cost base (on that day).\n\n(3) The first element of the reduced cost base of each commencing day asset of the eligible CFC is the lesser of the asset’s market value (at the end of the eligible CFC’s commencing day) and the asset’s cost base (on that day).\n\n413  Adjustment of cost base as at commencing day—return of capital\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect.\n\n(2) Where:\n\n(a) commencing day assets of the eligible CFC consist of shares in a company; and\n\n(b) at any time during the period commencing at the time when the eligible CFC acquired the shares and ending at the end of the eligible CFC’s commencing day, the company paid an amount that was not a dividend to the eligible CFC in respect of the shares;\n\nthe cost base to the eligible CFC of the shares as at the eligible CFC’s commencing day is to be reduced by that amount.\n\n(3) Where:\n\n(a) a commencing day asset of the eligible CFC consists of an interest or unit in a trust; and\n\n(b) at any time during the period commencing at the time when the eligible CFC acquired the interest or unit and ending at the end of the eligible CFC’s commencing day, the trustee of the trust paid an amount to the eligible CFC in respect of the interest or unit, being an amount that would not have been notional assessable income of the eligible CFC;\n\nthe cost base to the eligible CFC of the interest or unit as at the eligible CFC’s commencing day is to be reduced by so much of the amount as is not attributable to a deduction allowed under Division 43 of the Income Tax Assessment Act 1997 or former Division 10C or 10D of Part III of this Act.\n\n(4) The payment referred to in subsection (2) or (3) can include giving property: see subsection 405(3).\n\n414  Exercise of rights\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect.\n\n(2) Despite section 130‑40 of the Income Tax Assessment Act 1997, the modifications in subsections (3) and (4) of this section apply if the eligible CFC exercises rights or options as mentioned in that section to acquire:\n\n(a) shares in a company, or options to acquire shares in a company; or\n\n(b) units in a unit trust, or options to acquire units in a unit trust;\n\nand those rights or options are commencing day assets of the eligible CFC.\n\n(3) The first element of the cost base of the shares, units or options is the sum of:\n\n(a) the amount paid to exercise the rights or options; and\n\n(b) the greater of the market value of the rights or options (at the end of the eligible CFC’s commencing day) and the cost base of the rights or options (on that day).\n\n(4) The first element of the reduced cost base of the shares, units or options is the sum of:\n\n(a) the amount paid to exercise the rights or options; and\n\n(b) the lesser of the market value of the rights or options (at the end of the eligible CFC’s commencing day) and the cost base of the rights or options (on that day).\n\n(5) The payment referred to in subsection (3) or (4) can include giving property: see subsection 405(3).\n\n(6) For indexation purposes, the amount referred to in paragraph (3)(b) is taken to have been incurred on the eligible CFC’s commencing day.\n\n418  Options\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect.\n\n(2) Subsection 104‑30(5) of the Income Tax Assessment Act 1997 applies to an option granted by the eligible CFC as if the reference in that subsection to 20 September 1985 were a reference to the day after the eligible CFC’s commencing day.\n\n(3) Section 134‑1 of the Income Tax (Transitional Provisions) Act 1997 does not apply to an option granted to the eligible CFC.\n\n418A  Effect of change of residence from Australia to listed or unlisted country\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, where:\n\n(a) disregarding the residency assumption, at any time (in this section called the residence‑change time) during the eligible period or an earlier statutory accounting period beginning on or after the day following the eligible CFC’s commencing day, the eligible CFC ceased to be a resident within the meaning of section 6 and became a resident of a listed country or an unlisted country; and\n\n(b) the eligible CFC owned a CGT asset at the residence‑change time; and\n\n(c) a CGT event happens in relation to the asset during the eligible period;\n\nthen sections 411 to 414 (inclusive) apply, in addition to any application apart from this section but subject to subsection (2) of this section, to the asset as if:\n\n(d) any reference in those sections to a commencing day asset were a reference to the asset; and\n\n(e) any reference in those sections relating to the eligible CFC’s commencing day or the day following the eligible CFC’s commencing day were a reference relating respectively to the residence‑change time or a time immediately after the residence‑change time; and\n\n(f) if section 104‑160 of the Income Tax Assessment Act 1997 (CGT event I1) applied to the change of residence for the purposes of the application of this Act apart from this Part:\n\n(i) section 412 applies as if subsections 412(2) and (3) referred only to the market value of the asset concerned; and\n\n(ii) section 414 applies as if paragraphs 414(3)(b) and (4)(b) referred only to the market value of the asset concerned.\n\n(2) Where the asset is a commencing day asset, sections 411 to 414 (inclusive) do not apply, in spite of anything contained in those sections, to the asset except in accordance with subsection (1) of this section.\n\n419  Modified application of Subdivision 126‑B of the Income Tax Assessment Act 1997\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, Subdivision 126‑B of the Income Tax Assessment Act 1997 has effect as if the table in subsection 126‑50(5) of that Act were omitted and the following table were substituted:\n\n- Additional requirements\n- Item The originating CFC’s residency status The recipient company’s residency status This requirement must be satisfied\n- 1 A resident of a listed country at the time of the trigger event Either:(a) a resident of that listed country at that time; or(b) an Australian resident at that time It does not matter what the roll‑over asset is\n- 2 A resident of a listed country at the time of the trigger event A resident of a particular unlisted country at that time The asset must have been used (just before that time) in connection with a permanent establishment of the originating CFC in any unlisted country at or through which the originating CFC carried on business just before that time\n- 3 A resident of an unlisted country at the time of the trigger event Either:(a) a resident of an unlisted country at that time; or(b) an Australian resident at that time It does not matter what the roll‑over asset is\n\n(2) The residency assumption is ignored for the purpose of applying the table in subsection (1).\n\n421  Elections under CGT roll‑over provisions\n\n(1) Subject to this section, for the purpose of applying this Act in calculating the attributable income of the eligible CFC for the eligible period, any election or choice that may be made, by the eligible CFC, or by the eligible CFC and another entity, apart from this section, under any of the CGT roll‑over provisions:\n\n(a) on or before the date of lodgment of a particular return of income; or\n\n(b) within such further period as the Commissioner allows;\n\nis to be made instead:\n\n(c) if there is only one attributable taxpayer in relation to the eligible CFC at the end of the eligible period—on or before the date of lodgment of the taxpayer’s return of income of the year of income in which the end of the eligible period occurs; or\n\n(d) if there are 2 or more attributable taxpayers in relation to the eligible CFC at the end of the eligible period:\n\n(i) if the taxpayers’ returns of income of the year of income in which the end of the eligible period occurs are lodged on different dates—on or before the later or latest of those dates; or\n\n(ii) if the taxpayers’ returns of income of the year of income in which the end of the eligible period occurs are lodged on the same date—on or before that date; or\n\n(e) in any case—within such further period as the Commissioner allows.\n\n(1A) For the purposes of applying subsection (1) to an eligible CFC in relation to an eligible period, if:\n\n(a) an entity (the designated entity) is the only attributable taxpayer in relation to the eligible CFC at the end of the eligible period; and\n\n(b) the designated entity’s attribution percentage in relation to the company is 100% at the end of the eligible period;\n\nthen, instead of the election or choice being given by the eligible CFC, or by the eligible CFC and another entity (which other entity may be the designated entity), the election or choice may be given by:\n\n(c) the designated entity; or\n\n(d) if the designated entity is not the same as the other entity—the designated entity and the other entity;\n\nas the case requires.\n\n(2) Except in accordance with subsection (3), subsection (1) does not apply to an election or choice in respect of the disposal of an asset if the disposal is, or apart from an election or choice in accordance with subsection 438(3A) would be, taken into account in determining under Division 8 whether the eligible CFC passes the active income test in relation to the eligible period.\n\n(3) If an election or choice is made under a CGT roll‑over provision in accordance with subsection 438(3A), that election or choice also has effect as if it were made under the CGT roll‑over provision in accordance with subsection (1) of this section.\n\n422  Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, in relation to the eligible period in relation to the eligible taxpayer, the following provisions have effect.\n\n(2) This section sets out what happens if:\n\n(a) the eligible CFC ceases at a time (the residency change time), during the eligible period or an earlier statutory accounting period, to be a resident of an unlisted country and becomes a resident of a listed country; and\n\n(b) subsection 457(3) does not apply to the change of residence; and\n\n(c) because of the change in its residency status, an amount is included in the eligible taxpayer’s assessable income under section 457 (including because of paragraph 58(1)(d) of the Taxation Laws Amendment (Foreign Income) Act 1990); and\n\n(d) a CGT event happens during the eligible period in relation to a CGT asset (the CFC asset) that the eligible CFC owned since the residency change time.\n\n(3) If the conditions in subsection (4) are satisfied, the capital proceeds from the CGT event are reduced by the amount worked out under subsection (5). If the conditions in subsection (6) are satisfied, those capital proceeds are increased by the amount worked out under subsection (7).\n\nReduction of capital proceeds\n\n(4) If all the eligible CFC’s assets were disposed of at the residency change time for their market values in the circumstances mentioned in subparagraph 457(2)(a)(ii):\n\n(a) distributable profits of the eligible CFC of a particular amount (the distributable profit amount) would be created, or its distributable profits would be increased by an amount (also the distributable profit amount); and\n\n(b) the eligible CFC would have made a profit (the CFC asset profit) on the disposal of the CFC asset.\n\n(5) The capital proceeds are reduced by:","sortOrder":1000109},{"sectionNumber":"full-source-retrieval-0111","sectionType":"document_chunk","heading":"Document excerpt 111","content":"![Start formula Distributable profit amount times start fraction CFC asset profit over Total asset profits end fraction end formula](image.008.png)\n\nwhere:\n\ntotal asset profits is the sum of the profits that the eligible CFC would have made if all its assets were disposed of at the residency change time for their market values (ignoring disposals that would not result in a profit).\n\nIncrease in capital proceeds\n\n(6) If all the eligible CFC’s assets were disposed of at the residency change time for their market values in the circumstances mentioned in subparagraph 457(2)(a)(ii):\n\n(a) the distributable profits of the eligible CFC would be reduced by an amount (the distributable profit reduction amount); and\n\n(b) the eligible CFC would have made a loss (the CFC asset loss) on the disposal of the CFC asset.\n\n(7) The capital proceeds are increased by:\n\n![Start formula Distributable profit reduction amount times start fraction CFC asset profit over Total asset profits end fraction end formula](image.009.png)\n\nwhere:\n\ntotal asset losses is the sum of the losses that the eligible CFC would have made if all its assets were disposed of at the residency change time for their market values (ignoring disposals that would not result in a loss).\n\n423  Adjustment of capital proceeds where section 47A applies to rolled‑over assets\n\n(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, in relation to the eligible period in relation to the eligible taxpayer, the following provision has effect.\n\n(2) The capital proceeds from a CGT event that happens in relation to a CGT asset of the eligible CFC during the eligible period are reduced if:\n\n(a) either:\n\n(i) because of Division 17 of former Part IIIA of this Act, that Part did not apply to the disposal of the asset to the eligible CFC by another CFC during the eligible period or an earlier statutory accounting period; or\n\n(ii) there was a roll‑over under Division 122, 124 or 126 of the Income Tax Assessment Act 1997 (except under Subdivision 124‑J, 124‑K or 124‑L of that Act) for a CGT event (the earlier CGT event) that happened during that period in relation to the asset and involving the eligible CFC and another CFC; and\n\n(b) the eligible taxpayer was an attributable taxpayer in relation to both CFC’s at the time of the disposal or the earlier CGT event; and\n\n(c) the other CFC is taken, under section 47A of this Act, to have paid the eligible CFC a dividend in relation to the disposal or the earlier CGT event; and\n\n(d) an amount is included in the attributable taxpayer’s assessable income in respect of the dividend under section 456 of this Act.\n\n(3) The reduction is the lesser of:\n\n(a) the amount of the dividend; and\n\n(b) the amount of any capital gain that:\n\n(i) apart from Division 17 of former Part IIIA of this Act, would have accrued to the other CFC in respect of the disposal if the consideration in respect of the disposal had been the market value of the asset at the time of the disposal; or\n\n(ii) the other CFC would have made from the earlier CGT event apart from the roll‑over if the capital proceeds from that event had been the market value of the asset at the time of that event.\n\nSubdivision D—Modifications relating to losses\n\n425  Sometimes‑exempt income etc.\n\n(1) Where an amount is not included in the eligible CFC’s notional assessable income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer because:\n\n(a) the eligible CFC passes the active income test for the period in relation to the eligible taxpayer; or\n\n(b) subsection 385 (4) applies;\n\nthen the amount is sometimes‑exempt income of the eligible CFC for the period in relation to the eligible taxpayer.\n\n(2) Where an amount would, disregarding section 431, only be a notional allowable deduction of the eligible CFC for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer if the eligible CFC’s sometimes‑exempt income for the period in relation to the eligible taxpayer were instead notional assessable income, then the amount is a sometimes‑exempt deduction of the eligible CFC for the period in relation to the eligible taxpayer.\n\n(3) Where the eligible CFC’s sometimes‑exempt deductions for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceed its sometimes‑exempt income for the period in relation to the taxpayer, the excess is a (sometimes‑exempt income) loss of the eligible CFC for the period in relation to the eligible taxpayer.\n\n(4) Where an eligible CFC’s sometimes‑exempt income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceeds its sometimes‑exempt deductions for the period in relation to the taxpayer, the excess is a (sometimes‑exempt income) gain of the eligible CFC for the period in relation to the eligible taxpayer.\n\n426  Creation of loss\n\nFor the purposes of this Subdivision, if:\n\n(a) the amount of the eligible CFC’s notional allowable deductions (other than under section 431) for a statutory accounting period (being the eligible period or an earlier period) are applied as follows:\n\n(i) they are applied first against any notional assessable income of the eligible CFC class for the period;\n\n(ii) any excess is then applied against any (sometimes‑exempt income) gain for the period; and\n\n(b) there is any amount remaining;\n\nthen the amount remaining is a loss of the eligible CFC for the period.\n\n427  Certain provisions to be disregarded\n\nFor the purposes of applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of an eligible CFC, disregard the following:\n\n(b) Division 36, section 165‑120 and Subdivisions 170‑A, 709‑D and 719‑I of the Income Tax Assessment Act 1997 (except for the purpose of a reference to any of those provisions in any other provision of this Act, as applied in accordance with this Division);\n\n(ba) Subdivisions 165‑CC and 165‑CD of the Income Tax Assessment Act 1997.\n\n428  Subdivision to apply as if there were always a requirement to calculate attributable income\n\nFor the purposes of applying this Subdivision in calculating the attributable income of the eligible CFC for the eligible period, it is to be assumed that, for any earlier statutory accounting period (when the eligible CFC existed) for which there was no requirement to calculate its attributable income in relation to the eligible taxpayer, there were such a requirement (except for the purpose of applying section 398).\n\n429  Notional allowable deduction for (sometimes‑exempt income) loss\n\nThe amount of any (sometimes‑exempt income) loss of the eligible CFC for the eligible period class is a notional allowable deduction for the period from the notional assessable income of the eligible CFC.\n\n431  Deduction etc. for previous period loss\n\n(1) Where there are one or more losses of the eligible CFC of any statutory accounting period before the eligible period, the losses, to the extent they have not been previously taken into account under this section in respect of any such period, are to be taken into account in accordance with this section.\n\n(2) The losses are to be taken into account as follows:\n\n(a) they are to be applied first against any (sometimes‑exempt income) gain for the eligible period, to the extent that the gain has not already been applied under section 426 in determining whether there is a loss for the eligible period;\n\n(b) any excess is then a notional allowable deduction for the eligible period, but only to the extent that the deduction does not exceed the amount of the notional assessable income for the period as reduced by notional allowable deductions other than under this section;\n\n(c) where there are 2 or more losses, they are to be taken into account in the order in which they arose.\n\n(3) A loss for a statutory accounting period is only to be taken into account under subsection (2) if the eligible CFC was a CFC at the end of that statutory accounting period and each following statutory accounting period before the eligible period.\n\n(4) A loss for a statutory accounting period is to be taken into account under subsection (2) only if:\n\n(a) where the eligible CFC is a resident of a listed country at the end of the eligible period:\n\n(i) the eligible CFC is a resident of a listed country at the end of that statutory accounting period; and\n\n(ii) if there are any statutory accounting periods (the intervening periods) occurring between that statutory accounting period and the eligible period—the eligible CFC was a resident of a listed country at the end of each of the intervening periods; or\n\n(b) where the eligible CFC is a resident of an unlisted country at the end of the eligible period:\n\n(i) the eligible CFC is a resident of an unlisted country at the end of that statutory accounting period; and\n\n(ii) if there are any statutory accounting periods (also the intervening periods) occurring between that statutory accounting period and the eligible period—the eligible CFC was a resident of an unlisted country at the end of each of the intervening periods.\n\n(4A) If:\n\n(a) at the end of both the eligible period and of a prior statutory accounting period, the eligible CFC was a resident of the same country; and\n\n(b) the country was either:\n\n(i) a listed country at the end of the eligible period and an unlisted country at the end of that statutory accounting period; or\n\n(ii) an unlisted country at the end of the eligible period and a listed country at the end of that statutory accounting period;\n\nsubsection (4) does not prevent a loss for that statutory accounting period, or an earlier statutory accounting period, from being taken into account under subsection (2).\n\n(4B) If:\n\n(a) the eligible CFC is a resident of an unlisted country at the end of the eligible period; and\n\n(b) that country emerged from the dissolution of another country; and\n\n(c) the other country was in existence at the end of a prior statutory accounting period; and\n\n(d) at the end of that statutory accounting period, the CFC was a resident of the other country; and\n\n(e) the other country was a listed country at the end of that statutory accounting period;\n\nsubsection (4) does not prevent a loss for that statutory accounting period, or an earlier statutory accounting period, from being taken into account under subsection (2).\n\n(4D) If:\n\n(a) as a result of the operation of subsection (4), a loss of a CFC for a statutory accounting period was not taken into account under subsection (2) in calculating the attributable income of the CFC for a later statutory accounting period (the second statutory accounting period); and\n\n(b) the eligible period is later than the second statutory accounting period;\n\nthen, despite anything in subsection (4), (4A) or (4B), the loss is not to be taken into account under subsection (2) in calculating the attributable income of the CFC for the eligible period.\n\n(5) A loss for a statutory accounting period is not to be taken into account under subsection (2) if, assuming that it were a tax loss (within the meaning of the Income Tax Assessment Act 1997) of the eligible CFC, it would not be taken into account or allowed as a deduction in relation to the eligible period.\n\nDivision 8—Active income test\n\nSubdivision A—Basic conditions for passing the active income test\n\n432  Active income test\n\n(1) Subject to sections 437 and 453, for the purposes of this Part, a company is taken to pass the active income test in relation to a statutory accounting period if, and only if:\n\n(a) the company was in existence at the end of the statutory accounting period; and\n\n(b) there was no time during the statutory accounting period when the company was in existence when the company was neither a resident of a particular listed country nor of a particular unlisted country; and\n\n(c) the company has kept accounts for the statutory accounting period and:\n\n(i) the accounts are prepared in accordance with commercially accepted accounting principles; and\n\n(ii) the accounts give a true and fair view of the financial position of the company; and\n\n(d) the company has complied with the substantiation requirements set out in section 451 in relation to the statutory accounting period; and\n\n(e) at all times during the statutory accounting period when the company was in existence and was a resident of a particular listed country, or of a particular unlisted country, the company carried on business in that country at or through a permanent establishment of the company in that country; and\n\n(f) the tainted income ratio of the company for the statutory accounting period is less than 0.05.\n\n(3) For the purposes of this section, if a company was dormant, within the meaning of Part VI of the Companies Act 1981, throughout a particular period (in this subsection called the dormant period) commencing on the day on which the company was incorporated, the company is to be taken not to have been in existence during the dormant period.\n\nSubdivision B—Tainted income ratio\n\n433  Tainted income ratio\n\n(1) For the purposes of this Part, if a company is a resident of a particular listed country or a particular unlisted country at the end of a statutory accounting period, the tainted income ratio of the company for the statutory accounting period is calculated using the formula:\n\n![Start formula start fraction Gross tainted turnover over Gross turnover end fraction end formula](image.010.png)\n\nwhere:\n\nGross tainted turnover means the gross tainted turnover of the company of the statutory accounting period.\n\nGross turnover means the gross turnover of the company of the statutory accounting period.\n\n(3) For the purposes of this Part, the tainted income ratio of a company for a statutory accounting period is taken to be less than 0.05 if both the numerator and the denominator in the applicable fraction are 0.\n\n(4) For the purposes of this Part, the tainted income ratio of a company for a statutory accounting period is to be calculated in the currency in which the profit and loss accounts and the balance‑sheet of the company for the statutory accounting period are prepared.\n\n434  Gross turnover\n\n(1) Subject to section 437, for the purposes of this Part, the gross turnover of a company of a statutory accounting period is the sum of:\n\n(a) the amount that is shown in the recognised accounts of the company for the statutory accounting period as the gross revenue derived by the company, but not including:\n\n(i) amounts that are shown in those recognised accounts as amounts covered by section 436; or\n\n(ii) amounts that are shown in those recognised accounts as revenue in respect of the disposal of assets (other than trading stock or commodity futures contracts, commodity forward contracts or rights or options in respect of such contracts); or\n\n(iii) amounts that are shown in those recognised accounts as revenue from disposing of commodity futures contracts, commodity forward contracts or rights or options in respect of such contracts; or\n\n(iv) amounts that are shown in those recognised accounts as revenue from currency exchange rate fluctuations; and\n\n(b) the amount that is shown in the recognised accounts of the company for the statutory accounting period as the amount (if any) by which the sum of the gains derived by the company in the statutory accounting period in respect of the disposal of assets (other than trading stock or commodity futures contracts, commodity forward contracts or rights or options in respect of such contracts) exceeds the losses incurred by the company in the statutory accounting period in respect of the disposal of such assets, but not including amounts that are shown in those recognised accounts as amounts covered by section 436; and\n\n(c) the amount that is shown in the recognised accounts of the company for the statutory accounting period as the amount (if any) by which the gains derived by the company in the statutory accounting period from disposing of commodity futures contracts, commodity forward contracts or rights or options in respect of such contracts exceeds the losses incurred by the company in the statutory accounting period from disposing of commodity futures contracts, commodity forward contracts or rights or options in respect of such contracts, but not including amounts that are shown in those recognised accounts as amounts covered by section 436; and\n\n(d) the amount that is shown in the recognised accounts of the company for the statutory accounting period as the amount (if any) by which the sum of the gains derived by the company in the statutory accounting period from currency exchange rate fluctuations exceeds the losses incurred by the company in the statutory accounting period from currency exchange rate fluctuations, but not including amounts that are shown in those recognised accounts as amounts covered by section 436.\n\n(1A) In working out the gross turnover of a company of a statutory accounting period, assume that the amounts shown in the company’s recognised accounts, as mentioned in paragraphs (1)(b) and (c), for that period had been worked out by also including:\n\n(a) as gains derived by the company in that period—capital gains the company would have made; and\n\n(b) as losses incurred by the company in that period—capital losses the company would have made;\n\nin that period because of CGT event J1, if the assumptions in paragraphs 383(a) to (c) had applied.\n\nNote 1: CGT event J1 is about companies ceasing to be related after a roll‑over.\n\nNote 2: Basically, the effect of the assumptions in paragraphs 383(a) to (c) is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.","sortOrder":1000110},{"sectionNumber":"full-source-retrieval-0112","sectionType":"document_chunk","heading":"Document excerpt 112","content":"(2) Subject only to sections 437, 438 and 440, for the purposes of this section, where a company has prepared recognised accounts for a statutory accounting period in accordance with commercially accepted accounting principles, then, in determining whether a particular amount shown in those accounts is covered by an expression used in subsection (1) (other than an exclusion of amounts shown in those recognised accounts as amounts covered by section 436), the expression concerned is taken to have the same meaning that it has under those accounting principles.\n\n(3) If:\n\n(a) arm’s length conditions are taken by Subdivision 815‑B of the Income Tax Assessment Act 1997 to operate for purposes relating to the company; and\n\n(b) had those conditions operated, an amount described in any of the paragraphs of subsection (1) as being an amount shown in the recognised accounts of the company for the statutory account period would have been different;\n\nthen the different amount is substituted for the amount shown in the recognised accounts.\n\n435  Gross tainted turnover\n\nFor the purposes of this Part, the gross tainted turnover of a company of a statutory accounting period is so much of the gross turnover of the company of the statutory accounting period as consists of:\n\n(a) passive income of the company of the statutory accounting period; or\n\n(b) tainted sales income of the company of the statutory accounting period; or\n\n(c) tainted services income of the company of the statutory accounting period.\n\n436  Amounts excluded from active income test\n\n(1) For the purposes of the application of this Part to a company, the following amounts are, in accordance with subparagraph 434(1)(a)(i) and paragraphs 434(1)(b), (c) and (d), excluded from the active income test:\n\n(a) income or profits derived by the company that are included in the assessable income of the company of any year of income other than under section 143 (where the proviso to that section does not apply);\n\n(b) income or profits derived by the company during a statutory accounting period where all of the following conditions are satisfied:\n\n(i) the income or profits are derived by the company in carrying on a business at or through a permanent establishment of the company in a listed country (other than a listed country of which the company is a resident);\n\n(ii) the income or profits are not eligible designated concession income in relation to any listed country in relation to the statutory accounting period;\n\n(iii) the income or profits are subject to tax in a listed country in a tax accounting period:\n\n(A) ending before the end of the statutory accounting period; or\n\n(B) commencing during the statutory accounting period;\n\n(c) an amount that, if the company were a resident within the meaning of section 6, would, or would apart from paragraphs 99B(2)(d) and (e), have been included in the assessable income of the company under Division 6 of Part III;\n\n(d) so much of a frankable distribution as is either the franked part of the distribution, or the part of the distribution that has been franked with an exempting credit;\n\n(e) a non‑portfolio dividend paid to the company by a company that is a resident of a listed country or unlisted country;\n\n(g) a premium paid or credited to the company where, because of the application of subsection 148(1), the premium is not allowable as a deduction to the person referred to in subparagraph 148(1)(a)(i) and is not included in the assessable income of the company.\n\n(2) Where:\n\n(a) the company receives an attribution account payment, being a dividend, from another entity; and\n\n(b) the whole or part (in this subsection called the eligible amount) of the attribution account payment is not excluded from the active income test, in relation to the company in relation to the statutory accounting period, under subsection (1); and\n\n(c) on the making of the attribution account payment by the other entity, an attribution debit arises for that entity in relation to a taxpayer;\n\nthen, for the purposes of this Part, so much of the eligible amount as does not exceed the grossed‑up amount of the attribution debit is, in accordance with subparagraph 434(1)(a)(i), excluded (in addition to any other amount that is excluded under subsection (1)) from the active income test in relation to the company in relation to the taxpayer.\n\nSubdivision C—Treatment of partnership income\n\n437  Treatment of partnership income\n\n(1) For each partnership in which a company is a partner at any time during a statutory accounting period, the following modifications apply for the purposes of determining the effect of that partnership on the question whether the company is taken to pass the active income test in relation to the statutory accounting period:\n\n(a) the partnership is to be treated as an entity separate from the company;\n\n(b) in spite of anything in section 432, the company is not taken to pass the active income test in relation to the statutory accounting period unless:\n\n(i) the partnership has kept accounts for the statutory accounting period and:\n\n(A) the accounts are prepared in accordance with commercially accepted accounting principles; and\n\n(B) the accounts give a true and fair view of the financial position of the partnership; and\n\n(ii) the partnership has complied with the substantiation requirements set out in section 452 in relation to the statutory accounting period;\n\n(c) for the purposes of this Division, the notional gross tainted turnover of the partnership of the statutory accounting period, or the notional gross turnover of the partnership of the statutory accounting period, is the amount that would be the gross tainted turnover, or the gross turnover, as the case requires, of the partnership of the statutory accounting period if:\n\n(i) except for the purposes of determining the associates of the partnership—the partnership were a company; and\n\n(ii) a reference in this Division to the recognised accounts of the partnership were a reference to the accounts referred to in paragraph (b) of this subsection that are prepared by the partnership for the statutory accounting period; and\n\n(iii) the partnership were a resident of the same particular listed country or particular unlisted country, of which the company was a resident;\n\n(d) the gross tainted turnover of the company of the statutory accounting period is to be increased by the amount calculated using the formula:\n\n![Start formula Notional gross tainted turnover of partnership times Partner's interest end formula](image.011.png)\n\nwhere:\n\nNotional gross tainted turnover of partnership means the notional gross tainted turnover of the partnership for the statutory accounting period.\n\nPartner’s interest means the company’s percentage interest in the profits of the partnership for the statutory accounting period.\n\n(e) the gross turnover of the company of the statutory accounting period is to be increased by the amount calculated using the formula:\n\n![Start formula Notional gross turnover of partnership times Partner's interest end formula](image.012.png)\n\nwhere:\n\nNotional gross turnover of partnership means the notional gross turnover of the partnership for the statutory accounting period.\n\nPartner’s interest means the company’s percentage interest in the profits of the partnership for the statutory accounting period.\n\n(2) If:\n\n(a) a company is a partner in one or more partnerships at any time during a statutory accounting period; and\n\n(b) apart from this subsection, paragraph 432(1)(e) does not apply in relation to the company in relation to the statutory accounting period; and\n\n(c) at all times during the statutory accounting period when:\n\n(i) a particular one of those partnerships was in existence; and\n\n(ii) the company was in existence and was a resident of a particular listed country, or of a particular unlisted country;\n\nthe partnership carried on business in that country at or through a permanent establishment of the partnership in that country;\n\nsubsection 432(1) has effect as if paragraph 432(1)(e) had applied in relation to the company in relation to the statutory accounting period.\n\nSubdivision D—General interpretive provisions\n\n438  Roll‑overs—asset disposals\n\n(1) This section applies in determining the application of paragraph 434(1)(b) and section 445 in relation to a non‑taxable Australian asset of a company.\n\n(2) If a CGT roll‑over provision applies to:\n\n(a) the disposal of the asset by an entity (in this section called the transferor) to the company (in this section called the transferee); or\n\n(b) the disposal of the asset by the company (in this section also called the transferor) to another entity (in this section also called the transferee);\n\nthe following provisions have effect:\n\n(c) the transferee is taken to have paid, as consideration to acquire the asset, the sum of:\n\n(i) the consideration (if any) paid or payable by the transferor to acquire the asset; and\n\n(ii) the expenditure (if any) incurred by the transferor in making capital improvements to the asset; and\n\n(d) the transferor is not taken to have:\n\n(i) derived any gains; or\n\n(ii) incurred any loss;\n\nin respect of the disposal of the asset.\n\n(2A) If:\n\n(a) a CGT roll‑over provision applies to the disposal of the asset (in this subsection called the original asset) by the company; and\n\n(b) the disposal is not to another entity; and\n\n(c) the company acquires another asset (in this subsection called the replacement asset) that is referred to in the CGT roll‑over provision as being by way of replacement of, substitution for, or consideration for the disposal of, the original asset (whether or not exactly those expressions are used);\n\nthe following provisions have effect:\n\n(d) the company is not taken to have:\n\n(i) derived any gains; or\n\n(ii) incurred any loss;\n\nin respect of the disposal of the original asset; and\n\n(e) the company is taken to have paid, as consideration to acquire the replacement asset, the sum of:\n\n(i) the consideration (if any) paid or payable by the company to acquire the original asset; and\n\n(ii) the expenditure (if any) incurred by the company in making improvements to the original asset.\n\n(2B) For the purposes of subsections (2) and (2A), if an asset is disposed of by being cancelled, redeemed or consolidated into another asset, the disposal is taken not to be to another entity.\n\n(3) For the purposes of this section, in determining whether a CGT roll‑over provision applies to the disposal of an asset, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 have the effect they would have if:\n\n(a) the company had failed the active income test in relation to the statutory accounting period concerned; and\n\n(b) those Parts were being applied to calculate the attributable income of the company for the statutory accounting period in relation to any taxpayer.\n\n(3A) For the purposes of applying Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 in relation to a statutory accounting period as mentioned in paragraph (3)(b), any election or choice that may be made by the company, or by the company and another entity, apart from this section under any of the CGT roll‑over provisions:\n\n(a) on or before the date of lodgment of a particular return of income; or\n\n(b) within such period as the Commissioner allows;\n\nis to be made instead:\n\n(c) if there is only one attributable taxpayer in relation to the company at the end of the statutory accounting period—on or before the date of lodgment of the taxpayer’s return of income of the year of income in which the end of the statutory accounting period occurs; or\n\n(d) if there are 2 or more attributable taxpayers in relation to the company at the end of the statutory accounting period:\n\n(i) if the taxpayers’ returns of income of the year of income in which the end of the statutory accounting period occurs are lodged on different dates—on or before the later or latest of those dates; or\n\n(ii) if the taxpayers’ returns of income of the year of income in which the end of the statutory accounting period occurs are lodged on the same date—on or before that date; or\n\n(e) in any case—within such further period as the Commissioner allows.\n\n(3B) For the purposes of applying subsection (3A) to a company in relation to a statutory accounting period, if:\n\n(a) the company is a CFC at the end of the statutory accounting period; and\n\n(b) an entity (the designated entity) is the only attributable taxpayer in relation to the company at the end of the statutory accounting period; and\n\n(c) the designated entity’s attribution percentage in relation to the company is 100% at the end of the statutory accounting period;\n\nthen, instead of the election being given or the choice being made by the company, or by the company and another entity (which other entity may be the designated entity), the election may be given or the choice may be made by:\n\n(d) the designated entity; or\n\n(e) if the designated entity is not the same as the other entity—the designated entity and the other entity;\n\nas the case requires.\n\n(4) A reference in this section to a non‑taxable Australian asset of a company is a reference to an asset of the company that is a CGT asset that is not taxable Australian property.\n\n439  When currency exchange gains or losses relate to active income transactions\n\n(1) For the purposes of this Part, a currency exchange gain, or a currency exchange loss, of a company for a statutory accounting period is to be taken to relate to an active income transaction if, and only if:\n\n(a) the gain or loss was realised under any of the following transactions:\n\n(i) a transaction that:\n\n(A) gives rise to income, gains or a loss of the company; and\n\n(B) is not taken into account in determining the passive income, tainted sales income or tainted services income of the company;\n\n(ii) a transaction for the purchase of goods from an entity that, at the time the gain or loss was realised, was not an associate of the company;\n\n(iii) a transaction for the purchase of a unit of property where:\n\n(A) if the company were a resident within the meaning of section 6, depreciation would be allowable to the company under the former section 54 of this Act or the former Division 42 of the Income Tax Assessment Act 1997, or the company could deduct an amount for the decline in value of a depreciating asset under Division 40 of that Act, in respect of any year of income; and\n\n(B) the unit of property is for use by the company exclusively or principally for the purpose of producing income other than passive income, tainted sales income or tainted services income;\n\n(iv) if the company is an AFI subsidiary that carried on financial intermediary business at the time the gain or loss was realised—a transaction under which money was lent to the company;\n\n(v) a transaction that was entered into by the company for the sole purpose of eliminating or reducing the risk of adverse financial consequences that might result for the company, under a transaction covered by any of the preceding subparagraphs, from currency exchange rate fluctuations; or\n\n(b) both of the following subparagraphs apply:\n\n(i) the gain or loss was realised in the course of carrying on a business of currency dealing;\n\n(ii) the gain or loss was realised under a transaction and, at the time the gain or loss was realised, no other party to the transaction was:\n\n(A) an associate of the company; or\n\n(B) a Part X Australian resident.\n\n(2) In determining whether an amount is passive income for the purposes of this section, paragraph 446(1)(n) is to be disregarded.\n\n440  Asset disposals—revaluations and arm’s length amounts\n\nIn determining, for the purposes of this Part, whether a company passes the active income test, the following provisions apply in relation to an asset of the company (other than trading stock):\n\n(a) the effect of an asset revaluation is to be disregarded;\n\n(b) subject to section 438, if:\n\n(i) any consideration paid or payable by the company in respect of the acquisition of the asset; or\n\n(ii) any consideration paid or payable to the company in respect of the disposal of the asset; or\n\n(iii) any expenditure incurred by the company in making capital improvements to the asset; or\n\n(iv) any other amount payable to or by the company that is relevant to determining the revenue, gains or losses concerned;\n\nis not equal to the amount (in this paragraph called the arm’s length amount) that the parties to the transaction concerned could have been reasonably expected to have paid if the parties had been acting at arm’s length in relation to the transaction—the amount of the consideration or expenditure is to be taken to be equal to the arm’s length amount.\n\n441  Hire‑purchase and other property financing transactions\n\n(1) For the purposes of this Part, in determining whether a company passes the active income test:\n\n(a) a hire‑purchase transaction or any other transaction for the financing of the acquisition of property is to be treated as a loan of money; and\n\n(b) income derived under the transaction is to be treated as interest.\n\n(2) Nothing in subsection (1) limits the generality of the expressions “interest”, “loan” or “payment in the nature of interest”.\n\n442  Assumption of rights of lender under a loan\n\nIn determining whether a company passes the active income test, if the company assumes the rights of a lender under a loan, this Part has effect, after that assumption, as if:\n\n(a) the company had provided the loan to the borrower; and\n\n(b) in a case where that assumption was made in the course of carrying on a particular business—interest, or a payment in the nature of interest, derived by the company from the loan had been derived from a loan made in the course of carrying on that business.\n\n443  Net tainted commodity gains\n\nFor the purposes of this Part:","sortOrder":1000111},{"sectionNumber":"full-source-retrieval-0113","sectionType":"document_chunk","heading":"Document excerpt 113","content":"(a) net tainted commodity gains are to be taken to have accrued to a company in a statutory accounting period if, and only if, the sum of the tainted commodity gains of the company for the statutory accounting period exceeds the sum of the tainted commodity losses of the company for the statutory accounting period; and\n\n(b) the amount of the net tainted commodity gains is equal to the amount of the excess.\n\n444  Net tainted currency exchange gains\n\nFor the purposes of this Part:\n\n(a) net tainted currency exchange gains are to be taken to have accrued to a company in a statutory accounting period if, and only if, the sum of the tainted currency exchange gains of the company for the statutory accounting period exceeds the sum of any tainted currency exchange losses of the company for the statutory accounting period; and\n\n(b) the amount of the net tainted currency exchange gains is equal to the amount of the excess.\n\n445  Net gains—disposal of tainted assets\n\n(1) For the purposes of this Part:\n\n(a) net gains are to be taken to have accrued to a company in a statutory accounting period in relation to the disposal of tainted assets owned by the company if, and only if, the sum of the gains of the company in relation to the disposal of tainted assets during the statutory accounting period exceeds the sum of the losses (if any) of the company in relation to the disposal of tainted assets during the statutory accounting period; and\n\n(b) the amount of the net gains is equal to the amount of the excess.\n\n(2) In paragraph (1)(a):\n\ngains includes capital gains the company would have made in the statutory accounting period because of CGT event J1, if the assumptions in paragraphs 383(a) to (c) applied.\n\nlosses includes capital losses the company would have made in the statutory accounting period because of CGT event J1, if the assumptions in paragraphs 383(a) to (c) applied.\n\nNote 1: CGT event J1 is about companies ceasing to be related after a roll‑over.\n\nNote 2: Basically, the effect of the assumptions in paragraphs 383(a) to (c) is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.\n\nSubdivision E—Passive income, tainted sales income and tainted services income\n\n446  Passive income\n\n(1) Subject to this Division, for the purposes of this Part, the following amounts are passive income of a company of a statutory accounting period:\n\n(a) dividends (within the meaning of section 6) paid to the company in the statutory accounting period;\n\n(b) unit trust dividends (within the meaning of Division 6C of Part III) paid to the company in the statutory accounting period;\n\n(c) a distribution made to the company where the distribution is taken to be a dividend because of section 47;\n\n(d) tainted interest income derived by the company in the statutory accounting period;\n\n(e) annuities derived by the company in the statutory accounting period;\n\n(f) tainted rental income derived by the company in the statutory accounting period;\n\n(g) tainted royalty income derived by the company in the statutory accounting period;\n\n(h) an amount derived by the company in the statutory accounting period as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right;\n\n(j) income derived from carrying on a business of trading in tainted assets;\n\n(k) net gains that accrued to the company in the statutory accounting period in respect of the disposal of tainted assets;\n\n(m) net tainted commodity gains that accrued to the company during the statutory accounting period;\n\n(n) net tainted currency exchange gains that accrued to the company during the statutory accounting period.\n\n(2) Despite anything in subsection (1), the passive income of a life assurance company of a statutory accounting period is calculated using the formula:\n\n![Start formula Adjusted passive income times start fraction Total assets minus Untainted policy liabilities over Total assets end fraction end formula](image.013.png)\n\nwhere:\n\nadjusted passive income means the amount that, apart from this subsection, would be the passive income of the company of the statutory accounting period.\n\ntotal assets means the average of the total assets of the company for the statutory accounting period.\n\nuntainted policy liabilities means so much of the company’s policy liabilities, as defined in the Valuation Standard (within the meaning of the Income Tax Assessment Act 1997), as calculated by a Fellow or Accredited Member of the Institute of Actuaries of Australia, for the statutory accounting period as is referable to life assurance policies that do not give rise to tainted services income of the company of any statutory accounting period.\n\n(4) Despite anything in subsection (1), the passive income of a general insurance company of a statutory accounting period is worked out using the formula:\n\n![Start formula Adjusted passive income times start fraction Net assets plus Tainted outstanding claims minus Solvency amount over Total assets end fraction end formula](image.014.png)\n\nwhere:\n\nadjusted passive income means the amount that, apart from this subsection, would be the passive income of the company of the statutory accounting period.\n\nnet assets means the excess at the end of the statutory accounting period of the total assets of the company over the total liabilities of the company.\n\noutstanding claims means the amount that the company would, at the end of the statutory accounting period, based on proper and reasonable estimates, need to set aside and invest in order to meet liabilities of the company that have arisen or will arise:\n\n(a) under general insurance policies (including reinsurance policies, but not including life assurance policies); and\n\n(b) in respect of events that occurred during or before the period.\n\nsolvency amount is the amount worked out under subsection (5).\n\ntainted outstanding claims means so much of the outstanding claims of the company at the end of the statutory accounting period as is referable to general insurance policies that give rise to tainted services income of the company of any statutory accounting period.\n\ntotal assets means the total assets of the company at the end of the statutory accounting period.\n\n(5) In subsection (4):\n\nsolvency amount is the amount worked out using the formula:\n\n![Start formula open bracket Minimum solvency plus Maximum event retention end bracket times open bracket 1 minus start fraction Tainted outstanding claims over Outstanding claims end fraction close bracket end formula](image.015.png)\n\nwhere:\n\nmaximum event retention means the amount that, at the end of the statutory accounting period, the company has determined is the maximum that would be payable to the owners of policies as a result of the happening of any one event. The amount must be worked out on the basis of a reasonable and proper estimate.\n\nminimum solvency means the greater of:\n\n(a) 20% of the company’s premium income (within the meaning of the Insurance Act 1973) during the statutory accounting period; and\n\n(b) 15% of the company’s outstanding claims as at the end of the statutory accounting period.\n\noutstanding claims means the amount that the company would, at the end of the statutory accounting period, based on proper and reasonable estimates, need to set aside and invest in order to meet liabilities of the company that have arisen or will arise:\n\n(a) under general insurance policies (including reinsurance policies, but not including life assurance policies); and\n\n(b) in respect of events that occurred during or before the period.\n\ntainted outstanding claims means so much of the outstanding claims of the company at the end of the statutory accounting period as is referable to general insurance policies that give rise to tainted services income of the company of any statutory accounting period.\n\n447  Tainted sales income\n\n(1) Subject to this Division, for the purposes of this Part, the following amounts are tainted sales income of a company of a statutory accounting period:\n\n(a) income from the sale of goods by the company where all of the following conditions are satisfied:\n\n(i) the goods were sold to the company by another entity;\n\n(ii) either of the following sub‑subparagraphs applies at the time of the sale of the goods to the company:\n\n(A) the seller of the goods to the company was an associate of the company and a Part X Australian resident;\n\n(B) the goods were sold to the company by an associate of the company who was not a Part X Australian resident, in the course of a business carried on by the associate at or through a permanent establishment of the associate in Australia;\n\n(iii) if the goods were altered by the company—the income does not pass the substantial alteration test set out in subsection (4);\n\n(b) income from the sale of goods by the company where all of the following conditions are satisfied:\n\n(i) the goods were sold to the company by another entity;\n\n(ii) either of the following sub‑subparagraphs applies at the time of the purchase of the goods from the company:\n\n(A) the purchaser of the goods from the company was an associate of the company and a Part X Australian resident;\n\n(B) the purchaser of the goods from the company was an associate of the company who was not a Part X Australian resident and the purchase was made in the course of a business carried on by the purchaser at or through a permanent establishment of the purchaser in Australia;\n\n(iii) if the goods were altered by the company—the income does not pass the substantial alteration test set out in subsection (4);\n\n(c) income from the sale of goods (in this paragraph called the manufactured goods) by the company where all of the following conditions are satisfied:\n\n(i) the manufactured goods were manufactured by the company;\n\n(ii) any of the raw materials or goods from which the manufactured goods were manufactured were sold to the company by another entity;\n\n(iii) either of the following sub‑subparagraphs applies at the time of the sale to the company of the raw materials or goods from which the manufactured goods were manufactured:\n\n(A) the entity who sold to the company the raw materials or goods from which the manufactured goods were manufactured was an associate of the company and a Part X Australian resident;\n\n(B) the raw materials or goods from which the manufactured goods were manufactured were sold to the company by an associate of the company who was not a Part X Australian resident, in the course of a business carried on by the associate at or through a permanent establishment of the associate in Australia;\n\n(iv) the income does not pass the substantial manufacture test set out in subsection (4A);\n\n(d) income from the sale of goods (in this paragraph called the manufactured goods) by the company where all of the following conditions are satisfied:\n\n(i) the manufactured goods were manufactured by the company;\n\n(ii) any of the raw materials or goods from which the manufactured goods were manufactured were sold to the company by another entity;\n\n(iii) either of the following sub‑subparagraphs applies at the time of the purchase of the manufactured goods from the company:\n\n(A) the purchaser of the manufactured goods from the company was an associate of the company and a Part X Australian resident;\n\n(B) the purchaser of the manufactured goods from the company was an associate of the company who was not a Part X Australian resident and the purchase was made in the course of a business carried on by the purchaser at or through a permanent establishment of the purchaser in Australia;\n\n(iv) the income does not pass the substantial manufacture test set out in subsection (4A);\n\n(e) income from the sale of goods (in this paragraph called the primary production goods) by the company where all of the following conditions are satisfied:\n\n(i) the primary production goods were:\n\n(A) primary products produced, raised or grown by the company; or\n\n(B) goods manufactured by the company, in whole or in part, from primary products produced, raised or grown by the company;\n\n(ii) any of the propagative material from which the primary products were produced, raised or grown was sold to the company by another entity;\n\n(iii) either of the following sub‑subparagraphs applies at the time of the sale to the company of the propagative material:\n\n(A) the entity who sold the propagative material to the company was an associate of the company and a Part X Australian resident;\n\n(B) the propagative material was sold to the company by an associate of the company who was not a Part X Australian resident, in the course of a business carried on by the associate at or through a permanent establishment of the associate in Australia;\n\n(iv) the income does not pass the substantial production test set out in subsection (4B);\n\n(f) income from the sale of goods (in this paragraph called the primary production goods) by the company where all of the following conditions are satisfied:\n\n(i) the primary production goods were:\n\n(A) primary products produced, raised or grown by the company; or\n\n(B) goods manufactured by the company, in whole or in part, from primary products produced, raised or grown by the company;\n\n(ii) any of the propagative material from which the primary products were produced, raised or grown was sold to the company by another entity;\n\n(iii) either of the following sub‑subparagraphs applies at the time of the purchase of the primary production goods from the company:\n\n(A) the purchaser of the primary production goods from the company was an associate of the company and a Part X Australian resident;\n\n(B) the purchaser of the primary production goods from the company was an associate of the company who was not a Part X Australian resident and the purchase was made in the course of a business carried on by the purchaser at or through a permanent establishment of the purchaser in Australia;\n\n(iv) the income does not pass the substantial production test set out in subsection (4B).\n\n(2) Where:\n\n(a) a company provides any of the following services:\n\n(i) drinks and meals;\n\n(ii) accommodation in a hotel, motel, guest‑house or similar place;\n\n(iii) the provision of, or the use of facilities for, entertainment, recreation or instruction; and\n\n(b) if subparagraph (a)(ii) or (iii) applies—the transaction for the provision of the services includes the sale of goods of a kind that are commonly supplied in connection with the services concerned;\n\nthe tainted sales income of the company does not include income from the sale of:\n\n(c) if subparagraph (a)(i) applies—the drink or food concerned; or\n\n(d) if subparagraph (a)(ii) or (iii) applies—the goods referred to in paragraph (b).\n\n(3) The tainted sales income of a company of a statutory accounting period does not include passive income of the company of the statutory accounting period.\n\n(4) For the purposes of this section, income from the sale of goods by a company passes the substantial alteration test if:\n\n(a) the company substantially altered the goods; and\n\n(b) a substantial part of that alteration was carried out by the directors or employees of the company.\n\n(4A) For the purposes of this section, income from the sale of goods by a company passes the substantial manufacture test if a substantial part of the manufacture of the goods was carried out by the directors or employees of the company.\n\n(4B) For the purposes of this section, income from the sale of goods by a company passes the substantial production test if:\n\n(a) if the goods are primary products—a substantial part of the production, raising or growing of the goods was carried out by the directors or employees of the company; or\n\n(b) if the goods are manufactured by the company, in whole or in part, from primary products produced, raised or grown by the company—a substantial part of:\n\n(i) the manufacture of the goods; and\n\n(ii) those production, raising or growing activities;\n\nwas carried out by the directors or employees of the company.\n\n(4C) For the purposes of subsections (4), (4A) and (4B), the effect of an activity on the market value of the goods concerned is to be ignored.\n\n(5) If, apart from this subsection, goods are purchased or sold by 2 or more entities acting jointly, subsection (1) is to be applied successively as if each such entity were the sole purchaser or seller, as the case may be.\n\n(6) In this section:\n\nanimals includes fish.\n\nprimary products means:\n\n(a) agricultural or horticultural produce; or\n\n(b) trees or crops, whether on or attached to land or not; or\n\n(c) timber; or\n\n(d) animals (whether dead or alive); or\n\n(e) the bodily produce (including natural increase) of animals.\n\n448  Tainted services income\n\n(1) Subject to this Division, for the purposes of this Part, the following amounts are tainted services income of a company of a statutory accounting period:\n\n(a) income (other than premium income) from the provision of services by the company to an entity, if:\n\n(i) the entity was a Part X Australian resident at the time the income was derived; and\n\n(ii) the services were not provided in connection with a business carried on by the entity at that time at or through a permanent establishment of the entity in a listed or unlisted country;\n\n(b) income (other than premium income) from the provision of services by the company to an entity who was not a Part X Australian resident at the time the income was derived, in connection with a business carried on by the entity at that time at or through a permanent establishment of the entity in Australia;\n\n(c) income consisting of life assurance premiums in respect of a life assurance policy if, at the time the policy was entered into, the owner of the policy was a Part X Australian resident;","sortOrder":1000112},{"sectionNumber":"full-source-retrieval-0114","sectionType":"document_chunk","heading":"Document excerpt 114","content":"(d) income consisting of premiums (other than life assurance premiums) in respect of insurance (other than reinsurance) where any of the following conditions are satisfied at the time the policy was entered into:\n\n(i) any insured person was a Part X Australian resident, and the policy was not entered into in connection with a business carried on by the person at or through a permanent establishment of the person in a listed or unlisted country;\n\n(ii) any insured property was situated in Australia;\n\n(iii) any insured event was an event which could happen only in Australia;\n\n(e) income consisting of premiums in respect of reinsurance, if:\n\n(i) the insurer whose risks are directly covered by the reinsurance was a Part X Australian resident at the time the policy was entered into; and\n\n(ii) the policy was not entered into in connection with a business carried on by the insurer at that time at or through a permanent establishment of the insurer in a listed or unlisted country;\n\n(f) income consisting of premiums in respect of reinsurance, if:\n\n(i) the insurer whose risks are directly covered by the reinsurance was not a Part X Australian resident at the time the policy was entered into; and\n\n(ii) the policy was entered into in connection with a business carried on by the insurer at that time at or through a permanent establishment of the insurer in Australia;\n\n(g) income of the company covered by subsection (1A).\n\n(1A) Income of the company is covered by this subsection if:\n\n(a) it is income from the provision of services by the company to an entity under a scheme (within the meaning of the Income Tax Assessment Act 1997); and\n\n(b) the entity is an associate of the company; and\n\n(c) those services are received by another entity; and\n\n(d) the other entity satisfies either of these requirements:\n\n(i) the other entity was a Part X Australian resident at the time the income was derived, and the services were not received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in a listed or unlisted country;\n\n(ii) the other entity was not a Part X Australian resident at the time the income was derived, and the services were received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in Australia; and\n\n(e) the income would be tainted services income if:\n\n(i) this section did not include paragraph (1)(g) or this subsection; and\n\n(ii) the income were from the provision of those services by the company to the other entity; and\n\n(f) a reasonable person would conclude (having regard to all the circumstances) that the scheme was entered into or carried out for a purpose, other than an incidental purpose, of enabling entities satisfying the requirements of subparagraph (d)(i) or (ii) to receive those services.\n\n(2) The tainted services income of a company of a statutory accounting period does not include income from the sale of goods by the company.\n\n(3) Where:\n\n(a) a company provides services directly related to goods sold by the company; and\n\n(b) either of the following conditions is satisfied:\n\n(i) the company substantially altered the goods with the result that the market value of the goods was substantially enhanced;\n\n(ii) the company did not acquire the goods from another entity;\n\nthe tainted services income of the company does not include income from the provision of those services.\n\n(4) Where a company provides any of the following services:\n\n(a) drinks and meals;\n\n(b) accommodation in a hotel, motel, guest‑house or similar place;\n\n(c) the provision of, or of the use of facilities for, entertainment, recreation or instruction;\n\nthe tainted services income of the company does not include income from the provision of those services.\n\n(5) The tainted services income of a company of a statutory accounting period does not include the passive income of the company of the statutory accounting period.\n\n(6) The tainted services income of a company of a statutory accounting period does not include income where:\n\n(a) the income is not passive income of the company of the statutory accounting period; and\n\n(b) the income is covered by any of the following subparagraphs:\n\n(i) income derived by the company by way of rent in respect of a lease of land;\n\n(ii) royalties derived by the company;\n\n(iii) income derived from carrying on a business of trading in assets;\n\n(iv) gains that accrued to the company in the statutory accounting period in respect of the disposal of assets;\n\n(v) gains that accrued to the company in the statutory accounting period from disposing of commodity investments;\n\n(vi) currency exchange gains that accrued to the company in the statutory accounting period;\n\n(vii) in the case of a life assurance company—an amount that, apart from subsection 446(2), would be passive income of the company of the statutory accounting period;\n\n(viii) in the case of a general insurance company—the amount that, apart from subsection 446(4), would be passive income of the company of the statutory accounting period.\n\n(7) If, apart from this subsection, services are provided to 2 or more entities acting jointly, this section is to be applied successively as if each such entity were the sole recipient.\n\nSubdivision F—Special rules relating to AFI subsidiaries carrying on financial intermediary business\n\n449  AFI subsidiaries—interest income\n\n(1) The passive income of a company of a statutory accounting period does not include tainted interest income where, at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business.\n\n(2) The tainted services income of a company of a statutory accounting period does not include income where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a loan made in the course of carrying on that business;\n\n(c) the loan was made to the Commonwealth.\n\n(3) The passive income, or the tainted services income, of a company of a statutory accounting period does not include income where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a deposit with a central bank.\n\n(4) In the application of subsection 448(1) to income derived by a company, where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a loan made in the course of carrying on that business;\n\na reference in that subsection to the time the income was derived is to be read as a reference to the time the loan was made.\n\n450  AFI subsidiaries—asset disposals and currency transactions\n\n(1) The passive income, or the tainted services income, of a company of a statutory accounting period does not include income where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the income was derived from carrying on a business of trading in any or all of the following tainted assets:\n\n(i) non‑share futures contracts;\n\n(ii) non‑share forward contracts;\n\n(iii) interest rates swap contracts;\n\n(iv) currency swap contracts;\n\n(v) forward exchange rate contracts;\n\n(vi) forward interest rate contracts;\n\n(vii) a right or option in respect of such a contract;\n\n(viii) any similar financial instrument.\n\n(2) For the purposes of this Part, in determining the net gains that accrued to a company in a statutory accounting period in respect of the disposal of tainted assets, where the following conditions are satisfied in relation to the disposal of a tainted asset:\n\n(a) at the time of the disposal of the tainted asset, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the disposal was made in the course of carrying on that business;\n\n(c) the tainted asset is covered by paragraph (1)(b);\n\nthe disposal of the tainted asset is to be disregarded.\n\n(3) For the purposes of this Part, in determining the net tainted currency exchange gains that accrued to a company during a statutory accounting period, where the following conditions are satisfied in relation to a particular currency exchange gain or a particular currency exchange loss:\n\n(a) at the time the currency exchange gain or the currency exchange loss, as the case may be, was realised, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the currency exchange gain, or the currency exchange loss, as the case may be, was realised:\n\n(i) in the course of carrying on that business; and\n\n(ii) in the course of currency dealing;\n\nthat currency exchange gain or that currency exchange loss, as the case requires, is to be disregarded.\n\n(4) The passive income of a company of a statutory accounting period does not include income where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the income was derived from carrying on a business of trading in either of the following tainted assets:\n\n(i) loans (including deposits with a bank or other financial institution);\n\n(ii) debenture stock, bonds, debentures, certificates of entitlement, bills of exchange, promissory notes or other securities.\n\n(5) For the purposes of this Part (other than subsection (7)), in determining the net gains that accrued to a company in a statutory accounting period in respect of the disposal of tainted assets, where the following conditions are satisfied in relation to the disposal of a tainted asset:\n\n(a) at the time of the disposal of the tainted asset, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the disposal was made in the course of carrying on that business;\n\n(c) the tainted asset is covered by paragraph (4)(b);\n\nthe disposal of the tainted asset is to be disregarded.\n\n(6) For the purposes of this Part, the tainted services income of a company of a statutory accounting period includes income from trading in assets where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the assets are covered by paragraph (4)(b);\n\n(c) the assets were acquired from, or disposed of to, another entity where either of the following conditions are satisfied at the time of the acquisition or disposal:\n\n(i) the entity was a Part X Australian resident, and the acquisition or disposal was not in connection with a business carried on by the entity at or through a permanent establishment of the entity in a listed or unlisted country;\n\n(ii) the entity was not a Part X Australian resident, but the acquisition or disposal was in connection with a business carried on by the entity at or through a permanent establishment of the entity in Australia.\n\n(7) For the purposes of this Part, the tainted services income of a company of a statutory accounting period includes net gains that accrued to the company in the statutory accounting period in respect of the disposal of tainted assets, where the following conditions are satisfied:\n\n(a) at the time of the disposal of the tainted asset, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the disposal was made in the course of carrying on that business;\n\n(c) the tainted asset is covered by paragraph (4)(b);\n\n(d) the tainted asset was acquired from, or disposed of to, another entity where either of the following conditions are satisfied at the time of the acquisition or disposal:\n\n(i) the entity was a Part X Australian resident, and the acquisition or disposal was not in connection with a business carried on by the entity at or through a permanent establishment of the entity in a listed or unlisted country;\n\n(ii) the entity was not a Part X Australian resident, but the acquisition or disposal was in connection with a business carried on by the entity at or through a permanent establishment of the entity in Australia.\n\n(8) For the purposes of this Part, the tainted services income of a company of a statutory accounting period includes factoring income where the following conditions are satisfied:\n\n(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;\n\n(b) the debt to which the factoring income relates was acquired from, or disposed of to, another entity where either of the following conditions are satisfied at the time of the acquisition or disposal:\n\n(i) the entity was a Part X Australian resident, and the acquisition or disposal was not in connection with a business carried on by the entity at or through a permanent establishment of the entity in a listed or unlisted country;\n\n(ii) the entity was not a Part X Australian resident, but the acquisition or disposal was in connection with a business carried on by the entity at or through a permanent establishment of the entity in Australia.\n\nSubdivision G—Substantiation requirements\n\n451  Active income test—substantiation requirements for company\n\n(1) The substantiation requirements for a company in relation to a statutory accounting period are as follows:\n\n(a) the company must keep (in Australia or elsewhere) such accounting records (in this section called the general accounting records) as correctly record and explain the matters, transactions, acts and operations that are relevant to the preparation of the recognised accounts of the company for the statutory accounting period;\n\n(b) the general accounting records must be so kept as to enable the recognised accounts of the company for the statutory accounting period to be prepared;\n\n(c) the company must retain, for the retention period in relation to the statutory accounting period:\n\n(i) the recognised accounts of the company for the statutory accounting period; and\n\n(ii) the general accounting records of the company for the statutory accounting period;\n\n(d) the company must comply with a request made in a notice given to it under subsection (2) in relation to the statutory accounting period.\n\n(2) An entity that is an attributable taxpayer in relation to a company, being a CFC, as at the end of a statutory accounting period of the company may, by notice in writing served on the company (in this section called the taxpayer’s notice), request the company:\n\n(a) to give to the taxpayer, within the period and in the manner specified in the taxpayer’s notice, copies of such of the following documents as are specified in the notice:\n\n(i) the recognised accounts of the company for the statutory accounting period;\n\n(ii) the general accounting records of the company for the statutory accounting period; or\n\n(b) to prepare a document containing particulars of the basis of the calculation of the tainted income ratio of the company for the statutory accounting period and to give to the taxpayer, within the period and in the manner specified in the taxpayer’s notice, a copy of that document; or\n\n(c) if the company was a partner in a partnership at any time during the statutory accounting period:\n\n(i) to obtain from the partnership, in accordance with a request made in a notice given to the partnership by the company under subsection 452(2), copies of specified documents; and\n\n(ii) to give those copies to the taxpayer, within the period and in the manner specified in the taxpayer’s notice.\n\n(3) The period specified in the taxpayer’s notice must end:\n\n(a) later than 60 days after the date of service of the taxpayer’s notice; and\n\n(b) before the end of the retention period in relation to the statutory accounting period.\n\n(4) Upon written application made by the taxpayer within the period specified in the taxpayer’s notice, the Commissioner may, by notice in writing served on the taxpayer, extend the period specified in the taxpayer’s notice.\n\n(5) Where:\n\n(a) an application under subsection (4) is made before the end of the period specified in the taxpayer’s notice; and\n\n(b) at the end of the period, the Commissioner has not notified the taxpayer of the Commissioner’s decision on the application;\n\nthe following provisions have effect:\n\n(c) if the Commissioner’s decision is not notified to the taxpayer before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (4) to the end of the retention period;\n\n(d) if the Commissioner’s decision is notified to the taxpayer before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (4) to the end of the day (in this subsection called the decision day) on which the Commissioner’s decision is notified to the taxpayer;\n\n(e) if the Commissioner decides to extend the period—subject to subsection (6), the extended period must end after the decision day.\n\n(6) The period as extended under subsection (4) must end before the end of the retention period in relation to the statutory accounting period.","sortOrder":1000113},{"sectionNumber":"full-source-retrieval-0115","sectionType":"document_chunk","heading":"Document excerpt 115","content":"(7) A reference in this section to the period specified in the taxpayer’s notice is a reference to the period as extended under subsection (4).\n\n(8) A refusal or failure to comply with the taxpayer’s notice is not an offence.\n\n(9) Subsection 262A(4) does not apply to records kept or obtained under or for the purposes of this section.\n\n452  Active income test—substantiation requirements for partnership\n\n(1) The substantiation requirements for a partnership in relation to a statutory accounting period are as follows:\n\n(a) the partnership must keep (in Australia or elsewhere) such accounting records (in this section called the general accounting records) as correctly record and explain the matters, transactions, acts and operations that are relevant to the preparation of the recognised accounts of the partnership for the statutory accounting period;\n\n(b) the general accounting records must be so kept as to enable the recognised accounts of the partnership for the statutory accounting period to be prepared;\n\n(c) the partnership must retain, for the retention period in relation to the statutory accounting period:\n\n(i) the recognised accounts of the partnership for the statutory accounting period; and\n\n(ii) the general accounting records of the partnership for the statutory accounting period;\n\n(d) the partnership must comply with a request made in a notice given to it under subsection (2) in relation to the statutory accounting period.\n\n(2) A company that is a CFC at the end of a statutory accounting period of the company may, by notice in writing served on a partnership in which the company was a partner at any time during the statutory accounting period, request the partnership:\n\n(a) to give to the company, within the period and in the manner specified in the notice, copies of such of the following documents as are specified in the notice:\n\n(i) the recognised accounts of the partnership for the statutory accounting period;\n\n(ii) the general accounting records of the partnership for the statutory accounting period; or\n\n(b) to prepare a document containing particulars of the basis of the calculation of:\n\n(i) the notional gross tainted turnover of the partnership for the statutory accounting period; and\n\n(ii) the notional gross turnover of the partnership for the statutory accounting period;\n\nand to give to the company, within the period and in the manner specified in the notice, a copy of that document.\n\n(3) The period specified in the notice must end:\n\n(a) later than 30 days after the date of service of the notice; and\n\n(b) before the end of the retention period in relation to the statutory accounting period.\n\n(4) Upon written application made by the company within the period specified in the notice, the Commissioner may, by notice in writing served on the company, extend the period specified in the notice.\n\n(5) Where:\n\n(a) an application under subsection (4) is made before the end of the period specified in the notice; and\n\n(b) at the end of the period, the Commissioner has not notified the company of the Commissioner’s decision on the application;\n\nthe following provisions have effect:\n\n(c) if the Commissioner’s decision is not notified to the company before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (4) to the end of the retention period;\n\n(d) if the Commissioner’s decision is notified to the company before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (4) to the end of the day (in this subsection called the decision day) on which the Commissioner’s decision is notified to the company;\n\n(e) if the Commissioner decides to extend the period—subject to subsection (6), the extended period must end after the decision day.\n\n(6) The period as extended under subsection (4) must end before the end of the retention period in relation to the statutory accounting period.\n\n(7) A reference in this section to the period specified in the notice is a reference to the period as extended under subsection (4).\n\n(8) A refusal or failure to comply with the notice is not an offence.\n\n(9) Subsection 262A(4) does not apply to records kept or obtained under or for the purposes of this section.\n\n453  Active income test—substantiation requirements for attributable taxpayer\n\n(1) Where:\n\n(a) the Commissioner has reason to believe that:\n\n(i) a taxpayer is an attributable taxpayer in relation to a company, being a CFC, at the end of a statutory accounting period of the CFC; and\n\n(ii) the application of a provision of this Division to the company may be relevant to the assessment of the taxpayer; and\n\n(b) any of the following subparagraphs applies:\n\n(i) the taxpayer has claimed (whether in a return of income or otherwise) that the company has passed the active income test in relation to the statutory accounting period;\n\n(ii) the taxpayer’s return of income of any year of income has been prepared on the basis that the company has passed the active income test in relation to the statutory accounting period;\n\n(iii) the Commissioner has reason to believe that the company has passed the active income test in relation to the statutory accounting period;\n\nthe Commissioner may, by notice in writing served on the taxpayer (in this section called the Commissioner’s notice), request the taxpayer:\n\n(c) to obtain from the company, in accordance with a request made in a notice given to the company under subsection 451(2), copies of such documents as are specified in the Commissioner’s notice; and\n\n(d) if any of those copies are not in the English language—to make translations of those copies; and\n\n(e) to produce to the Commissioner, within the period and in the manner specified in the Commissioner’s notice:\n\n(i) in all cases—those copies; and\n\n(ii) if paragraph (d) applies—those translations.\n\n(2) The period specified in the Commissioner’s notice must end:\n\n(a) later than 90 days after the date of service of the notice; and\n\n(b) before the end of the retention period in relation to the statutory accounting period.\n\n(3) Upon written application made by the taxpayer within the period specified in the Commissioner’s notice, the Commissioner may, by notice in writing served on the taxpayer, extend the period specified in the Commissioner’s notice.\n\n(4) Where:\n\n(a) an application under subsection (3) is made before the end of the period specified in the Commissioner’s notice; and\n\n(b) at the end of the period, the Commissioner has not notified the taxpayer of the Commissioner’s decision on the application;\n\nthe following provisions have effect:\n\n(c) if the Commissioner’s decision is not notified to the taxpayer before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (3) to the end of the retention period;\n\n(d) if the Commissioner’s decision is notified to the taxpayer before the end of the retention period in relation to the statutory accounting period concerned—the Commissioner is taken to have extended the period under subsection (3) to the end of the day (in this subsection called the decision day) on which the Commissioner’s decision is notified to the taxpayer;\n\n(e) if the Commissioner decides to extend the period—subject to subsection (5), the extended period must end after the decision day.\n\n(5) The period as extended under subsection (3) must end before the end of the retention period in relation to the statutory accounting period.\n\n(6) A reference in this section to the period specified in the Commissioner’s notice is a reference to the period as extended under subsection (3).\n\n(7) A refusal or failure to comply with the notice is not an offence.\n\n(8) If the taxpayer refuses or fails to comply with the notice, then, for the purposes of the application of this Part (other than this Division) to the taxpayer, the company is taken not to have passed the active income test in relation to the statutory accounting period concerned.\n\n454  Assessment on assumption—retention of accounts etc. and compliance with information notices\n\nIf:\n\n(a) a statutory accounting period of a company has ended; and\n\n(b) the retention period in relation to the statutory accounting period has not ended;\n\nan assessment may be made of a taxpayer on the assumption that, after the assessment is made, the following requirements will be complied with in relation to the statutory accounting period:\n\n(c) the requirements set out in paragraphs 451(1)(c) and (d) that are applicable to the company;\n\n(d) the requirements set out in paragraphs 452(1)(c) and (d) that are applicable to a partnership in which the company was a partner at any time during the statutory accounting period.\n\n455  Amendment of assessments\n\nWhere:\n\n(a) an assessment has been made in relation to a year of income; and\n\n(b) a provision of this Subdivision that is relevant to the assessment is dependent on a circumstance that occurs or may occur after the end of the year of income;\n\nsection 170 does not prevent the amendment of the assessment at any time for the purpose of giving effect to this Act in relation to the occurrence of that circumstance after the end of the year of income.\n\nDivision 9—Attribution of attributable income and other amounts\n\n456  Assessability in respect of CFC’s attributable income\n\n(1) Subject to subsection (2), where a CFC has attributable income for a statutory accounting period in respect of an attributable taxpayer, the taxpayer’s attribution percentage of the attributable income is included in the assessable income of the taxpayer of the year of income in which the end of the statutory accounting period occurs.\n\n(2) Where section 457 applies in relation to the attributable taxpayer in relation to one or more changes of residence by the CFC during the statutory accounting period, then only so much of the attributable income of the CFC as relates to:\n\n(a) where the CFC is a resident of an unlisted country at the end of the period:\n\n(i) any part of the period when the CFC was a resident of a listed country; or\n\n(ii) the part of the period, since the change of residence or last change of residence, as the case requires, when the CFC was a resident of the unlisted country; or\n\n(b) where the CFC is a resident of a listed country at the end of the period—any part of the period when the CFC was a resident of the listed country or any other listed country;\n\nis to be taken into account under subsection (1).\n\n456A  Reduction of section 456 assessability where item subject to foreign accruals tax\n\n(1) Where:\n\n(a) apart from this section, an amount (in this section called the otherwise assessable section 456 amount) is included in the assessable income of a year of income of an attributable taxpayer in relation to a CFC under section 456, in relation to the attributable income of the CFC of a statutory accounting period; and\n\n(b) an attribution tracing interest of the attributable taxpayer, or of an interposed entity, in a CFE was taken into account in calculating the attributable taxpayer’s attribution percentage for the CFC; and\n\n(c) foreign tax is payable by the CFE under an accruals tax law of a listed country in respect of an amount that is calculated by reference to an item of net income or net profit of the CFC, where the amount is taxed in the listed country:\n\n(i) at that country’s normal company tax rate; and\n\n(ii) in a tax accounting period commencing or ending:\n\n(A) in the year of income of the attributable taxpayer; or\n\n(B) in the statutory accounting period of the CFC; and\n\n(d) the item constitutes the whole or part (which whole or part is in this section called the foreign accruals‑taxed attributable income) of the attributable income of the CFC of the statutory accounting period;\n\nthen the otherwise assessable section 456 amount is reduced by the amount calculated using the formula:\n\n![Start formula Indirect attribution interests via CFE times Foreign accruals-taxed attributable income end formula](image.016.png)\n\nwhere:\n\nIndirect attribution interests via CFE means the total of the attributable taxpayer’s indirect attribution interests in the CFC that are held through the CFE.\n\nForeign accruals‑taxed attributable income means the amount of the foreign accruals‑taxed attributable income.\n\n(2) Where:\n\n(a) apart from this subsection, subsection (1) would reduce the otherwise assessable section 456 amount of the attributable taxpayer in relation to the CFC in a case where foreign tax is payable by 2 or more CFEs under accruals tax laws; and\n\n(b) any indirect attribution interest referred to in the formula component Indirect attribution interests via CFE in subsection (1) is held through any 2 or more of the CFEs;\n\nthen that indirect attribution interest is only to be taken into account once in applying the subsection.\n\n(3) Where, because of any of subsections 362(2) to (5), the amount that would otherwise be the attribution percentage of the attributable taxpayer for the CFC is reduced, then the Commissioner may, for the purposes of this section, make such consequential reduction as the Commissioner considers reasonable in the circumstances to any indirect attribution interest in the CFC held by the attributable taxpayer.\n\n457  Assessability where CFC changes residence from unlisted country to listed country or to Australia\n\n(1) Where at any time (in this section called the residence‑change time) a company that:\n\n(a) is a CFC; and\n\n(b) has an attributable taxpayer;\n\nceases to be resident in an unlisted country and becomes:\n\n(c) a resident of a listed country; or\n\n(d) a Part X Australian resident;\n\nthen the attributable taxpayer’s assessable income of the year of income in which the residence‑change time occurs includes the amount calculated under subsection (2).\n\n(2) The amount is calculated using the formula:\n\n![Start formula Attribution percent times Adjusted distributable profits end formula](image.017.png)\n\nwhere:\n\nAttribution percent means the attributable taxpayer’s attribution percentage, at the residence‑change time, in relation to the CFC.\n\nAdjusted distributable profits means:\n\n(a) if paragraph (1)(c) applies—the amount that would be the CFC’s distributable profits at the residence‑change time if:\n\n(i) the CFC’s income were its adjusted tainted income (excluding any non‑portfolio dividends) derived during the period beginning on the first day of the statutory accounting period in which the residence‑change time occurred and ending immediately before the time at which the residence‑change time occurs; and\n\n(ii) the CFC’s only other income were an amount that the CFC would have derived had it disposed of all of its tainted assets immediately before the residence‑change time for a consideration equal to their market value; and\n\n(iii) the CFC’s only expenses were expenses related to income covered by subparagraphs (i) and (ii); or\n\n(b) if paragraph (1)(d) applies—the amount that would be the CFC’s distributable profits at the residence‑change time if:\n\n(i) the CFC’s only income were its adjusted tainted income (excluding any non‑portfolio dividends) derived during the period beginning on the first day of the statutory accounting period in which the residence‑change time occurred and ending immediately before the time at which the residence‑change time occurs; and\n\n(ii) the CFC’s only expenses were expenses related to income covered by subparagraph (i).\n\n(3) If:\n\n(a) at the residence‑change time, regulations made for the purposes of section 320 come into effect; and\n\n(b) a result of those regulations coming into effect is that the company:\n\n(i) ceases to be a resident of an unlisted country; and\n\n(ii) becomes a resident of a listed country;\n\nat the residence‑change time;\n\nthen no amount is to be included in the attributable taxpayer’s assessable income under subsection (1) in relation to that change of residence.\n\n459A  Assessability where CFC or CFT has interest in certain attributable taxpayers\n\n(1) Where:\n\n(a) an amount (in this subsection called the section 456 to 459A amount) is included in the assessable income of an Australian partnership or of an Australian trust of a year of income under section 456 or 457 or under this section (apart from subsection (2)); and\n\n(b) a CFC or CFT has an individual interest in the net income of the Australian partnership, or a present entitlement to a share of the net income of the Australian trust, being an interest or entitlement held either directly or indirectly through interposed Australian partnerships, CFPs or Australian trusts (or any combination thereof); and\n\n(c) a taxpayer is an attributable taxpayer in relation to the CFC or CFT:\n\n(i) where the section 456 to 459A amount is included in assessable income under section 456—at the end of the statutory accounting period referred to in that section; or\n\n(ii) where the amount is included under section 457—at the residence‑change time referred to in that section; or\n\n(v) where the amount is included under this section—at the time referred to in whichever subparagraph of this paragraph applied for the purposes of so including the amount;\n\nthen, subject to subsection (2), the assessable income of the attributable taxpayer of the year of income includes an amount calculated using the formula:\n\n![Start formula AP times Interest/Entitlement times Section 456 to 459A amount end formula](image.018.png)\n\nwhere:\n\nAP  [Attribution Percentage] means the taxpayer’s attribution percentage, at the time referred to in paragraph (c), for the CFC or CFT.\n\nInterest/Entitlement means the percentage of the net income of the Australian partnership or Australian trust represented by the sum of the direct and indirect interests or present entitlements of the CFC or CFT.","sortOrder":1000114},{"sectionNumber":"full-source-retrieval-0116","sectionType":"document_chunk","heading":"Document excerpt 116","content":"Section 456 to 459A amount means the section 456 to 459A amount.\n\n(2) Where:\n\n(a) apart from this subsection, an amount (in this subsection called the subsection (1) amount) is included under subsection (1) in the assessable income of an attributable taxpayer in relation to a CFT; and\n\n(b) the following conditions are satisfied in respect of one or more other amounts (each of which is in this subsection called an assessed attributable amount);\n\n(i) each is:\n\n(A) apart from this subsection, included in the assessable income of a taxpayer (whether or not the attributable taxpayer), other than a trust or partnership; or\n\n(B) assessed to a trustee under section 98, 99 or 99A;\n\n(ii) each is attributable directly through the CFT, or indirectly through the CFT and any interposed partnerships or trusts (or any combination thereof), to the section 456 to 459A amount referred to in subsection (1);\n\nthen the subsection (1) amount is reduced to the extent that the Commissioner considers it represents an assessed attributable amount or assessed attributable amounts.\n\n(3) A reference in subsection (1) to an Australian trust or in subsection (2) to a trust does not include a reference respectively to an Australian trust or a trust that is, in relation to the year of income concerned:\n\n(b) a public trading trust within the meaning of Division 6C of that Part; or\n\n(c) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust.\n\n460  Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution\n\n(1) This section applies where an amount is included under section 456, 457, or 459A in the assessable income of an Australian partnership or an Australian trust of a year of income, except where the Australian trust is, in relation to the year of income:\n\n(b) a public trading trust within the meaning of Division 6C of that Part; or\n\n(c) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust.\n\n(2) Where:\n\n(a) as a result of the amount being so included, there is, apart from this subsection, a tax detriment for:\n\n(i) a partner in the Australian partnership; or\n\n(ii) a partner in another partnership (in this subsection called the ultimate partnership), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the partner and the Australian partnership or the Australian trust; and\n\n(b) the partner is not, in respect of his or her interest in the net income or partnership loss of the Australian partnership or the ultimate partnership, in the capacity of trustee of a trust; and\n\n(c) the tax detriment would be reduced by an amount if it were recalculated on the assumption that section 92 applied only to so much of the partner’s interest in the net income or partnership loss of the Australian partnership or the ultimate partnership as is attributable to periods when the partner was a Part X Australian resident;\n\nthen, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.\n\n(3) Where:\n\n(a) as a result of the amount being included as mentioned in subsection (1), there is, apart from this subsection, a tax detriment for:\n\n(i) a beneficiary in the Australian trust; or\n\n(ii) a beneficiary in another trust (in this subsection called the ultimate trust), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the beneficiary and the Australian partnership or the Australian trust; and\n\n(b) the beneficiary is not a partnership and is not, in respect of his or her share of the net income of the Australian trust or the ultimate trust, in the capacity of trustee of another trust; and\n\n(c) the tax detriment would be reduced by an amount if it were recalculated on the following assumptions:\n\n(i) sections 97, 98A and 100 applied only to so much of the beneficiary’s share of the net income of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;\n\n(ii) Subdivision 115‑C of the Income Tax Assessment Act 1997 applied only to so much of the beneficiary’s share of each capital gain of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;\n\n(iii) Subdivision 207‑B of the Income Tax Assessment Act 1997 applied only to so much of the beneficiary’s share of each franked distribution of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;\n\nthen, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.\n\n(4) Where:\n\n(a) as a result of the amount being included as mentioned in subsection (1), there is, apart from this subsection, a tax detriment for:\n\n(i) the trustee of the Australian trust; or\n\n(ii) the trustee of another trust (in this subsection called the ultimate trust), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the trustee and the Australian partnership or the Australian trust; and\n\n(b) the tax detriment would be reduced by an amount if it were recalculated on the assumption that:\n\n(i) section 98 applied only to so much of a beneficiary’s share of the net income of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident; and\n\n(ii) sections 99 and 99A applied only to the Australian trust or the ultimate trust if it were a resident trust estate within the meaning of Division 6 of Part III;\n\nthen, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.\n\n460A  Effect of reducing section CGT event J1 amount\n\n(1) This section applies in either of the following cases:\n\n(a) one or more schemes or arrangements have the effect of reducing the attribution percentage of an attributable taxpayer in relation to a company that is a CFC, and are intended by the attributable taxpayer or an associate of the attributable taxpayer to have that effect;\n\n(b) a company ceases to be a CFC in relation to a particular taxpayer.\n\n(2) Work out the amount (if any) included under this Division in the taxpayer’s assessable income because of CGT event J1 (as it notionally happens to the company under Division 7) as though the reduction or cessation had not happened.\n\nNote: CGT event J1 is about companies ceasing to be related after a roll‑over.\n\nDivision 10—Post‑attribution asset disposals\n\n461  Reduction of disposal consideration or capital proceeds if attributed income not distributed\n\n(1) If:\n\n(a) it is necessary, for the purposes of applying a provision of this Act in the assessment of a taxpayer for a year of income, to take into account:\n\n(i) the amount of consideration received, entitled to be received or taken to have been received, by the taxpayer in respect of the disposal of an asset; or\n\n(ii) the capital proceeds from a CGT event happening in relation to a CGT asset;\n\nbeing an asset that is an interest in an attribution account entity (the disposal entity); and\n\n(b) immediately before the disposal or CGT event takes place, either or both of the following conditions are satisfied:\n\n(i) there is an attribution surplus for the disposal entity in relation to the taxpayer;\n\n(ii) there is an attribution surplus for one or more other attribution account entities in relation to the taxpayer, where each such entity is one in which the taxpayer has an indirect attribution account interest held through the disposal entity;\n\nthen, for the purposes of this Act:\n\n(c) the consideration or capital proceeds that, apart from this section, would be taken into account under the provision referred to in paragraph (a) in respect of the disposal or CGT event is, subject to subsection (3), taken to be reduced by so much of the amount of the attribution surplus, or sum of the attribution surpluses, as the case requires; and\n\n(d) an attribution debit is taken to arise at the time of the disposal or the CGT event under section 372, in relation to the taxpayer, for each attribution account entity (the surplus entity) in relation to which there is a surplus to which paragraph (c) applies; and\n\n(e) the amount of the attribution debit is equal to so much of the surplus as is taken into account under paragraph (c); and\n\n(f) there is no grossed‑up amount in relation to the attribution debit under section 373.\n\n(3) For the purposes of paragraph (1)(c):\n\n(a) if the disposal of the asset or the CGT event causes the taxpayer’s attribution account percentage for a surplus entity to be reduced by a proportion, then only that proportion of the attribution surplus for the entity is, subject to this subsection, to be taken into account under that paragraph; and\n\n(b) if there is only one attribution surplus referred to in that paragraph and (after any application of paragraph (a) of this subsection) it exceeds the consideration from the disposal or the capital proceeds from the CGT event, then only so much of the surplus as does not exceed that consideration or those capital proceeds is to be taken into account under paragraph (1)(c); and\n\n(c) where there are 2 or more attribution surpluses referred to in paragraph (1)(c) and (after any application of paragraph (a) of this subsection) their sum exceeds the consideration from the disposal or the capital proceeds from the CGT event, then:\n\n(i) if the taxpayer makes an election that, for the purposes of this paragraph, a part of each surplus (after any application of paragraph (a)) such that the sum of the amounts to which the election relates equals that consideration or those capital proceeds—only the part to which the election relates of each surplus is to be taken into account under paragraph (1)(c); or\n\n(ii) if subparagraph (i) does not apply—only a proportion of each surplus (after any application of paragraph (a)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:\n\n![Start formula start fraction Consideration over Total surplus end fraction end formula](image.019.png)\n\nwhere:\n\nconsideration means the amount of the consideration or the capital proceeds.\n\ntotal surplus means the sum of the attribution surpluses (after any application of paragraph (a)).\n\n(4) An election for the purposes of paragraph (3)(c) must be made on or before the date of lodgment of the taxpayer’s return of income for the year of income referred to in paragraph (1)(a) or within such further period after the lodgment of the return as the Commissioner allows.\n\n(4A) In determining, for the purposes of this section, whether there was an attribution surplus immediately before a CGT event, and the amount of such a surplus, also take into account any attribution credit that later arises because the CGT event caused section 104‑175 of the Income Tax Assessment Act 1997 (as it notionally applies to the CGT event entity under Division 7) to operate.\n\n(5) In this section:\n\ninterest, in relation to an attribution account entity, means:\n\n(a) if the entity is a company—an interest in shares in the company, or an entitlement to acquire such an interest; or\n\n(b) if the entity is a partnership—an interest of a partner in the profits or property of the partnership, or an entitlement of a partner to acquire such an interest; or\n\n(c) if the entity is a trust—an entitlement of a beneficiary to a share of the income or corpus of the trust, or an entitlement of a beneficiary to acquire such an entitlement.\n\nDivision 11—Keeping of records\n\n462  Keeping of records—section 456\n\nSubject to this Division, where:\n\n(a) a person is an attributable taxpayer in relation to a CFC at the end of a statutory accounting period of the CFC; and\n\n(b) the CFC has attributable income for the statutory accounting period in respect of the person;\n\nthe person must keep records (in Australia or elsewhere) containing particulars of:\n\n(c) the acts, transactions and other circumstances that resulted in the person being an attributable taxpayer in relation to the CFC at that time; and\n\n(d) the basis of the calculation of:\n\n(i) the direct attribution interest; and\n\n(ii) the aggregate of the indirect attribution interests;\n\nin the CFC held by the person at that time; and\n\n(e) the basis of the calculation of the attribution percentage of the person in relation to the CFC at that time; and\n\n(f) the basis of the calculation of the amount (including a nil amount) included in the assessable income of the person under section 456 in relation to the CFC’s attributable income for the statutory accounting period in respect of the person.\n\nNote: There is an administrative penalty if you do not keep or retain records as required by this Division: see section 288‑25 in Schedule 1 to the Taxation Administration Act 1953.\n\n462A  Keeping of records—section 457\n\nSubject to this Division, where:\n\n(a) subsection 457(1) applies to a change of residence of a CFC; and\n\n(b) at the residence‑change time referred to in that subsection, a person is an attributable taxpayer in relation to the CFC;\n\nthe person must keep records (in Australia or elsewhere) containing particulars of:\n\n(c) the acts, transactions and other circumstances that resulted in the person being an attributable taxpayer in relation to the CFC at that time; and\n\n(d) the basis of the calculation of:\n\n(i) the direct attribution interest; and\n\n(ii) the aggregate of the indirect attribution interests;\n\nin the CFC held by the person at that time; and\n\n(e) the basis of the calculation of the attribution percentage of the person in relation to the CFC at that time; and\n\n(f) the basis of the calculation of the amount (including a nil amount) included in the assessable income of the person under section 457 in relation to the change of residence concerned.\n\n464A  Keeping of records—section 459A\n\nSubject to this Division, where:\n\n(a) subsection 459A(1) applies in relation to an amount (in this section called the trigger amount) included in the assessable income of an Australian partnership or of an Australian trust as mentioned in paragraph 459A(1)(a); and\n\n(b) at the time referred to in whichever subparagraph of paragraph 459A(1)(c) is applicable, a person is an attributable taxpayer in relation to the CFC or the CFT mentioned in that paragraph;\n\nthe person must keep records (in Australia or elsewhere) containing particulars of:\n\n(c) the acts, transactions and other circumstances that resulted in the person being an attributable taxpayer in relation to the CFC or the CFT at that time; and\n\n(d) the basis of the calculation of:\n\n(i) the direct attribution interest; and\n\n(ii) the aggregate of the indirect attribution interests;\n\nin the CFC or the CFT held by the person at that time; and\n\n(e) the basis of the calculation of the attribution percentage of the person in relation to the CFC or the CFT at that time; and\n\n(f) the basis of the calculation of the amount (including a nil amount) that, apart from subsection 459A(2), would be included in the assessable income of the person under subsection 459A(1) in relation to the trigger amount.\n\n465  Offence of failing to keep records\n\n(1) A person who contravenes section 462, 462A, or 464A commits an offence punishable on conviction by a fine not exceeding 30 penalty units.\n\nNote: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.\n\n(2) An offence under section 462, 462A, or 464A is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.\n\n466  Manner in which records required to be kept\n\nA person who is required by this Division to keep records must:\n\n(a) keep the records in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and\n\n(b) keep the records so as to enable the person’s liability under this Act to be readily ascertained.\n\n467  Circumstances where records not required to be kept—reasonable excuse etc.\n\nThis Division does not require a person to keep a record of information if:\n\n(a) the person did not know, and had no reasonable grounds to suspect, that section 462, 462A or 464A, as the case requires, was applicable to the person; or\n\n(b) the person did not know that, and made all reasonable efforts to ascertain whether, section 462, 462A or 464A, as the case requires, was applicable to the person; or\n\n(c) the person did not know, and made all reasonable efforts to obtain, the information.\n\n468  Treatment of partnerships\n\n(1) Subject to subsections (2) and (3), the following provisions apply to a partnership as if the partnership were a person:\n\n(a) sections 462 to 467 (inclusive);\n\n(b) subsections 262A(4) and (5), in so far as those subsections apply to records kept under or for the purposes of this Division;\n\n(c) Part III of the Taxation Administration Act 1953, in so far as that Part of that Act relates to the provisions covered by paragraph (a) or (b) of this subsection.\n\n(2) Where, by virtue of subsection (1), an offence is taken to have been committed by a partnership, that offence is taken to have been committed by each of the partners.\n\n(3) In a prosecution of a person for an offence by virtue of subsection (2), it is a defence if the person proves that the person:\n\n(a) did not aid, abet, counsel or procure the act or omission by virtue of which the offence was taken to have been committed; and\n\n(b) was not in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, an act or omission by virtue of which the offence is taken to have been committed.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)","sortOrder":1000115},{"sectionNumber":"full-source-retrieval-0117","sectionType":"document_chunk","heading":"Document excerpt 117","content":"Income Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1-78A\n\nVolume 2: sections 79A-121L\n\nVolume 3: sections 124ZM-204\n\nVolume 4: sections 251R-468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1-4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nSchedule 2\n\nPart I\n\nPart II\n\nSchedule 2D—Tax exempt entities that become taxable\n\nDivision 57—Tax exempt entities that become taxable\n\nGuide to Division 57\n\n57‑1 What this Division is about\n\nSubdivision 57‑A—Key concepts\n\n57‑5 Entities to which this Division applies\n\nSubdivision 57‑B—Predecessors of the transition taxpayer\n\n57‑10 Activities of transition taxpayer’s predecessor attributed to transition taxpayer\n\nSubdivision 57‑C—Time when income derived\n\n57‑15 Time when income derived\n\nSubdivision 57‑D—Time when losses and outgoings incurred\n\n57‑20 Time when losses and outgoings incurred\n\nSubdivision 57‑E—Assets and liabilities\n\n57‑25 Deemed disposal and re‑acquisition of assets\n\n57‑30 Deemed cessation and re‑assumption of liabilities\n\n57‑32 Division 230 financial arrangements—market value of assets and rights\n\n57‑33 Division 230 financial arrangements—transition taxpayer’s right to receive or obligation to provide payment\n\n57‑35 Interpretation\n\nSubdivision 57‑F—Superannuation deductions\n\n57‑40 Contributions under defined benefit superannuation schemes\n\n57‑45 Deduction for surplus to meet defined benefit superannuation scheme liabilities\n\n57‑50 Contributions generally\n\n57‑52 Section 57‑50 does not apply if there is a surplus at transition time\n\n57‑55 Deductions reduced under both sections 57‑40 and 57‑50\n\nSubdivision 57‑G—Denial of certain deductions\n\n57‑60 Effect of pre‑transition time accrued leave entitlements\n\n57‑65 Treatment of bad debts\n\n57‑70 Treatment of superannuation lump sums and employment termination payments\n\nSubdivision 57‑H—Domestic losses\n\n57‑75 Domestic losses\n\nSubdivision 57‑J—Capital allowances and certain other deductions\n\n57‑85 What are the modified deduction rules and corresponding deduction provisions?\n\n57‑90 Post‑transition deductions—assume that the transition taxpayer had never been exempt\n\n57‑95 Amount of deduction not allowable for transition year\n\n57‑100 No elections etc. before transition time\n\n57‑105 Special rules for mining and quarrying\n\nSubdivision 57‑K—Balancing adjustments\n\n57‑110 Apportionment of balancing adjustments\n\nSubdivision 57‑L—Trading stock\n\n57‑115 Modification of trading stock provisions\n\nSubdivision 57‑M—Imputation\n\n57‑120 Cancellation of franking surplus, credit or debit\n\n57‑125 Subsidiary\n\nSubdivision 57‑N—Division not applicable in respect of certain plant\n\n57‑130 Plant or depreciating assets covered by Subdivision 58‑B of the Income Tax Assessment Act 1997\n\nSubdivision 57‑P—Balancing adjustment on ceasing to have a Division 230 financial arrangement\n\n57‑135 Balancing adjustment on ceasing to have a Division 230 financial arrangement referred to in section 57‑32\n\nSchedule 2F—Trust losses and other deductions\n\nDivision 265—Overview of Schedule\n\n265‑5 What this Schedule is about\n\n265‑10 Diagram giving overview of Schedule\n\nDivision 266—Income tax consequences for fixed trusts of abnormal trading or change in ownership\n\nSubdivision 266‑A—Overview of this Division\n\n266‑5 What this Division is about\n\n266‑10 Diagram giving overview of this Division\n\nSubdivision 266‑B—Effect of change in ownership of fixed trust\n\n266‑15 What this Subdivision is about\n\n266‑20 Diagram giving overview of this Subdivision\n\n266‑25 Fixed trust may be denied tax loss deduction\n\n266‑30 Fixed trust may be required to work out its net income and tax loss in a special way\n\n266‑35 Fixed trust may be denied debt deduction\n\n266‑40 The trust must pass 50% stake test\n\n266‑45 The trust must meet non‑fixed trust stake test\n\n266‑50 Deducting part of a tax loss\n\n266‑55 Information about non‑fixed trusts with interests in fixed trust\n\n266‑60 Notices where requirements of section 266‑55 are met\n\nSubdivision 266‑C—Effect of change in ownership of unlisted widely held trust\n\n266‑65 What this Subdivision is about\n\n266‑70 Diagram giving overview of this Subdivision\n\n266‑75 Unlisted widely held trust may be denied tax loss deduction\n\n266‑80 Unlisted widely held trust may be required to work out its net income and tax loss in a special way\n\n266‑85 Unlisted widely held trust may be denied debt deduction\n\n266‑90 If abnormal trading or end of income year, trust must pass the 50% stake test\n\n266‑95 Deducting part of a tax loss\n\nSubdivision 266‑D—Effect of abnormal trading on listed widely held trust\n\n266‑100 What this Subdivision is about\n\n266‑105 Diagram giving overview of this Subdivision\n\n266‑110 Listed widely held trust may be denied tax loss deduction\n\n266‑115 Listed widely held trust may be required to work out its net income and tax loss in a special way\n\n266‑120 Listed widely held trust may be denied debt deduction\n\n266‑125 There must be no abnormal trading (subject to 50% stake or business continuity exceptions)\n\n266‑130 Deducting part of a tax loss\n\n266‑135 Listed widely held unit trust may be denied tax loss deduction otherwise allowable\n\nSubdivision 266‑E—Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust\n\n266‑140 What this Subdivision is about\n\n266‑145 Diagram giving overview of this Subdivision\n\n266‑150 Unlisted very widely held trust or wholesale widely held trust may be denied tax loss deduction\n\n266‑155 Unlisted very widely held trust or wholesale widely held trust may be required to work out its net income and tax loss in a special way\n\n266‑160 Unlisted very widely held trust or wholesale widely held trust may be denied debt deduction\n\n266‑165 There must be no abnormal trading (subject to 50% stake exception)\n\n266‑170 Deducting part of a tax loss\n\nSubdivision 266‑F—Information about family trusts with interests in other trusts\n\n266‑175 What this Subdivision is about\n\n266‑180 Information about family trusts with interests in other trusts\n\n266‑185 Notices where requirements of section 266‑180 are met\n\nDivision 267—Income tax consequences for non‑fixed trusts of change in ownership or control\n\nSubdivision 267‑A—Overview of this Division\n\n267‑5 What this Division is about\n\n267‑10 Diagram giving overview of this Division\n\nSubdivision 267‑B—Deducting tax losses, and certain amounts in respect of debts, from earlier years\n\n267‑15 What this Subdivision is about\n\n267‑20 Non‑fixed trust may be denied tax loss deduction\n\n267‑25 Non‑fixed trust may be denied debt deduction\n\n267‑30 If certain distributions are made, the trust must pass the pattern of distributions test\n\n267‑35 The trust must not have previously failed to meet the condition in subsection 267‑30(2)\n\n267‑40 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained\n\n267‑45 Group must not begin to control the trust\n\n267‑50 Deducting part of a tax loss\n\nSubdivision 267‑C—Current year net income and tax loss, and certain debts incurred in current year\n\n267‑55 What this Subdivision is about\n\n267‑60 Trust may be required to work out its net income and tax loss in a special way\n\n267‑65 Non‑fixed trust may be denied debt deduction\n\n267‑70 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained\n\n267‑75 Group must not begin to control trust\n\nSubdivision 267‑D—Information about family trusts with interests in other trusts\n\n267‑80 What this Subdivision is about\n\n267‑85 Information about family trusts with interests in other trusts\n\n267‑90 Notices where requirements of section 267‑85 are met\n\nDivision 268—How to work out a trust’s net income and tax loss for the income year\n\nSubdivision 268‑A—Overview of Division\n\n268‑5 What this Division is about\n\nSubdivision 268‑B—Dividing the income year into periods\n\n268‑10 Income year of fixed trust to be divided into periods—first case\n\n268‑15 Income year of fixed trust to be divided into periods—second case\n\n268‑20 Income year of widely held unit trust to be divided into periods\n\n268‑25 Income year of non‑fixed trust to be divided into periods\n\nSubdivision 268‑C—Other steps in working out the net income and tax loss\n\n268‑30 Calculate the notional loss or net income for each period\n\n268‑35 How to attribute deductions to periods\n\n268‑40 How to attribute assessable income to periods\n\n268‑45 How to calculate the trust’s net income for the income year\n\n268‑60 How to work out the trust’s section 36‑10 tax loss for the income year\n\nSubdivision 268‑D—Rules that supplement Subdivision 268‑C if the trust is in partnership\n\n268‑70 How to calculate the trust’s notional loss or net income for a period when the trust was a partner\n\n268‑75 How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if both entities have the same income year\n\n268‑80 How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if the entities have different income years\n\n268‑85 Trust’s full year deductions include a share of partnership’s full year deductions\n\nDivision 269—Concepts and tests applied in Divisions 266 and 267\n\nSubdivision 269‑A—Overview of Division\n\n269‑5 What this Division is about\n\nSubdivision 269‑B—Abnormal trading\n\n269‑10 Trading\n\n269‑15 Abnormal trading—general\n\n269‑20 Abnormal trading—suspected acquisition or merger\n\n269‑25 Abnormal trading—5% of units in a single transaction\n\n269‑30 Abnormal trading—suspected 5% of units in a series of transactions\n\n269‑35 Abnormal trading—20% of units traded, issued or redeemed over 60 day period\n\n269‑40 Abnormal trading—50% stake not maintained\n\n269‑45 Time at which trustee to have knowledge or suspicion\n\n269‑47 Abnormal trading where holding trust\n\n269‑49 No abnormal trading where proportionate issue of units\n\nSubdivision 269‑C—Passing the 50% stake test etc.\n\n269‑50 More than a 50% stake in income or capital\n\n269‑55 Passing the 50% stake test\n\nSubdivision 269‑D—Pattern of distributions test\n\n269‑60 Pattern of distributions test\n\n269‑65 Test year distribution of income or capital\n\n269‑70 When individual receives different percentages\n\n269‑75 Incomplete distributions\n\n269‑80 Where individual’s death or breakdown of marriage or relationship\n\n269‑85 Arrangements to pass pattern of distributions test\n\nSubdivision 269‑E—Control a non‑fixed trust\n\n269‑95 Control a non‑fixed trust\n\nSubdivision 269‑F—Business continuity test\n\n269‑100 Passing the business continuity test\n\n269‑105 Modified test for income years starting on or after 1 July 2015\n\nDivision 270—Schemes to take advantage of deductions\n\n270‑5 What this Division is about\n\n270‑10 Schemes to take advantage of deductions\n\n270‑15 Tax consequences of schemes\n\n270‑20 Benefit\n\n270‑25 Outsider to trust\n\nDivision 271—Family trust distribution tax\n\n271‑5 What this Division is about\n\n271‑10 Family trust distribution tax\n\n271‑15 Tax liability where family trust makes distribution etc. outside family group\n\n271‑20 Tax liability where interposed trust makes distribution etc. outside family group\n\n271‑25 Tax liability where interposed partnership makes distribution etc. outside family group\n\n271‑30 Tax liability where interposed company makes distribution outside family group\n\n271‑35 Avoidance of double‑counting\n\n271‑40 Exclusion of directors from liability to pay tax\n\n271‑45 Requirements for section 271‑55 notice to family trust\n\n271‑50 Requirements for section 271‑55 notice to interposed entity\n\n271‑55 Notice requiring information about non‑resident distributions etc.\n\n271‑60 Tax liability where non‑resident family trust’s tax unpaid\n\n271‑65 Tax liability where non‑resident interposed entity’s tax unpaid\n\n271‑70 Reduction of liability where tax paid\n\n271‑75 Payment of family trust distribution tax\n\n271‑80 Late payment of family trust distribution tax\n\n271‑90 Notice of liability\n\n271‑95 Request for notice of liability\n\n271‑105 Amounts subject to family trust distribution tax not assessable\n\nDivision 272—Interpretation\n\nSubdivision 272‑A—Fixed entitlement to share of income or capital\n\n272‑5 Fixed entitlement to share of income or capital of a trust\n\n272‑10 Fixed entitlement to share of income or capital of a company\n\n272‑15 Fixed entitlement to share of income or capital of a partnership\n\n272‑20 Fixed entitlement to share of income or capital held indirectly\n\n272‑25 Special cases of fixed entitlements held directly or indirectly\n\n272‑30 Additional special cases of fixed entitlements held directly or indirectly\n\n272‑35 Arrangements to pass fixed entitlement tests\n\n272‑40 Continued holding of fixed entitlement where death occurs\n\nSubdivision 272‑B—Distribution of income or capital\n\n272‑45 Trust distribution to beneficiary\n\n272‑50 Company distribution to shareholder\n\n272‑55 Partnership distribution to partner\n\n272‑60 Other distributions of income and capital\n\n272‑63 Distribute indirectly\n\nSubdivision 272‑C—Fixed trusts and non‑fixed trusts\n\n272‑65 Fixed trust\n\n272‑70 Non‑fixed trust\n\nSubdivision 272‑D—Family trust etc.\n\n272‑75 Family trust\n\n272‑80 Family trust election\n\n272‑85 Interposed entity election\n\n272‑87 Passing the family control test\n\n272‑90 Family group\n\n272‑95 Family\n\nSubdivision 272‑E—Excepted trust\n\n272‑100 Excepted trust\n\nSubdivision 272‑F—Widely held unit trust\n\n272‑105 Widely held unit trust\n\nSubdivision 272‑G—Unlisted widely held trust and listed widely held trust\n\n272‑110 Unlisted widely held trust\n\n272‑115 Listed widely held trust\n\nSubdivision 272‑H—Unlisted very widely held trust\n\n272‑120 Unlisted very widely held trust\n\nSubdivision 272‑I—Wholesale widely held trust\n\n272‑125 Wholesale widely held trust\n\nSubdivision 272‑J—Kind of trust can be affected by ownership by higher level trust\n\n272‑127 Kind of trust can be affected by ownership by higher level trust\n\nSubdivision 272‑K—Trusts beginning or ceasing to exist\n\n272‑130 Trusts beginning or ceasing to exist\n\nSubdivision 272‑L—Listed public company\n\n272‑135 Listed public company\n\nSubdivision 272‑M—Various definitions\n\n272‑140 Definitions\n\nSchedule 2H—Demutualisation of mutual entities other than insurance companies and health insurers\n\nDivision 326—Demutualisation\n\nGuide to Division 326\n\n326‑1 What this Division is about\n\nSubdivision 326‑A—Application, key concepts and related expressions\n\n326‑5 Application\n\n326‑10 Mutual entity and demutualisation\n\n326‑15 Provisions relating to listing on a stock exchange\n\n326‑20 Demutualisation resolutions etc.\n\n326‑25 Demutualisation shares\n\n326‑30 Existing members and new members\n\n326‑35 Pre‑CGT members and post‑CGT members\n\nSubdivision 326‑B—How demutualisation is to be effected\n\n326‑40 Methods of demutualisation\n\n326‑45 Direct method\n\n326‑50 Holding company method\n\n326‑52 Combined direct and holding company method\n\n326‑55 Distributing trust method\n\n326‑60 Continuity of beneficial interest test\n\nSubdivision 326‑C—CGT consequences of extinguishment of membership rights in mutual entity\n\n326‑65 Extinguishment of membership rights\n\nSubdivision 326‑D—CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company\n\n326‑70 Application of Subdivision\n\n326‑75 Capital losses made from certain disposals to be disregarded\n\n326‑80 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑85 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity","sortOrder":1000116},{"sectionNumber":"full-source-retrieval-0118","sectionType":"document_chunk","heading":"Document excerpt 118","content":"326‑90 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑95 Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n326‑100 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑105 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑110 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑115 Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share or an interest in such a share\n\n326‑120 Adjusted market value\n\n326‑125 Undeducted membership costs\n\n326‑130 Adjusted first day trading price of demutualisation shares\n\nSubdivision 326‑E—CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company\n\n326‑135 Application of Subdivision\n\n326‑140 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑145 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑150 Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n326‑155 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑160 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑165 Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share\n\n326‑170 Various adjusted market values\n\n326‑175 Undeducted membership costs\n\nSubdivision 326‑F—Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity\n\n326‑180 Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss\n\nSubdivision 326‑G—CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights\n\n326‑185 Disposal of right to receive shares in demutualised entity\n\n326‑190 Extinguishment of right to shares in demutualised entity by the issue of the shares\n\n326‑195 Disposal of right to receive shares in holding company\n\n326‑200 Disposal of interest in trust that holds shares in demutualised entity\n\nSubdivision 326‑H—CGT consequences of transfer of ordinary shares\n\n326‑205 Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences\n\nSubdivision 326‑I—CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member\n\n326‑210 Disposal by a trustee\n\nSubdivision 326‑J—CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares\n\n326‑215 Change of rights to, and replacement of, special shares\n\nSubdivision 326‑K—CGT consequences of disposal of shares or an interest in shares acquired under a roll‑over provision\n\n326‑220 Disposal of shares or interest in shares\n\nSubdivision 326‑L—CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity\n\n326‑225 Payment out of assets of demutualised entity that is not included in assessable income is taken not to be a dividend\n\nSubdivision 326‑M—Indexation\n\n326‑230 Indexing of amounts\n\n326‑235 Indexation factor\n\n326‑240 Index number\n\nSubdivision 326‑N—Non‑CGT consequences of issue of demutualisation shares\n\n326‑245 General taxation consequences of issue of demutualisation shares\n\nSchedule 2\n\nSection 79A\n\nPart I\n\nZone A\n\n1. All that portion of the mainland of Australia lying north of a line commencing at the westernmost point at which the 26th parallel of south latitude intersects the western coastline thence east to the 141st meridian of east longitude thence north to the south‑eastern boundary of the Shire of Boulia thence generally north‑easterly by the boundaries dividing the Shires of Winton Flinders Dalrymple and Herberton from the Shires of Boulia Cloncurry McKinlay Richmond Etheridge and Mareeba to the 145th meridian of east longitude thence north to the northern boundary of the Shire of Mareeba thence by that boundary and the boundary dividing the Shires of Douglas and Cook to the eastern coastline.\n\n2. All the islands forming part of Australia lying adjacent to the coastline of the portion of Australia described in paragraph 1.\n\n3. Macquarie Island.\n\n4. Norfolk Island.\n\n5. The Territory of Heard Island and McDonald Islands.\n\n6. The Australian Antarctic Territory.\n\n7. The Territory of Cocos (Keeling) Islands.\n\n8. The Territory of Christmas Island.\n\n9. Lord Howe Island.\n\nPart II\n\nZone B\n\n1. All that portion of the mainland of Australia lying south of the southern boundary of Zone A and north of a line commencing at the northeastern corner of the shire of Broadsound in the State of Queensland thence generally westerly and southerly by the boundaries dividing the Shires of Broadsound Belyando Jericho Bauhinia Booringa and Balonne from the Shires of Sarina Nebo Wangaratta Dalrymple Aramac Barcaldine Blackall Tambo Murweh and Paroo to the boundary dividing the States of Queensland and New South Wales thence east by that boundary to its junction with the Barwon River at the northeastern corner of the Western Division in the State of New South Wales thence generally southwesterly by part of the boundary dividing the Central and Western Divisions of the State of New South Wales to the northernmost corner of the County of Mouramba and by the boundaries dividing the Counties of Mouramba Mossgiel Waljeers Kilfera Taila Wentworth and Tara from the Counties of Robinson Booroondarra Woore Manara Perry and Windeyer to the boundary dividing the States of New South Wales and South Australia thence south by that boundary to the northeast corner of the County of Hamley in the State of South Australia thence by the north boundaries of the Counties of Hamley and Young part of the north boundary of the County of Burra part of the east boundary of the District Council District of Hallett the east and a north boundary of the District Council District of Peterborough east and north boundaries of the District Council District of Carrieton to the southeast corner of the District Council District of Hawker the eastern north and west boundaries of that District Council District a western boundary of the District Council District of Kanyaka to the north boundary of the County of Frome thence west by part of that boundary and its prolongation west to the west boundary of the County of Manchester thence by the boundaries dividing the Counties of Manchester York and Buxton from the County of Hore‑Ruthven part of the west boundary of the County of Buxton and part of the western boundary of the District Council District of Kimba to the easternmost corner of the District Council District of Le Hunte thence generally northwesterly by the east and north boundaries of the District Council Districts of Le Hunte and Streaky Bay and the east north and west boundaries of the District Council District of Murat Bay to the southern coastline thence by that coastline westerly to the southwestern corner of the Road District of Phillips River in the State of Western Australia thence generally northwesterly by the boundaries dividing the Road Districts of Gnowangerup Kent Lake Grace Kulin Kondinin Narembeen Merredin and Nungarin from the Road Districts of Phillips River Yilgarn and Westonia to the northeast corner of the Road District of Nungarin thence westerly and northwesterly by the boundaries dividing the Road Districts of Nungarin Kununoppin‑Trayning Wyalkatchem Dowerin and Wongan‑Ballidu from the Road Districts of Mukinbuding Mt Marshall Koorda and Dalwallinu to the No. 2 rabbit proof fence by that fence to the north boundary of the Road District of Perenjori and thence by the boundaries dividing the Road Districts of Perenjori Morawa Mingenew Irwin Greenough and Geraldton from the Road Districts of Yalgoo Mullewa and Upper Chapman to the western coastline.\n\n2. All that portion of Tasmania lying south and west of a line commencing on the west coast at the southwest corner of the County of Wellington and thence generally easterly and southerly by the boundaries dividing the counties of Wellington Devon and Westmorland from the counties of Russell Lincoln and Cumberland to the point on the River Shannon where the hydro‑electric transmission line from Waddamana to Launceston crosses that river thence in a straight line in a general southwesterly direction to the trigonometrical station known as Fishers Sugar Loaf thence by a straight line in a general southwesterly direction to the point where the Lyell Highway crosses the Dee River thence by a straight line in a general southwesterly direction to the confluence of the Derwent and Florentine Rivers thence by a straight line in a general southerly direction passing through the trigonometrical station on South East Cape to the southern coastline.\n\n3. All the islands forming part of Australia lying adjacent to the coastline of either of the portions of Australia described in paragraphs 1 and 2.\n\n4. King Island, Tasmania.\n\n5. All the islands in the group of islands known as the Furneaux Group, Tasmania.\n\nSchedule 2D—Tax exempt entities that become taxable\n\nDivision 57—Tax exempt entities that become taxable\n\nTable of Subdivisions\n\nGuide to Division 57\n\n57‑A Key concepts\n\n57‑B Predecessors of the transition taxpayer\n\n57‑C Time when income derived\n\n57‑D Time when losses and outgoings incurred\n\n57‑E Assets and liabilities\n\n57‑F Superannuation deductions\n\n57‑G Denial of certain deductions\n\n57‑H Domestic losses\n\n57‑J Capital allowances and certain other deductions\n\n57‑K Balancing adjustments\n\n57‑L Trading stock\n\n57‑M Imputation\n\n57‑N Division not applicable in respect of certain plant\n\nGuide to Division 57\n\n57‑1  What this Division is about\n\nThis Division is about the income tax treatment of a taxpayer whose income ceases to be wholly exempt. Broadly, income, outgoings, gains and losses are attributed to the periods before and after the loss of full exemption.\n\nSubdivision 57‑A—Key concepts\n\n57‑5  Entities to which this Division applies\n\nIf:\n\n(a) at a particular time, all of the income of a taxpayer is wholly exempt from income tax; and\n\n(b) immediately after that time, the taxpayer’s income becomes to any extent assessable income;\n\nthen:\n\n(c) the taxpayer is a transition taxpayer; and\n\n(d) the time when the taxpayer’s income becomes to that extent assessable is the transition time; and\n\n(e) the year of income in which the transition time occurs is the transition year for the taxpayer.\n\nSubdivision 57‑B—Predecessors of the transition taxpayer\n\n57‑10  Activities of transition taxpayer’s predecessor attributed to transition taxpayer\n\n(1) If:\n\n(a) at the transition time, the transition taxpayer performs particular functions or carries on particular activities; and\n\n(b) during any period before the transition taxpayer first began to perform the functions or carry on the activities, an exempt government entity performed those same functions or carried on those same activities; and\n\n(c) at the end of the period, responsibility for performing the functions or carrying on the activities was transferred, either directly or through one or more other exempt government entities, to the transition taxpayer;\n\nthis Division applies as if, during that period, anything done by or to the exempt government entity in performing those functions or carrying on those activities had instead been done by or to the transition taxpayer.\n\nNote: As a result of this provision, the transition taxpayer may for example be able to deduct after the transition time, under Division 40 of the Income Tax Assessment Act 1997 as modified by Subdivision 57‑J of this Schedule, a portion of allowable capital expenditure incurred before the transition time by an exempt government entity whose functions were transferred to the transition taxpayer.\n\n(2) An exempt government entity is:\n\n(a) the Commonwealth, a State or a Territory; or\n\n(b) an STB, within the meaning of Division 1AB of Part III, that is exempt from tax under that Division.\n\nSubdivision 57‑C—Time when income derived\n\n57‑15  Time when income derived\n\n(1) To the extent that income derived by the transition taxpayer before the transition time is in respect of:\n\n(a) services rendered; or\n\n(b) goods provided; or\n\n(c) the doing of any other thing;\n\nat or after the transition time, the income is treated for the purposes of this Act as having been derived at the time the services were rendered, the goods were provided or the thing was done, as the case requires.\n\n(2) To the extent that income derived by the transition taxpayer at or after the transition time is in respect of:\n\n(a) services rendered; or\n\n(b) goods provided; or\n\n(c) the doing of any other thing;\n\nbefore the transition time, the income is treated for the purposes of this Act as having been derived before that time.\n\nSubdivision 57‑D—Time when losses and outgoings incurred\n\n57‑20  Time when losses and outgoings incurred\n\n(1) To the extent that a loss or outgoing (within the meaning of section 51 of this Act or section 8‑1 of the Income Tax Assessment Act 1997, as appropriate) incurred by the transition taxpayer before the transition time is in respect of:\n\n(a) services rendered; or\n\n(b) goods provided; or\n\n(c) the doing of any other thing;\n\nat or after the transition time, the loss or outgoing is treated for the purposes of this Act as having been incurred at the time the services were rendered, the goods were provided or the thing was done, as the case requires.\n\n(2) To the extent that a loss or outgoing (within the meaning of section 51 of this Act or section 8‑1 of the Income Tax Assessment Act 1997, as appropriate) incurred by the transition taxpayer at or after the transition time is in respect of:\n\n(a) services rendered; or\n\n(b) goods provided; or\n\n(c) the doing of any other thing;\n\nbefore the transition time, the loss or outgoing is treated for the purposes of this Act as having been incurred before that time.\n\nSubdivision 57‑E—Assets and liabilities\n\n57‑25  Deemed disposal and re‑acquisition of assets\n\n(1) This section applies to:\n\n(a) the disposal of an asset by the transition taxpayer after the transition time; and\n\n(b) a CGT event that happens after the transition time in relation to an asset owned by the transition taxpayer;\n\nwhere the transition taxpayer owned the asset at all times from the transition time until the disposal or the CGT event.\n\nDeemed disposal and re‑purchase\n\n(2) Subject to subsection (5), in determining for the purposes of this Act (other than the excluded provisions mentioned in subsection (4)) whether an amount is included in, or allowable as a deduction from, the assessable income of the transition taxpayer in respect of the disposal, the transition taxpayer is taken:\n\n(a) to have sold, immediately before the transition time, each of its assets; and\n\n(b) to have purchased each of its assets again at the transition time for consideration equal to the asset’s adjusted market value at the transition time.\n\n(2A) For the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 (about CGT), in determining whether the transition taxpayer makes a capital gain or capital loss from a CGT event that happens after the transition time in relation to an asset referred to in subsection (1), the cost base and reduced cost base of the asset (at the transition time) is its adjusted market value at that time.\n\n(3) An asset’s adjusted market value at the transition time is the asset’s market value at that time:\n\n(a) reduced by any amount of income received or receivable by the transition taxpayer in respect of the asset at or after the transition time that:\n\n(i) because of subsection 57‑15(2); or\n\n(ii) because all of the income of the transition taxpayer was wholly exempt from income tax before the transition time;\n\nis not included in the transition taxpayer’s assessable income; and\n\n(b) increased by any amount of income received or receivable by the transition taxpayer in respect of the asset before the transition time that:\n\n(i) because of subsection 57‑15(1); or\n\n(ii) because the transition taxpayer’s income ceased to be exempt from income tax at the transition time;\n\nis included in the transition taxpayer’s assessable income.","sortOrder":1000117},{"sectionNumber":"full-source-retrieval-0119","sectionType":"document_chunk","heading":"Document excerpt 119","content":"Note: If the asset is, or is part of, a Division 230 financial arrangement, section 57‑32 may affect how the market value of the asset is worked out.\n\nExcluded provisions\n\n(4) For the purposes of subsection (2), the excluded provisions are:\n\n(e) former Division 10B of Part III of this Act (about industrial property); and\n\n(f) former Division 10BA of Part III of this Act (about Australian films); and\n\n(ga) Division 40 of the Income Tax Assessment Act 1997 (about capital allowances); and\n\n(i) Division 43 of the Income Tax Assessment Act 1997 (about deductions for capital works); and\n\n(j) section 70‑120 of the Income Tax Assessment Act 1997 (about deducting capital costs of acquiring trees);\n\n(la) Division 373 of the Income Tax Assessment Act 1997 (about intellectual property).\n\nListed provisions not affected\n\n(5) If the transition taxpayer:\n\n(a) acquired an asset (whether before the transition time or otherwise) before the commencement of a provision listed in subsection (6); and\n\n(b) after acquiring the asset, owned the asset at all times before the transition time;\n\nthe deemed acquisition of the asset under subsection (2) does not affect the operation of the listed provision.\n\nListed provisions\n\n(6) The provisions are listed in the table below. Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.\n\n- Listed provisions\n- Item Provision\n- 1 section 26BB\n- 3 section 70B\n- 4 the former Division 3B of Part III\n- 5 Division 16E of Part III\n- 6 Subdivision 20‑A, so far as it applies to an amount that may be an assessable recoupment because a deduction has been allowed or is allowable under the former subsection 82Z(1)\n- 6A Division 230\n- 7 Division 775\n- 8 Subdivision 20‑A, so far as it applies to an amount that may be an assessable recoupment because a deduction has been allowed or is allowable under section 775‑30\n\n(6A) For the purposes of the application of subsection (5) to the transition taxpayer, a provision covered by item 7 or 8 of the table in subsection (6) is taken to have commenced at the start of the taxpayer’s applicable commencement date (within the meaning of Division 775 of the Income Tax Assessment Act 1997).\n\nNote: For applicable commencement date, see section 775‑155 of the Income Tax Assessment Act 1997.\n\n(6B) The rule in subsection (5) does not apply, and is taken never to have applied, to the transition taxpayer in relation to a provision covered by item 7 or 8 of the table in subsection (6) if the taxpayer makes an election under section 775‑150 of the Income Tax Assessment Act 1997.\n\nAvoidance of doubt—debt write‑off\n\n(7) To avoid doubt, an effect of subsection (2) is that the sum of all allowable deductions (if any) in respect of the writing off as bad of the whole or part of a debt to which that subsection applies will not exceed the market value of the debt at the transition time.\n\nAvoidance of doubt—disposal need not involve an alienation\n\n(8) To avoid doubt, an asset may be disposed of for the purposes of this section whether or not the disposal involves alienating the asset.\n\n57‑30  Deemed cessation and re‑assumption of liabilities\n\n(1) Subject to subsection (3), for the purposes of determining a deduction allowable to, or an amount included in the assessable income of, the transition taxpayer after the transition time in respect of the satisfaction of a liability owed by the transition taxpayer immediately before the transition time, the transition taxpayer is taken:\n\n(a) to have ceased immediately before the transition time to have any liabilities; and\n\n(b) to have assumed each of its liabilities again at the transition time in return for consideration equal to the adjusted market value (see subsection (2)) at that time of the right or other asset, corresponding to the liability, that was held by the person to whom the liability was owed.\n\n(2) The adjusted market value of the corresponding right or other asset is the market value of that right or asset at the transition time:\n\n(a) reduced by any amount paid or that becomes payable by the transition taxpayer in respect of the liability at or after the transition time, where:\n\n(i) because of subsection 57‑20(2); or\n\n(ii) because all of the transition taxpayer’s income was wholly exempt from income tax before the transition time;\n\nthe amount is not an allowable deduction; and\n\n(b) increased by any amount paid or that became payable by the transition taxpayer in respect of the liability before the transition time, where:\n\n(i) because of subsection 57‑20(1); or\n\n(ii) because the transition taxpayer’s income ceased to be exempt from income tax at the transition time;\n\nthe amount is an allowable deduction.\n\nNote: If the liability is, or is part of, a Division 230 financial arrangement, section 57‑32 may affect how the market value of the corresponding right or other asset is worked out.\n\n(3) A provision listed in subsection (4) only applies to a liability of the transition taxpayer at the transition time if the liability first came into existence after the day on which Division 3B of Part III commenced.\n\n(4) The provisions are listed in the table below. Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.\n\n- Listed provisions\n- Item Provision\n- 1 the former Division 3B of Part III\n- 2 Subdivision 20‑A, so far as it applies to an amount that may be an assessable recoupment because a deduction has been allowed or is allowable under the former subsection 82Z(1).\n\n(5) A provision listed in subsection (6) only applies to a liability of the transition taxpayer at the transition time if the taxpayer first assumed the liability on or after the taxpayer’s applicable commencement date (within the meaning of Division 775 of the Income Tax Assessment Act 1997).\n\nNote: For applicable commencement date, see section 775‑155 of the Income Tax Assessment Act 1997.\n\n(6) The provisions are listed in the table below. Provisions of the Income Tax Assessment Act 1997 are identified in normal text.\n\n- Listed provisions\n- Item Provision\n- 1 Division 775\n- 2 Subdivision 20‑A, so far as it applies to an amount that may be an assessable recoupment because a deduction has been allowed or is allowable under section 775‑30.\n\n(7) The rule in subsection (5) does not apply, and is taken never to have applied, to the transition taxpayer if the taxpayer makes an election under section 775‑150 of the Income Tax Assessment Act 1997.\n\n57‑32  Division 230 financial arrangements—market value of assets and rights\n\n(1) This section applies in relation to an asset (the subject asset) held by an entity (the holder) if:\n\n(a) the subject asset is:\n\n(i) covered by subsection 57‑25(1); or\n\n(ii) a right, or other asset, corresponding to a liability covered by subsection 57‑30(1); and\n\n(b) the subject asset, or the corresponding liability for the subject asset, is or is part of a Division 230 financial arrangement at the transition time; and\n\n(c) when the arrangement was entered into:\n\n(i) the parties to the arrangement were not dealing at arm’s length (within the meaning of the Income Tax Assessment Act 1997) in relation to the subject asset; or\n\n(ii) if the subject asset gives rise to an interest that is not an equity interest in an entity—the return on the interest would reasonably be expected to be less than the benchmark rate of return (within the meaning of that Act) for the interest.\n\n(2) For the purposes mentioned in subsection (3), assume at the transition time that the market value of the subject asset is the total amount (the initial amount) of the financial benefits (within the meaning of the Income Tax Assessment Act 1997) that the holder provided in relation to the subject asset before the transition time:\n\n(a) reduced by:\n\n(i) repayments of principal made in relation to the subject asset before the transition time; and\n\n(ii) the amount of any impairment (within the meaning of the accounting principles (within the meaning of that Act)) of the subject asset at the transition time; and\n\n(b) increased by the amount of the cumulative amortisation (worked out using the effective interest method recognised by the accounting principles (within the meaning of that Act)) of any difference at the transition time between:\n\n(i) the initial amount; and\n\n(ii) the amount payable on the maturity of the subject asset.\n\n(3) Subsection (2) has effect for the purposes of working out the subject asset’s adjusted market value under section 57‑25 or 57‑30 for use when applying Division 230 of the Income Tax Assessment Act 1997 to the subject asset or the corresponding liability for the subject asset.\n\n57‑33  Division 230 financial arrangements—transition taxpayer’s right to receive or obligation to provide payment\n\n(1) This section applies in relation to the following:\n\n(a) an asset covered by subsection 57‑25(1) to which section 57‑32 applies;\n\n(b) the corresponding liability for a right, or other asset, covered by subsection 57‑30(1) to which section 57‑32 applies.\n\nNote: Section 57‑32 applies if the asset or liability is or is part of a Division 230 financial arrangement.\n\n(2) For the purposes of section 230‑60 of the Income Tax Assessment Act 1997, assume the following:\n\n(a) in the case of an asset—that the transition taxpayer acquired the asset at the transition time in return for the transition taxpayer starting to have an obligation to provide one or more financial benefits in relation to the Division 230 financial arrangement;\n\n(b) in the case of a liability—that the transition taxpayer started to have the liability at the transition time in return for the transition taxpayer starting to have a right to receive one or more financial benefits under the Division 230 financial arrangement.\n\n57‑35  Interpretation\n\nIn this Subdivision:\n\nasset means property, or a right, of any kind, and includes:\n\n(a) any legal or equitable estate or interest (whether present or future, vested or contingent, tangible or intangible, in real or personal property) of any kind; and\n\n(b) any chose in action; and\n\n(c) any right, interest or claim of any kind including rights, interests or claims in or in relation to property (whether arising under an instrument or otherwise, and whether liquidated or unliquidated, certain or contingent, accrued or accruing); and\n\n(e) a CGT asset;\n\nbut does not include trading stock.\n\nliability includes a duty or obligation of any kind (whether arising under an instrument or otherwise, and whether actual, contingent or prospective).\n\nSubdivision 57‑F—Superannuation deductions\n\n57‑40  Contributions under defined benefit superannuation schemes\n\n(1) This section applies to a deduction allowable apart from this Subdivision to the transition taxpayer under section 290‑60 of the Income Tax Assessment Act 1997 for a contribution made to a fund in relation to a person if:\n\n(a) the person was an employee of the transition taxpayer at any time before or after the transition time; and\n\n(b) the contribution was made under a defined benefit superannuation scheme (within the meaning of section 6A of the Superannuation Guarantee (Administration) Act 1992).\n\nDeduction allowable only if sum of all deductions exceeds defined benefit threshold amount\n\n(2) The deduction is not allowable for a year of income if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the defined benefit threshold amount (see subsection (4)) for the year of income.\n\nAmount of deduction not allowable\n\n(3) If the sum is greater than that amount, so much of the deduction as is worked out using the following formula is not allowable:\n\n![Start formula start fraction Amount of deduction over Sum of all deductions of the transition taxpayer to which this section applies for the year of income end fraction times Defined benefit threshold amount for the year of income end formula](image.002.png)\n\nMeaning of defined benefit threshold amount\n\n(4) The defined benefit threshold amount for a year of income is:\n\n(a) if the year of income is the transition year—the unfunded liability amount (see subsection (5)); or\n\n(b) in any other case—that amount as reduced by the total amount of deductions to which this section applies, that, because of subsection (2) or (3), have not (disregarding section 57‑55) been allowable to the transition taxpayer for all previous years of income.\n\nMeaning of unfunded liability amount\n\n(5) The unfunded liability amount is the value, worked out as at the transition time in accordance with actuarial principles, of the liabilities of the transition taxpayer to provide superannuation benefits for, or for dependants of, employees of the transition taxpayer, where the liabilities:\n\n(a) had accrued as at the transition time; and\n\n(b) were, according to actuarial principles, unfunded at that time; and\n\n(c) were liabilities only under defined benefit superannuation schemes.\n\n57‑45  Deduction for surplus to meet defined benefit superannuation scheme liabilities\n\nIf:\n\n(a) at the transition time, according to a particular defined benefit superannuation scheme’s accounts, an amount is available to meet liabilities of the transition taxpayer under the scheme to provide superannuation benefits for, or for dependants of, employees of the transition taxpayer; and\n\n(b) the amount exceeds the total value (as worked out according to actuarial principles) of the liabilities of that kind that have accrued as at the transition time; and\n\n(c) before the transition time, the transition taxpayer makes a written election that the excess is to be used solely to meet liabilities of that kind accruing after the transition time, and the excess is later used solely to meet such liabilities;\n\nthe excess is an allowable deduction of the transition taxpayer for the transition year.\n\n57‑50  Contributions generally\n\n(1) This section applies to a deduction allowable apart from this Subdivision to the transition taxpayer under section 290‑60 of the Income Tax Assessment Act 1997 for a contribution made to a fund in relation to a person if the person was an employee of the transition taxpayer at any time before or after the transition time.\n\nDeduction allowable only if sum of all deductions exceeds general superannuation threshold amount\n\n(2) The deduction is not allowable for a year of income if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the general superannuation threshold amount (see subsection (4)) for the year of income.\n\nAmount of deduction not allowable\n\n(3) If the sum is greater than the general superannuation threshold amount, so much of the deduction as is worked out using the following formula is not allowable:\n\n![Start formula start fraction Amount of deduction over Sum of all deductions of the transition taxpayer to which this section applies for the year of income  end fraction times General superannuation threshold amount end formula](image.003.png)\n\nMeaning of general superannuation threshold amount\n\n(4) The general superannuation threshold amount for a year of income is:\n\n(a) if the year of income is the transition year—the undischarged superannuation liability amount (see subsection (5)); or\n\n(b) in any other case—the amount applicable under paragraph (a), reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not (disregarding section 57‑55) been allowable to the transition taxpayer for all previous years of income.\n\nMeaning of undischarged superannuation liability amount\n\n(5) This is how to work out the transition taxpayer’s undischarged superannuation liability amount:\n\nStep 1. For each person who was an employee of the transition taxpayer at any time before the transition time, take the sum of:\n\n(a) if the whole or any part of the person’s period of employment with the transition taxpayer took place before the beginning of the superannuation guarantee period (see subsection (6)) and there were one or more required award etc. contribution amounts (see subsection (7)) in respect of any of that whole or part—that amount or those amounts; and\n\n(b) if, for the whole or any part or parts of the superannuation guarantee period, there were one or more required award etc. contribution amounts that were greater than the required superannuation guarantee contribution amount or amounts (see subsection (8))—that greater amount or those greater amounts; and\n\n(c) if, for the whole or any part or parts of the superannuation guarantee period, either there was no required award etc. contribution amount or there was such an amount but it was not greater than the required superannuation guarantee contribution amount—the required superannuation guarantee contribution amount for the whole or the part of the period, or the sum of the required superannuation guarantee contribution amounts for the parts of the period, as the case may be.\n\nStep 2. Reduce the sum from Step 1 by the sum of amounts that the transition taxpayer actually contributed before the start of the transition year:\n\n(a) in payment of required award etc. contribution amounts or required superannuation guarantee contribution amounts for the employee that are included in the sum in Step 1; or\n\n(b) voluntarily to a superannuation fund for the purpose of providing superannuation benefits for the employee, or dependants of the employee;\n\nin respect of any period of employment of the employee with the transition taxpayer before the transition time.\n\nStep 3. If the result after applying Step 2 for a particular employee is less than nil, it is nil instead.\n\nStep 4. Add up the results for all of the employees. This final sum is the transition taxpayer’s undischarged superannuation liability amount.","sortOrder":1000118},{"sectionNumber":"full-source-retrieval-0120","sectionType":"document_chunk","heading":"Document excerpt 120","content":"Meaning of superannuation guarantee period\n\n(6) The superannuation guarantee period is the period beginning on 1 July 1992 and ending at the transition time.\n\nMeaning of required award etc. contribution amount\n\n(7) A required award etc. contribution amount is an amount required to be contributed to a superannuation fund by an employer for the benefit of an employee:\n\n(a) by an industrial award; or\n\n(b) by an occupational superannuation arrangement; or\n\n(c) by a law of the Commonwealth, a State or a Territory; or\n\n(d) otherwise.\n\nMeaning of required superannuation guarantee contribution amount\n\n(8) A required superannuation guarantee contribution amount is an amount that an employer would need to contribute in respect of a period so as not to have a superannuation guarantee shortfall under the Superannuation Guarantee (Administration) Act 1992 in respect of that period.\n\nNote: The relevant periods for which shortfalls are or were calculated under that Act are quarters (from 1 July 1993 onwards) or half‑years (from 1 July 1992 to 30 June 1993).\n\n57‑52  Section 57‑50 does not apply if there is a surplus at transition time\n\nSection 57‑50 does not apply to a deduction of the kind mentioned in subsection 57‑50(1) if:\n\n(a) at the transition time, according to the accounts of the fund concerned, an amount is available to meet liabilities of the transition taxpayer in relation to the fund to provide superannuation benefits for, or for dependants of, employees of the transition taxpayer; and\n\n(b) the amount exceeds the value (as worked out according to actuarial principles) of the liabilities of that kind that have accrued as at the transition time.\n\n57‑55  Deductions reduced under both sections 57‑40 and 57‑50\n\nIf the amount of a deduction otherwise allowable to the transition taxpayer in respect of a contribution to a fund is required to be reduced under both sections 57‑40 and 57‑50:\n\n(a) if the reduction is of a different amount—the amount is reduced only under that section that requires the greater reduction; or\n\n(b) if the reduction is of the same amount—the amount is reduced only under section 57‑40.\n\nSubdivision 57‑G—Denial of certain deductions\n\n57‑60  Effect of pre‑transition time accrued leave entitlements\n\n(1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under subsection 51(1) of this Act or section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997 in respect of long service leave payments or annual leave payments to a person who was an employee of the transition taxpayer at any time before or after the transition time.\n\nNote: Subsection 51(3) of this Act or section 26‑10 of the Income Tax Assessment Act 1997 (as appropriate) contains additional requirements for certain leave payments to be deductible.\n\nDeduction allowable only if sum of all deductions exceeds leave threshold amount\n\n(2) The deduction is not allowable if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the leave threshold amount (see subsection (4)) for the year of income.\n\nAmount of deduction not allowable\n\n(3) If the sum is greater than the leave threshold amount, so much of the deduction as is worked out using the following formula is not allowable:\n\n![Start formula start fraction Amount of deduction over Sum of all deductions of the transition taxpayer to which this section applies for the year of income end fraction times Leave threshold amount for the year of income end formula](image.004.png)\n\nMeaning of leave threshold amount\n\n(4) The leave threshold amount for a year of income is:\n\n(a) if the year of income is the transition year—the (pre‑transition time service) leave amount (see subsection (5)) of the transition taxpayer; or\n\n(b) in any other case—that amount as reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not been allowable to the transition taxpayer for all previous years of income.\n\nMeaning of (pre‑transition time service) leave amount\n\n(5) The (pre‑transition time service) leave amount of the transition taxpayer is the sum of the following amounts:\n\n(a) the amount that would be payable by the transition taxpayer in respect of annual leave and long service leave if, at the transition time, all employees of the transition taxpayer began to take all leave of that kind that they were eligible to take; and\n\n(b) if the transition taxpayer elects, in accordance with subsection (6), that this paragraph applies—the amount that, according to actuarial principles, would need to be set aside at the transition time to meet all obligations of the transition taxpayer that might reasonably be expected to arise after that time to make annual leave payments and long service leave payments (other than in respect of leave taken into account under paragraph (a)) for periods of service of employees occurring before the transition time; and\n\n(c) if paragraph (b) does not apply—the present value, at the transition time, of all annual leave payments and long service leave payments (other than in respect of leave taken into account under paragraph (a)) that the transition taxpayer would become liable to make after that time in respect of periods of service of employees occurring before that time if all such leave became eligible to be taken.\n\nElection\n\n(6) The election mentioned in paragraph (5)(b) must be made in writing before:\n\n(a) the day by which the transition taxpayer’s return of income for the transition year is due to be lodged; or\n\n(b) such later day as the Commissioner allows.\n\n57‑65  Treatment of bad debts\n\n(1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under this Act for the writing off as bad of the whole or part of a debt owing to the transition taxpayer.\n\nDeduction allowable only if sum of all deductions exceeds doubtful debt provision limit\n\n(2) The deduction is not allowable if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the doubtful debt provision limit (see subsection (4)) for the year of income.\n\nAmount of deduction not allowable\n\n(3) If the sum is greater than that limit, so much of the deduction as is worked out using the following formula is not allowable:\n\n![Start formula start fraction Amount of deduction over Sum of all deductions of the transition taxpayer to which this section applies for the year of income end fraction times Doubtful debt provision limit for the year of income end formula](image.005.png)\n\nMeaning of doubtful debt provision limit\n\n(4) The doubtful debt provision limit for a year of income is:\n\n(a) if the year of income is the transition year—the pre‑transition doubtful debt limit (see subsection (5)); or\n\n(b) in any other case—that limit as reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not been allowable to the transition taxpayer for all previous years of income.\n\nMeaning of pre‑transition doubtful debt limit\n\n(5) The pre‑transition doubtful debt limit is the total of the amounts that, under generally accepted accounting principles, would be the appropriate doubtful debt provisions in relation to all debts owed to the transition taxpayer as at the transition time.\n\nReduction of limit for excess recovery\n\n(6) If:\n\n(a) at the transition time, a debt is owed to the transition taxpayer; and\n\n(b) the sum of:\n\n(i) the amount (if any) that, under generally accepted accounting principles, would be the appropriate doubtful debt provision in relation to the debt as at the transition time; and\n\n(ii) any amounts later recovered in respect of the debt;\n\nexceeds the amount of the debt;\n\nthe pre‑transition doubtful debt limit is reduced by the amount of the excess.\n\nReduction of limit if debt later disposed of\n\n(7) If:\n\n(a) at the transition time, a debt is owed to the transition taxpayer; and\n\n(b) there is an amount (the debt provision amount) greater than nil that, under generally accepted accounting principles, would be the appropriate doubtful debt provision in relation to the debt as at the transition time; and\n\n(c) after the transition time, the transition taxpayer disposes of the debt to another person;\n\nthe pre‑transition doubtful debt limit is reduced by:\n\n(d) if, after the transition time, the transition taxpayer wrote off part of the debt as bad—the excess (if any) of the debt provision amount over the amount or amounts so written off; or\n\n(e) in any other case—the debt provision amount.\n\n57‑70  Treatment of superannuation lump sums and employment termination payments\n\n(1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under section 8‑1 (about general deductions) or 25‑50 (about pensions, gratuities or retiring allowances) of the Income Tax Assessment Act 1997 for a superannuation lump sum or an employment termination payment for a person who was an employee of the transition taxpayer at any time before the transition time (regardless of whether the person was an employee at or after the transition time).\n\n(2) So much (if any) of the deduction as relates to a period of service of the employee before the transition time is not allowable.\n\n(3) This section does not apply to an early retirement scheme payment (within the meaning of the Income Tax Assessment Act 1997), or a genuine redundancy payment (within the meaning of that Act).\n\nSubdivision 57‑H—Domestic losses\n\n57‑75  Domestic losses\n\nIn applying section 36‑15 or 36‑17 of the Income Tax Assessment Act 1997 (about how to deduct tax losses) to the transition taxpayer:\n\n(a) only exempt income derived at or after the transition time is taken into account as exempt income of the transition taxpayer; and\n\n(b) the transition taxpayer’s deductions are taken into account only so far as they are in respect of:\n\n(i) services rendered; or\n\n(ii) goods provided; or\n\n(iii) the doing of any other thing;\n\nat or after the transition time.\n\nSubdivision 57‑J—Capital allowances and certain other deductions\n\n57‑85  What are the modified deduction rules and corresponding deduction provisions?\n\n(1) A modified deduction rule is a provision listed in column 3 of an item in the table in subsection (3). Provisions of the Income Tax Assessment Act 1997 are identified in normal text, while provisions of the Income Tax Assessment Act 1936 are in bold.\n\n(2) The corresponding deduction provision (if any) for a modified deduction rule listed in column 3 of an item in the table in subsection (3) is the provision of the Income Tax Assessment Act 1936 listed in column 4 of the item.\n\n(3) The table is as follows:\n\n- Modified deduction rules and corresponding deduction provisions\n- Column 1\n\nItem Column 2\n\nDescription Column 3 Modified deduction rule Column 4 Corresponding deduction provision\n- 1 Borrowing expenses Section 25‑25 Former section 67\n- 5 Films, Australian Former Division 10BA of Part III\n- 7 Industrial property (copyright in Australian film) Former Division 10B of Part III\n- 9 Gifts Section 25‑50 and Division 30 Former section 78\n- 13 R&D Division 355\n- 14 Scientific research Section 73A\n- 18 Cost of acquiring trees Section 70‑120 Former section 124J\n- 19 Capital allowances Division 40\n\n57‑90  Post‑transition deductions—assume that the transition taxpayer had never been exempt\n\nIn working out the transition taxpayer’s allowable deductions under a modified deduction rule for the transition year or a later year of income, assume that the modified deduction rule had applied at all times before the transition time as if the transition taxpayer’s income had never been exempt from income tax.\n\n57‑95  Amount of deduction not allowable for transition year\n\n(1) If, apart from this section, an amount would be an allowable deduction under a modified deduction rule for the transition year in respect of expenditure incurred before the transition time (whether or not during the transition year), only so much of the amount as is worked out using the following formula is so allowable:\n\n![Start formula start fraction Number of whole days in transition year after transition time over Post-expenditure part end fraction times Amount of deduction end formula](image.006.png)\n\nwhere:\n\npost‑expenditure part means:\n\n(a) if the expenditure was incurred before the transition year—the number of days in the transition year; or\n\n(b) otherwise—the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the transition year.\n\n(2) This section does not apply to an amount to which paragraph 57‑110(1)(b) (which deals with balancing adjustments) applies.\n\n57‑100  No elections etc. before transition time\n\nIn working out the transition taxpayer’s allowable deductions under a modified deduction rule:\n\n(a) assume that the transition taxpayer did not, at any time, make any election or declaration, or give any notice, under the rule in relation to a year of income before the transition year; and\n\n(b) any election or declaration (other than one under former subsection 124ZADA(1)) the transition taxpayer makes, or any notice the transition taxpayer gives, under the rule in relation to the transition year has no effect in so far as it relates to expenditure incurred before the transition time.\n\n57‑105  Special rules for mining and quarrying\n\nExploration and prospecting—assume no expenditure\n\n(1) In working out the transition taxpayer’s allowable deductions under the former Subdivision 330‑A or 330‑C or Division 40 of the Income Tax Assessment Act 1997, assume that the transition taxpayer incurred no expenditure on exploration and prospecting before the transition time.\n\nAssume that no excess deductions available\n\n(2) In working out the transition taxpayer’s allowable deductions under the former Subdivision 330‑A or 330‑C of the Income Tax Assessment Act 1997, assume that, for each year of income before the transition year, the transition taxpayer’s assessable income would have exceeded the total of the transition taxpayer’s deductions for the year.\n\nNote: This means that the transition taxpayer can have no excess deductions remaining from years of income before the transition year.\n\nSubdivision 57‑K—Balancing adjustments\n\n57‑110  Apportionment of balancing adjustments\n\n(1) If, apart from this subsection, a balancing adjustment provision (see subsection (2)) would:\n\n(a) require an amount to be included in the transition taxpayer’s assessable income for the transition year or a later year of income in respect of particular expenditure; or\n\n(b) allow an amount as a deduction from the transition taxpayer’s assessable income for the transition year or a later year of income in respect of particular expenditure;\n\nthen only so much of the amount as is worked out using the following formula is so included or allowable:\n\n![Start formula start fraction Actual deductions over Actual deductions plus Notional deductions end fraction times Amount concerned end formula](image.007.png)\n\nwhere:\n\nactual deductions is the sum of all deductions actually allowed or allowable to the transition taxpayer for the expenditure under the deduction rule to which the balancing adjustment provision relates (see subsection (2)).\n\nnotional deductions is the sum of all deductions for the expenditure that would have been allowable to the transition taxpayer under the deduction rule to which the balancing adjustment provision relates, if the transition taxpayer had never been wholly exempt from income tax.\n\n(2) Each balancing adjustment provision and its related deduction rule are shown in an item of the table. Provisions of the Income Tax Assessment Act 1997 are shown in ordinary text, and provisions of the Income Tax Assessment Act 1936 are shown in bold.\n\n- Balancing adjustment provisions and related deduction rules\n- Item Topic Balancing adjustment provision Deduction rule to which the balancing adjustment provision relates\n- 1 Capital works: buildings, structural improvements, environment protection earthworks and extensions, alterations or improvements Section 43‑40 Division 43 and whichever of former Divisions 10C and 10D of Part III is appropriate\n- 2A Capital allowances Section 40‑285 Division 40\n- 5 Industrial property (copyright in Australian film) Former sections 124N and 124P Former Division 10B of Part III\n- 7 R&D Sections 40‑292, 40‑293, 355‑315 and 355‑525 Section 40‑25, 355‑305 or 355‑520\n- 8 Scientific research Subsection 73A(4) Section 73A\n\nNote: Item 7 of the table is expanded by section 355‑340 of the Income Tax (Transitional Provisions) Act 1997.\n\nSubdivision 57‑L—Trading stock\n\n57‑115  Modification of trading stock provisions\n\n(1) For the purposes of applying Division 70 of the Income Tax Assessment Act 1997 in relation to the transition year, the only trading stock of the transition taxpayer that is to be taken into account under section 70‑35 of that Act as being on hand at the beginning of the transition year is such trading stock as was on hand at the transition time.\n\n(2) For the purpose of working out the value at which the trading stock is to be taken into account, the year of income preceding the transition year is taken to have ended immediately before the transition time.\n\nNote: The value of trading stock on hand at the beginning of the transition year will, under section 70‑40 of the Income Tax Assessment Act 1997, be the same as at the end of the preceding year of income.\n\n(3) If:\n\n(a) the basis of valuation of the trading stock at the end of the transition year is cost; and\n\n(b) the basis of valuation at the beginning of the transition year is different;","sortOrder":1000119},{"sectionNumber":"full-source-retrieval-0121","sectionType":"document_chunk","heading":"Document excerpt 121","content":"then, for the purposes of the valuation at the end of the transition year, the cost of the trading stock for the purposes of Division 70 of the Income Tax Assessment Act 1997 is taken to be equal to the value at which it was taken into account at the beginning of the transition year.\n\nSubdivision 57‑M—Imputation\n\n57‑120  Cancellation of franking surplus, credit or debit\n\nCancellation of surplus\n\n(1) Subject to subsections (3) and (4), if, immediately before the transition time, the transition taxpayer or a subsidiary (see section 57‑125) of the transition taxpayer has a franking surplus, then the surplus is reduced to nil at the transition time.\n\nCancellation of credit/debit\n\n(2) Subject to subsections (3) and (4), if:\n\n(a) at any time after the transition time, there arises a franking credit or a franking debit of the transition taxpayer or of a subsidiary of the transition taxpayer; and\n\n(b) the franking credit or franking debit is to any extent attributable to a period, or to an event taking place, before the transition time;\n\nthe franking credit or franking debit is to that extent taken not to have arisen.\n\nCases where subsections (1) and (2) do not apply to the transition taxpayer\n\n(3) If:\n\n(a) one or more franking debits of the transition taxpayer arise after the transition time; and\n\n(b) any of the debits is to an extent (the amount of which is the pre‑transition time component of the debit) attributable to the period, or to an event taking place, before the transition time; and\n\n(c) immediately before the transition time:\n\n(i) there was a franking surplus of the transition taxpayer that was less than the total of the pre‑transition time components of all of the debits; or\n\n(ii) there was no franking surplus of the transition taxpayer;\n\nthen:\n\n(d) in a case covered by subparagraph (c)(i)—subsection (1) does not apply to the surplus; and\n\n(e) in any case—subsection (2) does not apply to the debits.\n\nCases where subsections (1) and (2) do not apply to a subsidiary\n\n(4) If:\n\n(a) one or more franking debits of a subsidiary of the transition taxpayer arise after the transition time; and\n\n(b) any of the debits is to an extent (the amount of which is the pre‑transition time component of the debit) attributable to the period, or to an event taking place, before the transition time; and\n\n(c) immediately before the transition time:\n\n(i) there was a franking surplus of the subsidiary that was less than the total of the pre‑transition time components of all of the debits; or\n\n(ii) there was no franking surplus of the subsidiary;\n\nthen:\n\n(d) in a case covered by subparagraph (c)(i)—subsection (1) does not apply to the surplus; and\n\n(e) in any case—subsection (2) does not apply to the debits.\n\n57‑125  Subsidiary\n\n(1) A company (the subsidiary company) is a subsidiary of another company (the holding company) if all the shares in the subsidiary company are beneficially owned by:\n\n(a) the holding company; or\n\n(b) one or more subsidiaries of the holding company; or\n\n(c) the holding company and one or more subsidiaries of the holding company.\n\n(2) A company (other than the subsidiary company) is a subsidiary of the holding company if, and only if:\n\n(a) it is a subsidiary of the holding company; or\n\n(b) it is a subsidiary of a subsidiary of the holding company;\n\nbecause of any other application or applications of this section.\n\nSubdivision 57‑N—Division not applicable in respect of certain plant\n\n57‑130  Plant or depreciating assets covered by Subdivision 58‑B of the Income Tax Assessment Act 1997\n\n(1) Subdivision 57‑J, and Subdivision 57‑K in so far as it applies to balancing adjustments for plant or depreciating assets, do not apply in respect of an asset to which Subdivision 58‑B of the Income Tax Assessment Act 1997 applies.\n\n(2) Despite subsection (1), Subdivision 57‑J applies for the purposes of section 40‑35 of the Income Tax (Transitional Provisions) Act 1997 to capital expenditure incurred by a transition taxpayer before 1 July 2001 that relates to property that is not a depreciating asset.\n\nSubdivision 57‑P—Balancing adjustment on ceasing to have a Division 230 financial arrangement\n\n57‑135  Balancing adjustment on ceasing to have a Division 230 financial arrangement referred to in section 57‑32\n\n(1) This section applies if:\n\n(a) section 57‑32 was applied to work out the market value of an asset (the subject asset); and\n\n(b) the transition taxpayer is a party to the Division 230 financial arrangement (the financial arrangement) to which the subject asset, or the corresponding liability for the subject asset, is or is part of; and\n\n(c) a balancing adjustment is made under Subdivision 230‑G of the Income Tax Assessment Act 1997, after the transition time, in relation to the financial arrangement.\n\n(2) For the purposes of making the balancing adjustment under Subdivision 230‑G of the Income Tax Assessment Act 1997 in relation to the financial arrangement, adjust the amount worked out using the method statement (the method statement) in subsection 230‑445(1) of that Act by:\n\n(a) if the transition taxpayer is the holder of the subject asset—increasing any gain or reducing any loss by the amount worked out under subsection (4) of this section; or\n\n(b) if the transition taxpayer is the holder of the corresponding liability for the subject asset—reducing any gain or increasing any loss by the amount worked out under subsection (4) of this section.\n\n(3) Despite subsection (2):\n\n(a) if the amount worked out under subsection (4) exceeds the amount of the loss to be reduced under paragraph (2)(a)—the transition taxpayer is taken, for the purposes of making the balancing adjustment, to have made a gain equal to the amount of the excess; or\n\n(b) if the amount worked out under subsection (4) exceeds the amount of the gain to be reduced under paragraph (2)(b)—the transition taxpayer is taken, for the purposes of making the balancing adjustment, to have made a loss equal to the amount of the excess; or\n\n(c) if when applying the method statement no balancing adjustment is made in relation to the financial arrangement—the transition taxpayer is taken, for the purposes of making the balancing adjustment, to have:\n\n(i) if the transition taxpayer is the holder of the subject asset—made a gain equal to the amount worked out under subsection (4); or\n\n(ii) if the transition taxpayer is the holder of the corresponding liability for the subject asset—made a loss equal to the amount worked out under subsection (4).\n\n(4) For the purposes of subsections (2) and (3), the amount is the difference between:\n\n(a) the amount that the transition taxpayer would need to receive or pay under the financial arrangement without an amount being assessable income of, or deductible to, the transition taxpayer if the subject asset, or the corresponding liability for the subject asset, were disposed of at the time the balancing adjustment is made; and\n\n(b) the amount that the transition taxpayer would need to receive or pay under the financial arrangement without an amount being assessable income of, or deductible to, the transition taxpayer if:\n\n(i) the subject asset, or the corresponding liability for the subject asset, were disposed of at the time the balancing adjustment is made; and\n\n(ii) the assumptions in subsection (5) were made.\n\n(5) The assumptions referred to in subparagraph (4)(b)(ii) are that, when the financial arrangement was entered into:\n\n(a) the parties to the arrangement were dealing with each other at arm’s length (within the meaning of the Income Tax Assessment Act 1997) in relation to the arrangement; and\n\n(b) if the arrangement gives rise to an interest that is not an equity interest in an entity—the return on the interest would reasonably be expected to be equal to the benchmark rate of return (within the meaning of the Income Tax Assessment Act 1997) for the interest.\n\n(6) This section applies despite section 230‑510 of the Income Tax Assessment Act 1997.\n\nSchedule 2F—Trust losses and other deductions\n\nDivision 265—Overview of Schedule\n\n265‑5  What this Schedule is about\n\nIf there is a change in ownership or control of a trust or an abnormal trading in its units, it:\n\n• may be prevented from deducting its tax losses of earlier income years; and\n\n• may have to work out in a special way its net income and tax loss for the income year; and\n\n• may be prevented from deducting certain amounts in respect of debts incurred in the income year or earlier income years.\n\nThis will not be the case if the trust is an excepted trust. However, if it became one by making a family trust election, a special tax may be payable on certain distributions and other amounts.\n\nIf a trust is involved in a scheme to take advantage of deductions, it may be prevented from making full use of them.\n\n265‑10  Diagram giving overview of Schedule\n\n![A diagram showing change in ownership or control of a trust ](image.008.png)\n\nDivision 266—Income tax consequences for fixed trusts of abnormal trading or change in ownership\n\nSubdivision 266‑A—Overview of this Division\n\n266‑5  What this Division is about\n\nThis Division is about the income tax consequences, for various kinds of fixed trusts, of certain events:\n\n• for an ordinary fixed trust, the event is a change in ownership (subject to a non‑fixed trust exception);\n\n• for an unlisted widely held trust, the event is an abnormal trading in its units, or the end of an income year, together with a change in ownership;\n\n• for a listed widely held trust, the event is an abnormal trading in its units, together with a change in ownership and business;\n\n• for an unlisted very widely held trust or a wholesale widely held trust, the event is an abnormal trading in its units, together with a change in ownership.\n\n266‑10  Diagram giving overview of this Division\n\n![Diagram showing the income tax consequences, for various kinds of fixed trusts, of certain events](image.009.png)\n\nSubdivision 266‑B—Effect of change in ownership of fixed trust\n\n266‑15  What this Subdivision is about\n\nAn ordinary fixed trust:\n\n• cannot deduct a tax loss from an earlier income year; or\n\n• has to work out its net income and tax loss for the income year in a special way; or\n\n• cannot deduct certain amounts in respect of debts incurred in the income year or an earlier income year;\n\nunless there has been continuity of ownership throughout a particular period or an exception relating to holdings by non‑fixed trusts applies.\n\nNote: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n266‑20  Diagram giving overview of this Subdivision\n\n![Diagram showing the effect of change in ownership of fixed trust](image.010.png)\n\n266‑25  Fixed trust may be denied tax loss deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year a tax loss from a loss year; and\n\n(b) was a fixed trust at all times in the period (the test period) from the beginning of the loss year until the end of the income year; and\n\n(c) was not a widely held unit trust at all times in the test period; and\n\n(d) was not an excepted trust at all times in the test period.\n\nTo find out the meaning of fixed trust: see section 272‑65.\n\nTo find out the meaning of widely held unit trust: see section 272‑105.\n\nTo find out the meaning of excepted trust: see section 272‑100.\n\nCondition for deducting tax loss\n\n(2) The trust cannot deduct the tax loss unless it meets either:\n\n• the condition in section 266‑40; or\n\n• the conditions in section 266‑45.\n\n266‑30  Fixed trust may be required to work out its net income and tax loss in a special way\n\nA trust that:\n\n(a) was a fixed trust at all times in the income year (the test period); and\n\n(b) was not a widely held unit trust at all times in the test period; and\n\n(c) was not an excepted trust at all times in the test period;\n\nmust work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets either:\n\n• the condition in section 266‑40; or\n\n• the conditions in section 266‑45.\n\nNote: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.\n\n266‑35  Fixed trust may be denied debt deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) was a fixed trust at all times in the period (the test period):\n\n(i) if the debt was incurred in an earlier income year—beginning on the day the debt was incurred and ending at the end of the income year; or\n\n(ii) if the debt was incurred in the income year—consisting of the income year; and\n\n(c) was not a widely held unit trust at all times in the test period; and\n\n(d) was not an excepted trust at all times in the test period.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\nCondition for deducting amount\n\n(2) The trust cannot deduct the amount unless it meets either:\n\n• the condition in section 266‑40; or\n\n• the conditions in section 266‑45.\n\n266‑40  The trust must pass 50% stake test\n\nThe fixed trust must pass the 50% stake test for the test period.\n\nTo find out whether the trust passes the 50% stake test for the period: see Subdivision 269‑C.\n\n266‑45  The trust must meet non‑fixed trust stake test\n\n(1) If the condition in section 266‑40 is not met, the trust must satisfy the conditions in this section.\n\nFirst condition\n\n(2) At all times during the test period:\n\n(a) non‑fixed trusts (other than family trusts) must have held fixed entitlements to a 50% or greater share of the income or a 50% or greater share of the capital of the trust; or\n\n(b) both:\n\n(i) a fixed trust or a company (which trust or company is the holding entity) must have held, directly or indirectly, all of the fixed entitlements to income and capital of the trust; and\n\n(ii) non‑fixed trusts (other than family trusts) must have held fixed entitlements to a 50% or greater share of the income or a 50% or greater share of the capital of the holding entity.\n\nSecond condition\n\n(3) The persons holding fixed entitlements to shares of the income, and the persons holding fixed entitlements to shares of the capital, of:\n\n(a) in a paragraph (2)(a) case—the trust; or\n\n(b) in a paragraph (2)(b) case—the holding entity;\n\nat the beginning of the test period must have held those entitlements to those shares at all times during the test period.\n\nThird condition\n\n(4) At the beginning of the test period:\n\n(a) individuals must not have had more than a 50% stake in the income of the trust; or\n\n(b) individuals must not have had more than a 50% stake in the capital of the trust.\n\nFourth condition\n\n(5) It must be the case that, for each non‑fixed trust (other than an excepted trust) that, at any time in the test period, held directly or indirectly a fixed entitlement to a share of the income or capital of the trust:\n\n(a) if this section is being applied for the purposes of section 266‑25—section 267‑20 would not have prevented the non‑fixed trust from deducting the tax loss concerned if it, rather than the fixed trust, had incurred the loss; or\n\n(b) if this section is being applied for the purposes of section 266‑30—section 267‑60 does not require the non‑fixed trust to work out its net income and tax loss for the income year under Division 268; or\n\n(c) if this section is being applied for the purposes of section 266‑35—section 267‑25, or section 267‑65, as the case requires, would not have prevented the non‑fixed trust from deducting the amount concerned if it, rather than the fixed trust, would otherwise be entitled to deduct the amount.\n\n266‑50  Deducting part of a tax loss\n\n(1) If section 266‑25 prevents the fixed trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.\n\n(2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of sections 266‑40 and 266‑45, the trust would have been entitled to deduct the tax loss.\n\n266‑55  Information about non‑fixed trusts with interests in fixed trust\n\nNotice about non‑resident non‑fixed trust\n\n(1) The Commissioner may give the trustee of a fixed trust a notice in accordance with section 266‑60 if the requirements of subsections (2) to (5) of this section are met.\n\nFirst requirement\n\n(2) In its return of income for an income year, the fixed trust:\n\n(a) must have deducted a tax loss from an earlier income year; or\n\n(b) must not have worked out its net income and tax loss for the income year under Division 268; or\n\n(c) must have deducted an amount in relation to a debt;\n\nwhere it would not be allowed to deduct the tax loss or amount in respect of the debt, or would be required to work out its net income and tax loss under that Division, unless it met the conditions in section 266‑45.\n\nSecond requirement\n\n(3) In order to determine whether it meets the conditions in section 266‑45, the Commissioner must need information about a non‑fixed trust mentioned in subsection 266‑45(5).\n\nThird requirement\n\n(4) When the Commissioner gives the notice:\n\n(a) a trustee of the non‑fixed trust must be a non‑resident; or","sortOrder":1000120},{"sectionNumber":"full-source-retrieval-0122","sectionType":"document_chunk","heading":"Document excerpt 122","content":"(b) the central management and control of the non‑fixed trust must be outside Australia.\n\nFourth requirement\n\n(5) The Commissioner must give the notice before the later of:\n\n(a) 5 years after the end of the income year mentioned in subsection (2); and\n\n(b) the end of the period during which the trustee of the fixed trust is required by section 262A to retain records in relation to that income year.\n\n266‑60  Notices where requirements of section 266‑55 are met\n\nInformation required\n\n(1) The notice that the Commissioner may give if the requirements of subsections 266‑55(2) to (5) are met must require the trustee to give the Commissioner specified information that is relevant to determining whether the requirements of subsection 266‑45(5) are satisfied in relation to the non‑fixed trust mentioned in subsections 266‑55(3) and (4).\n\nTrustee knowledge\n\n(2) The information need not be within the knowledge of the trustee at the time the notice is given.\n\nPeriod for giving information\n\n(3) The notice must specify a period within which the trustee is to give the information. The period must not end earlier than 21 days after the day on which the Commissioner gives the notice.\n\nConsequence of not giving the information\n\n(4) If the trustee does not give the information within the period or within such further period as the Commissioner allows, the fixed trust is taken not to meet, and never to have met, the conditions in section 266‑45.\n\nApplication of Division 268\n\n(5) If, because of subsection (4), the fixed trust is required to work out under Division 268 its net income and tax loss for the income year mentioned in subsection 266‑55(2), that Division is to be applied as if Subdivision 268‑B required the income year to be divided into such periods as would result in the highest possible net income for the income year.\n\nNo offences or penalties\n\n(6) To avoid doubt, subsections (4) and (5) do not cause the trustee of the fixed trust to commit any offence or be liable to any penalty under Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 for deducting the amount concerned, or for not working out the trust’s net income and tax loss under Division 268, in its return.\n\nSubdivision 266‑C—Effect of change in ownership of unlisted widely held trust\n\n266‑65  What this Subdivision is about\n\nAn unlisted widely held trust:\n\n• cannot deduct a tax loss from an earlier income year; or\n\n• has to work out its net income and tax loss for the income year in a special way; or\n\n• cannot deduct certain amounts in respect of debts;\n\nunless its ownership has been the same after any abnormal trading in its units and at the end of income years, during a certain period.\n\nNote: The exception mentioned in this section applies differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n266‑70  Diagram giving overview of this Subdivision\n\n![Diagram showing the effect of change in ownership of unlisted widely held trust](image.011.png)\n\n266‑75  Unlisted widely held trust may be denied tax loss deduction\n\nType of trust to which this section applies—case 1\n\n(1) This section applies to a trust that:\n\n(a) can in the income year deduct a tax loss from a loss year; and\n\n(b) was an unlisted widely held trust at all times in the period (the test period) from the beginning of the loss year until the end of the income year; and\n\n(c) was not a wholesale widely held trust at all times in the test period; and\n\n(d) was not an unlisted very widely held trust at all times in the test period; and\n\n(e) was not an excepted trust at all times in the test period.\n\nTo find out the meaning of unlisted widely held trust: see section 272‑110.\n\nTo find out the meaning of wholesale widely held trust: see section 272‑125.\n\nTo find out the meaning of unlisted very widely held trust: see section 272‑120.\n\nTo find out the meaning of excepted trust: see section 272‑100.\n\nType of trust to which this section applies—case 2\n\n(2) This section also applies to a trust that:\n\n(a) can in the income year deduct a tax loss from a loss year; and\n\n(b) was an unlisted widely held trust, other than an unlisted very widely held trust or a wholesale widely held trust, at some time in the period (the test period) from the beginning of the loss year until the end of the income year; and\n\n(c) was a listed widely held trust at all other times in the test period; and\n\n(d) was not an excepted trust at all times in the test period.\n\nTo find out the meaning of listed widely held trust: see section 272‑115.\n\nCondition for deducting tax loss\n\n(3) The trust cannot deduct the tax loss unless it meets the condition in section 266‑90.\n\n266‑80  Unlisted widely held trust may be required to work out its net income and tax loss in a special way\n\nType of trust to which this section applies—case 1\n\n(1) A trust that:\n\n(a) was an unlisted widely held trust at all times in the income year (the test period); and\n\n(b) was not a wholesale widely held trust at all times in the test period; and\n\n(c) was not an unlisted very widely held trust at all times in the test period; and\n\n(d) was not an excepted trust at all times in the test period;\n\nmust work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets the condition in section 266‑90.\n\nType of trust to which this section applies—case 2\n\n(2) A trust that:\n\n(a) was an unlisted widely held trust, other than an unlisted very widely held trust or a wholesale widely held trust, at some time in the income year (the test period); and\n\n(b) was a listed widely held trust at all other times in the test period; and\n\n(c) was not an excepted trust at all times in the test period;\n\nmust work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets the condition in section 266‑90.\n\nNote: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.\n\n266‑85  Unlisted widely held trust may be denied debt deduction\n\nType of trust to which this section applies—case 1\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) was an unlisted widely held trust at all times in the period (the test period):\n\n(i) if the debt was incurred in an earlier income year—beginning on the day the debt was incurred and ending at the end of the income year; or\n\n(ii) if the debt was incurred in the income year—consisting of the income year; and\n\n(c) was not a wholesale widely held trust at all times in the test period; and\n\n(d) was not an unlisted very widely held unit trust at all times in the test period; and\n\n(e) was not an excepted trust at all times in the test period.\n\nType of trust to which this section applies—case 2\n\n(2) This section also applies to a trust that:\n\n(a) can deduct in the income year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) was an unlisted widely held trust, other than an unlisted very widely held trust or a wholesale widely held trust, at some time in the period (the test period):\n\n(i) if the debt was incurred in an earlier income year—beginning on the day the debt was incurred and ending at the end of the income year; or\n\n(ii) if the debt was incurred in the income year—consisting of the income year; and\n\n(c) was a listed widely held trust at all other times in the test period; and\n\n(d) was not an excepted trust at all times in the test period.\n\nCondition for deducting amount\n\n(3) The trust cannot deduct the amount unless it meets the condition in section 266‑90.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\n266‑90  If abnormal trading or end of income year, trust must pass the 50% stake test\n\n(1) If this section is being applied for the purposes of section 266‑75 or 266‑85, on each occasion when either of the following events occurs:\n\n(a) an abnormal trading in the trust’s units occurs during the test period;\n\n(b) an income year of the trust ends during the test period (including at the end of the test period);\n\nthe trust must pass the 50% stake test in respect of the following times:\n\n(c) the beginning of the test period;\n\n(d) immediately after the event occurs.\n\nTo find out whether the trust passes the 50% stake test: see Subdivision 269‑C.\n\n(2) If this section is being applied for the purposes of section 266‑80, on each occasion when an abnormal trading in the trust’s units occurs during the test period, the trust must pass the 50% stake test in respect of the following times:\n\n(a) the beginning of the test period; and\n\n(b) immediately after the abnormal trading occurs.\n\n266‑95  Deducting part of a tax loss\n\n(1) If section 266‑75 prevents the trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.\n\n(2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of section 266‑90, the trust would have been entitled to deduct the tax loss.\n\nSubdivision 266‑D—Effect of abnormal trading on listed widely held trust\n\n266‑100  What this Subdivision is about\n\nA listed widely held trust:\n\n• cannot deduct a tax loss from an earlier income year; or\n\n• has to work out its net income and tax loss for the income year in a special way; or\n\n• cannot deduct certain amounts in respect of debts incurred in the same year or earlier income years;\n\nunless either:\n\n• there was no abnormal trading; or\n\n• there was abnormal trading, but the trust’s ownership and business did not change.\n\nAlso, it may still be prevented from deducting the tax loss to the extent that it is attributable to certain debt deductions.\n\nNote: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n266‑105  Diagram giving overview of this Subdivision\n\n![Diagram showing effect of abnormal trading on listed widely held trust](image.012.png)\n\n266‑110  Listed widely held trust may be denied tax loss deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can in the income year deduct a tax loss from a loss year; and\n\n(b) was a listed widely held trust at all times in the period (the test period) from the beginning of the loss year until the end of the income year; and\n\n(c) was not an excepted trust at all times in the test period.\n\nTo find out the meaning of listed widely held trust: see section 272‑115.\n\nTo find out the meaning of excepted trust: see section 272‑100.\n\nCondition for deducting tax loss\n\n(2) The trust cannot deduct the tax loss unless it meets either:\n\n• the condition in subsection 266‑125(1); or\n\n• the condition in subsection 266‑125(2).\n\nAdditional restriction on deducting tax loss\n\n(3) Even if it meets either of the conditions, it still cannot deduct the tax loss, or part of the tax loss, if section 266‑135 (which deals with certain debt deductions) prevents it from doing so.\n\n266‑115  Listed widely held trust may be required to work out its net income and tax loss in a special way\n\nA trust that:\n\n(a) was a listed widely held trust at all times in the income year (the test period); and\n\n(b) was not an excepted trust at all times in the test period;\n\nmust work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets either:\n\n• the condition in subsection 266‑125(1); or\n\n• the condition in subsection 266‑125(2).\n\nNote: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.\n\n266‑120  Listed widely held trust may be denied debt deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) was a listed widely held trust at all times in the period (the test period):\n\n(i) if the debt was incurred in an earlier income year—beginning on the day the debt was incurred and ending at the end of the income year; or\n\n(ii) if the debt was incurred in the income year—consisting of the income year; and\n\n(c) was not an excepted trust at all times in the test period.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\nCondition for deducting amount\n\n(2) The trust cannot deduct the amount unless it meets either:\n\n• the condition in subsection 266‑125(1); or\n\n• the condition in subsection 266‑125(2).\n\n266‑125  There must be no abnormal trading (subject to 50% stake or business continuity exceptions)\n\n(1) There must be no abnormal trading in the trust’s units during the test period.\n\nTo find out the meaning of abnormal trading: see Subdivision 269‑B.\n\n(2) If there is abnormal trading on one or more occasions, then either:\n\n(a) for each abnormal trading, the trust must pass the 50% stake test in respect of the following times:\n\n(i) the beginning of the test period;\n\n(ii) immediately after the abnormal trading; or\n\n(b) if it does not, at all times after the first or only abnormal trading in respect of which the requirement in paragraph (a) is not satisfied and before the end of the test period, the trust must pass the business continuity test in relation to the time immediately before that abnormal trading.\n\nTo find out whether the trust passes the 50% stake test: see Subdivision 269‑C.\n\nTo find out whether the trust passes the business continuity test: see Subdivision 269‑F.\n\n266‑130  Deducting part of a tax loss\n\n(1) If section 266‑110 prevents the trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.\n\n(2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of section 266‑125, the trust would have been entitled to deduct the tax loss.\n\n(3) Also, the trust cannot deduct the part of the tax loss, or some of it, if section 266‑135 (which deals with certain debt deductions) prevents it from doing so.\n\n266‑135  Listed widely held unit trust may be denied tax loss deduction otherwise allowable\n\nSection applies after sections 266‑110 and 266‑130\n\n(1) This section applies if, after applying sections 266‑110 and 266‑130, a trust can deduct in the income year the whole or part (the otherwise‑deductible loss) of a tax loss from a loss year.\n\nTrust must satisfy condition if debt deduction etc.\n\n(2) If:\n\n(a) there would have been no otherwise‑deductible loss, or its amount would have been smaller, if the trust had not (after applying section 266‑120) been able to deduct in the loss year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and\n\n(b) the trust could only deduct the amount in respect of the debt because it passed the business continuity test as mentioned in paragraph 266‑125(2)(b); and\n\n(c) the Commissioner considers that the trust passed the business continuity test as mentioned in that paragraph for the purpose, or for purposes including the purpose, of being able to deduct the amount because of that paragraph;\n\nthe trust cannot deduct the otherwise‑deductible loss, or can only deduct the smaller amount mentioned in paragraph (a) of this section, unless it meets the condition in subsection (3).\n\nCondition\n\n(3) The condition is that, at all times after the abnormal trading mentioned in paragraph 266‑125(2)(b) and before the end of the income year, the trust must pass the business continuity test in relation to the time immediately before the abnormal trading.\n\nSubdivision 266‑E—Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust\n\n266‑140  What this Subdivision is about\n\nAn unlisted very widely held trust or a wholesale widely held trust:\n\n• cannot deduct a tax loss from an earlier income year; or\n\n• has to work out its net income and tax loss for the income year in a special way; or\n\n• cannot deduct certain amounts in respect of debts incurred in the income year or earlier income years;\n\nunless either:\n\n• there was no abnormal trading; or\n\n• there was abnormal trading, but the trust’s ownership did not change.","sortOrder":1000121},{"sectionNumber":"full-source-retrieval-0123","sectionType":"document_chunk","heading":"Document excerpt 123","content":"Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n266‑145  Diagram giving overview of this Subdivision\n\n![Diagram showing effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust](image.013.png)\n\n266‑150  Unlisted very widely held trust or wholesale widely held trust may be denied tax loss deduction\n\n(1) If a trust is covered by subsection (2), it cannot deduct in the income year a tax loss from a loss year unless it meets either:\n\n• the condition in subsection 266‑165(1); or\n\n• the condition in subsection 266‑165(2).\n\n(2) A trust is covered by this subsection if:\n\n(a) in the period (the test period) from the later of:\n\n(i) the beginning of the loss year; and\n\n(ii) the end of any start‑up period (within the meaning of subsection 272‑120(3));\n\nuntil the end of the income year, the trust:\n\n(iii) was at all times an unlisted very widely held trust; or\n\n(iv) was at all times a wholesale widely held trust; or\n\n(v) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or\n\n(vi) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and\n\n(b) in the test period, the trust was not at all times an excepted trust.\n\nTo find out the meaning of unlisted very widely held trust: see section 272‑120.\n\nTo find out the meaning of wholesale widely held trust: see section 272‑125.\n\nTo find out the meaning of excepted trust: see section 272‑100.\n\nTo find out the meaning of listed widely held trust: see section 272‑115.\n\n266‑155  Unlisted very widely held trust or wholesale widely held trust may be required to work out its net income and tax loss in a special way\n\n(1) If a trust is covered by subsection (2), it must work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets either:\n\n• the condition in subsection 266‑165(1); or\n\n• the condition in subsection 266‑165(2).\n\n(2) A trust is covered by this subsection if:\n\n(a) in the period (the test period) consisting of so much of the income year as occurs after the end of any start‑up period (within the meaning of subsection 272‑120(3)), the trust:\n\n(i) was at all times an unlisted very widely held trust; or\n\n(ii) was at all times a wholesale widely held trust; or\n\n(iii) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or\n\n(iv) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and\n\n(b) in the test period, the trust was not at all times an excepted trust.\n\nNote: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.\n\n266‑160  Unlisted very widely held trust or wholesale widely held trust may be denied debt deduction\n\n(1) If a trust is covered by subsection (2), it cannot deduct in the income year an amount:\n\n(a) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or\n\n(b) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt;\n\nunless it meets either:\n\n• the condition in subsection 266‑165(1); or\n\n• the condition in subsection 266‑165(2).\n\n(2) A trust is covered by this subsection if:\n\n(a) in the period (the test period) from the later of the end of any start‑up period (within the meaning of subsection 272‑120(3)) and the beginning of:\n\n(i) if the debt was incurred in an earlier income year—the day on which the debt was incurred; or\n\n(ii) if the debt was incurred in the income year—the income year;\n\nuntil the end of the income year, the trust:\n\n(iii) was at all times an unlisted very widely held trust; or\n\n(iv) was at all times a wholesale widely held trust; or\n\n(v) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or\n\n(vi) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and\n\n(b) in the test period, the trust was not at all times an excepted trust.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\n266‑165  There must be no abnormal trading (subject to 50% stake exception)\n\n(1) There must be no abnormal trading in the units of the trust during the test period.\n\nTo find out the meaning of abnormal trading: see Subdivision 269‑B.\n\n(2) If there is abnormal trading on one or more occasions, then for each abnormal trading the trust must pass the 50% stake test in respect of the following times:\n\n(a) the beginning of the test period;\n\n(b) immediately after the abnormal trading.\n\nTo find out whether the trust passes the 50% stake test: see Subdivision 269‑C.\n\n266‑170  Deducting part of a tax loss\n\n(1) If section 266‑150 prevents the trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.\n\n(2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of section 266‑165, the trust would have been entitled to deduct the tax loss.\n\nSubdivision 266‑F—Information about family trusts with interests in other trusts\n\n266‑175  What this Subdivision is about\n\nIf a trust would only avoid the tax consequences of this Division because of interests held by a non‑resident family trust, the Commissioner may require the trust to give certain information about the non‑resident family trust. If it is not given, the trust does not avoid the tax consequences of this Division.\n\n266‑180  Information about family trusts with interests in other trusts\n\nNotice about family trust\n\n(1) The Commissioner may give the trustee of a trust (the primary trust) a notice in accordance with section 266‑185 if the requirements of subsections (2) to (5) of this section are met.\n\nFirst requirement\n\n(2) In its return of income for an income year, the primary trust:\n\n(a) must have deducted a tax loss from an earlier income year; or\n\n(b) must not have worked out its net income and tax loss for the income year under Division 268; or\n\n(c) must have deducted an amount in relation to a debt;\n\nwhere it would not be allowed to deduct the tax loss or amount in respect of the debt, or would be required to work out its net income and tax loss under that Division, if it did not meet a condition or conditions as mentioned in section 266‑40, 266‑45, 266‑90, 266‑125 or 266‑165 (the conditions provision).\n\nSecond requirement\n\n(3) The Commissioner must be satisfied that the primary trust would not meet the condition or conditions if one or more trusts were not family trusts.\n\nThird requirement\n\n(4) When the Commissioner gives the notice, for at least one of the family trusts:\n\n(a) a trustee of the trust must be a non‑resident; or\n\n(b) the central management and control of the trust must be outside Australia.\n\nFourth requirement\n\n(5) The Commissioner must give the notice before the later of:\n\n(a) 5 years after the end of the income year to which the return relates; and\n\n(b) the end of the period during which the trustee of the primary trust is required by section 262A to retain records in relation to that income year.\n\n266‑185  Notices where requirements of section 266‑180 are met\n\nInformation required\n\n(1) The notice that the Commissioner may give if the requirements of subsections 266‑180(2) to (5) are met must require the trustee of the primary trust to give the Commissioner specified information about conferrals of present entitlements to, and distributions of, income and capital, since the beginning of the test period mentioned in the conditions provision, by all of the family trusts meeting the requirements of paragraph 266‑180(4)(a) or (b).\n\nTrustee knowledge\n\n(2) The information need not be within the knowledge of the trustee at the time the notice is given.\n\nPeriod for giving information\n\n(3) The notice must specify a period within which the trustee is to give the information. The period must not end earlier than 21 days after the day on which the Commissioner gives the notice.\n\nConsequence of not giving the information\n\n(4) If the trustee does not give the information within the period or within such further period as the Commissioner allows, the primary trust is taken not to meet, and never to have met, the condition or conditions in the conditions provision.\n\n(5) If, because of subsection (4), the fixed trust is required to work out under Division 268 its net income and tax loss for the income year mentioned in subsection 266‑180(2), that Division is to be applied as if Subdivision 268‑B required the income year to be divided into such periods as would result in the highest possible net income for the income year.\n\nNo offences or penalties\n\n(6) To avoid doubt, subsections (4) and (5) do not cause the trustee of the primary trust to commit any offence or be liable to any penalty under Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 for deducting the amount concerned, or for not working out the trust’s net income and tax loss under Division 268, in the trust’s return.\n\nDivision 267—Income tax consequences for non‑fixed trusts of change in ownership or control\n\nSubdivision 267‑A—Overview of this Division\n\n267‑5  What this Division is about\n\nThis Division is about the income tax consequences for a non‑fixed trust if its ownership or control changes.\n\n267‑10  Diagram giving overview of this Division\n\n![Diagram showing income tax consequences for non-fixed trusts of change in ownership or control](image.014.png)\n\nSubdivision 267‑B—Deducting tax losses, and certain amounts in respect of debts, from earlier years\n\n267‑15  What this Subdivision is about\n\nA non‑fixed trust cannot deduct:\n\n• a tax loss from a loss year; or\n\n• certain amounts in respect of debts incurred in earlier income years;\n\nunless:\n\n• if applicable, it meets an ownership test based on income and capital distributions; and\n\n• it did not fail that test in a previous year; and\n\n• if applicable, it meets an ownership test based on fixed entitlements to income and capital; and\n\n• its control has stayed the same.\n\nNote: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n267‑20  Non‑fixed trust may be denied tax loss deduction\n\nType of trust to which this Subdivision applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year a tax loss from a loss year; and\n\n(b) was a non‑fixed trust at any time in the period (the test period) from the beginning of the loss year until the end of the income year; and\n\n(c) was not an excepted trust at all times in the test period.\n\nTo find out the meaning of non‑fixed trust: see section 272‑70.\n\nTo find out the meaning of excepted trust: see section 272‑100.\n\nConditions for deducting tax loss\n\n(2) The trust cannot deduct the tax loss unless it meets:\n\n• the condition in subsection 267‑30(2) (if applicable); and\n\n• the condition in section 267‑35; and\n\n• the condition in subsection 267‑40(2) (if applicable); and\n\n• the condition in section 267‑45.\n\n267‑25  Non‑fixed trust may be denied debt deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year an amount:\n\n(i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt, incurred in an earlier income year, as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt incurred in an earlier income year; and\n\n(b) was a non‑fixed trust at any time in the period (the test period) beginning on the day the debt was incurred and ending at the end of the income year; and\n\n(c) was not an excepted trust at all times in the test period.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\nCondition for deducting amount\n\n(2) The trust cannot deduct the amount unless it meets:\n\n• the condition in subsection 267‑30(2) (if applicable); and\n\n• the condition in section 267‑35; and\n\n• the condition in subsection 267‑40(2) (if applicable); and\n\n• the condition in section 267‑45.\n\n267‑30  If certain distributions are made, the trust must pass the pattern of distributions test\n\nWhen trust must meet the condition\n\n(1) If either or both of the following happened, the trust must meet the condition in subsection (2):\n\n(a) the trust distributed income:\n\n(i) in the income year or within 2 months after its end; and\n\n(ii) in at least one of the 6 earlier income years; or\n\n(b) the trust distributed capital:\n\n(i) in the income year or within 2 months after its end; and\n\n(ii) in at least one of the 6 earlier income years.\n\nThe condition\n\n(2) The condition is that the trust must pass the pattern of distributions test for the income year.\n\nTo find out whether the trust passes the pattern of distributions test for the income year: see Subdivision 269‑D.\n\n267‑35  The trust must not have previously failed to meet the condition in subsection 267‑30(2)\n\nThe trust must not have been prevented from deducting the tax loss in an earlier income year because of a failure to meet the condition in subsection 267‑30(2) or conditions that included that condition.\n\n267‑40  If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained\n\nWhen trust must meet condition\n\n(1) If at any time (the test time) in the test period, individuals (the threshold group) have more than a 50% stake in the income or capital of the trust, the trust must meet the condition in subsection (2).\n\nTo find out whether individuals have more than a 50% stake in the income or capital of the trust: see Subdivision 269‑C.\n\nCondition\n\n(2) The condition is that, during the period beginning at the test time and finishing at the end of the test period, the same individuals (who must be some or all of the threshold group) must have had more than a 50% stake in the income or the capital, respectively, of the trust.\n\nCommissioner discretion\n\n(3) If:\n\n(a) after the test time, some or all of the threshold group cease to have a 50% stake in the income or capital of the trust at a particular time; and\n\n(b) having regard to the likely manner of exercise of any discretion of the trustee to distribute income or capital of the trust after the particular time and to any other relevant matter, the Commissioner considers it fair and reasonable that the individuals should be taken to have the stake at the particular time and at all later times in the test period;\n\nthe individuals are taken to have that stake at the particular time and at all later times in the test period.\n\n267‑45  Group must not begin to control the trust\n\nA group must not, during the test period, begin to control the trust directly or indirectly.\n\nTo find out what it means for a group to control the trust: see Subdivision 269‑E.\n\n267‑50  Deducting part of a tax loss\n\n(1) If section 267‑20 prevents a trust from deducting a tax loss because the trust does not meet the condition in section 267‑40 or 267‑45 or both conditions, it can deduct the part of the tax loss that is attributable to a part of the loss year.\n\n(2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of sections 267‑40 and 267‑45, the trust would have been entitled to deduct the tax loss.\n\nSubdivision 267‑C—Current year net income and tax loss, and certain debts incurred in current year\n\n267‑55  What this Subdivision is about\n\nA non‑fixed trust:\n\n• must work out its net income and tax loss for the income year in a special way; or\n\n• cannot deduct certain amounts in respect of debts incurred in the income year;\n\nunless:\n\n• if applicable, it meets an ownership test relating to fixed entitlements to shares of income and capital; and\n\n• its control has stayed the same.\n\nNote: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.\n\n267‑60  Trust may be required to work out its net income and tax loss in a special way\n\nType of trust to which this Subdivision applies\n\nA trust that:\n\n(a) was a non‑fixed trust at any time in the income year (the test period); and\n\n(b) was not an excepted trust at all times in the test period;\n\nmust work out its net income and tax loss for the income year under Division 268 (How to work out a trust’s net income and tax loss for the income year), unless it meets:\n\n• the condition in subsection 267‑70(2) (if applicable); and\n\n• the condition in section 267‑75.\n\nTo find out the meaning of excepted trust: see section 272‑100.","sortOrder":1000122},{"sectionNumber":"full-source-retrieval-0124","sectionType":"document_chunk","heading":"Document excerpt 124","content":"Note: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.\n\n267‑65  Non‑fixed trust may be denied debt deduction\n\nType of trust to which this section applies\n\n(1) This section applies to a trust that:\n\n(a) can deduct in the income year (the test period) an amount:\n\n(i) under section 51 or 63 in respect of the writing off of the whole or part of a debt, incurred in the income year, as bad; or\n\n(ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt incurred in the income year; and\n\n(b) was a non‑fixed trust at any time in the test period; and\n\n(c) was not an excepted trust at all times in the test period.\n\nNote: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.\n\nCondition for deducting amount\n\n(2) The trust cannot deduct the amount unless it meets\n\n• the condition in subsection 267‑70(2) (if applicable); and\n\n• the condition in section 267‑75.\n\n267‑70  If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained\n\nWhen trust must meet condition\n\n(1) If at any time (the test time) in the test period, individuals (the threshold group) have more than a 50% stake in the income or capital of the trust, the trust must meet the condition in subsection (2).\n\nTo find out whether individuals have more than a 50% stake in the income or capital of the trust: see Subdivision 268‑C.\n\nCondition\n\n(2) The condition is that, during the period beginning at the test time and finishing at the end of the test period, the same individuals (who must be some or all of the threshold group) must have more than a 50% stake in the income or the capital, respectively, of the trust.\n\nCommissioner discretion\n\n(3) If:\n\n(a) after the test time, some or all of the threshold group cease to have a 50% stake in the income or capital of the trust at a particular time; and\n\n(b) having regard to the likely manner of exercise of any discretion of the trustee to distribute income or capital of the trust after the particular time and to any other relevant matter, the Commissioner considers it fair and reasonable that the individuals should be taken to have the stake at the particular time and at all later times in the test period;\n\nthe individuals are taken to have that stake at the particular time and at all later times in the test period.\n\n267‑75  Group must not begin to control trust\n\nA group must not, during the test period, begin to control the trust directly or indirectly.\n\nTo find out what it means for a group to control the trust: see Subdivision 269‑E.\n\nSubdivision 267‑D—Information about family trusts with interests in other trusts\n\n267‑80  What this Subdivision is about\n\nIf a trust would only avoid the tax consequences of this Division because of interests held by a non‑resident family trust, the Commissioner may require the trust to give certain information about the non‑resident family trust. If it is not given, the trust does not avoid the tax consequences of this Division.\n\n267‑85  Information about family trusts with interests in other trusts\n\nNotice about family trust\n\n(1) The Commissioner may give the trustee of a trust (the primary trust) a notice in accordance with section 267‑90 if the requirements of subsections (2) to (5) of this section are met.\n\nFirst requirement\n\n(2) In its return of income for an income year, the primary trust:\n\n(a) must have deducted a tax loss from an earlier income year; or\n\n(b) must not have worked out its net income and tax loss for the income year under Division 268; or\n\n(c) must have deducted an amount in relation to a debt;\n\nwhere it would not be allowed to deduct the tax loss or amount in respect of the debt, or would be required to work out its net income and loss under that Division, if it did not meet a condition or conditions as mentioned in section 267‑40 or 267‑70 (the conditions provision).\n\nSecond requirement\n\n(3) The Commissioner must be satisfied that the primary trust would not meet the condition or conditions if one or more trusts were not family trusts.\n\nThird requirement\n\n(4) When the Commissioner gives the notice, for at least one of the family trusts:\n\n(a) a trustee of the trust must be a non‑resident; or\n\n(b) the central management and control of the trust must be outside Australia.\n\nFourth requirement\n\n(5) The Commissioner must give the notice before the later of:\n\n(a) 5 years after the end of the income year to which the return relates; and\n\n(b) the end of the period during which the trustee of the primary trust is required by section 262A to retain records in relation to that income year.\n\n267‑90  Notices where requirements of section 267‑85 are met\n\nInformation required\n\n(1) The notice that the Commissioner may give if the requirements of subsections 267‑85(2) to (5) are met must require the trustee to give the Commissioner specified information about conferrals of present entitlements to, and distributions of, income and capital, since the beginning of the test period mentioned in the conditions provision, by all of the family trusts meeting the requirements of paragraph 267‑85(4)(a) or (b).\n\nTrustee knowledge\n\n(2) The information need not be within the knowledge of the trustee at the time the notice is given.\n\nPeriod for giving information\n\n(3) The notice must specify a period within which the trustee is to give the information. The period must not end earlier than 21 days after the day on which the Commissioner gives the notice.\n\nConsequence of not giving the information\n\n(4) If the trustee does not give the information within the period or within such further period as the Commissioner allows, the primary trust is taken not to meet, and never to have met, the condition or conditions in the conditions provision.\n\nApplication of Division 268\n\n(5) If, because of subsection (4), the fixed trust is required to work out under Division 268 its net income and tax loss for the income year mentioned in subsection 267‑85(2), that Division is to be applied as if Subdivision 268‑B required the income year to be divided into such periods as would result in the highest possible net income for the income year.\n\nNo offences or penalties\n\n(6) To avoid doubt, subsections (4) and (5) do not cause the trustee of the primary trust to commit any offence or be liable to any penalty under Part VII for deducting the amount concerned, or for not working out the trust’s net income and tax loss under Division 268, in the trust’s return.\n\nDivision 268—How to work out a trust’s net income and tax loss for the income year\n\nSubdivision 268‑A—Overview of Division\n\n268‑5  What this Division is about\n\nThis Division requires a trust’s net income and tax loss to be worked out in a special way. The income year is divided into periods as the basis for the calculation.\n\nSubdivision 268‑B—Dividing the income year into periods\n\n268‑10  Income year of fixed trust to be divided into periods—first case\n\n(1) If:\n\n(a) a trust’s net income and tax loss for the income year are required by section 266‑30 to be worked out under this Division; and\n\n(b) the trust did not meet the requirements of subsections 266‑45(2) and (4);\n\nthe income year is divided into periods as follows.\n\n(2) The first period begins at the beginning of the income year. Each later period begins immediately after the end of the previous period.\n\n(3) The last period ends at the end of the income year. Each period (except the last) ends at the latest time that would result in the trust passing the 50% stake test for the whole of the period.\n\n268‑15  Income year of fixed trust to be divided into periods—second case\n\n(1) If:\n\n(a) a trust’s net income and tax loss for the income year are required by section 266‑30 to be worked out under this Division; and\n\n(b) the trust met the requirements of subsections 266‑45(2) and (4);\n\nthe income year is divided into periods as follows.\n\n(2) The first period begins at the beginning of the income year. Each later period begins immediately after the end of the previous period.\n\n(3) The last period ends at the end of the income year. Each period (except the last) ends at the earliest of:\n\n(a) the latest time that would result in the persons holding fixed entitlements to shares of the income or shares of the capital of:\n\n(i) if the trust met the requirements of paragraph 266‑45(2)(a)—the trust; or\n\n(ii) if the trust met the requirements of paragraph 266‑45(2)(b)—the holding entity mentioned in that paragraph;\n\nand the percentages of the shares that they hold, remaining the same during the whole of the period; and\n\n(b) the times that, for all of the non‑fixed trusts (other than excepted trusts) holding directly or indirectly a fixed entitlement to a share of the income or capital of the trust at any time during the income year, are the latest times that would result in individuals having more than a 50% stake in their income or capital; and\n\n(c) the earliest time in the period when a group begins to control a non‑fixed trust (other than an excepted trust) that holds directly or indirectly a fixed entitlement to a share of the income or capital of the trust at any time during the income year.\n\nTo find out when a group begins to control a trust: see Subdivision 269‑E.\n\n268‑20  Income year of widely held unit trust to be divided into periods\n\n(1) If a trust’s net income and tax loss for the income year are required by section 266‑80, 266‑115 or 266‑155 to be worked out under this Division, the income year is divided into periods as follows.\n\n(2) The first period begins at the beginning of the income year. Each later period begins immediately after the end of the previous period.\n\n(3) The last period ends at the end of the income year. Each period (except the last) ends at the earliest time at which there is an abnormal trading in the trust’s units, where the trust does not pass the 50% stake test in respect of the following times:\n\n(a) the beginning of the period;\n\n(b) immediately after the abnormal trading.\n\n(4) However, what would, apart from this subsection, be 2 or more successive periods are treated as a single period if:\n\n(a) the trust is a listed widely held trust; and\n\n(b) during all of the periods the trust passed the business continuity test in relation to the time immediately before the end of the first of the successive periods.\n\n268‑25  Income year of non‑fixed trust to be divided into periods\n\n(1) If a trust’s net income and tax loss for the income year are required by section 267‑60 to be worked out under this Division, the income year is divided into periods as follows.\n\n(2) The first period begins at the beginning of the income year. Each later period begins immediately after the end of the previous period.\n\n(3) The last period ends at the end of the income year.\n\n(4) If the condition in subsection 267‑70(2) applies but the trust does not meet the condition, each period (except the last) ends at the earlier of:\n\n(a) the latest time, after the test time mentioned in that section, that would result in the same individuals having more than a 50% stake in the income or the capital, as the case requires, of the trust during the whole of the period; or\n\n(b) the earliest time when a group begins to control the trust directly or indirectly.\n\n(5) If the condition in subsection 267‑70(2) does not apply, or does apply and the trust meets the condition, each period (except the last) ends at the earliest time when a group begins to control the trust directly or indirectly.\n\nSubdivision 268‑C—Other steps in working out the net income and tax loss\n\n268‑30  Calculate the notional loss or net income for each period\n\n(1) A notional loss or notional net income of the trust must be worked out for each period into which the income year has been divided in accordance with Subdivision 268‑B.\n\n(2) The trust has a notional loss for a period if the deductions attributed to the period under section 268‑35 exceed the assessable income attributed to the period under section 268‑40. The notional loss is the amount of the excess.\n\nFor a period during which the trust was in partnership, the notional loss is worked out under Subdivision 268‑D.\n\n(3) On the other hand, if that assessable income exceeds those deductions, the trust has a notional net income for the period, equal to the excess.\n\nFor a period during which the trust was in partnership, the notional net income is worked out under Subdivision 268‑D.\n\n(4) If the trust has a notional loss for none of the periods in the income year, this Subdivision has no further application, and the trust’s net income for the income year is calculated in the usual way.\n\nThe usual way of working out net income is set out in section 95.\n\n268‑35  How to attribute deductions to periods\n\n(1) The trust’s deductions for the income year are attributed to periods in the income year as follows.\n\n(2) The following deductions are attributed to each period in proportion to the length of the period:\n\n(aa) deductions for the decline in value of a depreciating asset;\n\nSee Division 40 of the Income Tax Assessment Act 1997.\n\n(c) deductions for expenditure, deductions for which are spread over 2 or more years, but not full year deductions (see subsection (5));\n\n(d) deductions for expenditure of capital monies in connection with an Australian film.\n\nSee former section 124ZAFA.\n\n(3) All other deductions (except full year deductions) are attributed to periods as if each period were an income year.\n\n(4) Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the trust’s net income for the income year.\n\n(5) These are full year deductions:\n\n(a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;\n\n(b) deductions for bad debts under section 25‑35 (about bad debts) of the Income Tax Assessment Act 1997, or for losses on debt/equity swaps under section 63E;\n\n(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997, because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;\n\n(d) deductions allowable under Division 30 of the Income Tax Assessment Act 1997;\n\n(e) deductions for payments of pensions, gratuities or retiring allowances under section 25‑50 of the Income Tax Assessment Act 1997;\n\n(f) deductions for tax losses of earlier income years;\n\nSee Division 36 of the Income Tax Assessment Act 1997.\n\n(j) deductions for farm management deposits.\n\nNote: See Division 393 of the Income Tax Assessment Act 1997.\n\n(6) However, a deduction for the balance of capital expenditure is not a full year deduction if the deduction results from the disposal, loss, lapse, termination of use or destruction of the property.\n\nSee Subdivision 40‑D of the Income Tax Assessment Act 1997.\n\n268‑40  How to attribute assessable income to periods\n\n(1) The trust’s assessable income for the income year is attributed to periods in the income year as follows.\n\n(2) The following amounts are attributed to periods so far as they are reasonably attributable to those periods:\n\n(a) amounts included in the trust’s assessable income under section 97 (Beneficiary of a trust estate not under a legal disability); or\n\n(b) amounts included in the trust’s assessable income under section 98A (Non‑resident beneficiaries assessable in respect of certain income).\n\n(3) The following items of assessable income are attributed to each period in proportion to the length of the period:\n\n(a) insurance recoveries for loss of livestock or trees;\n\nSee section 385‑130 of the Income Tax Assessment Act 1997.\n\n(b) amounts included in assessable income as a result of elections relating to the forced disposal of livestock;\n\nSee Subdivision 385‑E and section 385‑160 of the Income Tax Assessment Act 1997.\n\n(c) recoupment of mains electricity connection expenditure.\n\nSee item 1.25 in section 20‑30, which lists deductions for which recoupments are assessable under Subdivision 20‑A, of the Income Tax Assessment Act 1997.\n\n(4) An amount included in the trust’s assessable income under section 385‑185 (Election to defer including profit on second wool clip) of the Income Tax Assessment Act 1997 is attributed to the period when the wool would ordinarily have been shorn.\n\n(5) An amount included in the trust’s assessable income that is a dividend under:\n\n(a) section 65 (Payments to associated persons); or\n\n(c) section 109 (Excessive payments to shareholders and associates); or\n\n(d) Division 7A of Part III (Distributions to entities connected with a private company);\n\nis attributed to the period when the amount was paid or credited, whichever occurred first.\n\n(6) All other items of assessable income (except full year amounts) are attributed to periods as if each period were an income year.\n\n(7) Full year amounts are amounts referred to in paragraphs (2)(a) and (b), so far as they are not reasonably attributable to a period. They are brought in at a later stage of the process of calculating the trust’s net income for the income year.\n\n268‑45  How to calculate the trust’s net income for the income year\n\n(1) The trust’s net income for the income year is worked out as follows.\n\n(2) Add up the notional net incomes (if any) worked out under section 268‑30 or 268‑70.\n\nNote: A notional loss for a period is not taken into account, but counts towards the trust’s tax loss for the income year.\n\n(3) Add the full year amounts referred to in subsection 268‑40(7) (if any).\n\n(4) Subtract the trust’s full‑year deductions of these kinds:","sortOrder":1000123},{"sectionNumber":"full-source-retrieval-0125","sectionType":"document_chunk","heading":"Document excerpt 125","content":"(a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;\n\n(b) deductions for bad debts under section 25‑35 (about bad debts) of the Income Tax Assessment Act 1997;\n\n(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;\n\nunless they exceed the total of the notional net incomes and the full year amounts. (If they equal or exceed that total, the trust does not have a net income for the income year.)\n\n(5) If an amount remains, subtract from it the trust’s other full year deductions, in the order shown in subsection 268‑35(5), unless they exceed the amount remaining. (If they equal or exceed that amount, the trust does not have a net income for the income year.)\n\n(6) The amount (if any) remaining is the trust’s net income for the income year.\n\n268‑60  How to work out the trust’s section 36‑10 tax loss for the income year\n\n(1) For the purposes of Division 36 (Tax losses of earlier income years) of the Income Tax Assessment Act 1997, instead of working out the trust’s tax loss for the year under section 36‑10 of that Act, it is worked out as follows.\n\n(2) Total the notional losses.\n\n(3) Add the amount (if any) by which the trust’s full year deductions of these kinds:\n\n(a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;\n\n(b) deductions for bad debts under section 25‑35 ( about bad debts) of the Income Tax Assessment Act 1997;\n\n(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;\n\nexceed the total of:\n\n(d) the notional net incomes (if any); and\n\nTo work out the notional net income: see sections 268‑30 and 268‑70.\n\n(e) the full year amounts referred to in section 268‑40 (if any).\n\n(4) If the trust derived exempt income, subtract its net exempt income as defined in section 36‑20 of the Income Tax Assessment Act 1997.\n\n(5) Any amount remaining is the trust’s tax loss for the income year.\n\nTo find out how much of the tax loss can be deducted in later income years, see Division 266 or 267.\n\nTo find out how to deduct it, see section 36‑15 or 36‑17 of the Income Tax Assessment Act 1997.\n\nSubdivision 268‑D—Rules that supplement Subdivision 268‑C if the trust is in partnership\n\n268‑70  How to calculate the trust’s notional loss or net income for a period when the trust was a partner\n\n(1) This section applies if at any time during a period the trust was a partner in one or more partnerships.\n\n(2) The trust has a notional loss for the period if the total (the loss total) of:\n\n(a) the deductions attributed to the period under section 268‑35; and\n\n(b) the trust’s share of each notional loss (if any) of a partnership for the period;\n\nexceeds the total (the income total) of:\n\n(c) the assessable income attributed to the period under section 268‑40; and\n\n(d) the trust’s share of each notional net income (if any) of a partnership for the period.\n\nThe notional loss is the amount of the excess.\n\nNote: A notional loss is taken into account in working out the trust’s tax loss under section 268‑60.\n\n(3) On the other hand, if the income total exceeds the loss total, the trust has a notional net income for the period, equal to the excess.\n\nNote: A notional net income is taken into account in working out the trust’s net income under section 268‑45.\n\n(4) If the trust has a notional net income for all periods in the income year, this Subdivision has no further application, and the trust’s net income for the income year is worked out in the usual way.\n\nThe usual way of working out net income is set out in section 95.\n\n268‑75  How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if both entities have the same income year\n\n(1) This section applies if at any time during a period the trust is a partner in a partnership that has an income year that begins and ends when the trust’s income year begins and ends.\n\n(2) The partnership’s notional loss or notional net income for the period is worked out in the same way as the notional loss or notional net income of a trust.\n\n(3) The trust’s share is calculated by dividing:\n\n(a) the trust’s interest in the partnership’s net income or partnership loss of the income year;\n\nby:\n\n(b) the amount of that net income or partnership loss;\n\nand expressing the result as a percentage.\n\n(4) However, if the partnership had neither a net income nor a partnership loss, the trust’s share is a percentage that is fair and reasonable having regard to the extent of the trust’s interest in the partnership.\n\n268‑80  How to calculate the trust’s share of a partnership’s notional loss or notional net income for a period if the entities have different income years\n\n(1) This section applies if at any time during a period the trust is a partner in a partnership that has an income year that begins and ends at a different time from when the trust’s income year begins and ends.\n\n(2) So much of the partnership’s net income or partnership loss of an income year as was derived during the period is a notional net income or notional loss of the partnership for the period. (For the purposes of this subsection, the partnership’s net income or partnership loss is calculated without taking account of the partnership’s full year deductions for that income year.)\n\nNote: The partnership’s full year deductions are dealt with in section 268‑85.\n\n(3) The trust’s share is calculated by dividing:\n\n(a) the trust’s interest in the partnership’s net income or partnership loss of the income year;\n\nby:\n\n(b) the amount of that net income or partnership loss;\n\nand expressing the result as a percentage.\n\n268‑85  Trust’s full year deductions include a share of partnership’s full year deductions\n\n(1) This section applies if at any time during the income year the trust is a partner in a partnership that has one or more full year deductions for the income year of the partnership that corresponds to the income year of the trust.\n\n(2) The partnership’s full year deductions are treated as full year deductions of the trust, but only to the extent of the trust’s share.\n\n(3) If the partnership’s income year is the same as the trust’s, the trust’s share is calculated by dividing:\n\n(a) the trust’s interest in the partnership’s net income or partnership loss of the income year;\n\nby:\n\n(b) the amount of that net income or partnership loss;\n\nand expressing the result as a percentage.\n\n(4) However, if the partnership had neither a net income nor a partnership loss, the trust’s share is a percentage that is fair and reasonable having regard to the extent of the trust’s interest in the partnership.\n\n(5) If the partnership’s income year does not begin and end at the same time as the trust’s income year, the trust’s share is a percentage that is fair and reasonable having regard to all relevant circumstances.\n\nDivision 269—Concepts and tests applied in Divisions 266 and 267\n\nSubdivision 269‑A—Overview of Division\n\n269‑5  What this Division is about\n\nThis Division explains the following concepts or tests that are used in preceding Divisions of this Schedule:\n\n• abnormal trading;\n\n• 50% stake test etc.;\n\n• pattern of distributions test;\n\n• control;\n\n• business continuity test.\n\nSubdivision 269‑B—Abnormal trading\n\n269‑10  Trading\n\nA trading in units in a unit trust occurs if there is an issue, redemption or transfer of, or other dealing in, the units.\n\n269‑15  Abnormal trading—general\n\n(1) There is an abnormal trading in units in a unit trust if there is a trading in the units that is abnormal having regard to all relevant factors, including:\n\n(a) the timing of the trading, when compared to the normal timing for trading in its units; and\n\n(b) the number of units traded, when compared to the normal number of units traded; and\n\n(c) any connection between the trading and any other trading in units in the trust; and\n\n(d) any connection between the trading and a tax loss or other deduction of the trust.\n\n(2) There may also be an abnormal trading under any of the following provisions.\n\n269‑20  Abnormal trading—suspected acquisition or merger\n\nThere is an abnormal trading in units in a unit trust if a trading occurs in its units that the trustee knows or reasonably suspects is part of an acquisition of the trust or merger of the trust with another trust.\n\n269‑25  Abnormal trading—5% of units in a single transaction\n\nThere is an abnormal trading in units in a unit trust (other than a wholesale widely held trust) if 5% or more of the units are traded in one transaction.\n\n269‑30  Abnormal trading—suspected 5% of units in a series of transactions\n\n(1) There is an abnormal trading in units in a unit trust (other than a wholesale widely held trust) if the trustee knows or reasonably suspects that a person, or a person and one or more associates of the person, have acquired or redeemed 5% or more of the units in 2 or more transactions and would not have done so if the trust did not have a tax loss or other deduction.\n\n(2) For the purposes of other provisions of this Schedule, the abnormal trading occurs at the time of the particular transaction that causes the 5% figure to be exceeded.\n\n269‑35  Abnormal trading—20% of units traded, issued or redeemed over 60 day period\n\n(1) There is an abnormal trading in units in a unit trust (other than a wholesale widely held trust) if more than 20% of the units on issue at the end of any 60 day period were traded during the period.\n\n(2) For the purposes of other provisions of this Schedule, the abnormal trading occurs at the end of the 60 day period.\n\n269‑40  Abnormal trading—50% stake not maintained\n\n(1) There is an abnormal trading in units in a wholesale widely held trust during a period if the trustee knows or reasonably suspects that the same persons did not hold more than 50% of its units at the beginning and end of the period.\n\n(2) For the purposes of other provisions of this Schedule, the abnormal trading occurs immediately before the end of the period.\n\n269‑45  Time at which trustee to have knowledge or suspicion\n\nFor the purposes of section 269‑20, 269‑30 or 269‑40, the trustee must have the knowledge or reasonable suspicion mentioned in that section:\n\n(a) if the section is being applied in determining for the purposes of section 268‑20 whether an abnormal trading occurred—at some time during the income year mentioned in that section; or\n\n(b) if it is being applied in determining for the purposes of any other provision whether an abnormal trading occurred during a period—at some time during the period.\n\n269‑47  Abnormal trading where holding trust\n\nHolding trust and subsidiary trust\n\n(1) If a unit trust has fixed entitlements directly or indirectly to all of the income and capital of another unit trust:\n\n(a) the first trust is a holding trust of the second; and\n\n(b) the second is a subsidiary trust of the first.\n\nAbnormal trading causing or ending holding‑subsidiary relationship\n\n(2) The transaction that causes a trust to become, or to cease to be, a holding trust of a subsidiary trust (the bottom subsidiary trust) is an abnormal trading in units in the bottom subsidiary trust unless:\n\n(a) the holding trust is itself a subsidiary trust of one or more holding trusts (each of which is a higher holding trust); and\n\n(b) immediately before and after the transaction, the bottom subsidiary trust is a subsidiary trust of one or more of the higher holding trusts.\n\nAbnormal trading while holding‑subsidiary relationship exists\n\n(3) While one or more trusts are holding trusts of the same subsidiary trust, there is an abnormal trading in units in the subsidiary trust if and only if, and at the time at which, there is an abnormal trading in units in the holding trust that is not itself a subsidiary trust of another holding trust.\n\n269‑49  No abnormal trading where proportionate issue of units\n\nIf the issue of units in a unit trust to existing unit holders does not cause each unit holder’s proportion of the total fixed entitlements to shares of the income and capital of the trust to change, then, except for the purposes of section 269‑20, the issue is disregarded in determining whether there has been an abnormal trading in units in the unit trust.\n\nSubdivision 269‑C—Passing the 50% stake test etc.\n\n269‑50  More than a 50% stake in income or capital\n\nMore than a 50% stake in income\n\n(1) If there are individuals who have (between them), directly or indirectly, and for their own benefit, fixed entitlements to a greater than 50% share of the income of a trust, those individuals have more than a 50% stake in the income of the trust.\n\nMore than a 50% stake in capital\n\n(2) If there are individuals who have (between them), directly or indirectly, and for their own benefit, fixed entitlements to a greater than 50% share of the capital of the trust, those individuals have more than a 50% stake in the capital of the trust.\n\n269‑55  Passing the 50% stake test\n\n(1) If, at all times during a period, or at 2 times:\n\n(a) the same individuals have more than a 50% stake in the income of a trust; and\n\n(b) the same individuals (who may be different from those in paragraph (a)) have more than a 50% stake in the capital of the trust;\n\nthe trust passes the 50% stake test for the period or in respect of the 2 times.\n\n(2) If a trust is a widely held unit trust it is taken to pass the 50% stake test for a period or in respect of 2 times if it is reasonable to assume that the requirements of paragraphs (1)(a) and (b) are satisfied in respect of the period or the 2 times.\n\nSubdivision 269‑D—Pattern of distributions test\n\n269‑60  Pattern of distributions test\n\nA trust passes the pattern of distributions test for an income year if, before the end of 2 months after the end of the income year:\n\n(a) the trust distributed directly or indirectly to the same individuals, for their own benefit, a greater than 50% share of all test year distributions of income (see subsection 269‑65(1)); and\n\n(b) the trust distributed directly or indirectly to the same individuals (who may be different from those in paragraph (a)), for their own benefit, a greater than 50% share of all test year distributions of capital (see subsection 269‑65(3)).\n\n269‑65  Test year distribution of income or capital\n\nTest year distribution of income\n\n(1) A test year distribution of income is the total of all distributions of income made by the trust in any of the following periods, provided the period does not begin more than 6 years before the beginning of the income year:\n\n(a) the period from the beginning of the income year until 2 months after its end;\n\n(b) if the trust distributed income before the trigger year (see subsection (2))—the income year, before the trigger year, that is closest to the trigger year;\n\n(c) if paragraph (b) does not apply and the trust distributed income in the trigger year—the trigger year;\n\n(d) if neither paragraph (b) nor paragraph (c) applies—the income year, closest to the trigger year, in which the trust distributed income;\n\n(e) each intervening income year (if any) between the one in paragraph (a) and the one in paragraph (b), (c) or (d).\n\nTrigger year\n\n(2) If this Subdivision is being applied for the purposes of section 267‑20, the trigger year is the loss year mentioned in that section. If it is being applied for the purposes of section 267‑25, the trigger year is the year in which the debt mentioned in that section was incurred.\n\nTest year distribution of capital\n\n(3) Subsection (1) applies in the same way to distributions of capital made by the trust, to determine what is a test year distribution of capital.\n\n269‑70  When individual receives different percentages\n\nFor the purposes of section 269‑60, if the trust does not distribute to an individual the same percentage of income or capital for every test year distribution, the trust is taken to have distributed to the individual, for every test year distribution, the smallest percentage that it distributed to the individual for any of the test year distributions.\n\n269‑75  Incomplete distributions\n\nFor the purposes of section 269‑60, if, before the end of 2 months after the end of the income year:\n\n(a) the trust has distributed directly or indirectly the whole or part of a test year distribution of income or test year distribution of capital to a company, partnership or trust (the entity); and\n\n(b) an amount (the undistributed amount) consisting of the whole or part of the income or capital so distributed to the entity satisfies the following requirements:\n\n(i) the amount has not been distributed by the entity; and\n\n(ii) an individual, directly or indirectly, and for his or her own benefit, has a fixed entitlement to a share of the amount;\n\nthe entity is taken to have distributed the share of the undistributed amount to the individual immediately before the end of 2 months after the end of the income year.\n\n269‑80  Where individual’s death or breakdown of marriage or relationship\n\n(1) For the purposes of section 269‑60, if:\n\n(a) the trust distributes, directly or indirectly to an individual as mentioned in that section, income or capital that is included in a test year distribution; and\n\n(b) a later distribution of income or capital is made that is included in the same or a different test year distribution; and\n\n(c) either the individual dies before the later distribution is made or:\n\n(i) before it is made, there is a breakdown in the marriage or relationship (see section 272‑140) of the individual; and","sortOrder":1000124},{"sectionNumber":"full-source-retrieval-0126","sectionType":"document_chunk","heading":"Document excerpt 126","content":"(ii) after the breakdown, no distribution of income or capital of the trust, that is included in a test year distribution, is made directly or indirectly to the individual; and\n\n(iii) it is reasonable to assume that the breakdown in the marriage or relationship is the reason for no such distribution being made;\n\nthen subsections (2) and (3) apply.\n\n(2) No income or capital distributed to the individual by the trust, directly or indirectly as mentioned in section 269‑60, is to be included in any test year distribution.\n\n(3) If:\n\n(a) the requirements of subsection (1) are met because the individual has died; and\n\n(b) immediately before his or her death, the individual had directly or indirectly, and for his or her own benefit, a fixed entitlement to a share of the income or capital of the trust; and\n\n(c) after the individual’s death, the fixed entitlement is held by a person as trustee of the individual’s estate or by a person who received it as a beneficiary of the estate;\n\nno income or capital distributed to the person as such a trustee or beneficiary, directly or indirectly as mentioned in section 269‑60, is to be included in any test year distribution.\n\n269‑85  Arrangements to pass pattern of distributions test\n\n(1) The trust is taken for the purposes of section 269‑60 not to have distributed, directly or indirectly to an individual, and for the individual’s own benefit, a share of a test year distribution of income or capital of the trust if the condition in subsection (2) is met.\n\n(2) The condition is that an arrangement was entered into where:\n\n(a) the arrangement in some way (directly or indirectly) related to, affected or depended for its operation on the share or its value; and\n\n(b) the purpose, or one of the purposes, of the arrangement was to ensure that the trust would meet the condition in subsection 267‑30(2).\n\nSubdivision 269‑E—Control a non‑fixed trust\n\n269‑95  Control a non‑fixed trust\n\nBasic meaning\n\n(1) Subject to this section, a group (see subsection (5)) controls a non‑fixed trust if:\n\n(a) the group has the power, by means of the exercise of a power of appointment or revocation or otherwise, to obtain beneficial enjoyment (directly or indirectly) of the capital or income of the trust; or\n\n(b) the group is able (directly or indirectly) to control the application of the capital or income of the trust; or\n\n(c) the group is capable, under a scheme, of gaining the beneficial enjoyment in paragraph (a) or the control in paragraph (b); or\n\n(d) the trustee is accustomed, under an obligation or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the group; or\n\n(e) the group is able to remove or appoint the trustee; or\n\n(f) the group acquires more than a 50% stake in the income or capital of the trust.\n\nReplacement group after death etc.\n\n(2) The consequences set out in subsection (3) apply if:\n\n(a) a group (the original group) ceases to control a non‑fixed trust only because of the death, incapacitation or breakdown in the marriage or relationship of the individual comprising, or an individual included in, the group; and\n\n(b) another group (the replacement group) begins to control the trust within the following period (whether or not any other group controlled the trust in the interim):\n\n(i) one year after the death, incapacitation or breakdown in the marriage or relationship; or\n\n(ii) such longer period as the Commissioner determines in relation to the death, incapacitation or breakdown in the marriage or relationship; and\n\n(c) the replacement group consists of:\n\n(i) if the individual who died or became incapacitated or whose marriage or relationship broke down comprised the original group—one or more individuals who are members of the individual’s family (see section 272‑95); or\n\n(ii) in any other case—one or more such individuals together with all of the persons who were members of the original group, other than any individual who has died or become incapacitated or whose marriage or relationship has broken down; and\n\n(d) the replacement group began to control the trust only because of the death, incapacitation or breakdown in the marriage or relationship of the individual; and\n\n(e) disregarding any individual who died or became incapacitated or whose marriage or relationship broke down and the one or more individuals covered by paragraph (c)—the beneficiaries of the trust immediately before the original group ceased to control the trust are the beneficiaries of the trust immediately after the replacement group begins to control the trust.\n\nConsequences of subsection (2)\n\n(3) For the purposes of subsection (2), the consequences are that:\n\n(a) the replacement group is taken to have controlled the trust from the time when the original group began to control it until the time when the replacement group actually began to control it; and\n\n(b) the original group is taken not to have controlled the trust; and\n\n(c) if:\n\n(i) a person or persons (other than a replacement group) began to control the trust at some time during the period from the time the original group ceased to control the trust until the replacement group began to do so; and\n\n(ii) the person or persons began to control the trust only because of the death, incapacitation or breakdown in the marriage or relationship of the individual; and\n\n(iii) the control did not continue after the replacement group began to control the trust;\n\nthe person or persons are taken not to have controlled the trust.\n\nDeemed absence of control\n\n(4) If:\n\n(a) at a particular time, a group controls a non‑fixed trust; and\n\n(b) the Commissioner, having regard to:\n\n(i) the identity of the beneficiaries of the trust at any time before and at any time after the group began to control the trust; and\n\n(ii) all other relevant circumstances;\n\nconsiders that it is reasonable that the group be taken not to control the trust at the particular time;\n\nthe group is taken not to control the trust at the particular time.\n\nGroup\n\n(5) A group is:\n\n(a) a person; or\n\n(b) a person and one or more associates; or\n\n(c) 2 or more associates of a person.\n\nSubdivision 269‑F—Business continuity test\n\n269‑100  Passing the business continuity test\n\nBasic meaning\n\n(1) A listed widely held trust passes the business continuity test during a period (the business continuity test period) in relation to a time (the test time) if throughout the business continuity test period it carries on the same business as it carried on immediately before the test time.\n\nRelevance of being a trust\n\n(2) The mere fact of being a trust does not mean that the trust cannot carry on a business.\n\nFirst exception\n\n(3) However, the trust does not pass the business continuity test under this section if, at any time during the business continuity test period, it derives assessable income from:\n\n(a) a business of a kind that it did not carry on before the test time; or\n\n(b) a transaction of a kind that it had not entered into in the course of its business operations before the test time.\n\nSecond exception\n\n(4) The trust also does not pass the business continuity test under this section if, before the test time, it:\n\n(a) began to carry on a business it had not previously carried on; or\n\n(b) in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;\n\nand did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the business continuity test period the same business as it carried on immediately before the test time.\n\nThird exception\n\n(5) So far as the test is applied for the purpose of section 266‑115 (Listed widely held trust may be required to work out its net income and tax loss in a special way) and section 268‑20 (Widely held unit trust’s income year to be divided into periods), the trust also does not pass the business continuity test under this section if, at any time during the business continuity test period, it incurs expenditure:\n\n(a) in carrying on a business of a kind that it did not carry on before the test time; or\n\n(b) as a result of a transaction of a kind that it had not entered into in the course of its business operations before the test time.\n\n269‑105  Modified test for income years starting on or after 1 July 2015\n\nCases in which businesses need only be similar\n\n(1) A listed widely held trust also passes the business continuity test during a period (the business continuity test period) in relation to a time (the test time) and in relation to:\n\n(a) a tax loss for a loss year starting on or after 1 July 2015; or\n\n(b) net income for an income year starting on or after 1 July 2015; or\n\n(c) a debt, incurred in an income year starting on or after 1 July 2015, that the trust writes off as bad; or\n\n(d) a debt, incurred in an income year starting on or after 1 July 2015, in relation to which a debt/equity swap (within the meaning of section 63E) occurs;\n\nif throughout the business continuity test period it carries on a business (its current business) that is similar to the business it carried on immediately before the test time (its former business).\n\nRelevance of being a trust\n\n(2) The mere fact of being a trust does not mean that the trust cannot carry on a business.\n\nMatters to be considered\n\n(3) Without limiting the matters that may be taken into account in ascertaining whether the trust’s current business is similar to its former business, the following must be taken into account:\n\n(a) the extent to which the assets (including goodwill) that are used in its current business to generate assessable income throughout the business continuity test period were also used in its former business to generate assessable income;\n\n(b) the extent to which the activities and operations from which its current business generated assessable income throughout the business continuity test period were also the activities and operations from which its former business generated assessable income;\n\n(c) the identity of its current business and the identity of its former business;\n\n(d) the extent to which any changes to its former business result from development or commercialisation of assets, products, processes, services or marketing or organisational methods of the former business.\n\nException\n\n(4) However, the trust does not pass the business continuity test under this section if, before the test time, it:\n\n(a) began to carry on a business it had not previously carried on; or\n\n(b) in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;\n\nand did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the business continuity test period a business that is similar to the business it carried on immediately before the test time.\n\nDivision 270—Schemes to take advantage of deductions\n\n270‑5  What this Division is about\n\nA trust may be prevented from making any use of deductions, or full use of deductions in an income year, if a scheme to take advantage of the deductions exists.\n\n270‑10  Schemes to take advantage of deductions\n\nBasic case\n\n(1) The consequences set out in section 270‑15 result if:\n\n(a) a deduction is allowable to a trust for the income year; and\n\n(b) under a scheme, the following happen (in any order):\n\n(i) the trust derives an amount of assessable income (the scheme assessable income) in the income year; and\n\n(ii) an outsider to the trust (see section 270‑25) directly or indirectly provides a benefit (see section 270‑20) to the trustee, to a beneficiary in the trust or to an associate of the trustee or of a beneficiary; and\n\nNote: The benefit may constitute all or any of the scheme assessable income.\n\n(iii) the trustee, a beneficiary in the trust or an associate of the trustee or of a beneficiary, directly or indirectly provides a benefit to the outsider to the trust or to an associate of the outsider (other than an associate covered by any of paragraphs 270‑25(1)(a) to (f)); and\n\nNote: The benefit may constitute all or any of the deduction.\n\n(c) it is reasonable to conclude that:\n\n(i) the trust derived the scheme assessable income; or\n\n(ii) the outsider provided the benefit as mentioned in subparagraph (b)(ii); or\n\n(iii) the trustee, beneficiary or associate provided the benefit as mentioned in subparagraph (b)(iii);\n\nwholly or partly, but not merely incidentally, because the deduction would be allowable; and\n\n(d) the trust is not an excepted trust under paragraph 272‑100(b), (c) or (d).\n\nSpecial case\n\n(2) If:\n\n(a) under a scheme, a person who, before the scheme was entered into, was an outsider to a trust becomes:\n\n(i) the trustee of the trust; or\n\n(ii) a person with a fixed entitlement to a share of the income or capital of the trust; and\n\n(b) if the person had not ceased to be an outsider to the trust, the requirements of subsection (1) would have been satisfied in relation to the scheme;\n\nthe requirements of subsection (1) are taken to have been satisfied in relation to the scheme.\n\n270‑15  Tax consequences of schemes\n\nIf the requirements of subsection 270‑10(1) are satisfied, the consequences are that:\n\n(a) to the extent (if any) that the deduction mentioned in paragraph 270‑10(1)(a) relates exclusively, or may appropriately be related, to the scheme assessable income, the deduction is not allowable; and\n\n(b) if the net income of the trust is less than the scheme assessable income or there is no net income—the trust has a net income equal to, or the net income is increased so that it equals, the scheme assessable income; and\n\n(c) paragraph (b) and the scheme assessable income are disregarded in working out any tax loss incurred by the trust in the income year; and\n\n(d) if paragraph (b) applies and the deduction mentioned in paragraph 270‑10(1)(a) is for a tax loss—paragraph (b) and the scheme assessable income are disregarded in working out any deduction in respect of the tax loss allowable after the income year.\n\n270‑20  Benefit\n\nA benefit is:\n\n(a) money, a dividend or property (whether tangible or intangible); or\n\n(b) a right or entitlement (whether or not property); or\n\n(c) services; or\n\n(d) the extinguishment, forgiveness, release or waiver of a debt or other liability; or\n\n(e) the doing of anything that results in the derivation of assessable income; or\n\n(f) anything that, disregarding the preceding paragraphs, is a benefit or advantage.\n\n270‑25  Outsider to trust\n\nOutsider to family trust\n\n(1) If the trust mentioned in paragraph 270‑10(1)(a) is a family trust, an outsider to the trust is a person other than:\n\n(a) the trustee of the trust; or\n\n(b) a person with a fixed entitlement to a share of the income or capital of the trust; or\n\n(c) the individual specified in the trust’s family trust election; or\n\n(d) a member of the individual’s family; or\n\n(da) a trust with the same individual specified in its family trust election; or\n\n(e) a company, partnership or trust that made an interposed entity election to be included in the individual’s family group, where the election was in force (including before it was made) when the scheme mentioned in paragraph 270‑10(1)(b) commenced; or\n\n(f) a fixed trust, company or partnership (an entity) where, at all times while the scheme mentioned in paragraph 270‑10(1)(b) was being carried out:\n\n(i) the individual specified in the trust’s family trust election; or\n\n(ii) one or more members of the individual’s family; or\n\n(iii) the trustees of one or more family trusts, provided the individual is specified in the family trust election of each of those family trusts;\n\nor any combination of the above, had fixed entitlements, directly or indirectly, and for their own benefit, to all of the income and capital of the entity.\n\nOutsider to non‑family trust\n\n(2) If the trust mentioned in paragraph 270‑10(1)(a) is not a family trust, an outsider to the trust is a person other than:\n\n(a) the trustee of the trust; or\n\n(b) a person with a fixed entitlement to a share of the income or capital of the trust.\n\nDivision 271—Family trust distribution tax\n\n271‑5  What this Division is about\n\nBasically, if:\n\n• the trustee of a trust makes a family trust election; or\n\n• a company, the partners in a partnership or the trustee of a trust makes an election to be included in a family group in relation to a family trust;\n\nand the company, partnership or trust concerned confers a present entitlement to, or distributes, income or capital other than upon or to a specified individual or members of his or her family group, a special tax is payable on the conferral or distribution.\n\nIf certain persons do not provide information about conferrals of present entitlements or distributions by non‑residents connected with them, the persons may become liable to the special tax on their own conferrals or distributions.\n\nIf certain non‑residents do not pay the special tax by the due date, other persons connected with them may also become liable to pay a special tax equal to the unpaid amount.\n\n271‑10  Family trust distribution tax\n\nThis Division provides for tax to be payable in specified circumstances. The tax is called family trust distribution tax.\n\n271‑15  Tax liability where family trust makes distribution etc. outside family group\n\n(1) This section applies if:\n\n(a) a trustee makes a family trust election in relation to a trust; and\n\n(b) at any time while the election is in force (including a time before it was made), the trust confers a present entitlement to, or distributes, income or capital of the trust:\n\n(i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual’s family group in relation to the conferral or distribution; or","sortOrder":1000125},{"sectionNumber":"full-source-retrieval-0127","sectionType":"document_chunk","heading":"Document excerpt 127","content":"(ii) upon or to the individual specified in the election or a member of the individual’s family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual’s family group in relation to the conferral or distribution.\n\n(2) If this section applies:\n\n(a) if the trustee is an individual—the trustee is liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed; or\n\n(b) if the trustee is a company—the trustee, together with each person who was a director of the company at the time of the conferral or distribution, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed.\n\n271‑20  Tax liability where interposed trust makes distribution etc. outside family group\n\n(1) This section applies if:\n\n(a) the trustee of a trust makes an interposed entity election for the trust to be included in the family group of the individual specified in a family trust election; and\n\n(b) at any time while the election is in force (including a time before it was made), the trust confers a present entitlement to, or distributes, income or capital of the trust:\n\n(i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual’s family group in relation to the conferral or distribution; or\n\n(ii) upon or to the individual specified in the election or a member of the individual’s family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual’s family group in relation to the conferral or distribution.\n\n(2) If this section applies:\n\n(a) if the trustee is an individual—the trustee is liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed; or\n\n(b) if the trustee is a company—the trustee, together with each person who was a director of the company at the time of the conferral or distribution, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed.\n\n271‑25  Tax liability where interposed partnership makes distribution etc. outside family group\n\n(1) This section applies if:\n\n(a) the partners in a partnership make an interposed entity election for the partnership to be included in the family group of the individual specified in a family trust election; and\n\n(b) at any time while the interposed entity election is in force (including a time before it was made), the partnership confers a present entitlement to, or distributes, income or capital:\n\n(i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual’s family group in relation to the conferral or distribution; or\n\n(ii) upon or to the individual specified in the election or a member of the individual’s family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual’s family group in relation to the conferral or distribution.\n\n(2) If this section applies, the partners, together with each person who at the time of the conferral or distribution was a director of any partner that was a company, are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed.\n\n271‑30  Tax liability where interposed company makes distribution outside family group\n\n(1) This section applies if:\n\n(a) a company makes an interposed entity election for the company to be included in the family group of the individual specified in a family trust election; and\n\n(b) at any time while the interposed entity election is in force (including a time before it was made), the company confers a present entitlement to, or distributes, income or capital of the company:\n\n(i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual’s family group in relation to the conferral or distribution; or\n\n(ii) upon or to the individual specified in the election or a member of the individual’s family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual’s family group in relation to the conferral or distribution.\n\n(2) If this section applies, the company, together with each person who was a director of the company at the time of the conferral or distribution, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed.\n\n271‑35  Avoidance of double‑counting\n\nIf, after conferring a present entitlement to income or capital as mentioned in paragraph 271‑15(1)(b), 271‑20(1)(b), 271‑25(1)(b) or 271‑30(1)(b), the trust, partnership or company concerned distributes the income or capital in satisfaction of the entitlement, the distribution is disregarded for the purposes of that paragraph.\n\n271‑40  Exclusion of directors from liability to pay tax\n\n(1) This section applies to a director of a company who is included among persons who are jointly and severally liable to pay family trust distribution tax under section 271‑15, 271‑20, 271‑25 or 271‑30.\n\nDirector not taking part in distribution decision\n\n(2) If:\n\n(a) the director did not take part in any decision to confer the entitlement or make the distribution concerned; and\n\n(b) if the director was aware of the proposal to make the decision or of the fact that it was made—the director took reasonable steps to prevent the making, or the implementation, of the decision;\n\nthe director is not included among the persons jointly and severally liable.\n\nDirector taking part in distribution decision\n\n(3) If:\n\n(a) the director took part in any decision to confer the entitlement or make the distribution; and\n\n(b) the director voted against, or otherwise disagreed with the decision; and\n\n(c) the director took reasonable steps to prevent the implementation of the decision;\n\nthe director is not included among the persons jointly and severally liable.\n\n271‑45  Requirements for section 271‑55 notice to family trust\n\nNotice about non‑resident distributions\n\n(1) The Commissioner may give a notice in accordance with section 271‑55 (which deals with information about distributions etc. by certain non‑residents) to the trustee of a trust (the primary entity) who has made a family trust election, provided the requirements of subsections (2) to (4) of this section are met.\n\nFirst requirement\n\n(2) At a time (the test time) while the election is in force (including a time before it was made), the primary entity must have conferred a present entitlement to, or distributed, income or capital upon or to a company, partnership or trust (the secondary entity) that at the time was, because of an interposed entity election, a member of the family group of the individual (the primary individual) specified in the family trust election.\n\nSecond requirement\n\n(3) When the Commissioner gives the notice:\n\n(a) if the secondary entity is a partnership—a partner must be a non‑resident; and\n\n(b) if the secondary entity is a company—the company must be a non‑resident; and\n\n(c) if the secondary entity is a trust—either:\n\n(i) a trustee must be a non‑resident; or\n\n(ii) the central management and control of the trust must be outside Australia.\n\nThird requirement\n\n(4) The Commissioner must give the notice before the later of:\n\n(a) 5 years after the conferral or distribution mentioned in subsection (2); and\n\n(b) the end of the period during which the primary entity is required by section 262A to retain records in relation to the income year in which the conferral or distribution took place.\n\n271‑50  Requirements for section 271‑55 notice to interposed entity\n\nNotice about non‑resident distributions\n\n(1) If:\n\n(a) a company, the trustee of a trust or the partners in a partnership (which company, trust or partnership is the primary entity) makes an interposed entity election to be included in the family group of an individual specified in a family trust election; and\n\n(b) the requirements of subsections (2) to (4) are met;\n\nthe Commissioner may give the company, trustee or partners a notice in accordance with section 271‑55 (which deals with information about distributions etc. by certain non‑residents).\n\nFirst requirement\n\n(2) At a time (the test time) while the election was in force (including a time before it was made), the primary entity must have conferred a present entitlement to, or distributed, income or capital upon or to a company, partnership or trust (a secondary entity), where the secondary entity:\n\n(a) was the family trust whose trustee made the family trust election; or\n\n(b) was, because of an interposed entity election that was in force at the time, included in the family group of the individual (the primary individual) specified in the family trust election.\n\nSecond requirement\n\n(3) When the Commissioner gives the notice:\n\n(a) if the secondary entity is a partnership—a partner must be a non‑resident; and\n\n(b) if the secondary entity is a company—the company must be a non‑resident; and\n\n(c) if the secondary entity is a trust—either:\n\n(i) a trustee must be a non‑resident; or\n\n(ii) the central management and control of the trust must be outside Australia.\n\nThird requirement\n\n(4) The Commissioner must give the notice before the later of:\n\n(a) 5 years after the conferral or distribution mentioned in subsection (2); and\n\n(b) the end of the period during which the primary entity is required by section 262A to retain records in relation to the income year in which the conferral or distribution took place.\n\n271‑55  Notice requiring information about non‑resident distributions etc.\n\nInformation required\n\n(1) The notice that the Commissioner may give the company, partnership or trustee if the requirements of subsections 271‑45(2) to (4) or 271‑50(2) to (4) are met must require the company, partners or trustee to give the Commissioner specified information about conferrals of present entitlements to, or distributions of, income or capital since the test time by any company, partnership or trust covered by subsection (2) of this section.\n\nEntities covered\n\n(2) The following are covered by this subsection:\n\n(a) the secondary entity; and\n\n(b) any company in respect of which an interposed entity election had been made to be included in the family group of the primary individual, where the company was a non‑resident, and the election was in force, when the conferral or distribution took place; and\n\n(c) any partnership in respect of which an interposed entity election had been made to be included in the family group of the primary individual, where any of the partners was a non‑resident, and the election was in force, when the conferral or distribution took place; and\n\n(d) any trust in respect of which a family trust election specifying the primary individual had been made or in respect of which an interposed entity election had been made to be included in the family group of the primary individual, where, when the conferral or distribution took place, either a trustee was a non‑resident or the trust’s central management and control were outside Australia.\n\nInformation not within knowledge\n\n(3) The information need not be within the knowledge of the company, partners or trustee at the time the notice is given.\n\nPeriod for giving information\n\n(4) The notice must specify a period within which the company, partners or trustee is to give the information. The period must not end earlier than 21 days after the day on which the Commissioner gives the notice.\n\nCompany’s liability\n\n(5) If the company does not give the information within the period or within such further period as the Commissioner allows, it, together with each person who was a director of the company at the test time, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital mentioned in subsection 271‑50(2).\n\nPartners’ liability\n\n(6) If the partners do not give the information within the period or within such further period as the Commissioner allows, they, together with each person who at the test time was a director of any partner that was a company, are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital mentioned in subsection 271‑50(2).\n\nTrustee’s liability\n\n(7) If the trustee does not give the information within the period or within such further period as the Commissioner allows:\n\n(a) if the trustee is an individual—the trustee is liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital mentioned in subsection 271‑45(2) or 271‑50(2); or\n\n(b) if the trustee is a company—the trustee, together with each person who was a director of the company at the test time, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital mentioned in subsection 271‑45(2) or 271‑50(2).\n\n271‑60  Tax liability where non‑resident family trust’s tax unpaid\n\nConditions for tax liability\n\n(1) If:\n\n(a) tax under section 271‑15 on the amount or value of income or capital of a family trust becomes due and payable; and\n\n(b) the Commissioner determines, in writing, at or after the time when the tax became due and payable, that it is unlikely that the whole or part (the unpaid amount) of the tax will be paid; and\n\n(c) when the Commissioner makes the determination:\n\n(i) a trustee of the family trust is a non‑resident; or\n\n(ii) the central management and control of the family trust is outside Australia;\n\nthen the consequences set out in subsection (2) result.\n\nTax liability\n\n(2) The consequences are:\n\n(a) if there is only one person covered by subsection (3)—that person is liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount; and\n\n(b) if there are 2 or more persons covered by subsection (3)—those persons are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount.\n\nPersons liable under subsection (2)\n\n(3) The persons covered by this subsection are:\n\n(a) the trustee of any trust to which subsection (4) applies; and\n\n(b) if the trustee of any such trust is a company—any person who is a director of the company when the determination is made; and\n\n(c) any company to which subsection (5) applies; and\n\n(d) any person who is a director of such a company when the determination is made.\n\nTrust mentioned in paragraph (3)(a)\n\n(4) This subsection applies to a trust if the trust would be:\n\n(a) prevented by Division 266 or 267 from deducting a tax loss or amount in respect of a debt; or\n\n(b) required by Division 266 or 267 to work out its net income and tax loss under Division 268;\n\nin the income year in which the determination is made, or an earlier income year, if the family trust had not been a family trust.\n\nCompany mentioned in paragraph (3)(c)\n\n(5) This subsection applies to a company if, in its return of income for the income year in which the determination is made or an earlier income year:\n\n(a) the company deducted an amount in respect of a debt, where it was allowed to do so but, because of former section 63B or 63C, or Subdivision 165‑C, 709‑D or 719‑I of the Income Tax Assessment Act 1997, it would not have been if the family trust had not been a family trust; or\n\n(b) the company deducted a tax loss (within the meaning of the Income Tax Assessment Act 1997) where it was allowed to do so but, because of Subdivision 165‑A of that Act, it would not have been if the family trust had not been a family trust; or\n\n(c) the company applied a net capital loss (within the meaning of former Part IIIA of this Act) where it was allowed to do so but, because of former subsection 160ZC(5), it would not have been if the family trust had not been a family trust; or\n\n(d) the company applied a net capital loss (within the meaning of the Income Tax Assessment Act 1997) where it was allowed to do so but, because of Subdivision 165‑CA of that Act, it would not have been if the family trust had not been a family trust;\n\n(e) the company did not calculate its taxable income in accordance with former section 50C of this Act where it was not required to do so but would have been if the family trust had not been a family trust; or\n\n(f) the company calculated its taxable income in accordance with former section 50C and took into account an amount, by reason of former subsection 50D(2), in ascertaining the eligible notional loss of the company under former section 50D, where it was required to calculate its taxable income in accordance with former section 50C and entitled to take the amount into account but would not have been so entitled if the family trust had not been a family trust; or","sortOrder":1000126},{"sectionNumber":"full-source-retrieval-0128","sectionType":"document_chunk","heading":"Document excerpt 128","content":"(g) the company did not calculate its taxable income and tax loss under Subdivision 165‑B of the Income Tax Assessment Act 1997 where it was not required to do so but would have been if the family trust had not been a family trust; or\n\n(h) the company did not calculate its net capital gain and net capital loss under Subdivision 165‑CB of the Income Tax Assessment Act 1997 where it was not required to do so but would have been if the family trust had not been a family trust.\n\n271‑65  Tax liability where non‑resident interposed entity’s tax unpaid\n\nWhen section applies\n\n(1) This section applies if:\n\n(a) a company, the partners in a partnership or the trustee of a trust makes an interposed entity election to be included in the family group of an individual (the primary individual); and\n\n(b) while the interposed entity election is in force, the company, partnership or trust (the primary interposed entity) confers a present entitlement to, or distributes, income or capital; and\n\n(c) family trust distribution tax becomes due and payable on the amount or value of the income or capital.\n\nDetermination about unpaid tax\n\n(2) If:\n\n(a) the Commissioner determines, in writing, at or after the time when the tax became due and payable, that it is unlikely that the whole or part (the unpaid amount) of the tax will be paid; and\n\n(b) at the time:\n\n(i) if the primary interposed entity is a company—the company is a non‑resident; and\n\n(ii) if the primary interposed entity is a partnership—a partner is a non‑resident; and\n\n(iii) if the primary interposed entity is a trust—either a trustee is a non‑resident or the central management and control of the trust is outside Australia;\n\nthen the consequences in subsection (3) result.\n\nConsequences\n\n(3) The consequences are:\n\n(a) if there is only one person covered by subsection (4)—that person is liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount; and\n\n(b) if there are 2 or more persons covered by subsection (4)—those persons are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount.\n\nPersons covered\n\n(4) The persons covered by this subsection are:\n\n(a) any company to which subsection (5) applies; and\n\n(b) any person who is a director of such a company when the determination is made; and\n\n(c) any partner in a partnership to which subsection (5) applies; and\n\n(d) if any partner in any such partnership is a company—any person who is a director of the company when the determination is made; and\n\n(e) the trustee of any trust to which subsection (5) applies; and\n\n(f) if the trustee of any such trust is a company—any person who is a director of the company when the determination is made.\n\nEntities making election and distribution etc.\n\n(5) This subsection applies to any company, partnership or trust (an entity), other than the primary interposed entity, meeting the following conditions:\n\n(a) the company, the partners in the partnership or the trustee of the trust made:\n\n(i) an interposed entity election to be included in the family group of the primary individual; or\n\n(ii) a family trust election specifying the primary individual; and\n\n(b) while that election and the interposed entity election made in respect of the primary interposed entity were in force, and before the Commissioner made the determination mentioned in paragraph (2)(a), the entity conferred a present entitlement to, or distributed, income or capital upon or to an eligible entity (see subsection (6)).\n\nEligible entities\n\n(6) Each of the following is an eligible entity:\n\n(a) the primary interposed entity;\n\n(b) a company in respect of which an interposed entity election had been made to be included in the family group of the primary individual, where the company was a non‑resident, and the election was in force, when the conferral or distribution took place;\n\n(c) a partnership in respect of which an interposed entity election had been made to be included in the family group of the primary individual, where any of the partners was a non‑resident, and the election was in force, when the conferral or distribution took place;\n\n(d) a trust:\n\n(i) in respect of which an interposed entity election had been made to be included in the family group of the primary individual; or\n\n(ii) in respect of which a family trust election had been made specifying the primary individual;\n\nwhere, when the conferral or distribution took place, the election was in force and either a trustee was a non‑resident or the trust’s central management and control were outside Australia.\n\n271‑70  Reduction of liability where tax paid\n\nIf family trust distribution tax (the secondary tax) becomes payable under section 271‑60 or 271‑65 on an amount of family trust distribution tax (the primary tax) that the Commissioner determined was unlikely to be paid:\n\n(a) if any of the primary tax is later paid—any liability to the secondary tax existing at the time of the payment is reduced by the amount of the payment; and\n\n(b) if any of the secondary tax is later paid—any liability to the primary tax existing at the time of the payment is reduced by the amount of the payment.\n\n271‑75  Payment of family trust distribution tax\n\nTax under sections 271‑15 to 271‑30\n\n(1) Family trust distribution tax under any of sections 271‑15 to 271‑30 is due and payable:\n\n(a) in a case where the conferral or distribution on whose amount or value the tax is payable was made before the day on which the election was made—at the end of 21 days after the day on which the election was made; or\n\n(b) in any other case—at the end of 21 days after the day on which the conferral or distribution, on whose amount or value the tax is payable, was made;\n\nor by the end of such later day as the Commissioner, in special circumstances, allows.\n\nTax under section 271‑55\n\n(2) Family trust distribution tax under section 271‑55 is due and payable at the end of 21 days after the end of the period or further period mentioned in subsection (5), (6) or (7), as the case requires, of that section.\n\nTax under section 271‑60 or 271‑65\n\n(3) Family trust distribution tax under section 271‑60 or 271‑65 is due and payable at the end of 21 days after the day, or the last day, on which the notice mentioned in subsection 271‑90(2) is given.\n\nDebt due\n\n(4) Family trust distribution tax, when it becomes due and payable, is a debt due to the Commonwealth and payable to the Commissioner.\n\nApplication\n\n(5) Subsection (4) does not apply in relation to any family trust distribution tax that becomes due and payable on or after 1 July 2000.\n\nNote: For provisions about collection and recovery of family trust distribution tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n271‑80  Late payment of family trust distribution tax\n\nIf any of the family trust distribution tax which a person is liable to pay remains unpaid 60 days after the day by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n\n(a) began at the beginning of the 60th day after the day by which the family trust distribution tax was due to be paid; and\n\n(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n\n(i) the family trust distribution tax;\n\n(ii) general interest charge on any of the family trust distribution tax.\n\nNote: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n271‑90  Notice of liability\n\nNotice for purposes of section 271‑15 etc.\n\n(1) The Commissioner may give a person or persons, by post or otherwise, a notice specifying:\n\n(a) the amount of any family trust distribution tax that the Commissioner has ascertained is payable under any of sections 271‑15 to 271‑30 and 271‑55 by the person or persons; and\n\n(b) the day on which that tax became or will become due and payable.\n\nNotice for purposes of section 271‑60 or 271‑65\n\n(2) The Commissioner must give persons, by post or otherwise, a notice specifying the amount of any family trust distribution tax that the Commissioner has ascertained is payable under section 271‑60 or 271‑65 by the persons.\n\nEffect of notice on liability etc.\n\n(3) The liability of a person or persons to family trust distribution tax on the amount or value of a distribution, and (except in the case of a notice under subsection (2)) the due date for payment of the tax, are not dependent on, or in any way affected by, the giving of a notice in respect of the amount.\n\nAmendment of notice\n\n(4) The Commissioner may at any time amend a notice. An amended notice is a notice for the purposes of this section.\n\nInconsistency between notices\n\n(5) If there is an inconsistency between notices that relate to the same subject matter, the later notice prevails to the extent of the inconsistency.\n\nObjections\n\n(6) A person who is or persons who are dissatisfied with a notice made in relation to the person or persons may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.\n\n271‑95  Request for notice of liability\n\n(1) A person or persons may make a written request to the Commissioner to be given a notice under subsection 271‑90(1) or (2) in respect of specified circumstances in which family trust distribution tax may be payable.\n\nCompliance with request for subsection 271‑90(1) notice\n\n(2) In the case of a notice under subsection 271‑90(1), the Commissioner must, subject to subsection (4) of this section, comply with the request if it is lodged with the Commissioner before the end of the 21 days mentioned in subsection 271‑75(1) or (2), or before the end of such later day as the Commissioner allows.\n\nCompliance with request for subsection 271‑90(2) notice\n\n(3) In the case of a notice under subsection 271‑90(2), the Commissioner must, subject to subsection (4) of this section, comply with the request regardless of when it is lodged.\n\nFurther information\n\n(4) If the Commissioner considers that the notice cannot be given unless the person making the request gives the Commissioner further information about the circumstances in which the family trust distribution tax may be payable, the Commissioner must request the person to give the Commissioner the information.\n\nFailure to give information\n\n(5) If the person does not give the information, the Commissioner is not required to comply with the request to give the notice.\n\n271‑105  Amounts subject to family trust distribution tax not assessable\n\n(1) If:\n\n(a) family trust distribution tax (the tax payable) becomes payable under any of sections 271‑15 to 271‑30 and 271‑55 on the amount or value of income or capital of a company, partnership or trust; and\n\n(b) a payment (the tax payment amount) of the whole or part of the tax payable is made, or a reduction (also the tax payment amount) in the whole or part of the tax payable takes place under paragraph 271‑70(b); and\n\n(c) taking into account any previous application of this subsection, the whole or part of the amount or value of the income or capital is included in the assessable income of the company, partnership or trust or of any other person;\n\nthe amount included in the assessable income is reduced by the amount worked out using the formula in subsection (2).\n\n(2) The formula is:\n\n![Start formula start fraction Tax payment amount over Tax payable end fraction times Original assessable amount end formula](image.015.png)\n\nThe original assessable amount is so much of the amount or value of the income or capital as, disregarding any previous reductions under this section, is included in the assessable income of the company, partnership or trust or of any other person.\n\n(3) The amount of the reduction is not assessable income and is not exempt income.\n\nDivision 272—Interpretation\n\nSubdivision 272‑A—Fixed entitlement to share of income or capital\n\n272‑5  Fixed entitlement to share of income or capital of a trust\n\n(1) If, under a trust instrument, a beneficiary has a vested and indefeasible interest in a share of income of the trust that the trust derives from time to time, or of the capital of the trust, the beneficiary has a fixed entitlement to that share of the income or capital.\n\nCase where interest not defeasible\n\n(2) If:\n\n(a) a person holds units in a unit trust; and\n\n(b) the units are redeemable or further units are able to be issued; and\n\n(c) if units in the unit trust are listed for quotation in the official list of an approved stock exchange—the units held by the person will be redeemed, or any further units will be issued, for the price at which other units of the same kind in the unit trust are offered for sale on the approved stock exchange at the time of the redemption or issue; and\n\n(d) if the units are not listed as mentioned in paragraph (c)—the units held by the person will be redeemed, or any further units will be issued, for a price determined on the basis of the net asset value, according to Australian accounting principles, of the unit trust at the time of the redemption or issue;\n\nthen the mere fact that the units are redeemable, or that the further units are able to be issued, does not mean that the person’s interest, as a unit holder, in the income or capital of the unit trust is defeasible.\n\nDeemed fixed entitlement\n\n(3) If:\n\n(a) a beneficiary with an interest in a share of income that the trust derives from time to time, or of the capital of a trust, does not have a fixed entitlement to the share; and\n\n(b) the Commissioner considers that the beneficiary should be treated as having the fixed entitlement, having regard to:\n\n(i) the circumstances in which the entitlement is capable of not vesting or the defeasance can happen; and\n\n(ii) the likelihood of the entitlement not vesting or the defeasance happening; and\n\n(iii) the nature of the trust;\n\nthe beneficiary has the fixed entitlement.\n\n272‑10  Fixed entitlement to share of income or capital of a company\n\n(1) If a shareholder in a company holds shares carrying the right to receive some or all of the dividends that may be paid by the company, the shareholder has a fixed entitlement to a share of the income of the company equal to the percentage of the total dividends represented by the dividends that the shareholder has a right to receive.\n\n(2) If a shareholder in a company holds shares carrying the right to receive the whole or part of any distribution of the paid‑up share capital of the company in the event of any return of capital to shareholders, the shareholder has a fixed entitlement to a share of the capital of the company equal to the percentage of the total distribution represented by the amount that the shareholder has a right to receive.\n\n272‑15  Fixed entitlement to share of income or capital of a partnership\n\n(1) If, under a partnership agreement:\n\n(a) a partner is entitled to a share of income that the partnership derives from time to time, or of the capital of the partnership; and\n\n(b) the share is not able to be varied;\n\nthe partner has a fixed entitlement to that share of the income or capital.\n\nDeemed fixed entitlement\n\n(2) If:\n\n(a) a partner does not have a fixed entitlement to a share of income that the partnership derives from time to time, or of the capital of a partnership, only because the partner’s share of the income or capital is able to be varied; and\n\n(b) the Commissioner considers that the partner should be treated as having the fixed entitlement, having regard to:\n\n(i) the circumstances in which the share is able to be varied; and\n\n(ii) the likelihood of the variation happening; and\n\n(iii) the nature of the partnership;\n\nthe partner has the fixed entitlement.\n\n272‑20  Fixed entitlement to share of income or capital held indirectly\n\nA person holds a fixed entitlement to a share of the income or capital of a company, partnership or trust indirectly if the person holds the entitlement indirectly through fixed entitlements to shares of the income or capital, respectively, of interposed companies, partnerships or trusts.\n\n272‑25  Special cases of fixed entitlements held directly or indirectly\n\nCoverage of section\n\n(1) This section affects references in this Schedule (other than in subparagraph 269‑75(b)(ii) and section 272‑30) to a person or individual having, directly or indirectly, a fixed entitlement to a share of the income or capital of a company, partnership or trust (the main entity) at a particular time (the test time).\n\nNote: This section will not affect a reference to a person or individual having a fixed entitlement where the phrase “directly or indirectly” is not used.\n\nCertain interposed government bodies and special companies\n\n(2) If at the test time a government body or a special company has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity, subsection (4) or (5) applies.\n\nTo find out the meaning of government body and special company: see section 272‑140.\n\nCertain interposed funds\n\n(3) If:\n\n(a) a fund is:\n\n(i) a complying superannuation fund or complying approved deposit fund in relation to the income year in which the test time occurs; or\n\n(ii) a superannuation fund for foreign residents at the test time; and\n\n(b) at the test time the fund has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity;\n\nsubsection (4) or (5) applies.\n\nNote: See subsection 6(1) for the meaning of complying superannuation fund, complying approved deposit fund and superannuation fund for foreign residents.\n\nGovernment bodies, and funds or companies with more than 50 members\n\n(4) In the case of a government body, or a fund or company that has more than 50 members:","sortOrder":1000127},{"sectionNumber":"full-source-retrieval-0129","sectionType":"document_chunk","heading":"Document excerpt 129","content":"(a) except where paragraph (b) applies—the body, fund or company is treated as if it had the fixed entitlement as an individual and for the individual’s own benefit; and\n\n(b) if the reference is in subsection 272‑105(2)—the fixed entitlement is treated as if it were held instead by more than 20 individuals and for their own benefit.\n\nFunds or companies with 50 members or fewer\n\n(5) In the case of a fund or company that has 50 members or fewer, the fund or company is treated as if it did not have the entitlement, but the members are treated as if they had the entitlement in equal proportions.\n\nMixed application of subsections (4) and (5) in certain provisions\n\n(6) If, apart from this subsection:\n\n(a) the following apply:\n\n(i) for the purposes of section 266‑40 or subsection 267‑40(2), 267‑70(2), 268‑10(3), 268‑15(3) or 268‑25(4), it is necessary to determine whether individuals had fixed entitlements during a period; and\n\n(ii) the consequences in subsection (4) would apply to a fund or company for part of the period and the consequences in subsection (5) would apply for the remainder of the period; or\n\n(b) the following apply:\n\n(i) for the purposes of subsection 266‑90(1) or (2), 266‑125(2), 266‑165(2) or 268‑20(3), it is necessary to determine whether individuals had fixed entitlements at 2 times; and\n\n(ii) the consequences in subsection (4) would apply to a fund or company at one of the times and the consequences in subsection (5) would apply at the other time;\n\nthe consequences in subsection (5) instead apply to the fund or company for the whole of the period, or at both of the times, as the case may be.\n\nEntities ceasing to be special companies\n\n(7) If:\n\n(a) subsection (4) or (5) applies in relation to a special company during a period (the special company period); and\n\n(b) the special company period ends when the special company ceases to be a special company without ceasing to exist; and\n\n(c) having regard to the matters set out in subsection (8), the Commissioner considers it fair and reasonable to treat one or more of the persons who were members of the special company immediately after it ceased to be a special company as having held the fixed entitlement mentioned in subsection (2) during the whole or part of the special company period;\n\nthen:\n\n(d) subsection (4) or (5) does not apply in relation to the special company during the whole or the part of the special company period; and\n\n(e) the one or more persons are, as mentioned in paragraph (c), treated as having the fixed entitlement instead of the company.\n\nMatters for the purposes of paragraph (7)(c)\n\n(8) For the purposes of paragraph (7)(c), the matters are:\n\n(a) the identity of its members before and after the special company ceases to be a special company; and\n\n(b) the circumstances in which it ceases to be a special company; and\n\n(c) the nature of the rights in the special company held by its members before and after it ceases to be a special company; and\n\n(d) any other matter that the Commissioner considers relevant.\n\n272‑30  Additional special cases of fixed entitlements held directly or indirectly\n\nCoverage of section\n\n(1) This section also affects references in this Schedule (other than in subparagraph 269‑75(b)(ii) and section 272‑25) to a person or individual having, directly or indirectly, a fixed entitlement to a share of the income or capital of a company, partnership or trust (the main entity) at a particular time (the test time).\n\nNote: This section will not affect a reference to a person or individual having a fixed entitlement where the phrase “directly or indirectly” is not used.\n\nInterposed family trusts\n\n(2) If at the test time a family trust has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity, it is treated as if it had the fixed entitlement as an individual and for the individual’s own benefit.\n\nInterposed listed public companies and widely held unit trusts\n\n(3) If:\n\n(a) at the test time a listed public company or widely held unit trust has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity; and\n\nTo find out the meaning of listed public company: see section 272‑135.\n\n(b) having regard to the matters set out in subsection (4), the Commissioner considers it fair and reasonable to treat the company or trust as holding, at the test time, the whole or part of its fixed entitlement as an individual and for the individual’s own benefit;\n\nthe company or trust is treated as so holding the whole or the part of its fixed entitlement.\n\nMatters for the purposes of paragraph (3)(b)\n\n(4) For the purposes of paragraph (3)(b), the matters are:\n\n(a) the practicability of identifying any individuals who at the test time have fixed entitlements to a share of the income or capital of the main entity indirectly through the company or trust and for their own benefit; and\n\n(b) any change before or after the test time in the individuals who can be identified as having fixed entitlements of the kind mentioned in paragraph (a); and\n\n(c) any other matter that the Commissioner considers relevant.\n\n272‑35  Arrangements to pass fixed entitlement tests\n\n(1) If the operation of a provision of this Schedule depends on or is in any way affected by an individual having a fixed entitlement directly or indirectly, and for the individual’s own benefit, to a share of the income or capital of a company, partnership or trust, an individual who would otherwise have that fixed entitlement is taken not to have it for the purposes of the operation of the provision if the condition in subsection (2) is met.\n\n(2) The condition is that an arrangement was entered into where:\n\n(a) the arrangement in some way (directly or indirectly) related to, affected or depended for its operation on the fixed entitlement or its value; and\n\n(b) the purpose, or one of the purposes, of the arrangement was to ensure that, for the purposes of the operation of the provision, the individual would have the fixed entitlement.\n\n272‑40  Continued holding of fixed entitlement where death occurs\n\nIf, immediately before an individual dies, he or she has a fixed entitlement to a share of the income or capital of a trust, partnership or company directly or indirectly, and for his or her own benefit, the individual is taken to continue to have the entitlement for so long as:\n\n(a) it is held by someone as trustee of the individual’s estate; or\n\n(b) it is held by someone who received it as a beneficiary of the estate.\n\nSubdivision 272‑B—Distribution of income or capital\n\n272‑45  Trust distribution to beneficiary\n\nA trust distributes income or capital of the trust to a person if it:\n\n(a) pays or credits the income or capital in the form of money to the person; or\n\n(b) transfers the income or capital in the form of property to the person; or\n\n(c) reinvests or otherwise deals with the income or capital on behalf of the person or in accordance with the directions of the person; or\n\n(d) applies the income or capital for the benefit of the person;\n\nin the person’s capacity as a beneficiary of the trust.\n\n272‑50  Company distribution to shareholder\n\nDistribution of income\n\n(1) A company distributes income of the company to a person if the company pays a dividend or non‑share dividend to the person.\n\nDistribution of capital\n\n(2) A company distributes capital of the company to a person if:\n\n(a) it pays or credits money, or transfers property, of the company to the person, where the amount paid or credited, or the amount or value of the property, is debited against an amount standing to the credit of the share capital account of the company; and\n\n(b) the payment, crediting or transfer is not the payment of a dividend.\n\n(3) A company distributes capital of the company to a person if the company makes a non‑share capital return to the person.\n\n272‑55  Partnership distribution to partner\n\nA partnership distributes income or capital of the partnership to a person if it:\n\n(a) pays or credits the income or capital in the form of money to the person; or\n\n(b) transfers the income or capital in the form of property to the person; or\n\n(c) reinvests or otherwise deals with the income or capital on behalf of the person or in accordance with the directions of the person; or\n\n(d) applies the income or capital for the benefit of the person;\n\nin the person’s capacity as a partner in the partnership.\n\n272‑60  Other distributions of income and capital\n\n(1) A company, partnership or trust (an entity) also distributes income or capital to a person in circumstances not covered by section 272‑45, 272‑50 or 272‑55 if it:\n\n(a) pays (including by way of a loan) or credits money of the entity to the person, or reinvests such money for the person; or\n\n(b) transfers property of the entity to, or allows use of property of the entity by, the person; or\n\n(c) deals with money or property of the entity for or on behalf of the person or as the person directs; or\n\n(d) applies money or property of the entity for the benefit of the person; or\n\n(e) extinguishes, forgives, releases or waives a debt or other liability owed by the person to the entity.\n\nLimit on distributions\n\n(2) However, subsection (1) only applies if, and to the extent that:\n\n(a) the amount paid, credited, reinvested or applied, the value of the property transferred, or the value of the other thing done;\n\nexceeds:\n\n(b) the amount or value of any consideration given in return.\n\nCharacter of distributions\n\n(3) Each thing that is a distribution because of subsection (1) is a distribution of income unless it is clear that the money or property concerned was capital, or that the debt or liability was attributable to capital, of the entity.\n\n272‑63  Distribute indirectly\n\nA trust distributes income or capital indirectly to an individual if it distributes the income or capital to a company, partnership or trust (the first interposed entity) interposed between the trust and the individual and:\n\n(a) the first interposed entity distributes to the individual an amount or property attributable to the income or capital; or\n\n(b) another company, partnership or trust (the final interposed entity) distributes to the individual an amount or property that is attributable to the income or capital as a result of:\n\n(i) the distribution of an amount or property attributable to the income or capital to the final interposed entity by the first interposed entity; or\n\n(ii) successive distributions of amounts or property attributable to the income or capital to and by any companies, partnerships or trusts interposed between the first interposed entity and the final interposed entity.\n\nSubdivision 272‑C—Fixed trusts and non‑fixed trusts\n\n272‑65  Fixed trust\n\nA trust is a fixed trust if persons have fixed entitlements to all of the income and capital of the trust.\n\n272‑70  Non‑fixed trust\n\nA trust is a non‑fixed trust if it is not a fixed trust.\n\nSubdivision 272‑D—Family trust etc.\n\n272‑75  Family trust\n\nA trust is a family trust at any time when a family trust election (see subsection 272‑80(1)) in respect of the trust is in force.\n\n272‑80  Family trust election\n\nNature of election\n\n(1) Subject to this section, the trustee of the trust may make an election (the family trust election) in accordance with this section that the trust is a family trust for the purposes of this Schedule at all times after the beginning of a specified income year.\n\nHow election made\n\n(2) The election must be in writing and in the approved form.\n\nElection to specify individual and certain information\n\n(3) The election must also specify an individual as the individual whose family group is to be taken into account in relation to the election, and must contain such other information as the Commissioner requires.\n\nTrust must pass family control test\n\n(4) If the trust does not pass the family control test (see section 272‑87) at the end of the specified income year, the trustee must not make the election.\n\nEarlier year may be the specified year\n\n(4A) The specified income year may be a year before the one in which the election is made if:\n\n(a) at all times in the period from the beginning of the specified income year until 30 June in the income year before the one during which the election is made, the trust passes the family control test (see section 272‑87); and\n\n(b) either:\n\n(i) any conferrals of present entitlement to income or capital of the trust made by the trustee during that period have been made on; or\n\n(ii) any distributions of income or capital of the trust made by the trustee during that period have been made to;\n\nthe individual specified in the election or members of that individual’s family group.\n\nElection generally cannot be varied or revoked\n\n(5) Subject to subsections (5A), (5B), (5C), (6) and (6A), the election cannot be varied or revoked.\n\nVariation cases\n\n(5A) The trustee of a trust may, in respect of an income year during the period specified in subsection (6B), vary an election so that a different individual (the new individual) is specified for the purposes of subsection (3) as the individual whose family group is to be taken into account in relation to the election if:\n\n(a) the new individual was a member of the family of the individual originally specified in the election at the election commencement time; and\n\n(b) any conferrals of present entitlement to income or capital of:\n\n(i) the trust; and\n\n(ii) an entity for which an interposed entity election has been made in relation to the trust;\n\nduring the period in which the election has been in force have been made on the new individual or on persons who would have been members of the new individual’s family group at the time of the conferral; and\n\n(c) any distributions of income or capital of:\n\n(i) the trust; and\n\n(ii) an entity for which an interposed entity election has been made in relation to the trust;\n\nduring the period in which the election has been in force have been made to the new individual or to persons who would have been members of the new individual’s family group at the time of the distribution.\n\n(5B) A variation of an election under subsection (5A) in relation to a trust can only be made once.\n\n(5C) The trustee of a trust may vary an election so that a different individual (the new individual) is specified for the purposes of subsection (3) as the individual whose family group is to be taken into account in relation to the election if:\n\n(a) an order; or\n\n(b) an agreement; or\n\n(c) an award;\n\nof a kind mentioned in paragraphs 126‑5(1)(a) to (f) of the Income Tax Assessment Act 1997 results in the new individual, or a group comprising the new individual and members of the new individual’s family, having control of the trust under subsection (5D).\n\n(5D) The new individual, or a group comprising the new individual and members of the new individual’s family, have control of the trust for the purposes of subsection (5C) if any of paragraphs 272‑87(2)(a) to (g) are satisfied in relation to a group consisting of:\n\n(a) the new individual; or\n\n(b) the new individual and members of the new individual’s family.\n\nRevocation cases\n\n(6) The trustee of a fixed trust may revoke the election if:\n\n(a) at the beginning of the specified income year:\n\n(i) the individual specified in the election; or\n\n(ii) one or more members of the individual’s family; or\n\n(iii) the trustee of another trust that is a family trust, provided the individual is specified in that trust’s family trust election;\n\nor any combination of the above, had the fixed entitlements, directly or indirectly, and for their own benefit, to all of the income and capital of the trust; and\n\n(b) at a later time (whether before or after the return is furnished, but while the trust is still a fixed trust), an individual, other than one of a kind mentioned in subparagraph (a)(i), (ii) or (iii), holds a fixed entitlement, directly or indirectly, and for his or her own benefit, to any of the income or capital of the trust.\n\n(6A) The trustee of a trust may, in respect of an income year during the period specified in subsection (6B), revoke the election unless:\n\n(a) the trust, or another entity, has incurred a tax loss and had its assessable income reduced by part or all of the loss in an income year or years during the period:\n\n(i) beginning at the beginning of the income year specified in the election; and\n\n(ii) finishing at the end of the income year immediately prior to the income year from which the revocation is to be effective (see subsection (8));\n\nand the trust, or the other entity, could not have had its assessable income so reduced had the election not been in force; or\n\n(b) the trust, or another entity, has claimed a deduction for bad debts in an income year or years during the period specified in paragraph (a) and the trust, or the other entity, could not have claimed the deduction had the election not been in force; or\n\n(c) a beneficiary of the trust in an income year during the period specified in paragraph (a) received a franked distribution indirectly through the trust and paragraph 207‑150(1)(a) of the Income Tax Assessment Act 1997 would have applied in relation to the distribution had the election not been in force.\n\nPeriod to vary or revoke the election\n\n(6B) The trustee of a trust cannot vary or revoke the election under subsections (5A) or (6A) unless the variation or revocation is in respect of an income year that occurs during the period:\n\n(a) beginning at the beginning of the income year specified in the election and finishing at the end of the fourth income year after the income year specified in the election; or\n\n(b) beginning at the beginning of the income year in which Schedule 8 to the Tax Laws Amendment (2007 Measures No. 4) Act 2007 commenced and finishing at the end of the subsequent income year.\n\nHow to vary or revoke the election","sortOrder":1000128},{"sectionNumber":"full-source-retrieval-0130","sectionType":"document_chunk","heading":"Document excerpt 130","content":"(7) To revoke an election under subsection (6), the revocation must be made in the trust’s return of income for the income year in which the later time occurs. If the trustee is not required to give a return for the income year, the revocation must:\n\n(a) be in writing and in the approved form; and\n\n(b) specify the later time; and\n\n(c) be given to the Commissioner before the end of:\n\n(i) 2 months after the end of the income year in which the later time occurs; or\n\n(ii) such later day as the Commissioner allows.\n\n(8) To vary or revoke an election under subsection (5A), (5C) or (6A), the variation or revocation must be made in the trust’s return of income for the income year from which the variation or revocation is to be effective. If the trustee is not required to give a return for the income year, the variation or revocation must:\n\n(a) be in writing and in the approved form; and\n\n(b) specify the income year from which the variation or revocation is to be effective; and\n\n(c) be given to the Commissioner on or before:\n\n(i) 2 months after the end of that income year; or\n\n(ii) such later day as the Commissioner allows.\n\nWhen election is in force\n\n(9) The election is in force:\n\n(a) if it is not revoked—at all times after the election commencement time (see subsection (10)); or\n\n(b) if it is revoked under subsection (6)—at all times from the election commencement time until the later time specified in the revocation; or\n\n(c) if it is revoked under subsection (6A)—at all times from the election commencement time until the end of the income year immediately prior to the income year from which the revocation is to be effective (see subsection (8)).\n\nElection commencement time\n\n(10) The election commencement time is:\n\n(a) if the trust does not pass the family control test (see section 272‑87) at all times in the income year specified—the earliest time from which the trust does pass the family control test for the remainder of that income year; or\n\n(b) in any other case—the beginning of the income year specified.\n\nOnly one election\n\n(11) The trustee must not make more than one election under this section in relation to the trust.\n\n272‑85  Interposed entity election\n\nNature of election\n\n(1) Subject to this section, if the trustee makes a family trust election, a company, the partners in any partnership or the trustee of any other trust may make an election (an interposed entity election) in accordance with this section that the company, partnership or trust is to be included, at all times after a specified day in a specified income year, in the family group of the individual specified in the family trust election.\n\nHow election made\n\n(2) The election must be in writing and in the approved form.\n\nElection to contain information\n\n(3) The election must contain such information as the Commissioner requires.\n\nFamily control test must be passed\n\n(4) The company, partnership or trust must pass the family control test (see section 272‑87) at the end of the income year.\n\nEarlier year may be the specified year\n\n(4A) The specified income year may be a year before the one in which the election is made if:\n\n(a) at all times in the period from the beginning of the specified income year until 30 June in the income year before the one during which the election is made, the company, partnership or trust passes the family control test (see section 272‑87); and\n\n(b) either:\n\n(i) any conferrals of present entitlement to income or capital of the trust made by the trustee during that period have been made on; or\n\n(ii) any distributions of income or capital of the trust made by the trustee during that period have been made to;\n\nthe individual specified in the family trust election or members of that individual’s family group.\n\nElection generally cannot be revoked\n\n(5) Subject to subsections (5A) and (5B), the election cannot be revoked.\n\nRevocation cases\n\n(5A) A company, the partners in any partnership or the trustee of a trust may, in respect of an income year during the period specified in subsection (5C), revoke the election if at the election commencement time, or at a later time, the entity was, or becomes, a member of the family group (within the meaning of subsection 272‑90(3A) or (5)) of the individual specified in the family trust election.\n\n(5B) The election is taken to be revoked if the family trust election to which it relates is revoked.\n\nPeriod to revoke the election\n\n(5C) A company, the partners in any partnership or the trustee of a trust cannot revoke an election under subsection (5A) unless the revocation is in respect of an income year that occurs during the period:\n\n(a) beginning at the later of:\n\n(i) the beginning of the income year specified in the election; and\n\n(ii) the beginning of the income year in which the entity became a member of the family group;\n\nand finishing at the end of the fourth income year after the income year referred to in subparagraph (i) or (ii); or\n\n(b) beginning at the beginning of the income year in which Schedule 8 to the Tax Laws Amendment (2007 Measures No. 4) Act 2007 commenced and finishing at the end of the subsequent income year.\n\nHow revocation is made\n\n(6) A revocation must be made in the entity’s return of income for the income year from which the revocation is to be effective. If the entity is not required to give a return for the income year, the revocation must:\n\n(a) be in writing and in the approved form; and\n\n(b) specify the income year from which the revocation is to be effective; and\n\n(c) be given to the Commissioner on or before:\n\n(i) 2 months after the end of that income year; or\n\n(ii) such later day as the Commissioner allows.\n\nWhen election is in force\n\n(6A) The election is in force:\n\n(a) if it is not revoked—at all times after the election commencement time (see subsection (6B)); or\n\n(b) if it is revoked under subsection (5A)—at all times from the election commencement time to the end of the income year immediately prior to the income year from which the revocation is to be effective (see subsection (6)); or\n\n(c) if the family trust election to which it relates is revoked under subsection 272‑80(6)—at all times from the election commencement time until the later time specified in that revocation; or\n\n(d) if the family trust election to which it relates is revoked under subsection 272‑80(6A)—at all times from the election commencement time to the end of the income year immediately prior to the income year from which the family trust revocation is to be effective (see subsection 272‑80(8)).\n\nElection commencement time\n\n(6B) The election commencement time is:\n\n(a) if the company, partnership or trust does not pass the family control test at all times in the specified income year—the later of:\n\n(i) the beginning of the specified day; and\n\n(ii) the earliest time from which the company, partnership or trust does pass the family control test for the remainder of the specified income year; or\n\n(b) in any other case—the beginning of the specified day.\n\nRestriction on multiple elections\n\n(7) The company, partners or trustee must not make an election under this section that the company, partnership or trust is to be included in the family group of the individual specified in the family trust election in respect of more than one trust, unless the individual specified in each of the family trust elections is the same.\n\n(8) For the purposes of subsection (7) disregard an election that has been revoked under subsection (5A) or (5B).\n\n272‑87  Passing the family control test\n\nTrusts\n\n(1) A trust in respect of which a family trust election or an interposed entity election is proposed to be made passes the family control test if:\n\n(a) the requirement in any of the paragraphs of subsection (2) is satisfied in relation to a group consisting of:\n\n(i) the individual (the primary individual) who is to be specified in the family trust election or, in the case of an interposed entity election, who is specified in the family trust election to which the interposed entity election will relate; or\n\n(ii) one or more members of the primary individual’s family (see section 272‑95); or\n\n(iii) the primary individual and one or more members of the primary individual’s family; or\n\n(b) the requirement in any of paragraphs (a) to (e) of subsection (2) is satisfied in relation to a group consisting of a person or persons covered by subparagraph (a)(i), (ii) or (iii) of this subsection and one or more legal or financial advisers to the primary individual or to a member of the primary individual’s family; or\n\n(c) the requirement in paragraph (f) of subsection (2) is satisfied in relation to a group consisting of:\n\n(i) the trustees of one or more family trusts, provided the primary individual is specified in the family trust election of each of those family trusts; or\n\n(ii) such trustees and a person or persons covered by subparagraph (a)(i), (ii) or (iii).\n\nRequirement for purposes of subsection (1)\n\n(2) The requirement for the purposes of subsection (1) is that:\n\n(a) the group has the power, by means of the exercise of a power of appointment or revocation or otherwise, to obtain beneficial enjoyment (directly or indirectly) of the capital or income of the trust; or\n\n(b) the group is able (directly or indirectly) to control the application of the capital or income of the trust; or\n\n(c) the group is capable, under a scheme, of gaining the beneficial enjoyment in paragraph (a) or the control in paragraph (b); or\n\n(d) the trustee of the trust is accustomed, under an obligation or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the group; or\n\n(e) the group is able to remove or appoint the trustee of the trust; or\n\n(f) the group has more than a 50% stake in the income or capital of the trust; or\n\n(g) persons in the group are the only persons who, under the terms of the trust, can obtain the beneficial enjoyment of the income and capital of the trust.\n\nCompanies and partnerships\n\n(3) A company or partnership in respect of which an interposed entity election is proposed to be made passes the family control test if a group consisting of:\n\n(a) the individual who is specified in the family trust election mentioned in subsection 272‑85(1) in relation to the interposed entity election; or\n\n(b) one or more members of the individual’s family (see section 272‑95); or\n\n(c) the trustees of one or more family trusts, provided the individual is specified in the family trust election of each of those family trusts; or\n\n(d) any persons covered by any combination of the above paragraphs;\n\nhave (between them), directly or indirectly, and for their own benefit, fixed entitlements to a greater than 50% share of the income or a greater than 50% share of the capital of the company or partnership.\n\n272‑90  Family group\n\n(1) This section states whether a person is a member of the family group of the individual (the primary individual) specified in the family trust election in relation to a conferral of a present entitlement to, or a distribution of, income or capital of a company, partnership or trust, upon or to the person.\n\nFamily member\n\n(2) A member of the primary individual’s family (see section 272‑95) is a member of the primary individual’s family group in relation to the conferral or distribution.\n\nCertain former family members\n\n(2A) The following persons are members of the primary individual’s family group in relation to the conferral or distribution:\n\n(a) a person who was a spouse of either the primary individual or of a member of the primary individual’s family before a breakdown in the marriage or relationship; and\n\n(b) a person:\n\n(i) who was the spouse of either the primary individual or of a member of the primary individual’s family immediately before the death of the primary individual or member of the primary individual’s family; and\n\n(ii) who is now the spouse of a person who is not a member of the primary individual’s family; and\n\n(c) a person who was a child of the spouse of either the primary individual or of a member of the primary individual’s family before a breakdown in the marriage or relationship of the primary individual or the member of the primary individual’s family.\n\nNote: The fact that a person is a member of the family group of an individual under this subsection does not mean that the person is a member of the individual’s family under section 272‑95.\n\nTrust covered by family trust election\n\n(3) The trust in respect of which the family trust election was made is a member of the primary individual’s family group in relation to the conferral or distribution.\n\nTrust with same primary individual\n\n(3A) A trust with the same primary individual specified in its family trust election is a member of the primary individual’s family group in relation to the conferral or distribution.\n\nEntity covered by interposed entity election\n\n(4) A company, partnership or trust is a member of the primary individual’s family group in relation to the conferral or distribution if:\n\n(a) the company, partners or trustee has made an interposed entity election to that effect; and\n\n(b) the election is in force when the conferral takes place or the distribution is made.\n\nEntity owned by family\n\n(5) A company, partnership or trust is a member of the primary individual’s family group in relation to the conferral or distribution if, when the conferral takes place or the distribution is made:\n\n(a) the primary individual; or\n\n(b) one or more members of the primary individual’s family; or\n\n(c) the trustees of one or more family trusts, provided the primary individual is specified in the family trust election of each of those family trusts;\n\nor any combination of the above, have fixed entitlements directly or indirectly, and for their own benefit, to all of the income and capital of the company, partnership or trust.\n\nFunds\n\n(6) A fund, authority or institution in Australia that is mentioned in item 1 or 2 of the table in section 30‑15 of the Income Tax Assessment Act 1997 is a member of the primary individual’s family group in relation to the conferral or distribution if, assuming that a deduction were allowable under Division 30 of that Act in respect of the conferral or distribution, section 78A of this Act would not prevent any of the deduction being allowable.\n\nCertain tax exempt bodies\n\n(7) An institution, hospital, trustee, society, association, club, or fund, all of whose income is exempt under:\n\n(a) section 50‑5 or 50‑10 of the Income Tax Assessment Act 1997; or\n\n(b) item 6.1 or 6.2 of the table in section 50‑30, or item 9.1 or 9.2 of the table in section 50‑45, of the Income Tax Assessment Act 1997;\n\nis a member of the primary individual’s family group in relation to the conferral or distribution if, assuming that a deduction were allowable under Division 30 of that Act in respect of the conferral or distribution, section 78A of this Act would not prevent any of the deduction being allowable.\n\nInstitutions etc. where no living beneficiaries\n\n(8) Either:\n\n(a) an institution all of whose income is exempt under item 1.1, 1.3 or 1.4 of the table in section 50‑5 of the Income Tax Assessment Act 1997; or\n\n(b) a fund, authority or institution in Australia that is mentioned in item 1 or 2 of the table in section 30‑15 of the Income Tax Assessment Act 1997;\n\nis a member of the primary individual’s family group in relation to the conferral or distribution if, when the conferral takes place or the distribution is made, all of the beneficiaries of the trust, in respect of which the family trust election was made, who were individuals have died.\n\nEstate of deceased family\n\n(9) If the primary individual and all of the members of his or her family are dead when the conferral takes place or the distribution is made, the estates of the individual and of the members are members of the primary individual’s family group in relation to the conferral or distribution.\n\n272‑95  Family\n\n(1) The family of an individual (the test individual) consists of the test individual and all of the following (if applicable):\n\n(a) any parent, grandparent, brother or sister of the test individual or the test individual’s spouse;\n\n(b) any nephew, niece or child of the test individual or the test individual’s spouse;\n\n(c) any lineal descendant of a nephew, niece or child referred to in paragraph (b);\n\n(d) the spouse of the test individual or of anyone who is a member of the test individual’s family because of paragraphs (a), (b) and (c).\n\nNote 1: Child, parent and spouse are defined in subsection 6(1).\n\nNote 2: Section 960‑255 may be relevant to determining relationships for the purposes of paragraph (1)(a).\n\n(2) A person does not cease to be a family member merely because of the death of any other family member.\n\n(3) In this section, an adopted child, step‑child or ex‑nuptial child of a person is taken to be a lineal descendant of that person for the purposes of determining the lineal descendants of that person or any other person.\n\nNote: A person who is no longer a member of an individual’s family under this section may still be a member of the individual’s family group under subsection 272‑90(2A).\n\nSubdivision 272‑E—Excepted trust\n\n272‑100  Excepted trust\n\nA trust is an excepted trust at a particular time if:\n\n(a) it is a family trust at the particular time; or\n\n(b) it is a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the income year in which the particular time occurs; or\n\n(c) it is the trust of a deceased estate, where the particular time occurs during the period from the death of the individual until the end of the year of income in which the 5th anniversary of the death occurs; or\n\n(d) at the particular time it is a fixed trust that is a unit trust, and exempt entities have fixed entitlements, directly or indirectly, and for their own benefit, to all of the income and capital of the trust; or","sortOrder":1000129},{"sectionNumber":"full-source-retrieval-0131","sectionType":"document_chunk","heading":"Document excerpt 131","content":"(f) it is a designated infrastructure project entity at the particular time.\n\nSubdivision 272‑F—Widely held unit trust\n\n272‑105  Widely held unit trust\n\nBasic meaning\n\n(1) A trust is a widely held unit trust if:\n\n(a) it is a fixed trust that is a unit trust; and\n\n(b) it is not closely held (see subsection (2)).\n\nA trust is also a widely held unit trust if it is an AMIT (including an AMIT arising from the operation of section 276‑20 (Trust with classes of interests—each class treated as separate AMIT)).\n\nClosely held—income test\n\n(2) A trust is closely held if:\n\n(a) an individual has, or up to 20 individuals have between them; or\n\n(b) no individual has, or no individuals have between them;\n\ndirectly or indirectly and for their own benefit, fixed entitlements to a 75% or greater share of the income of the trust.\n\nClosely held—capital test\n\n(2A) A trust is also closely held if:\n\n(a) an individual has, or up to 20 individuals have between them; or\n\n(b) no individual has, or no individuals have between them;\n\ndirectly or indirectly and for their own benefit, fixed entitlements to a 75% or greater share of the capital of the trust.\n\nSingle individual\n\n(3) For the purposes of subsection (2) or (2A), all of the following are taken to be a single individual:\n\n(a) an individual, whether or not the individual holds units in the unit trust; and\n\n(b) the individual’s relatives; and\n\n(c) in relation to any units in respect of which other individuals are nominees of the individual or of the individual’s relatives—those other individuals.\n\nException\n\n(4) A unit trust is not a widely held unit trust if, because of:\n\n(a) any provision in the trust instrument, or in any contract, agreement or instrument:\n\n(i) authorising the variation or abrogation of rights attaching to any of the units; or\n\n(ii) relating to the conversion, cancellation, extinguishment or redemption of any of the units; or\n\n(b) any contract, agreement, arrangement, option or instrument under which a person has power to acquire any of the units; or\n\n(c) any power, authority or discretion in a person in relation to the rights attaching to any of the units;\n\nit is reasonable to conclude that the rights attaching to any of the units are capable of being varied or abrogated in such a way (even if they are not in fact varied or abrogated in that way) that directly or indirectly the requirement in paragraph (1)(b) would not be satisfied.\n\nSubdivision 272‑G—Unlisted widely held trust and listed widely held trust\n\n272‑110  Unlisted widely held trust\n\nSubject to Subdivision 272‑J, a unit trust is an unlisted widely held trust if it is a widely held unit trust whose units are not listed for quotation in the official list of an approved stock exchange.\n\n272‑115  Listed widely held trust\n\nA unit trust is a listed widely held trust if it is a widely held unit trust whose units are listed for quotation in the official list of an approved stock exchange.\n\nSubdivision 272‑H—Unlisted very widely held trust\n\n272‑120  Unlisted very widely held trust\n\n(1) Subject to Subdivision 272‑J, a unit trust is an unlisted very widely held trust if:\n\n(a) it is an unlisted widely held trust; and\n\n(b) it has at least 1,000 unit holders; and\n\n(c) all of its units carry the same rights; and\n\n(d) if its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and\n\n(e) it engages only in qualifying activities (see subsection (2)).\n\nQualifying activity\n\n(2) A qualifying activity is an activity that:\n\n(a) is an investment or business activity; and\n\n(b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and\n\n(c) is conducted at arm’s length.\n\nExtended status\n\n(3) If:\n\n(a) at a particular time (the first qualifying time), a trust for the first time becomes an unlisted very widely held trust; and\n\n(b) at a time (the first unit issue time) that is not more than 2 years earlier, units in the trust were first issued; and\n\n(c) at no time during the period (the start‑up period) between the first unit issue time and the first qualifying time was there any abnormal trading, of a kind covered by subsection 269‑15(1) or section 269‑20, in the trust’s units; and\n\n(d) at all times in the part (if any) of the start‑up period that occurred more than 90 days after it began, the trust was a widely held unit trust;\n\nthe trust is taken to have been an unlisted very widely held trust at all times from the formation of the trust until the end of the start‑up period.\n\nSubdivision 272‑I—Wholesale widely held trust\n\n272‑125  Wholesale widely held trust\n\n(1) Subject to Subdivision 272‑J, a unit trust is a wholesale widely held trust at a particular time (the test time) if:\n\n(a) it is an unlisted widely held trust at the test time; and\n\n(b) it is not an unlisted very widely held trust at the test time; and\n\n(c) at least 75% of its units are held at the test time by one or more qualifying holders (see subsection (2)); and\n\n(d) at the test time, all of its units carry the same rights; and\n\n(e) if at the test time its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and\n\n(f) the amount subscribed for units in the trust by each person to whom units have been issued was at least $500,000; and\n\n(g) at the test time, the unit trust engages only in qualifying activities (see subsection (3)).\n\nQualifying holder\n\n(2) Each of the following is a qualifying holder:\n\n(a) a listed widely held trust;\n\n(b) an unlisted very widely held trust;\n\n(c) a life assurance company;\n\n(e) a fund that is a complying approved deposit fund in relation to the year of income in which the test time occurs;\n\n(f) a fund that is a complying superannuation fund in relation to the year of income in which the test time occurs;\n\n(g) a trust that is a pooled superannuation trust in relation to the year of income in which the test time occurs.\n\nQualifying activity\n\n(3) A qualifying activity is an activity that:\n\n(a) is an investment or business activity; and\n\n(b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and\n\n(c) is conducted at arm’s length.\n\nSubdivision 272‑J—Kind of trust can be affected by ownership by higher level trust\n\n272‑127  Kind of trust can be affected by ownership by higher level trust\n\n(1) If:\n\n(a) apart from this Subdivision, a trust is an unlisted widely held trust, an unlisted very widely held trust or a wholesale widely held trust; and\n\n(b) each of one or more trusts of a higher level (see subsection (3)) has, directly or indirectly, fixed entitlements to all of the income and capital of the trust;\n\nthe trust is instead a trust of the same kind (see subsection (2)) as the trust of the highest level.\n\n(2) For the purposes of this Subdivision, trusts are of the following kinds:\n\n(a) unlisted widely held trust;\n\n(b) unlisted very widely held trust;\n\n(c) wholesale widely held trust;\n\n(d) listed widely held trust.\n\n(3) The kinds of trust are allocated levels in the following order (from lowest to highest): unlisted widely held trust, unlisted very widely held trust, wholesale widely held trust and listed widely held trust.\n\nSubdivision 272‑K—Trusts beginning or ceasing to exist\n\n272‑130  Trusts beginning or ceasing to exist\n\nIf:\n\n(a) under any provision of this Schedule, a trust is required to meet a condition at one or more times or at all times during a period; and\n\n(b) the trust does not exist during a part of the period;\n\nthe period does not include that part.\n\nSubdivision 272‑L—Listed public company\n\n272‑135  Listed public company\n\nBasic meaning\n\n(1) A listed public company is a company whose shares (except those that carry a right to a fixed rate of dividend) are listed for quotation in the official list of an approved stock exchange.\n\nExceptions\n\n(2) However, a company is not a listed public company if:\n\n(a) a person (who is not a company) controls, or is able to control, or up to 20 persons (none of them companies) between them control, or are able to control, 75% or more of the voting power in the company (whether directly, or indirectly through one or more interposed companies, partnerships or trusts); or\n\n(b) a person (who is not a company) has, or up to 20 persons (none of them companies) have between them, the right to receive for their own benefit (whether directly, or indirectly through one or more interposed companies, partnerships or trusts) 75% or more of any dividends that the company may pay; or\n\n(c) a person (who is not a company) has, or up to 20 persons (none of them companies) have between them, the right to receive for their own benefit (whether directly, or indirectly through one or more interposed companies, partnerships or trusts) 75% or more of any distribution of capital of the company.\n\nMeaning of right to receive dividends or distribution of capital indirectly\n\n(3) For the purposes of subsection (2), persons have the right to receive dividends or a distribution of capital of a company indirectly for their own benefit if they would receive the dividends or capital for their own benefit if:\n\n(a) the company were to pay the dividends or distribute the capital; and\n\n(b) the dividends or capital were then successively paid or distributed by each company, partnership or trust interposed between the company and those persons.\n\nMeaning of distribute\n\n(4) Section 272‑50 is disregarded in determining the meaning of distribute in paragraphs (3)(a) and (b).\n\nSubdivision 272‑M—Various definitions\n\n272‑140  Definitions\n\n(1) In this Schedule:\n\nabnormal trading has the meaning given by Subdivision 269‑B.\n\narrangement means any arrangement, agreement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable (or intended to be enforceable) by legal proceedings.\n\nassociate has the same meaning as in section 318.\n\nbenefit, in Division 270, has the meaning given by section 270‑20.\n\nbreakdown in the marriage or relationship of an individual: this occurs if the individual is living with another individual on a genuine domestic basis in a relationship as a couple (whether the individuals are the same sex or different sexes and whether legally married or not) and ceases to do so.\n\ncomplying approved deposit fund means a complying approved deposit fund within the meaning of section 47 of the Superannuation Industry (Supervision) Act 1993.\n\ncomplying superannuation fund means a complying superannuation fund within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993.\n\ncontrol a non‑fixed trust has the meaning given by Subdivision 269‑E.\n\ndesignated infrastructure project entity has the meaning given by the Income Tax Assessment Act 1997.\n\ndirectly or indirectly has a meaning affected by sections 272‑25 and 272‑30.\n\ndistribute income or capital has a meaning affected by sections 272‑45, 272‑50, 272‑55 and 272‑60.\n\nexcepted trust has the meaning given by section 272‑100.\n\nfamily has the meaning given by section 272‑95.\n\nfamily group has the meaning given by section 272‑90.\n\nfamily trust has the meaning given by section 272‑75.\n\nfamily trust distribution tax has the meaning given by section 271‑10.\n\nfamily trust election has the meaning given by section 272‑80.\n\nfixed entitlement has the meaning given by Subdivision 272‑A.\n\nfixed trust has the meaning given by section 272‑65.\n\ngovernment body means:\n\n(a) the Commonwealth, a State or a Territory; or\n\n(b) a municipal corporation or other local governing body; or\n\n(c) a foreign state.\n\ngroup has the meaning given by subsection 269‑95(5).\n\nincome year includes a year of income.\n\nindirectly has a meaning affected by sections 272‑20 and 272‑63.\n\ninterposed entity election has the meaning given by section 272‑85.\n\nlisted public company has the meaning given by section 272‑135.\n\nlisted widely held trust has the meaning given by section 272‑115.\n\nloss year means the income year in which a tax loss was incurred.\n\nmember of a company includes a shareholder, stockholder or holder of a life insurance policy of the company.\n\nmore than a 50% stake has the meaning given by section 269‑50.\n\nmutual affiliate company has the meaning given by section 121AC.\n\nmutual insurance company has the meaning given by section 121AB.\n\nnon‑fixed trust has the meaning given by section 272‑70.\n\npass the 50% stake test has the meaning given by section 269‑55.\n\npass the business continuity test has the meaning given by Subdivision 269‑F.\n\npass the family control test has the meaning given by section 272‑87.\n\npass the pattern of distributions test has the meaning given by section 269‑60.\n\npooled superannuation trust means a pooled superannuation trust within the meaning of section 48 of the Superannuation Industry (Supervision) Act 1993.\n\nscheme has the same meaning as in subsection 177A(1).\n\nspecial company means:\n\n(a) a mutual affiliate company; or\n\n(b) a mutual insurance company; or\n\n(c) a company whose constituent document prevents it from distributing both income and capital (within the meaning of section 272‑50) to any member of the company; or\n\n(d) a credit union, within the meaning of section 3 of the Financial Institutions Codes (as defined in section 111AZC of the Corporations Act 2001), whose constituent documents prevent it from paying dividends to its members; or\n\n(e) a company that is prescribed by the regulations.\n\nspecified individual in relation to a family trust election has the meaning given by subsection (2).\n\ntax loss means:\n\n(a) a loss within the meaning of former section 79E, 80 or 80AA; or\n\n(b) a film loss within the meaning of former section 79F or 80AAA; or\n\n(c) a tax loss worked out under section 36‑10 of the Income Tax Assessment Act 1997 (including such a tax loss as increased under section 415‑15 of that Act).\n\ntrading in units in a unit trust has the meaning given by section 269‑10.\n\nunlisted very widely held trust has the meaning given by section 272‑120.\n\nunlisted widely held trust has the meaning given by section 272‑110.\n\nwholesale widely held trust has the meaning given by section 272‑125.\n\nwidely held unit trust has the meaning given by section 272‑105.\n\n(2) A reference in this Schedule to a person specified in a family trust election is a reference to:\n\n(a) if the family trust election has not been varied—the person specified for the purposes of subsection 272‑80(3); or\n\n(b) if the family trust election has been varied—the person most recently specified under subsection 272‑80(5A) or (5C).\n\nSchedule 2H—Demutualisation of mutual entities other than insurance companies and health insurers\n\nDivision 326—Demutualisation\n\nTable of Subdivisions\n\nGuide to Division 326\n\n326‑A Application, key concepts and related expressions\n\n326‑B How demutualisation is to be effected\n\n326‑C CGT consequences of extinguishment of membership rights in mutual entity\n\n326‑D CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company\n\n326‑E CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company\n\n326‑F Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity\n\n326‑G CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights\n\n326‑H CGT consequences of transfer of ordinary shares\n\n326‑I CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member\n\n326‑J CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares\n\n326‑K CGT consequences of disposal of shares or an interest in shares acquired under a roll‑over provision\n\n326‑L CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity\n\n326‑M Indexation\n\n326‑N Non‑CGT consequences of issue of demutualisation shares\n\nGuide to Division 326\n\n326‑1  What this Division is about\n\nThis Division sets out the taxation consequences of the demutualisation of mutual entities other than insurance companies and health insurers.\n\nSubdivision 326‑A—Application, key concepts and related expressions\n\nTable of sections\n\n326‑5 Application\n\n326‑10 Mutual entity and demutualisation\n\n326‑15 Provisions relating to listing on a stock exchange\n\n326‑20 Demutualisation resolutions etc.\n\n326‑25 Demutualisation shares\n\n326‑30 Existing members and new members\n\n326‑35 Pre‑CGT members and post‑CGT members\n\n326‑5  Application\n\n(1) This Division applies to the demutualisation of a mutual entity referred to in section 326‑10 if, and only if:\n\n(a) where the demutualisation resolution day was 14 March 2002 or was or is a later day—the members of the entity have passed a resolution, in accordance with the entity’s constitution, that this Division is to apply to the demutualisation; and\n\n(b) the entity was a resident immediately before the demutualisation resolution day; and\n\n(c) the demutualisation has been or is implemented as mentioned in section 326‑40; and\n\n(d) the continuity of beneficial interest test in section 326‑60 is satisfied in relation to the demutualisation; and\n\n(e) the demutualisation of the entity was or is completed on or after 12 May 1998.\n\n(2) For the purposes of paragraph (1)(e), the demutualisation of an entity is taken to have been or to be completed:","sortOrder":1000130},{"sectionNumber":"full-source-retrieval-0132","sectionType":"document_chunk","heading":"Document excerpt 132","content":"(a) if the demutualisation is implemented in accordance with the direct method or the distributing trust method of demutualisation—on the day on which all the shares in the company that the entity became or becomes that were or are to be issued in connection with the demutualisation have been issued; or\n\n(b) if the demutualisation is implemented in accordance with the holding company method of demutualisation—on the day on which all the shares in the holding company that were or are to be issued in connection with the demutualisation have been issued; or\n\n(c) if the demutualisation is implemented in accordance with the combined direct and holding company method of demutualisation—on the later of the following days:\n\n(i) the day on which all the shares in the company that the entity became or becomes that were or are to be issued in connection with the demutualisation have been issued;\n\n(ii) the day on which all the shares in the holding company that were or are to be issued in connection with the demutualisation have been issued.\n\n(3) If this Division applies to the demutualisation of a mutual entity as mentioned in subsection (1), Subdivisions 326‑C to 326‑N provide for modifications of this Act and the Income Tax Assessment Act 1997 as those Acts have effect in respect of the entity.\n\n(4) For the purposes of this Division, the giving of consideration (other than the payment of an amount) for the acquisition of shares or an interest in shares is taken to constitute the payment of an amount equal to the value of the consideration.\n\n326‑10  Mutual entity and demutualisation\n\n(1) An entity is a mutual entity if, and only if, immediately before the demutualisation resolution day, it is a body corporate that:\n\n(a) is not an insurance company within the meaning of subsection 121AB(2); and\n\n(b) is not a mutual affiliate company within the meaning of section 121AC; and\n\n(ba) is not an entity to which item 6.3 of the table in section 50‑30 of the Income Tax Assessment Act 1997 (about private health insurers) applies; and\n\n(bb) is not an entity in relation to whose demutualisation Division 316 (Demutualisation of friendly society health or life insurers) of that Act applies; and\n\n(c) is not carried on for the object of securing a profit or pecuniary gain for its members; and\n\n(d) does not have capital divided into shares held by its members; and\n\n(e) does not hold property in which any of its members has a disposable interest (whether directly or indirectly) except in the event of the winding up of the entity.\n\n(1A) If the entity is a mutual entity (within the meaning of the Corporations Act 2001), then, for the purposes of subsection (1), disregard the following:\n\n(a) any MCIs (within the meaning of that Act) issued by the entity;\n\n(b) any dividends or profits paid or payable in respect of such MCIs;\n\n(c) any members of the entity who are members by virtue of holding such MCIs.\n\n(2) A mutual entity that has passed a demutualisation resolution is called a demutualising entity.\n\n(3) A mutual entity is demutualised if it ceases to be a mutual entity otherwise than by ceasing to be a body corporate. Such an entity is called a demutualised entity.\n\n(4) A reference to a demutualising entity includes a reference to a demutualised entity.\n\n326‑15  Provisions relating to listing on a stock exchange\n\n(1) A share is listed if it is listed for quotation in the official list of ASX Limited.\n\n(2) The expression “listed public company” has the same meaning as in the Income Tax Assessment Act 1997.\n\n(3) A listing resolution, in relation to the demutualisation of a mutual entity, is a resolution passed by the members of the entity requiring the entity, or a holding company of the entity, to become a listed public company.\n\n(4) The day on which demutualisation shares are first listed is the demutualisation listing day.\n\n326‑20  Demutualisation resolutions etc.\n\n(1) The demutualisation resolution, in relation to the demutualisation of a mutual entity, is a resolution passed by the members of the entity to proceed with the demutualisation of the entity.\n\n(2) The demutualisation resolution day, in relation to the demutualisation of a mutual entity, is the day on which the demutualisation resolution was or is passed.\n\n(3) The limitation period, in relation to the demutualisation of a mutual entity, is the period of 2 years beginning on the demutualisation resolution day or such further period as the Commissioner allows.\n\n326‑25  Demutualisation shares\n\nThe demutualisation shares, in relation to a demutualised entity, are:\n\n(a) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑45(1)(c) and (d); and\n\n(b) the ordinary shares in the holding company that are issued as mentioned in paragraphs 326‑50(1)(d) and (e); and\n\n(ba) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑52(1)(c) and (e); and\n\n(bb) the ordinary shares in the holding company that are issued as mentioned in paragraphs 326‑52(1)(f) and (g); and\n\n(c) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑55(1)(f) and (g); and\n\n(d) the special shares in the entity that are issued as mentioned in paragraph 326‑55(1)(c).\n\n326‑30  Existing members and new members\n\n(1) An existing member of a mutual entity that demutualises is:\n\n(a) a person who was a member of the entity on the earlier of the following days:\n\n(i) the demutualisation resolution day;\n\n(ii) the share allocation cut‑off day; or\n\n(b) a person who became entitled to an allocation of demutualisation shares because of the death of a person referred to in paragraph (a).\n\n(2) If the members of a mutual entity that is being demutualised have passed or pass a resolution to the effect that any person who became or becomes a member after a specified day is not entitled to an allocation of demutualisation shares, that day is the share allocation cut‑off day in relation to the demutualisation of the entity.\n\n(3) A new member of a mutual entity that demutualises is a person who is a member of the entity other than an existing member.\n\n(4) A reference to a member of a mutual entity that demutualises is taken, unless the contrary intention appears, to be a reference to a person who is an existing member or a new member of the entity.\n\n326‑35  Pre‑CGT members and post‑CGT members\n\n(1) A person is a pre‑CGT member of a demutualising entity if:\n\n(a) the person’s membership rights in the entity are a pre‑CGT asset within the meaning of the Income Tax Assessment Act 1997; or\n\n(b) both of the following apply:\n\n(i) the person acquired membership rights in the entity by disposing of membership rights in another mutual entity; and\n\n(ii) the person acquired membership rights in the other entity before 20 September 1985.\n\n(2) A person is a post‑CGT member of a demutualising entity if the person is not a pre‑CGT member.\n\nSubdivision 326‑B—How demutualisation is to be effected\n\nTable of sections\n\n326‑40 Methods of demutualisation\n\n326‑45 Direct method\n\n326‑50 Holding company method\n\n326‑52 Combined direct and holding company method\n\n326‑55 Distributing trust method\n\n326‑60 Continuity of beneficial interest test\n\n326‑40  Methods of demutualisation\n\nA demutualisation of a mutual entity is to be implemented in accordance with one of the methods set out in sections 326‑45, 326‑50, 326‑52 and 326‑55.\n\n326‑45  Direct method\n\n(1) The direct method of demutualisation is as follows:\n\n(a) all membership rights in the entity are extinguished;\n\n(b) the entity becomes a company with a share capital;\n\n(c) shares (ordinary shares) of only one class in the entity are issued within the limitation period to existing members in exchange for the membership rights referred to in paragraph (a);\n\n(d) shares (also ordinary shares) of the same class in the entity may be issued within the limitation period to new members;\n\n(e) if a listing resolution was passed by the members of the entity—the ordinary shares are listed within the limitation period.\n\nNote: Other things may happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows, where this demutualisation method is used, the issue of shares to members of the entity.\n\n![Diagram showing direct demutualisation of a mutual entity](image.016.png)\n\n326‑50  Holding company method\n\n(1) The holding company method of demutualisation is as follows:\n\n(a) all membership rights in the entity are extinguished;\n\n(b) the entity becomes a company with a share capital;\n\n(c) shares of only one class in the entity are issued to a company (the holding company) within the limitation period;\n\n(d) shares (ordinary shares) of only one class in the holding company are issued within the limitation period to existing members in exchange for the membership rights referred to in paragraph (a);\n\n(e) shares (also ordinary shares) in the holding company of the same class may be issued within the limitation period to new members;\n\n(f) if a listing resolution was passed by the entity—the ordinary shares are listed within the limitation period.\n\nNote: Other things may happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events that occur where this demutualisation method is used.\n\n![Diagram showing a holding company method of demutualisation](image.017.png)\n\n326‑52  Combined direct and holding company method\n\n(1) The combined direct and holding company method of demutualisation is as follows:\n\n(a) all membership rights in the entity are extinguished;\n\n(b) the entity becomes a company with a share capital;\n\n(c) shares (ordinary shares) of only one class in the entity are issued within the limitation period to existing members in exchange for the membership rights referred to in paragraph (a);\n\n(d) shares (also ordinary shares) of the same class in the entity are also issued to a company (the holding company) within the limitation period;\n\n(e) shares (also ordinary shares) of the same class in the entity may be issued within the limitation period to new members;\n\n(f) shares (also ordinary shares) of only one class in the holding company are issued within the limitation period to existing members as a result of the extinguishment of the membership rights referred to in paragraph (a);\n\n(g) shares (also ordinary shares) of the same class in the holding company may be issued within the limitation period to new members;\n\n(h) the total number of ordinary shares issued to members under paragraphs (f) and (g) is the same as the total number of ordinary shares issued to the holding company under paragraph (d);\n\n(i) if a listing resolution was passed by the members of the entity—the ordinary shares in the entity are listed within the limitation period.\n\nNote: Other things may happen in connection with the implementation of the demutualisation.\n\n(2) The following diagram shows the main events that occur where this demutualisation method is used.\n\n![Diagram showing combined direct and holding company method of demutualisation](image.018.png)\n\n326‑55  Distributing trust method\n\n(1) The distributing trust method of demutualisation is as follows:\n\n(a) all membership rights in the mutual entity are extinguished;\n\n(b) the entity becomes a company with a share capital;\n\n(c) shares (special shares) carrying only voting rights in respect of the demutualised entity are issued within the limitation period to a trustee to hold for the benefit of the members;\n\n(d) the issue takes place before the issue of the ordinary shares mentioned in paragraphs (f) and (g);\n\n(e) after the issue of all the ordinary shares, the rights attaching to the special shares become the same as those attaching to the ordinary shares and the special shares are dealt with in accordance with paragraph (h) as if they were ordinary shares;\n\n(f) shares (ordinary shares) of only one class in the entity are, within the limitation period, issued to the trustee to hold on behalf of existing members in exchange for the membership rights referred to in paragraph (a) and, in accordance with the choice of each existing member, to transfer to the member the shares held on behalf of the member or to dispose of those shares on behalf of the member;\n\n(g) shares (also ordinary shares) of the same class in the entity may, within the limitation period, be issued to the trustee on behalf of new members and, in accordance with the choice of each new member, to transfer to the member the shares held on behalf of the member or to dispose of those shares on behalf of the member;\n\n(h) within the limitation period the trustee:\n\n(i) sells the ordinary shares issued to the trustee and distributes the proceeds to the member; or\n\n(ii) transfers the ordinary shares to the member;\n\n(i) if a listing resolution was passed by the entity—the ordinary shares are listed within the limitation period.\n\nNote: Other things may happen in connection with the implementation of the demutualisation.\n\n(2) The trustee must be the trustee of a trust established solely for the purposes of performing functions under subsection (1).\n\n(3) The following diagram shows the main events that occur where this demutualisation method is used.\n\n![Diagram showing effect of distributing trust method of demutualisation](image.019.png)\n\n326‑60  Continuity of beneficial interest test\n\n(1) This section sets out a test (the continuity of beneficial interest test) that must be satisfied before this Division applies to the demutualisation of a mutual entity.\n\n(2) The continuity of beneficial interest test is satisfied if:\n\n(a) an opportunity is given to each existing member of the mutual entity:\n\n(i) to take up shares in the demutualised entity or in a holding company to which shares in the demutualised entity are issued; or\n\n(ii) to have shares in the demutualised entity issued to a trustee on behalf of the member; and\n\n(b) where the demutualisation is implemented by the method set out in section 326‑45, 326‑50 or 326‑55—of the ordinary shares in the demutualised entity or holding company that are issued in connection with the demutualisation (the issued shares), the total number that are issued to existing members or to a trustee on behalf of existing members constitutes at least 90% of the issued shares; and\n\n(ba) where the demutualisation is implemented by the method set out in section 326‑52:\n\n(i) of the ordinary shares in the demutualised entity that are issued to members other than the holding company in connection with the demutualisation (the issued entity shares), the total number that are issued to existing members constitutes at least 90% of the issued entity shares; and\n\n(ii) of the ordinary shares in the holding company that are issued in connection with the demutualisation (the issued holding company shares), the total number that are issued to existing members constitutes at least 90% of the issued holding company shares; and\n\n(c) the accumulated surplus of the mutual entity is allocated or distributed in the form of shares, or cash from the sale of shares, to existing members in proportions that broadly accord with any one or more of the following:\n\n(i) the respective amounts contributed by the members to the entity;\n\n(ii) the respective values of the membership rights of the members;\n\n(iii) the respective rights of the members on the winding up of the entity.\n\n(3) In this section:\n\naccumulated surplus, in relation to a demutualised entity, means the net assets of the entity on the demutualisation resolution day.\n\nSubdivision 326‑C—CGT consequences of extinguishment of membership rights in mutual entity\n\nTable of sections\n\n326‑65 Extinguishment of membership rights\n\n326‑65  Extinguishment of membership rights\n\nApplication\n\n(1) This section applies where membership rights are extinguished as mentioned in paragraph 326‑45(1)(a), 326‑50(1)(a), 326‑52(1)(a) or 326‑55(1)(a).\n\nModification\n\n(2) A capital gain or capital loss arising from the extinguishment of the membership rights of a member is to be disregarded.\n\nSubdivision 326‑D—CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company\n\nTable of sections\n\n326‑70 Application of Subdivision\n\n326‑75 Capital losses made from certain disposals to be disregarded\n\n326‑80 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑85 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑90 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑95 Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n326‑100 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑105 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity","sortOrder":1000131},{"sectionNumber":"full-source-retrieval-0133","sectionType":"document_chunk","heading":"Document excerpt 133","content":"326‑110 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑115 Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share or an interest in such a share\n\n326‑120 Adjusted market value\n\n326‑125 Undeducted membership costs\n\n326‑130 Adjusted first day trading price of demutualisation shares\n\n326‑70  Application of Subdivision\n\n(1) This Subdivision applies where a member (the disposer) of a mutual entity which, or a holding company of which, becomes a listed public company disposes of an asset consisting of:\n\n(a) a demutualisation share in the listed public company or an interest in such a share; or\n\n(b) other shares (non‑demutualisation bonus shares) in the same company, or an interest in such shares, where the shares are bonus equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original equities mentioned in that Subdivision.\n\n(2) For the purposes of this Subdivision, if any of the original equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997 is a demutualisation share, it is called a demutualisation original share.\n\n326‑75  Capital losses made from certain disposals to be disregarded\n\nA capital loss that the disposer makes from a disposal to which section 326‑80 or 326‑100 applies is to be disregarded.\n\n326‑80  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member; and\n\n(d) the disposal occurs before the demutualisation listing day;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(e) to have paid for the acquisition of the share or interest the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Share or interest disposed of over Total number of shares end fraction end formula](image.020.png)\n\n(f) to have paid that amount on the demutualisation resolution day;\n\n(g) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in paragraph (1)(e):\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑85  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member; and\n\n(d) the disposal occurs on or after the demutualisation listing day;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(e) to have paid for the acquisition of the share or interest the lesser of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Share or interest disposed of over Total number of shares end fraction end formula](image.020.png)\n\n(ii) the amount worked out by using the formula:\n\n![Start formula Adjusted first day trading price of the demutualisation shares times Share or interest disposed of end formula](image.021.png)\n\n(f) to have paid the amount referred to in paragraph (e) on the demutualisation resolution day;\n\n(g) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(e)(i):\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑90  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(d) to have paid for the acquisition of the share or interest both of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula open bracket Undeducted membership costs plus start fraction Adjusted market value over Number of members end fraction close bracket times start fraction Share or interest disposed of over Number of disposer's shares end fraction end formula](image.022.png)\n\n(ii) any amount actually paid for the acquisition;\n\n(e) to have paid the amount referred to in subparagraph (d)(i) on the demutualisation resolution day;\n\n(f) to have paid any amount referred to in subparagraph (d)(ii) when it was actually paid;\n\n(g) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(d)(i):\n\nnumber of disposer’s shares means the number of demutualisation shares issued to the disposer or in which the disposer had an interest.\n\nnumber of members means the total number of members of the other mutual entity at the time of the disposal of the membership rights in that entity.\n\n326‑95  Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer is a post‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(c) to have paid for the acquisition of the share or interest both of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Undeducted membership costs times start fraction Share or interest disposed of over Number of disposer's shares end fraction end formula ](image.023.png)\n\n(ii) any amount actually paid for the acquisition;\n\n(d) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;\n\n(e) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;\n\n(f) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(c)(i):\n\nnumber of disposer’s shares means the number of demutualisation shares issued to the disposer or in which the disposer had an interest.\n\n326‑100  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member; and\n\n(d) the disposal occurs before the demutualisation listing day;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(e) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Number of disposer's shares over Total number of shares end fraction end formula](image.024.png)\n\n(f) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:\n\n(i) to have paid the amount referred to in paragraph (e) on the demutualisation resolution day; and\n\n(ii) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in paragraph (1)(e):\n\nnumber of disposer’s shares means the number of demutualisation original shares issued to the disposer or in which the disposer had an interest.\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑105  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member; and\n\n(d) the disposal occurs on or after the demutualisation listing day;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(e) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the lesser of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Number of disposer's shares over Total number of shares end fraction end formula](image.024.png)\n\n(ii) the amount worked out by using the formula:\n\n![Start formula Adjusted first day trading price of the demutualisation shares times Number of disposer's shares end formula](image.025.png)\n\n(f) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:\n\n(i) to have paid the amount referred to in paragraph (e) on the demutualisation resolution day; and\n\n(ii) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formulas in subparagraphs 1(e)(i) and (ii):\n\nnumber of disposer’s shares means the number of demutualisation original shares issued to the disposer or in which the disposer had an interest.\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑110  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(d) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the sum of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Undeducted membership costs plus start fraction Adjusted market value over Number of members end fraction end formula](image.026.png)\n\n(ii) any amount actually paid for the acquisition;\n\n(e) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:\n\n(i) to have paid the amount referred to in subparagraph (d)(i) on the demutualisation resolution day; and\n\n(ii) to have paid any amount referred to in subparagraph (d)(ii) when it was actually paid; and\n\n(iii) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(d)(i):\n\nnumber of members means the total number of members of the other entity at the time of the disposal of the membership rights in that entity.\n\n326‑115  Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share or an interest in such a share\n\nIf:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer is a post‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(c) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the sum of:\n\n(i) an amount equal to the undeducted membership costs; and\n\n(ii) any amount actually paid for the acquisition;\n\n(d) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:\n\n(i) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day; and\n\n(ii) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid; and\n\n(iii) to have acquired the share or interest on the demutualisation resolution day.\n\n326‑120  Adjusted market value\n\nWhere membership rights not acquired by disposal of rights in another entity\n\n(1) For the purposes of this Subdivision, the adjusted market value, when the expression is used in relation to a disposer who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the market value, as determined by a qualified valuer, of the demutualising entity on the demutualisation resolution day. However, in making the determination the valuer is to disregard the franking surplus of that entity on that day.\n\nWhere membership rights acquired by disposal of rights in another entity\n\n(2) For the purposes of this Subdivision but subject to subsection (3), the adjusted market value, when the expression is used in relation to a disposer who acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the market value, as determined by a qualified valuer, of the other entity at the time immediately before the disposer disposed of membership rights in the other entity. However, in making the determination the valuer is to disregard the franking surplus of the other entity at that time.\n\nIndexation of amount mentioned in subsection (2)\n\n(3) If the indexation factor (see section 326‑235) of the amount worked out under subsection (2) is more than one, that amount is taken to be replaced by that amount as indexed under Subdivision 326‑M.\n\n326‑125  Undeducted membership costs\n\n(1) For the purposes of this Subdivision, the undeducted membership costs, when the expression is used in relation to a disposer who did not acquire membership rights in the demutualising entity by the disposal of membership rights in another mutual entity, are the sum of the undeducted amounts of the costs that were incurred by the disposer in acquiring and maintaining membership in the demutualising entity less any distributions that:\n\n(a) were made by the demutualising entity to the disposer before any shares in the demutualised entity were issued; and\n\n(b) were not included in the disposer’s assessable income of any year of income.\n\n(2) For the purposes of this Subdivision, the undeducted membership costs, when the expression is used in relation to a disposer who acquired membership rights in the demutualising entity by the disposal of membership rights in another mutual entity, are:\n\n(a) if the disposer was a pre‑CGT member—the sum of the undeducted amounts of the costs that were incurred by the disposer in maintaining membership in the demutualising entity less any distributions that:\n\n(i) were made by the demutualising entity to the disposer before any shares in the demutualised entity were issued; and","sortOrder":1000132},{"sectionNumber":"full-source-retrieval-0134","sectionType":"document_chunk","heading":"Document excerpt 134","content":"(ii) were not included in the disposer’s assessable income of any year of income; or\n\n(b) if the disposer is a post‑CGT member, the sum of:\n\n(i) the undeducted amounts of the costs that were incurred by the disposer in acquiring and maintaining membership in the other entity; and\n\n(ii) the undeducted amounts of the costs that were incurred by the disposer in maintaining membership in the demutualising entity;\n\nless any distributions that:\n\n(iii) were made by the demutualising entity or the other entity to the disposer before any shares in the demutualised entity were issued; and\n\n(iv) were not included in the disposer’s assessable income of any year of income.\n\n(3) If at any time 2 or more persons were joint members of a mutual entity, any costs incurred by any one or more of them in acquiring or maintaining the joint membership are taken to have been incurred by each of them.\n\n(4) Subject to subsection (5), the undeducted amount of a cost is the amount of the cost to the extent to which a deduction has not been allowed, and is not allowable, in respect of it.\n\n(5) If:\n\n(a) an amount of a cost referred to in subsection (1) or (2) was incurred before the demutualisation resolution day; and\n\n(b) the indexation factor (see section 326‑235) of the amount is more than one;\n\na reference in this section to the undeducted amount of that cost is a reference to the undeducted amount as indexed under Subdivision 326‑M.\n\n326‑130  Adjusted first day trading price of demutualisation shares\n\n(1) For the purposes of this Subdivision, the adjusted first day trading price of demutualisation shares is the amount worked out using the formula:\n\n![Start formula First day trading price of demutualisation shares minus start fraction Value of franking surplus over Total number of demutualisation shares issued end fraction end formula](image.027.png)\n\n(2) In this section:\n\nfirst day trading price of demutualisation shares means the price per share, as published by ASX Limited, at which the demutualisation shares were last traded, on the stock market operated by ASX Limited, on the demutualisation listing day.\n\nvalue of franking surplus means the value, as determined by a qualified valuer, of the franking surplus of the demutualised entity on the demutualisation listing day.\n\nSubdivision 326‑E—CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company\n\nTable of sections\n\n326‑135 Application of Subdivision\n\n326‑140 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑145 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑150 Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n326‑155 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n326‑160 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n326‑165 Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share\n\n326‑170 Various adjusted market values\n\n326‑175 Undeducted membership costs\n\n326‑135  Application of Subdivision\n\n(1) This Subdivision applies where a member (the disposer) of a mutual entity which, or a holding company of which, becomes a company that is not a listed public company disposes of an asset consisting of:\n\n(a) a demutualisation share in that company that is not a listed public company or an interest in such a share; or\n\n(b) other shares (non‑demutualisation bonus shares) in the same company, or an interest in such shares, where the shares are bonus equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original equities mentioned in that Subdivision.\n\n(2) For the purposes of this Subdivision, if any of the original equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997, is a demutualisation share, it is called a demutualisation original share.\n\n326‑140  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualisation entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(d) to have paid for the acquisition of the share or interest the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Share or interest disposed of over Total number of shares end fraction end formula](image.028.png)\n\n(e) to have paid that amount on the demutualisation resolution day;\n\n(f) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in paragraph (1)(d):\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑145  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(d) to have paid for the acquisition of the share or interest both of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula open bracket Undeducted membership costs plus start fraction Adjusted market value over Number of members end fraction close bracket times start fraction Share or interest disposed of over Number of disposer's shares end fraction end formula](image.029.png)\n\n(ii) any amount actually paid for the acquisition;\n\n(e) to have paid the amount referred to in subparagraph (d)(i) on the demutualisation resolution day;\n\n(f) to have paid any amount referred to in subparagraph (d)(ii) when it was actually paid;\n\n(g) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(d)(i):\n\nnumber of disposer’s shares means the number of demutualisation shares issued to the disposer or in which the disposer had an interest.\n\nnumber of members means the total number of members of the other mutual entity at the time of the disposal of the membership rights in that entity.\n\n326‑150  Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share\n\n(1) If:\n\n(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and\n\n(b) the disposer is a post‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:\n\n(c) to have paid for the acquisition of the share or interest both of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Undeducted membership costs times start fraction Share or interest disposed of over Number of disposer's shares end fraction end formula](image.030.png)\n\n(ii) any amount actually paid for the acquisition;\n\n(d) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;\n\n(e) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;\n\n(f) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(c)(i):\n\nnumber of disposer’s shares means the number of demutualisation shares issued to the disposer or in which the disposer had an interest.\n\n326‑155  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs apply:\n\n(d) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the amount worked out by using the formula:\n\n![Start formula Adjusted market value times start fraction Number of disposer's shares over Total number of shares end fraction end formula](image.031.png)\n\n(e) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:\n\n(i) to have paid the amount referred to in paragraph (d) on the demutualisation resolution day; and\n\n(ii) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in paragraph (1)(d):\n\nnumber of disposer’s shares means the number of demutualisation original shares issued to the disposer or in which the disposer had an interest.\n\ntotal number of shares means the total number of demutualisation shares issued.\n\n326‑160  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity\n\n(1) If:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and\n\n(c) the disposer is a pre‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(d) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be both of the following amounts:\n\n(i) the amount worked out by using the formula:\n\n![Start formula Undeducted membership costs plus start fraction Adjusted market value over Number of members end fraction end formula](image.026.png)\n\n(ii) any amount actually paid for the acquisition; and\n\n(e) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken to have done the following:\n\n(i) to have paid the amount referred to in subparagraph (d)(i) on the demutualisation resolution day;\n\n(ii) to have paid any amount referred to in subparagraph (d)(ii) when it was actually paid;\n\n(iii) to have acquired the share or interest on the demutualisation resolution day.\n\n(2) In the formula in subparagraph (1)(d)(i):\n\nnumber of members means the total number of members of the other mutual entity at the time of the disposal of the membership rights in that entity.\n\n326‑165  Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share\n\nIf:\n\n(a) the disposal is a disposal of either:\n\n(i) a demutualisation original share or an interest in such a share; or\n\n(ii) a non‑demutualisation bonus share or an interest in such a share; and\n\n(b) the disposer is a post‑CGT member;\n\nthen, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:\n\n(c) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be both of the following amounts:\n\n(i) an amount equal to the undeducted membership costs;\n\n(ii) any amount actually paid for the acquisition;\n\n(d) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken to have done the following:\n\n(i) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;\n\n(ii) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;\n\n(iii) to have acquired the share or interest on the demutualisation resolution day.\n\n326‑170  Various adjusted market values\n\nApplication\n\n(1) This section has effect for the purposes of this Subdivision.\n\nWhere membership rights not acquired by disposal of rights in another entity\n\n(2) The adjusted market value, when the expression is used in relation to a disposer who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the lesser of the issue day adjusted market value and the resolution day adjusted market value.\n\nWhere membership rights acquired by disposal of rights in another entity\n\n(3) The adjusted market value, when the expression is used in relation to a disposer who acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the disposal day adjusted market value.\n\nIssue day adjusted market value\n\n(4) The issue day adjusted market value is the market value, as determined by a qualified valuer, of the demutualised entity on the day on which the demutualisation shares were issued. However, in making the determination the valuer is to disregard the franking surplus of the demutualised entity on that day.\n\nResolution day adjusted market value\n\n(5) The resolution day adjusted market value is the market value, as determined by a qualified valuer, of the demutualising entity on the demutualisation resolution day. However, in making the determination the valuer is to disregard the franking surplus of the demutualising entity on that day.\n\nDisposal day adjusted market value\n\n(6) Subject to subsection (7), the disposal day adjusted market value is the market value, as determined by a qualified valuer, of the other entity at the time immediately before the disposer disposed of membership rights in the other entity. However, in making the determination the valuer is to disregard the franking surplus of the other entity at that time.\n\nIndexation of amount mentioned in subsection (6)\n\n(7) If the indexation factor (see section 326‑235) of the amount worked out under subsection (6) is more than one, that amount is taken to be replaced by that amount as indexed under Subdivision 326‑M.\n\n326‑175  Undeducted membership costs\n\n(1) For the purposes of this Subdivision, the undeducted membership costs, when the expression is used in relation to a disposer who did not acquire membership rights in the demutualising entity by the disposal of membership rights in another mutual entity, are the sum of the undeducted amounts of the costs that were incurred by the disposer in acquiring and maintaining membership in the demutualising entity less any distributions that:\n\n(a) were made by the demutualising entity to the disposer before any shares in the demutualised entity were issued; and\n\n(b) were not included in the disposer’s assessable income of any year of income.\n\n(2) For the purposes of this Subdivision, the undeducted membership costs, when the expression is used in relation to a disposer who acquired membership rights in the demutualising entity by the disposal of membership rights in another mutual entity, are the sum of:\n\n(a) if the disposer was a pre‑CGT member—the undeducted amounts of the costs that were incurred by the disposer in maintaining membership in the demutualising entity less any distributions that:\n\n(i) were made by the demutualising entity to the disposer before any shares in the demutualised entity were issued; and\n\n(ii) were not included in the disposer’s assessable income of any year of income; or","sortOrder":1000133},{"sectionNumber":"full-source-retrieval-0135","sectionType":"document_chunk","heading":"Document excerpt 135","content":"(b) if the disposer is a post‑CGT member, the sum of:\n\n(i) the undeducted amounts of the costs that were incurred by the disposer in acquiring and maintaining membership in the other entity; and\n\n(ii) the undeducted amounts of the costs that were incurred by the disposer in maintaining membership in the demutualising entity;\n\nless any distributions that:\n\n(iii) were made by the demutualising entity or the other entity to the disposer before any shares in the demutualised entity were issued; and\n\n(iv) were not included in the disposer’s assessable income of any year of income.\n\n(3) If at any time 2 or more persons were joint members of a mutual entity, any costs incurred by any one or more of them in acquiring or maintaining the joint membership are taken to have been incurred by each of them.\n\n(4) Subject to subsection (5), the undeducted amount of a cost is the amount of the cost to the extent to which a deduction has not been allowed, and is not allowable, in respect of it.\n\n(5) If:\n\n(a) an amount of a cost referred to in subsection (1) or (2) was incurred before the demutualisation resolution day; and\n\n(b) the indexation factor (see section 326‑235) of the amount is more than one;\n\na reference in this section to the undeducted amount of that cost is a reference to the undeducted amount as indexed under Subdivision 326‑M.\n\nSubdivision 326‑F—Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity\n\nTable of sections\n\n326‑180 Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss\n\n326‑180  Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss\n\n(1) This section applies if:\n\n(a) a post‑CGT member of a mutual entity that has been demutualised acquired membership rights in the entity by the disposal of membership rights in another mutual entity; and\n\n(b) the member made a capital gain or capital loss from the disposal of membership rights in the other mutual entity; and\n\n(c) the member has acquired shares or an interest in shares in the demutualised entity or in a company that holds shares in the demutualised entity.\n\n(2) If the member disposes of a demutualisation original share or a non‑demutualisation bonus share, the amount paid for the acquisition of all the demutualisation original shares is taken to be increased by the amount of the capital gain or reduced by the amount of the capital loss, as the case may be.\n\n(3) If subsection (2) does not apply, the amount that is taken, under Subdivision 326‑D or 326‑E, to have been paid by the member for the acquisition of the share or interest is taken to be increased by the proportionate part of the amount of the capital gain or reduced by the proportionate part of the amount of the capital loss, as the case may be.\n\nSubdivision 326‑G—CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights\n\nTable of sections\n\n326‑185 Disposal of right to receive shares in demutualised entity\n\n326‑190 Extinguishment of right to shares in demutualised entity by the issue of the shares\n\n326‑195 Disposal of right to receive shares in holding company\n\n326‑200 Disposal of interest in trust that holds shares in demutualised entity\n\n326‑185  Disposal of right to receive shares in demutualised entity\n\n(1) This section applies if:\n\n(a) under the direct method of demutualisation, or the combined direct and holding company method of demutualisation, of a mutual entity, the membership rights of an existing member of the entity are extinguished; and\n\n(b) as a result of the extinguishment of the rights, the member acquires a right or an interest in a right to have shares in the demutualised entity issued to the member; and\n\n(c) the member disposes of the whole or a part of the right or interest otherwise than by receiving the shares.\n\n(2) For the purpose of working out whether the member made a capital gain or capital loss from the disposal, the member is taken to have done the following:\n\n(a) to have paid for the acquisition of the right or interest in the right the amount worked out by using the formula:\n\n![Start formula Cost of a share or interest times Number of shares end formula](image.032.png)\n\n(b) to have paid that amount, and to have acquired the right or interest, on the demutualisation resolution day.\n\n(3) In the formula in paragraph (2)(a):\n\ncost of a share or interest means the amount that would have been taken to have been paid by the member for the acquisition of a share or an interest in a share in the demutualised entity under Subdivisions 326‑D, 326‑E and 326‑F if the disposal had been the disposal of the shares to which the right or interest in the right related.\n\nnumber of shares means the number of shares to which the right or interest in the right related.\n\n(4) If the member is a pre‑CGT member who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, any capital loss made from the disposal before the demutualisation listing day, or, if there is no such day, before the day on which the shares in the demutualised entity were issued, is to be disregarded.\n\n326‑190  Extinguishment of right to shares in demutualised entity by the issue of the shares\n\n(1) If, under the direct method of demutualisation or the holding company method of demutualisation, shares in a demutualised entity are issued to an existing member, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member’s right to have the shares issued to the member.\n\n(2) If, under the combined direct and holding company method of demutualisation, shares in a demutualised entity or in a holding company are issued to an existing member, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member’s rights to have the shares issued to the member.\n\n326‑195  Disposal of right to receive shares in holding company\n\n(1) This section applies if:\n\n(a) under the holding company method of demutualisation, or the combined direct and holding company method of demutualisation, of a mutual entity:\n\n(i) the membership rights of an existing member of the entity are extinguished; and\n\n(ii) shares in the demutualised entity are issued to a company (the holding company); and\n\n(b) as a result of the extinguishment of the rights, the member acquires a right or an interest in a right to have shares in the holding company issued to the member; and\n\n(c) the member disposes of the whole or a part of the right or interest otherwise than by receiving the shares.\n\n(2) For the purpose of working out whether the member made a capital gain or capital loss from the disposal, the member is taken to have done the following:\n\n(a) to have paid for the acquisition of the right or interest in the right the amount worked out by using the formula:\n\n![Start formula Cost of a share or interest times Number of shares end formula](image.032.png)\n\n(b) to have paid that amount, and to have acquired the right or interest, on the demutualisation resolution day.\n\n(3) In the formula in paragraph (2)(a):\n\ncost of a share or interest means the amount that would have been taken to have been paid by the member for the acquisition of a share or an interest in a share in the holding company under Subdivisions 326‑D, 326‑E and 326‑F if the disposal had been the disposal of the shares in the holding company to which the right or interest in the right related.\n\nnumber of shares means the number of shares in the holding company to which the right or interest in the right related.\n\n(4) If the member is a pre‑CGT member who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, any capital loss made from the disposal before the demutualisation listing day, or, if there is no such day, before the day on which the shares in the holding company were issued, is to be disregarded.\n\n326‑200  Disposal of interest in trust that holds shares in demutualised entity\n\n(1) This section applies if:\n\n(a) under the distributing trust method of demutualisation of a mutual entity:\n\n(i) the membership rights of an existing member of the entity are extinguished; and\n\n(ii) shares in the demutualised entity are issued to a trustee; and\n\n(b) as a result of the extinguishment of the rights, the member acquires an interest in the trust constituted by the right to have shares in the demutualised entity held by the trustee transferred by the trustee to the member or disposed of by the trustee on behalf of the member; and\n\n(c) the member disposes of the whole or a part of the interest otherwise than by receiving the shares or proceeds of the sale of the shares.\n\n(2) For the purpose of working out whether the member made a capital gain or capital loss from the disposal, the member is taken to have done the following:\n\n(a) to have paid for the acquisition of the interest in the trust the amount worked out by using the formula:\n\n![Start formula Cost of a share times Number of shares end formula](image.033.png)\n\n(b) to have paid that amount, and to have acquired the interest, on the demutualisation resolution day.\n\n(3) In the formula in paragraph (2)(a):\n\ncost of a share means the amount that would have been taken to have been paid by the member for the acquisition of a share in the demutualised entity under Subdivisions 326‑D, 326‑E and 326‑F if the disposal had been the disposal of the shares to which the interest or the part of the interest in the trust related.\n\nnumber of shares means the number of shares in the demutualised entity to which the interest in the trust related.\n\n(4) If the member is a pre‑CGT member who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, any capital loss made from the disposal before the demutualisation listing day, or, if there is no such day, before the day on which the shares in the demutualised entity were issued, is to be disregarded.\n\nSubdivision 326‑H—CGT consequences of transfer of ordinary shares\n\nTable of sections\n\n326‑205 Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences\n\n326‑205  Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences\n\nIf a trustee transfers an ordinary share or distributes the proceeds of the sale of an ordinary share as mentioned in subparagraph 326‑55(1)(h)(ii), Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by or arising from the transfer or distribution.\n\nSubdivision 326‑I—CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member\n\nTable of sections\n\n326‑210 Disposal by a trustee\n\n326‑210  Disposal by a trustee\n\nIf:\n\n(a) under the distributing trust method of demutualisation, shares in a demutualised entity are issued to a trustee on behalf of a member; and\n\n(b) the trustee disposes of a share or an interest in a share, or disposes of a non‑demutualisation bonus share or an interest in such a share, on behalf of the member;\n\nthe disposal is taken for the purposes of Subdivisions 326‑D, 326‑E and 326‑F to have been a disposal of the share or interest by the member.\n\nSubdivision 326‑J—CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares\n\nTable of sections\n\n326‑215 Change of rights to, and replacement of, special shares\n\n326‑215  Change of rights to, and replacement of, special shares\n\n(1) This Subdivision applies where, under the distributing trust method of demutualisation of a mutual entity, the rights attaching to special shares issued to a trustee on behalf of a member become the same as the rights attaching to ordinary shares.\n\n(2) Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of the change in rights.\n\nSubdivision 326‑K—CGT consequences of disposal of shares or an interest in shares acquired under a roll‑over provision\n\nTable of sections\n\n326‑220 Disposal of shares or interest in shares\n\n326‑220  Disposal of shares or interest in shares\n\n(1) This section applies where:\n\n(a) under any method of demutualisation, a mutual entity, or a holding company of a mutual entity, becomes a listed public company; and\n\n(b) a disposal of a share, or of an interest in a share, in the entity or holding company takes place before the demutualisation listing day; and\n\n(c) a roll‑over provision applies to the disposal; and\n\n(d) the person who disposed of the share or interest would, except for section 326‑75 and paragraph (c) of this subsection, have made a capital loss as a result of the disposal; and\n\n(e) the person who is taken to acquire the share or interest under the roll‑over provision (the transferee) disposes of the share or interest.\n\n(2) If the disposal by the transferee takes place before the demutualisation listing day, any capital loss that the transferee makes from that disposal is disregarded.\n\n(3) If the disposal by the transferee takes place on or after the demutualisation listing day, Subdivision 326‑D applies to the disposal referred to in paragraph (1)(b) as if that disposal had taken place on or after that day.\n\n(4) In this section:\n\ndisposal includes a disposal that would have occurred except for former section 160X.\n\nroll‑over provision means:\n\n(a) former section 160X; or\n\n(b) any provision of Division 17 of Part III; or\n\n(c) Division 128 of the Income Tax Assessment Act 1997; or\n\n(d) any provision of Divisions 122 and 126 of Part 3‑3 of the Income Tax Assessment Act 1997.\n\nSubdivision 326‑L—CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity\n\nTable of sections\n\n326‑225 Payment out of assets of demutualised entity that is not included in assessable income is taken not to be a dividend\n\n326‑225  Payment out of assets of demutualised entity that is not included in assessable income is taken not to be a dividend\n\nIf:\n\n(a) a payment out of the assets of a demutualised entity is made to a taxpayer who holds shares or an interest in shares in the entity; and\n\n(b) the amount paid is a dividend that is not included in the taxpayer’s assessable income;\n\nthe payment is taken, for the purposes of section 104‑135 of the Income Tax Assessment Act 1997, not to be the payment of a dividend.\n\nSubdivision 326‑M—Indexation\n\nTable of sections\n\n326‑230 Indexing of amounts\n\n326‑235 Indexation factor\n\n326‑240 Index number\n\n326‑230  Indexing of amounts\n\nSome provisions of this Division require amounts to be indexed. An amount is indexed by multiplying it by its indexation factor.\n\n326‑235  Indexation factor\n\n(1) For the indexation of the amount worked out under subsection 326‑120(2) or 326‑170(6) in relation to a person who acquired membership rights in a demutualising entity by the disposal of membership rights in another mutual entity, the indexation factor is:\n\n![Start formula start fraction Index number for the quarter in which  the relevant demutualisation resolution day occurred over Index number for the quarter in which the membership rights in the other mutual entity were disposed of end fraction end formula](image.034.png)\n\n(2) For the indexation of an undeducted amount referred to in subsections 326‑125(1) and (2) or 326‑175(1) and (2) of a cost incurred by a person in acquiring or maintaining membership in a demutualising entity or another entity, the indexation factor is:\n\n![Start formula start fraction Index number for the quarter in which the relevant demutualisation resolution day occurred over Index number for the quarter in which the cost was incurred end fraction end formula](image.035.png)\n\n(3) An indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).\n\n326‑240  Index number\n\n(1) The index number for a quarter is the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.\n\n(2) If the Australian Statistician changes the index reference period for an index number, only index numbers published in terms of the new index reference period are to be used after the change.\n\nSubdivision 326‑N—Non‑CGT consequences of issue of demutualisation shares\n\nTable of sections\n\n326‑245 General taxation consequences of issue of demutualisation shares\n\n326‑245  General taxation consequences of issue of demutualisation shares\n\nIf any demutualisation shares are issued to a taxpayer under any method of demutualisation, no amount is to be included in the taxpayer’s assessable income because of the issue of the shares to the taxpayer.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1‑78A\n\nVolume 2: sections 79A‑121L\n\nVolume 3: sections 124ZM‑204\n\nVolume 4: sections 251R‑468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1‑4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments","sortOrder":1000134},{"sectionNumber":"full-source-retrieval-0136","sectionType":"document_chunk","heading":"Document excerpt 136","content":"The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nEndnotes\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nEndnotes\n\nEndnote 1—About the endnotes\n\nThe endnotes provide information about this compilation and the compiled law.\n\nThe following endnotes are included in every compilation:\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nAbbreviation key—Endnote 2\n\nThe abbreviation key sets out abbreviations that may be used in the endnotes.\n\nLegislation history and amendment history—Endnotes 3 and 4\n\nAmending laws are annotated in the legislation history and amendment history.\n\nThe legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\nThe amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\nEditorial changes\n\nThe Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.\n\nIf the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.\n\nMisdescribed amendments\n\nA misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\nIf a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\nEndnote 2—Abbreviation key\n\n| ad = added or inserted | orig = original |\n| --- | --- |\n| am = amended | p = page(s) |\n| amdt = amendment | para = paragraph(s)/subparagraph(s) |\n| C[x] = Compilation No. x | /sub‑subparagraph(s) |\n| ch = Chapter(s) | pres = present |\n| cl = clause(s) | prev = previous |\n| cont. = continued | (prev…) = previously |\n| def = definition(s) | pt = Part(s) |\n| Dict = Dictionary | r = regulation(s)/Court rule(s) |\n| disallowed = disallowed by Parliament | reloc = relocated |\n| div = Division(s) | renum = renumbered |\n| ed = editorial change | rep = repealed |\n| exp = expires/expired or ceases/ceased to have | rs = repealed and substituted |\n| effect | s = section(s)/subsection(s) |\n| gaz = gazette | /rule(s)/subrule(s)/order(s)/suborder(s) |\n| LA = Legislation Act 2003 | sch = Schedule(s) |\n| LIA = Legislative Instruments Act 2003 | SLI = Select Legislative Instrument |\n| (md) = misdescribed amendment can be given | SR = Statutory Rules |\n| effect | sub ch = Sub‑Chapter(s) |\n| (md not incorp) = misdescribed amendment | sub div = Subdivision(s) |\n| cannot be given effect | sub pt = Subpart(s) |\n| mod = modified/modification | underlining = whole or part not |\n| No. = Number(s) | commenced or to be commenced |\n| Ord = Ordinance |  |\n\nEndnote 3—Legislation history","sortOrder":1000135},{"sectionNumber":"full-source-retrieval-0137","sectionType":"document_chunk","heading":"Document excerpt 137","content":"| Act | Number and year | Assent | Commencement | Application, saving and transitional provisions |\n| --- | --- | --- | --- | --- |\n| Income Tax Assessment Act 1936 | 27, 1936 | 2 June 1936 | 2 June 1936 |  |\n| Income Tax Assessment Act (No. 2) 1936 | 88, 1936 | 7 Dec 1936 | 7 Dec 1936 | s 19 |\n| Judiciary Act 1937 | 5, 1937 | 3 July 1937 | 3 July 1937 | s 5 |\n| Income Tax Assessment Act 1938 | 46, 1938 | 30 Nov 1938 | 28 Dec 1938 | s 17 |\n| Income Tax Assessment Act 1939 | 30, 1939 | 26 Sept 1939 | 24 Oct 1939 | s 5 |\n| Income Tax Assessment Act 1940 | 17, 1940 | 27 May 1940 | 24 June 1940 | s 13 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Act (No. 2) 1942 | 50, 1942 | 6 Oct 1942 | s 3: 6 Oct 1942 (s 2) | — |\n| Income Tax Assessment Act (No. 2) 1940 | 65, 1940 | 14 Dec 1940 | s 3, 14 and 15: 1 Jan 1941 (s 2(2))  s 10: 28 Nov 1940 (s 2(3))  Remainder: 14 Dec 1940 (s 2(1)) | s 2(4) |\n| Income Tax Assessment Act 1941 | 58, 1941 | 3 Dec 1941 | s 27: 13 Oct 1939 (s 27(2))  Remainder: 31 Dec 1941 | s 7(2) and 15(2) |\n| as amended by |  |  |  |  |\n| Income Tax and Social Services Contribution Assessment Act 1950 | 48, 1950 | 14 Dec 1950 | s 35: 31 Dec 1941 (s 35(2)) | — |\n| Income Tax Assessment Act (No. 2) 1941 | 69, 1941 | 18 Dec 1941 | 31 Dec 1941 (s 2) | s 2 |\n| Income Tax Assessment Act 1942 | 22, 1942 | 7 June 1942 | 7 June 1942 (s 2) | s 32 |\n| Income Tax Assessment Act (No. 2) 1942 | 50, 1942 | 6 Oct 1942 | s 26: 28 July 1942 (s 26(2))  Remainder: 6 Oct 1942 (s 2) | s 32 and 33 |\n| Income Tax Assessment Act 1943 | 10, 1943 | 20 Mar 1943 | s 17 and 26 (new s 251L and 251O added): 1 July 1943 (s 2(2) and gaz 1943, p 1289)  s 19–25: 1 Apr 1943 (s 2(3))  Remainder: 20 Mar 1943 (s 2(1)) | s 28 |\n| Income Tax Assessment Act 1944 | 3, 1944 | 3 Apr 1944 | s 7–9: 1 July 1943 (s 2(2))  s 16–20 and 22–25: 1 July 1944 (s 2(3))  Remainder: 3 Apr 1944 (s 2(1)) | s 6(2), 20(2), (3) and 28 |\n| Income Tax Assessment Act (No. 2) 1944 | 28, 1944 | 6 Oct 1944 | 6 Oct 1944 (s 2) | s 12 |\n| Income Tax Assessment Act 1945 | 4, 1945 | 18 May 1945 | 15 June 1945 | s 9(2), 15(2) and 20 |\n| Income Tax Assessment Act (No. 2) 1945 | 37, 1945 | 11 Oct 1945 | s 3–9: 11 Oct 1945 (s 2) | s 9 |\n| Income Tax Assessment Act 1946 | 6, 1946 | 13 Apr 1946 | 13 Apr 1946 (s 2) | s 5(2) and 22 |\n| Income Tax Assessment Act 1947 | 11, 1947 | 3 June 1947 | 3 June 1947 (s 2) | s 38 |\n| Income Tax Assessment Act (No. 2) 1947 | 63, 1947 | 4 Dec 1947 | s 3–13 and 15: 15 Dec 1947 (s 2) | s 13(2)–(8) and 15 |\n| Income Tax Assessment Act 1948 | 44, 1948 | 24 Nov 1948 | 22 Dec 1948 | s 9(2) and 22 |\n| Income Tax Assessment Act 1949 | 66, 1949 | 28 Oct 1949 | 25 Nov 1949 | s 5 |\n| Income Tax and Social Services Contribution Assessment Act 1950 | 48, 1950 | 14 Dec 1950 | s 3–34 and 36: 14 Dec 1950 (s 2) | s 23(2), 34(2) and 36 |\n| Income Tax and Social Services Contribution Assessment Act 1951 | 44, 1951 | 7 Dec 1951 | 7 Dec 1951 (s 2) | s 16(2), 20(2), 29(2) and 46 |\n| Income Tax and Social Services Contribution Assessment Act 1952 | 4, 1952 | 13 Mar 1952 | 13 Mar 1952 (s 2) | s 5 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1952 | 28, 1952 | 16 June 1952 | s 2–17 and 19: 14 July 1952  s 18: 11 Mar 1952 (s 18(7)) | s 6(2), 9(2), 10(2), 18(1)–(6) and 19 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1952 | 90, 1952 | 18 Nov 1952 | s 3–24: 18 Nov 1952 (s 2) | s 6(2), 7(2)–(4), 10(2)–(5), 15(2), 17(2) and 21–24 |\n| Taxation Administration Act 1953 | 1, 1953 | 4 Mar 1953 | First Sch: 1 Apr 1953 | — |\n| Income Tax and Social Services Contribution Assessment Act 1953 | 28, 1953 | 15 Apr 1953 | s 3–6: 15 Apr 1953 (s 2) | s 3(2) and 6 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1953 | 45, 1953 | 26 Oct 1953 | 26 Oct 1953 (s 2) | s 4(2), 17(2) and 18 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1953 | 81, 1953 | 11 Dec 1953 | s 3–9: 11 Dec 1953 (s 2) | s 6(2) and 9 |\n| Income Tax and Social Services Contribution Assessment Act 1954 | 43, 1954 | 6 Nov 1954 | 6 Nov 1954 (s 2) | s 5(2) and 13 |\n| Income Tax and Social Services Contribution Assessment Act 1955 | 62, 1955 | 4 Nov 1955 | s 3–12: 4 Nov 1955 (s 2) | s 3(2), (3), 5(2), 10(2), (3), 11(2), (3) and 12 |\n| Income Tax and Social Services Contribution Assessment Act 1956 | 25, 1956 | 23 May 1956 | 20 June 1956 | s 3(2) and 4 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1956 | 30, 1956 | 6 June 1956 | s 3–5: 1 July 1956 (s 2) | s 5 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1956 | 101, 1956 | 15 Nov 1956 | s 3–13(b) and 14–26: 15 Nov 1956 (s 2(1))  s 13(c): 1 July 1956 (s 2(2)) | s 4(2), (3), 5(2), (3) and 24–26 |\n| Salaries (Statutory Offices) Adjustment Act 1957 | 39, 1957 | 12 Sept 1957 | s 3(2): 1 July 1957 (s 2) | — |\n| Income Tax and Social Services Contribution Assessment Act 1957 | 65, 1957 | 28 Nov 1957 | s 3–23: 28 Nov 1957 (s 2) | s 23 |\n| Income Tax and Social Services Contribution Assessment Act 1958 | 55, 1958 | 1 Oct 1958 | 1 Oct 1958 (s 2) | s 13 |\n| Income Tax and Social Services Contribution Assessment Act 1959 | 12, 1959 | 23 Apr 1959 | 14 Jan 1960 (s 2) | s 6 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1959 | 70, 1959 | 20 Nov 1959 | s. 1(4): 14 Jan 1960 (s 1(5))  Remainder: 20 Nov 1959 (s 2) | s 3(2), (3), 5(2)–(4), 17 and 18 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1959 | 85, 1959 | 2 Dec 1959 | s 3–36: 2 Dec 1959 (s 2(1)) | s 19(2) and 27(2) |\n| Salaries (Statutory Offices) Adjustment Act 1960 | 17, 1960 | 17 May 1960 | s 3(2): 3 Dec 1959 (s 2) | — |\n| Income Tax and Social Services Contribution Assessment Act 1960 | 18, 1960 | 20 May 1960 | 17 June 1960 | s 8 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1960 | 58, 1960 | 25 Nov 1960 | s 3–8: 25 Nov 1960 (s 2) | s 4(2), 7 and 8 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1960 | 108, 1960 | 16 Dec 1960 | s 3–6: 16 Dec 1960 (s 2) | s 6 |\n| Income Tax and Social Services Contribution Assessment Act 1961 | 17, 1961 | 15 May 1961 | 12 June 1961 | s 13 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1961 | 27, 1961 | 19 May 1961 | s 3–5: 16 June 1961 | s 5(2) |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1961 | 94, 1961 | 30 Oct 1961 | s 3–23: 30 Oct 1961 (s 2) | s 3(2) and 23 |\n| Income Tax and Social Services Contribution Assessment Act 1962 | 39, 1962 | 28 May 1962 | 28 May 1962 (s 2) | s 9(2) |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1962 | 98, 1962 | 14 Dec 1962 | s 3–5: 28 May 1963 (s 2) | — |\n| Income Tax and Social Services Contribution Assessment Act 1963 | 34, 1963 | 31 May 1963 | s 4: 13 July 1962 (s 2(2))  s 5: 1 July 1962 (s 2(3))  s 8: 1 Jan 1963 (s 2(4))  Remainder: 31 May 1963 (s 2(1)) | s 11 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1963 | 69, 1963 | 31 Oct 1963 | s 3, 4, 6(b), (c) and 7–56: 31 Oct 1963 (s 2(1))  s 5: 9 May 1963 (s 2(2))  s 6(a): 12 Dec 1957 (s 2(3)) | s 55(2), (3) and 56 |\n| Income Tax and Social Services Contribution Assessment Act 1964 | 46, 1964 | 28 May 1964 | 28 May 1964 (s 2) | s 8 |\n| Income Tax and Social Services Contribution Assessment Act (No. 2) 1964 | 68, 1964 | 20 Oct 1964 | s 3–10: 20 Oct 1964 (s 2(1)) | s 9 and 10 |\n| Income Tax and Social Services Contribution Assessment Act (No. 3) 1964 | 110, 1964 | 23 Nov 1964 | s 3–46: 23 Nov 1964 (s 2(1)) | s 45 and 46 |\n| Salaries (Statutory Offices) Adjustment Act (No. 2) 1964 | 115, 1964 | 23 Nov 1964 | s 3(2): 23 Nov 1964 (s 2) | — |\n| Income Tax and Social Services Contribution Assessment Act 1965 | 33, 1965 | 2 June 1965 | 2 June 1965 (s 2) | s 7 |\n| Income Tax Assessment Act 1965 | 103, 1965 | 14 Dec 1965 | 14 Dec 1965 (s 2) | s 41–44 |\n| Income Tax Assessment Act (No. 2) 1965 | 143, 1965 | 18 Dec 1965 | 14 Feb 1966 (s 2) | s 4(2), (3) and 6(2), (3) |\n| Income Tax Assessment Act 1966 | 50, 1966 | 26 Oct 1966 | s 17: 4 Mar 1968 (s 2(2))  Remainder: 26 Oct 1966 (s 2(1)) | s 17(2), (3), 20 and 21 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Act (No. 2) 1966 | 83, 1966 | 29 Oct 1966 | s 4: 29 Oct 1966 (s 2) | — |\n| Income Tax Assessment Act (No. 2) 1966 | 83, 1966 | 29 Oct 1966 | s 3, 5 and 6: 29 Oct 1966 (s 2) | s 5 and 6 |\n| Income Tax Assessment Act 1967 | 19, 1967 | 12 May 1967 | 12 May 1967 (s 2) | s 5 |\n| Income Tax Assessment Act (No. 2) 1967 | 38, 1967 | 25 May 1967 | s 3–16: 25 May 1967 (s 2) | s 15 and 16 |\n| Income Tax Assessment Act (No. 3) 1967 | 76, 1967 | 6 Nov 1967 | s 3–14: 6 Nov 1967 (s 2) | s 3(2), (3), 5(2) and 14 |\n| Income Tax Assessment Act (No. 4) 1967 | 85, 1967 | 8 Nov 1967 | s 2(2), (3) and 3–37: 8 Nov 1967 (s 2(1)) | s 2(2), (3), 4(3), 6(4) and 35–37 |\n| Income Tax Assessment Act 1968 | 4, 1968 | 8 May 1968 | 8 May 1968 (s 2(1)) | s 2(2) and 14 |\n| Income Tax Assessment Act (No. 2) 1968 | 60, 1968 | 25 June 1968 | s 2(2), (3) and 3–23: 25 June 1968 (s 2(1)) | s 2(2), (3), 16(2), 21, 22 and 23 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Act 1973 | 51, 1973 | 14 June 1973 | s 25(1) and (2): 14 June 1973 (s 2) | s 25(2) |\n| Income Tax Assessment Act (No. 3) 1968 | 70, 1968 | 25 Oct 1968 | s 3 and 4: 25 Oct 1968 (s 2) | s 3(2) |\n| Income Tax Assessment Act (No. 4) 1968 | 87, 1968 | 21 Nov 1968 | s 3–11: 21 Nov 1968 (s 2) | s 11 |\n| Income Tax Assessment Act (No. 5) 1968 | 148, 1968 | 9 Dec 1968 | s 3–6: 9 Dec 1968 (s 2) | s 6 |\n| Income Tax Assessment Act 1969 | 18, 1969 | 4 June 1969 | 4 June 1969 (s 2) | s 3(2) and 4(2) |\n| Income Tax Assessment Act (No. 2) 1969 | 93, 1969 | 27 Sept 1969 | s 3–19: 27 Sept 1969 (s 2) | s 3(2), 7(2), 8(2), 10(2), 12(2)–(5), 18(2) and 19 |\n| Income Tax Assessment Act (No. 3) 1969 | 101, 1969 | 27 Sept 1969 | s 3–7: 27 Sept 1969 (s 2) | s 6 and 7 |\n| Income Tax Assessment Act 1970 | 87, 1970 | 27 Oct 1970 | 27 Oct 1970 (s 2) | s 5(2) |\n| Income Tax Assessment Act 1971 | 6, 1971 | 19 Mar 1971 | 19 Mar 1971 (s 2) | — |\n| Income Tax Assessment Act (No. 2) 1971 | 54, 1971 | 25 May 1971 | s 3–12: 25 May 1971 (s 2) | s 9(2) and 12 |\n| Income Tax Assessment Act (No. 3) 1971 | 93, 1971 | 12 Nov 1971 | s 3–9: 12 Nov 1971 (s 2) | s 9 |\n| Income Tax Assessment Act 1972 | 5, 1972 | 24 Mar 1972 | 24 Mar 1972 (s 2) | s 4 |\n| Income Tax Assessment Act (No. 2) 1972 | 46, 1972 | 7 June 1972 | s 3: 12 Apr 1972 (s 2) | — |\n| Income Tax Assessment Act (No. 3) 1972 | 47, 1972 | 7 June 1972 | s 3–12: 7 June 1972 (s 2) | s 12 |\n| Income Tax Assessment Act (No. 4) 1972 | 65, 1972 | 31 Aug 1972 | s 3–5: 31 Aug 1972 (s 2) | s 5 |\n| Income Tax Assessment Act (No. 5) 1972 | 85, 1972 | 4 Oct 1972 | s 3–9: 4 Oct 1972 (s 2) | s 8 and 9 |\n| Income Tax Assessment Act 1973 | 51, 1973 | 14 June 1973 | s 25(1): 25 June 1968 (s 25(2))  Remainder: 14 June 1973 (s 2) | s 23 and 24 |\n| Income Tax Assessment Act (No. 2) 1973 | 52, 1973 | 14 June 1973 | s 3–14: 14 June 1973 (s 2) | s 6(2), 8(2) and 14 |\n| Income Tax Assessment Act (No. 3) 1973 | 53, 1973 | 18 June 1973 | s 3–8: 18 June 1973 (s 2) | s 8 |\n| Income Tax Assessment Act (No. 4) 1973 | 164, 1973 | 11 Dec 1973 | s 3–17, 19–22 and Sch: 11 Dec 1973 (s 2) | s 19–22 |\n| Income Tax Assessment Act (No. 5) 1973 | 165, 1973 | 11 Dec 1973 | s 3–36: 11 Dec 1973 (s 2) | s 4(3), (4), 5(2), 7, 8(2), (3), 9(3), 15(2), 17(2), 20(2), (3), 21(2), 23(2), 24(2), 25(2), 26(2), 27(2), 28(2), 32(2) and 34–36 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Amendment Act 1976 | 50, 1976 | 4 June 1976 | s 20: 4 June 1976 (s 2) | — |\n| Statute Law Revision Act 1973 | 216, 1973 | 19 Dec 1973 | Sch 1: 31 Dec 1973 (s 2) | s 9(1) and 10 |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 1974 | 20, 1974 | 25 July 1974 | Sch 1: 31 Dec 1973 (s 2) | — |\n| Income Tax Assessment Act 1974 | 26, 1974 | 1 Aug 1974 | 1 Aug 1974 (s 2) | s 3(2), 5(2), 9(2) and 21 |\n| Income Tax Assessment Act (No. 2) 1974 | 126, 1974 | 6 Dec 1974 | s 3–46: 6 Dec 1974 (s 2) | s 3(2), 5(2), 6(2), 7(2), 9(2), 10(2), 11(2), 14(2), 15(2), 16(2), 17(2), 18(2), 19(2), 20(2), 34(2), 35(2), 36(2), 37(2), (3), 38(2), (3), 40(2), 41(2), 42(2) and 44–46 |\n| Income Tax Assessment Act 1975 | 80, 1975 | 20 June 1975 | 20 June 1975 (s 2) | s 4(2), 5(2), (3), 7(2)–(5), 8(2), (3), 9(2), 10(2), 11(2), 12(2), 13(2), 14(2), 15(2), 16(2), 18(2), (3), 19(2), (3), 20(2), 21(2), 22(2), (3), 23(2), 24(2), 25(2), 26(2), 29(2), 30(2), 31(2), 32(2), 33(2), (3), 34, 35(2), 36, 38(2), (3), 42(2), 43(2), 44(2), (3), 46(2), (3), 47(2)–(4), 49(2), 50(2), 51(2), (3), 52(2), 53(2) and 54 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Amendment Act (No. 3) 1976 | 205, 1976 | 20 Dec 1976 | s 37: 20 June 1975 (s 2(2)) | — |\n| Income Tax Assessment Act (No. 2) 1975 | 117, 1975 | 11 Nov 1975 | s 3–11(1)(b) and (d)–34: 11 Nov 1975 (s 2(1))  s 11(1)(c): 9 Feb 1976 (s 2(2))  s 30: never commenced (s 2(3)) | s 7(2), 11(2), (3), 15(2), (3), 24(2), (3) and 31–34 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Amendment Act 1976 | 50, 1976 | 4 June 1976 | s 21: 4 June 1976 (s 2) | — |\n| Income Tax Assessment Amendment Act 1976 | 50, 1976 | 4 June 1976 | s 3–19 and Sch: 4 June 1976 (s 2) | s 9(2) and 18(2) |\n| Health Insurance Levy Assessment Act 1976 | 53, 1976 | 4 June 1976 | s 3–7: 4 June 1976 (s 2) | s 6 and 7 |\n| as amended by |  |  |  |  |\n| Health Insurance Levy Assessment Act (No. 2) 1976 | 98, 1976 | 29 Sept 1976 | s 7 and 8: 29 Sept 1976 (s 2) | — |\n| Income Tax Assessment Amendment Act (No. 2) 1976 | 56, 1976 | 4 June 1976 | s 3–18: 4 June 1976 (s 2) | s 17 and 18 |\n| Health Insurance Levy Assessment Act (No. 2) 1976 | 98, 1976 | 29 Sept 1976 | s 3–6 and 9: 29 Sept 1976 (s 2) | s 9 |\n| Income Tax Laws Amendment (Royalties) Act 1976 | 143, 1976 | 6 Dec 1976 | s 4–6, 8 and 9: 6 Dec 1976 (s 2) | s 8 and 9 |\n| Income Tax Assessment Amendment (Jurisdiction of Courts) Act 1976 | 165, 1976 | 9 Dec 1976 | 1 Feb 1977 (s 2 and gaz 1977, No S3, p 3) | s 5(2), 8(2) and 9(2) |\n| Income Tax Assessment Amendment Act (No. 3) 1976 | 205, 1976 | 20 Dec 1976 | s 3–36: 20 Dec 1976 (s 2(1)) | s 3(2), 4(2), (3), 9(2), 10(2) and 35(2) |\n| Income Tax Assessment Amendment Act 1977 | 57, 1977 | 16 June 1977 | s 3–15 and 18: 16 June 1977 (s 2(1))  s 16: 1 July 1976 (s 2(2)) | s 18 |\n| Income Tax Assessment Amendment Act (No. 2) 1977 | 126, 1977 | 10 Nov 1977 | 10 Nov 1977 (s 2) | s 6(2), 8(2), (3), 9(2), 11(2), 12(2), 13(2), 16(2), 17(2), 18(2), 20(2), 21(2), 22(2) and 23 |\n| Income Tax Assessment Amendment Act (No. 3) 1977 | 127, 1977 | 10 Nov 1977 | 10 Nov 1977 (s 2) | s 3(2), (3) and 5(2) |\n| Administrative Changes (Consequential Provisions) Act 1978 | 36, 1978 | 12 June 1978 | s 8 and Sch 3: 12 June 1978 (s 2) | s 8 |\n| Income Tax Assessment Amendment Act 1978 | 57, 1978 | 22 June 1978 | 22 June 1978 (s 2) | s 3(2), 4(2), 5(2), 7(2), (3), 11(2), (3), 13(2), (3), 17(2), 19(2), 22(2), 23(2) and 24 |\n| Income Tax (Arrangements with the States) Act 1978 | 87, 1978 | 22 June 1978 | s 17–71: 22 June 1978 (s 2) | — |\n| Health Insurance Levy Assessment Amendment Act 1978 | 90, 1978 | 22 June 1978 | 22 June 1978 (s 2) | s 3(2), 4(2) and 5(2) |\n| Income Tax Assessment Amendment Act (No. 2) 1978 | 123, 1978 | 13 Oct 1978 | 13 Oct 1978 (s 2) | s 3(2), (3), 6(2), (3), 8(2), 10(2), 11(2), 12(2), (3), 13(2), 14(2), 16(2), 17(2), 21 and 22 |\n| Income Tax Assessment Amendment Act (No. 3) 1978 | 171, 1978 | 28 Nov 1978 | 28 Nov 1978 (s 2) | s 3(2) and (3) |\n| Income Tax Assessment Amendment Act (No. 4) 1978 | 172, 1978 | 28 Nov 1978 | 28 Nov 1978 (s 2) | s 5(2)–(5), 6(2), (3) and 31 |\n| Income Tax Assessment Amendment Act 1979 | 12, 1979 | 13 Mar 1979 | 13 Mar 1979 (s 2) | s 3(2), 4(2), 5(2), 7(2), 8(2), 9(2), 10(2), 11(2), (3), 12(2), 13(2), 14(2), 15(2), 16(2), 17(2), 18(2), 19(2) and 20(2) |\n| Jurisdiction of Courts (Miscellaneous Amendments) Act 1979 | 19, 1979 | 28 Mar 1979 | s 43 and 44: 15 May 1979 (s 2(2) and gaz 1979, No S86) | s 44 |\n| Income Tax Assessment Amendment Act (No. 2) 1979 | 27, 1979 | 4 June 1979 | s 5: 5 Dec 1978 (s 2(2))  s 6: 23 June 1977 (s 2(3))  Remainder: 4 June 1979 (s 2(1)) | — |\n| Income Tax (Rates and Assessment) Amendment Act 1979 | 43, 1979 | 14 June 1979 | s 4 and 5: 14 June 1979 (s 2) | s 5 |\n| Income Tax Assessment Amendment Act (No. 3) 1979 | 62, 1979 | 15 June 1979 | 15 June 1979 (s 2) | — |\n| Income Tax Assessment Amendment Act (No. 4) 1979 | 146, 1979 | 28 Nov 1979 | 28 Nov 1979 (s 2) | s 3(2), (3), 4(2), 5(2), 6(2), (3), 7(2), 8(2) and 9(2) |\n| Income Tax Assessment Amendment Act (No. 5) 1979 | 147, 1979 | 28 Nov 1979 | 29 Nov 1979 (s 2) | s 5 and 8(2) |\n| Income Tax Laws Amendment Act 1979 | 149, 1979 | 28 Nov 1979 | s 3–23 and 25–27: 28 Nov 1979 (s 2(1))  s 24: 21 July 1979 (s 2(2)) | s 5(2), 6(2)–(5), 8(2), 9(2), 10(2), 11(2), (3), 12(2), 14, 15(2), 16(2), 17(2), 18(2), 23(2) and 25–27 |\n| Income Tax Laws Amendment Act 1980 | 19, 1980 | 30 Apr 1980 | 30 Apr 1980 (s 2) | s 3(2), (3), 4(2), 6, 7(2), 8(2), 9(2), 10(2), 11(2), 12(2), 13(2), 14(2), 15(2), 16(2)–(4), 17(2), 18(2), 19(2) and 20 |\n| Income Tax Assessment Amendment Act 1980 | 24, 1980 | 1 May 1980 | 1 May 1980 (s 2) | s 3(2), 4(2), 5(2), (3), 7(2), (3), 9(2) and 10(2) |\n| Income Tax Assessment Amendment Act (No. 2) 1980 | 57, 1980 | 23 May 1980 | 23 May 1980 (s 2) | s 3(2), 5(2), 6(2), 9(2), 13(2), (3), 14(2), 15(2), 16(2), 21(2), 22(2), 23(2) and 24(2) |\n| Income Tax Assessment Amendment Act (No. 3) 1980 | 58, 1980 | 23 May 1980 | 23 May 1980 (s 2) | s 3(2) and 4(2) |\n| Income Tax Assessment Amendment Act (No. 4) 1980 | 124, 1980 | 17 Sept 1980 | 17 Sept 1980 (s 2) | s 4(2), 8(2) and 16 |\n| Income Tax Assessment Amendment Act (No. 5) 1980 | 133, 1980 | 19 Sept 1980 | 19 Sept 1980 (s 2) | s 4(2), 5(2), 6(2), (3), 7(2), 8(2) and 9(2) |\n| Taxation Debts (Abolition of Crown Priority) Act 1980 | 134, 1980 | 19 Sept 1980 | s 3–5: 19","sortOrder":1000136},{"sectionNumber":"full-source-retrieval-0138","sectionType":"document_chunk","heading":"Document excerpt 138","content":"Sept 1980 (s 2) | s 4(2) and 5(2) |\n| Income Tax Assessment Amendment Act (No. 6) 1980 | 159, 1980 | 10 Dec 1980 | 10 Dec 1980 (s 2) | s 3(2), 5(2), (3), 8(2) and 13 |\n| as amended by |  |  |  |  |\n| Income Tax Laws Amendment Act 1981 | 108, 1981 | 24 June 1981 | s 27: 24 June 1981 (s 2) | s 27(2) |\n| Statute Law Revision Act 1981 | 61, 1981 | 12 June 1981 | Sch 2: 30 Sept 1983 (s 2(2) and gaz 1983, No S222)  Sch 3: 12 June 1981 (s 2(1)) | — |\n| Companies (Miscellaneous Amendments) Act 1981 | 92, 1981 | 18 June 1981 | Sch: 1 July 1982 (s 2(3)) | — |\n| Income Tax Laws Amendment Act 1981 | 108, 1981 | 24 June 1981 | s 4–25: 24 June 1981 (s 2) | s 6(2), 10(2)–(4), 15(2)–(4), 17(2), 18(2), 21(2) and 25 |\n| as amended by |  |  |  |  |\n| Income Tax Assessment Amendment Act 1982 | 29, 1982 | 17 May 1982 | s 25: 24 June 1981 (s 2(2)) | — |\n| Income Tax (Assessment and Rates) Amendment Act 1981 | 109, 1981 | 24 June 1981 | s 4–30: 24 June 1981 (s 2) | s 24(2), 25(2), 26(2), 28(2) and 29(2)–(4) |\n| Income Tax Laws Amendment Act (No. 2) 1981 | 110, 1981 | 24 June 1981 | s 4–11: 24 June 1981 (s 2) | s 11 |\n| Income Tax Assessment Amendment Act 1981 | 111, 1981 | 24 June 1981 | 24 June 1981 (s 2) | s 19 |\n| Income Tax Laws Amendment Act (No. 3) 1981 | 154, 1981 | 26 Oct 1981 | s 4–31 and 39–41: 26 Oct 1981 (s 2) | s 39–41 |\n| Income Tax Assessment Amendment Act (No. 2) 1981 | 175, 1981 | 2 Dec 1981 | 2 Dec 1981 (s 2) | s 3(2), (3), 4(2), (3) and 5(2) |\n| Income Tax Assessment Amendment Act 1982 | 29, 1982 | 17 May 1982 | s 3–24: 17 May 1982 (s 2(1)) | s 3(2)–(4), 4(2), (3), 6(2), 9(2)–(5), 10(2)–(6), 11(2)–(4), 12(2), (3), 13(2), (3), 14(2), (3), 15(2), 16(2), 17(2), (3), 18(2), 19(2)–(6), 20(2), 21(2), 22(2), 23(2)–(4) and 24 |\n| Income Tax Assessment Amendment Act (No. 2) 1982 | 38, 1982 | 2 June 1982 | 2 June 1982 (s 2) | — |\n| Income Tax Assessment Amendment Act (No. 3) 1982 | 39, 1982 | 2 June 1982 | s 3: 3 June 1982 (s 2(2))  Remainder: 2 June 1982 (s 2(1)) | s 4(2) |\n| Income Tax Assessment Amendment Act (No. 4) 1982 | 76, 1982 | 13 Sept 1982 | 13 Sept 1982 (s 2) | s 4(2), (3), 6(2)–(4) and 11 |\n| Statute Law (Miscellaneous Amendments) Act (No. 2) 1982 | 80, 1982 | 22 Sept 1982 | s 280(2), (3) and Sch 12: 22 Sept 1982 (s 2(1)) | s 280(2) and (3) |\n| Income Tax Assessment Amendment Act (No. 5) 1982 | 106, 1982 | 30 Oct 1982 | 30 Oct 1982 (s 2) | s 3(2), 4(2), (3), 5(2)–(4), 6(2), 7(2), 9(3)–(5), 10(2), (3), 11(3)–(5), 12(2), (3), 13(2), (3), 14(2), 15(2), 16(2), (3), 17(2), 18(2), 19(2), 20(2), (3), 21(2), 22(2), (3), 23(2)–(4), 24(2), 25(2), 26(2) and 28 |\n| Income Tax Assessment Amendment Act (No. 6) 1982 | 123, 1982 | 13 Dec 1982 | 13 Dec 1982 (s 2) | s 14 and 15 |\n| Income Tax Assessment Amendment Act 1983 | 14, 1983 | 14 June 1983 | s 4: 14 Feb 1983 (s 2(2)) Remainder: 14 June 1983 (s 2(1)) | s 9(2), 11(2), 15(2), 20(2), 23(2), 29(2), 30(2), 58(2), 67 and 68 |\n| Income Tax Assessment Amendment Act (No. 2) 1983 | 25, 1983 | 19 June 1983 | 19 June 1983 (s 2) | s 16 |\n| Statute Law (Miscellaneous Provisions) Act (No. 1) 1983 | 39, 1983 | 20 June 1983 | s 7(1) and Sch 1: 18 July 1983 (s 2(1), (11)(b))  Sch 1: (amdt to s 221ZC(5)(b)(i) Income Tax Assessment Act 1936): 13 Dec 1982 (s 2(11)(a)) | s 7(1) |\n| Income Tax Assessment Amendment Act (No. 3) 1983 | 49, 1983 | 21 Sept 1983 | 21 Sept 1983 (s 2) | — |\n| Income Tax Laws Amendment (Medicare Levy) Act 1983 | 51, 1983 | 1 Oct 1983 | s 3: 1 Oct 1983 (s 2) | s 3(2), (3) |\n| Health Legislation Amendment Act 1983 | 54, 1983 | 1 Oct 1983 | Sch 4: 1 Feb 1984 (s 2(2)) | — |\n| Income Tax Assessment Amendment Act (No. 4) 1983 | 103, 1983 | 23 Nov 1983 | s 3: 22 Dec 1983 (s 2(2))  Remainder: 23 Nov 1983 (s 2(1)) | s 4(2), (3), 5(2), (3), 6(2), 11(2), 12(2), 13(2), 14(2), (3), 15(2), 18(2), 19(2), 20(2), 23(2) and 25 |\n| Income Tax Assessment Amendment Act 1984 | 14, 1984 | 12 Apr 1984 | 12 Apr 1984 (s 2) | s 3(2), 4(2), 6(2), 7(2), 8(2), 16(2), 22(2), 23(2), 28(2), 29 and 30 |\n| National Crime Authority (Consequential Amendments) Act 1984 | 42, 1984 | 15 June 1984 | s 4: 1 July 1984 (s 2) | — |\n| Income Tax Assessment Amendment Act (No. 3) 1984 | 47, 1984 | 25 June 1984 | 25 June 1984 (s 2) | s 60–62 |\n| Public Service Reform Act 1984 | 63, 1984 | 25 June 1984 | s 151(9) and Sch 4: 1 July 1984 (s 2(4) and gaz 1984, No S245) | s 151(9) |\n| Commonwealth Banks Amendment Act 1984 | 76, 1984 | 25 June 1984 | s 28–30: 29 June 1984 (s 2 and gaz 1984, No S241) | — |\n| Income Tax Assessment Amendment Act (No. 5) 1984 | 115, 1984 | 17 Oct 1984 | 17 Oct 1984 (s 2) | s 3(2) and (3) |\n| Taxation Laws Amendment Act 1984 | 123, 1984 | 19 Oct 1984 | s 91–166 and 385: 14 Dec 1984 (s 2(3)) | s 165, 166, 384 and 385 |\n| as amended by |  |  |  |  |\n| Sales Tax Laws Amendment Act 1985 | 47, 1985 | 30 May 1985 | Sch: 30 May 1985 (s 2(1)) | — |\n| Statute Law (Miscellaneous Provisions) Act (No. 1) 1985 | 65, 1985 | 5 June 1985 | Sch 1: 19 Oct 1984 (s 2(46)) | — |\n| Income Tax Assessment Amendment Act (No. 4) 1984 | 124, 1984 | 19 Oct 1984 | s 3(b): 1 July 1984 (s 2(2))  Remainder: 19 Oct 1984 (s 2(1)) | s 4(2), (3), 5(2), (3), 7(2), (3), 9(2)–(4), 10(2), (3), 11(2), (3), 13(2), 23, 24(2), (3), 28(2), 31(2), 36(2), 37(2), 38 and 39 |\n| Statute Law (Miscellaneous Provisions) Act (No. 2) 1984 | 165, 1984 | 25 Oct 1984 | s 9 and Sch 1: 13 Dec 1984 (s 2(29) and gaz 1984, No S519) | s 9 |\n| Income Tax Assessment Amendment (Income Equalization Deposits) Act 1984 | 174, 1984 | 26 Oct 1984 | 23 Nov 1984 (s 2) | s 3(2), (3) and 7 |\n| Sales Tax Laws Amendment Act 1985 | 47, 1985 | 30 May 1985 | Sch: 30 May 1985 (s 2(1)) | — |\n| Taxation Laws Amendment Act 1985 | 49, 1985 | 30 May 1985 | s 4–36, 38, 39 and Sch: 30 May 1985 (s 2) | s 18(2)–(4) and 39 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 21): 29 June 2010 (s 2(1) item 9) | — |\n| National Crime Authority (Miscellaneous Amendments) Act 1985 | 104, 1985 | 16 Oct 1985 | s 14(1): 1 July 1984 (s 2(2))  s 14(2) and (3): 16 Oct 1985 (s 2(1)) | s 14(3) |\n| Taxation Laws Amendment Act (No. 2) 1985 | 123, 1985 | 28 Oct 1985 | s 10–36: 28 Oct 1985 (s 2) | s 34–36 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 37): 29 June 2010 (s 2(1) item 9) | — |\n| Income Tax Assessment Amendment Act 1985 | 129, 1985 | 18 Nov 1985 | 18 Nov 1985 (s 2) | s 9–12 |\n| Taxation Laws Amendment Act (No. 3) 1985 | 168, 1985 | 16 Dec 1985 | s 19–43: 16 Dec 1985 (s 2(1)) | s 42 and 43 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 55): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 1985 | 173, 1985 | 16 Dec 1985 | s 4, 5(3), 17 and 20–22: 22 May 1986 (s 2(4))  s 5(1): 6 June 1985 (s 2(2))  s 5(2): 1 Nov 1985 (s 2(3))  s 6–12, 14–16, 18, 19, 23, 24: 16 Dec 1985 (s 2(1))  s 13: never commenced (s 2(4)) | s 23 and 24 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1986 | 49, 1986 | 24 June 1986 | s 33 and 36: 16 Dec 1985 (s 2(2))  s 33, 35 and 37–39: 22 May 1986 (s 2(3)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 68): 29 June 2010 (s 2(1) item 9) | — |\n| Income Tax Assessment Amendment Act (No. 2) 1985 | 174, 1985 | 16 Dec 1985 | 16 Dec 1985 (s 2) | s 3(2) |\n| Fringe Benefits Tax (Miscellaneous Provisions) Act 1986 | 41, 1986 | 24 June 1986 | s 4 and Sch: 24 June 1986 (s 2(1)) | s 4 |\n| Taxation Laws Amendment Act 1986 | 46, 1986 | 24 June 1986 | s 4–26: 24 June 1986 (s 2(1)) | s 25 and 26 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 22): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Boards of Review (Transfer of Jurisdiction) Act 1986 | 48, 1986 | 24 June 1986 | s 70–98, 213, 216, 219, 221, 226 and 228: 1 July 1986 (s 2(1)) | s 213, 216, 219, 221, 226 and 228 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1989 | 107, 1989 | 30 June 1989 | s 33(4): 30 June 1989 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 2) 1986 | 49, 1986 | 24 June 1986 | s 4–29: 24 June 1986 (s 2(1)) | s 28 and 29 |\n| as amended by |  |  |  |  |\n| Statute Law (Miscellaneous Provisions) Act 1987 | 141, 1987 | 18 Dec 1987 | s 5(1): 18 Dec 1987 (s 2(1))  Sch 1: 24 June 1986 (s 2(31)) | s 5(1) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 38): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Foreign Tax Credits) Act 1986 | 51, 1986 | 24 June 1986 | s 3–35: 22 July 1986 | s 32–35 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1988 | 78, 1988 | 24 June 1988 | s 63 and 64: 22 July 1986 (s 2(5)) | — |\n| Income Tax Assessment Amendment (Capital Gains) Act 1986 | 52, 1986 | 24 June 1986 | 24 June 1986 (s 2) | — |\n| as amended by |  |  |  |  |\n| Statute Law (Miscellaneous Provisions) Act 1987 | 141, 1987 | 18 Dec 1987 | s 5(1): 18 Dec 1987 (s 2(1))  Sch 1: 24 June 1986 (s 2(18)) | s 5(1) |\n| Income Tax Assessment Amendment (Research and Development) Act 1986 | 90, 1986 | 25 June 1986 | 25 June 1986 (s 2) | s 9 |\n| as amended by |  |  |  |  |\n| Statute Law (Miscellaneous Provisions) Act 1987 | 141, 1987 | 18 Dec 1987 | s 5(1): 18 Dec 1987 (s 2(1))  Sch 1: 25 June 1986 (s 2(19)) | s 5(1) |\n| Taxation Laws (Miscellaneous Provisions) Act 1986 | 109, 1986 | 4 Nov 1986 | s 4(2)–(9) and Sch: 4 Nov 1986 (s 2) | s 4(2)–(9) |\n| Taxation Laws Amendment Act (No. 3) 1986 | 112, 1986 | 4 Nov 1986 | s 15–34, 46 and 47: 4 Nov 1986 (s 2) | s 32–34, 46 and 47 |\n| Taxation Laws Amendment Act (No. 4) 1986 | 154, 1986 | 18 Dec 1986 | s 23–25, 26(a), 27, 29–39, 41–48, 49(1), (2), (4)–(6), (8)–(11) and 50: 18 Dec 1986 (s 2(1))  s 26(b), (c), 28, 40, 49(3) and (7): 1 Jan 1987 (s 2(4) and gaz 1986, No S650) | s 39(2), (3), 49 and 50 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 69): 29 June 2010 (s 2(1) item 9) | — |\n| Jurisdiction of Courts (Miscellaneous Amendments) Act 1987 | 23, 1987 | 26 May 1987 | s 4: 26 May 1987 (s 2(1))  Sch: 1 Sept 1987 (s 2(2) and gaz 1987, No S217) | s 4 |\n| Taxation Laws Amendment (Company Distributions) Act 1987 | 58, 1987 | 5 June 1987 | s 6–19: 5 June 1987 (s 2) | s 18 and 19 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 96): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act 1987 | 61, 1987 | 5 June 1987 | s 6–33: 5 June 1987 (s 2) | s 31–33 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 23): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 2) 1987 | 62, 1987 | 5 June 1987 | s 9–38 and Sch 4: 5 June 1987 (s 2(1), (3), (4)) | s 47 and 48 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1987 | 108, 1987 | 13 Nov 1987 | s 45: 13 Nov 1987 (s 2) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 39): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 1987 | 108, 1987 | 13 Nov 1987 | s 4–40: 13 Nov 1987 (s 2) | s 37–40 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 4) 1987 | 138, 1987 | 18 Dec 1987 | s 90 and 91: 18 Dec 1987 (s 2(1)) | s 91 |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 56): 29 June 2010 (s 2(1) item 9) | — |\n| Crimes Legislation Amendment Act 1987 | 120, 1987 | 16 Dec 1987 | s 31: 16 Dec 1987 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 4) 1987 | 138, 1987 | 18 Dec 1987 | s 4, 5 and 7–52: 18 Dec 1987 (s 2(1))  s 6: 21 Dec 1987 (s 2(2)) | s 48–52 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act 1988 | 11, 1988 | 26 Apr 1988 | s 48: 18 Dec 1987 (s 2(5)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 70): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Fringe Benefits and Substantiation) Act 1987 | 139, 1987 | 18 Dec 1987 | s 64–75: 18 Dec 1987 (s 2) | s 74 and 75 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 101): 29 June 2010 (s 2(1) item 9) | — |\n| Petroleum Resource Rent Tax (Miscellaneous Provisions) Act 1987 | 145, 1987 | 18 Dec 1987 | Sch: 15 Jan 1988 (s 2) | — |\n| Management and Investment Companies Legislation Amendment Act 1987 | 163, 1987 | 26 Dec 1987 | s 4: 26 Dec 1987 (s 2) | — |\n| Family Court of Australia (Additional Jurisdiction and Exercise of Powers) Act 1988 | 8, 1988 | 5 Apr 1988 | s 38 and 39: 1 July 1988 (s 2(3) and gaz 1988, No S191) | — |\n| as amended by |  |  |  |  |\n| Law and Justice Legislation Amendment Act 1988 | 120, 1988 | 14 Dec 1988 | s 35: 5 Apr 1988 (s 2(6)) | — |\n| Taxation Laws Amendment Act 1988 | 11, 1988 | 26 Apr 1988 | s 9–13 and 15–40: 26 Apr 1988 (s 2(1))  s 14: 24 June 1986 (s 2(2)) | s 38–40 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 24): 29 June 2010 (s 2(1) item 9) | — |\n| Research and Development Legislation Amendment Act 1988 | 59, 1988 | 15 June 1988 | s 4–7 and 18: 1 July 1988 (s 2) | s 7 and 18 |\n| Commonwealth Employees’ Rehabilitation and Compensation Act 1988 | 75, 1988 | 24 June 1988 | Sch: 1 Dec 1988 (s 2(2) and gaz 1988, No S196) | — |\n| Taxation Laws Amendment Act (No. 2) 1988 | 78, 1988 | 24 June 1988 | s 8–13, 14(1), 16–36, 38, 55(1)–(14), 56, 57 and Sch: 24 June 1988 (s 2(1))  s 14(2): 1 July 1988 (s 2(2))  s 15: 22 Dec 1986 (s 2(3))  s 37, 39–53 and 55(15)–(25):1 Nov 1988 (s 2(4) and gaz 1988, No S331) | s 55–57 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 40): 29 June 2010 (s 2(1) item 9) | — |\n| Employment, Education and Training Act 1988 | 80, 1988 | 24 June 1988 | Sch 2: 1 July 1988 (s 2 and gaz 1988, No S190) | — |\n| Industrial Relations (Consequential Provisions) Act 1988 | 87, 1988 | 8 Nov 1988 | Sch 2: 1 Mar 1989 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 4) 1988 | 95, 1988 | 24 Nov 1988 | s 12–43, 44(b), 45–52, 54–58 and Sch: 24 Nov 1988 (s 2(1))  s 44(a) and 54(11): 16 Mar 1989 (s 2(2)) | s 54–58 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1989 | 107, 1989 | 30 June 1989 | s 30: 24 Nov 1988 (s 2(2)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 71): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Tax File Numbers) Act 1988 | 97, 1988 | 25 Nov 1988 | s 6–11, 13–20 and Sch 1: 1 Jan 1989 (s 2(1))  s 12: 1 July 1989 (s 2(2)) and gaz 1989, No S159) | — |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 1996 | 43, 1996 | 25 Oct 1996 | Sch 3 (item 122): 25  Nov 1988 (s 2(3)) | — |\n| ANL (Conversion into Public Company) Act 1988 | 127, 1988 | 14 Dec 1988 | Sch: 1 July 1989 (s 2(3) and gaz 1989, No S210) | — |\n| Taxation Laws Amendment Act (No. 5) 1988 | 153, 1988 | 26 Dec 1988 | s 9–42 and 44: 26 Dec 1988 (s 2(1))  s 43: 1 Jan 1989 (s 2(2)) | s 36–44 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 82): 29 June 2010 (s 2(1) item 9) | — |\n| Higher Education Funding Act 1988 | 2, 1989 | 6 Jan 1989 | s 80–85: 6 Jan 1989 (s 2(1)) | — |\n| Taxation Laws Amendment Act 1989 | 11, 1989 | 16 Mar 1989 | s 22–53: 16 Mar 1989 (s 2) | s 52 and 53 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 25): 29 June 2010 (s 2(1) item 9) | — |\n| Income Equalization Deposits Laws Amendment Act 1989 | 56, 1989 | 14 June 1989 | s 32–37: 1 July 1989 (s 2) | s 37 |\n| Taxation Laws Amendment (Rates and Rebates) Act 1989 | 70, 1989 | 21 June 1989 | s 5 and Sch: 21 June 1989 (s 2) | s 5 |\n| Income Tax (Arrangements with the States) Repeal Act 1989 | 73, 1989 | 21 June 1989 | Sch: 21 June 1989 (s 2) | — |\n| Taxation Laws Amendment Act (No. 2) 1989 | 97, 1989 | 30 June 1989 | s 4–9, 11–15 and Sch 1: 30 June 1989 (s 2) | s 5(2) and 11–15 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment (Superannuation) Act 1989 | 105, 1989 | 30 June 1989 | s 77, 78 and 80: 30 June 1989 (s 2(1)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 41): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Superannuation) Act 1989 | 105, 1989 | 30 June 1989 | s 4, 5(a)–(n), (p) and 6–66: 30 June 1989 (s 2(1))  s 5(o): 18 Dec 1987 (s 2(2)) | s 64–66 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act 1994 | 56, 1994 | 7 Apr 1994 | s 112: 30 June 1989 (s 2(10)) | s 112(2) and (3) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 105): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 1989 | 107, 1989 | 30 June 1989 | s 9–23, 32 and Sch 1: 30 June 1989 (s 2(1)) | s 20–23 and 32 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 57): 29 June 2010 (s 2(1) item 9) | — |\n| Banking Legislation Amendment Act 1989 | 129, 1989 | 7 Nov 1989 | Sch 4: 28 Dec 1989 (s 2(4) and gaz 1989, No S383) | — |\n| Social Security and Veterans’ Affairs Legislation Amendment Act (No. 3) 1989 | 163, 1989 | 19 Dec 1989 | s 4, 19 and 20: 13 Nov 1989 (s 2) | s 4 |\n| Taxation Laws Amendment Act (No. 4) 1989 | 167, 1989 | 19 Dec 1989 | s 4–30 and 32: 19 Dec 1989 (s 2(1))  s 31: 19 Jan 1989 (s 2(2)) | s 29–32 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 72): 29 June 2010 (s 2(1) item 9) | — |\n| Taxa","sortOrder":1000137},{"sectionNumber":"full-source-retrieval-0139","sectionType":"document_chunk","heading":"Document excerpt 139","content":"tion Laws Amendment Act (No. 5) 1989 | 20, 1990 | 17 Jan 1990 | s 6–8, 9 (amdt to s 78(1)(a)(xcv) Income Tax Assessment Act 1936) and 10–50: 17 Jan 1990 (s 2(1))  s 9 (amdt to s 78(1)(a)(xcvi) Income Tax Assessment Act 1936): 10 Nov 1989 (s 2(2)) | s 6(2), 13(2), 14(2), 15(2), 16(2), 25(2), 29(2), 31(2), 32(2), 37(2), 41(2) and 46–50 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 83): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act 1990 | 35, 1990 | 7 June 1990 | s 4–41: 7 June 1990 (s 2) | s 38–41 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 26): 29 June 2010 (s 2(1) item 9) | — |\n| Petroleum (Australia‑Indonesia Zone of Cooperation) (Consequential Provisions) Act 1990 | 37, 1990 | 7 June 1990 | s 14: 18 Feb 1991 (s 2) | — |\n| Income Tax Assessment Amendment Act 1990 | 45, 1990 | 16 June 1990 | 16 June 1990 (s 2) | — |\n| Taxation Laws Amendment Act (No. 2) 1990 | 57, 1990 | 16 June 1990 | s 6–58, 61–65, Sch 1 and 2: 16 June 1990 (s 2) | s 61–65 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 42): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 1990 | 58, 1990 | 16 June 1990 | s 10–22 and 24–35: 16 June 1990 (s 2(1), (2))  s 23: 4 Dec 1989 (s 2(3)) | s 29–35 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 58): 29 June 2010 (s 2(1) item 9) | — |\n| Training Guarantee (Administration) Act 1990 | 60, 1990 | 16 June 1990 | Sch: 1 July 1990 (s 2(1)) | — |\n| Occupational Superannuation (Reasonable Benefit Limits) Amendment Act 1990 | 61, 1990 | 16 June 1990 | s 14–21: 1 July 1990 (s 2(4))  s 22–24: 1 July 1995 (s 2(3)) | — |\n| Taxation Laws Amendment (Rates and Provisional Tax) Act 1990 | 87, 1990 | 6 Nov 1990 | s 3(2), 5, 7–10, 12–14 and Sch 1–3: 6 Nov 1990 (s 2(1))  s 4(2): 1 July 1991 (s 2(2)) | s 3(2), 4(2), 5 and 12–14 |\n| Social Security and Veterans’ Affairs Legislation Amendment Act (No. 2) 1990 | 119, 1990 | 28 Dec 1990 | s 38 and 39: 28 Dec 1990 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 5) 1990 | 135, 1990 | 28 Dec 1990 | s 7–33, 38(1), (2), 39(1) and Sch (Pt 1): 28 Dec 1990 (s 2(1))  s 38(3), 39(2) and Sch (Part 3): 1 July 1993 (s 2(3))  s. 38(4), 39(3) and Sch (Part 4): 8 Jan 1991 (s 2(4)) | s 28–33, 38 and 39 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 84): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 1990 | 4, 1991 | 8 Jan 1991 | s 4–37: 8 Jan 1991 (s 2(1)) | s 32–37 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 73): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Foreign Income) Act 1990 | 5, 1991 | 8 Jan 1991 | s 4–61: 8 Jan 1991 (s 2) | s 50–61 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act 1991 | 48, 1991 | 24 Apr 1991 | s 104: 8 Jan 1991 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 3) 1991 | 216, 1991 | 24 Dec 1991 | s 119 and 120: 24 Dec 1991 (s 2(1)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 98): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security Legislation Amendment Act 1990 | 6, 1991 | 8 Jan 1991 | s 95: 1 Jan 1991 (s 2) | — |\n| Taxation Laws Amendment Act 1991 | 48, 1991 | 24 Apr 1991 | s 9, 15, 33, 70 and 81–83: 8 Jan 1991 (s 2(2))  s 10–14, 16–31, 34(a), 35, 37–39, 41–51(1), 52–59(1), 60, 61,67, 68(1), 69, 71–80, 84(1)–(8), (10), (11), (13)–(17), 85, 86 and 88–90: 24 Apr 1991 (s 2(1))  s 32 and 84(9): 1 July 1991 (s 2(4))  s 34(b), 36, 40 and 87: 21 Aug 1990 (s 2(3))  s 51(2), 59(2), 62–66, 68(2) and 84(12): 25 Apr 1991 (s 2(5)) | s 84–90 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 27): 29 June 2010 (s 2(1) item 9) | — |\n| Occupational Superannuation Laws Amendment Act 1991 | 55, 1991 | 24 Apr 1991 | s 4: 24 Apr 1991 (s 2) | — |\n| Taxation Laws Amendment Act (No. 2) 1991 | 100, 1991 | 27 June 1991 | s 15–28, 30–32, 33(b), (e), (f), 34–76 and 79–84): 27 June 1991 (s 2(1))  s 29 and 77: 24 Apr 1991 (s 2(3), (6))  s 33(a): 16 June 1990 (s 2(4))  s 33(c) and (d): 30 June 1989 (s 2(5))  s 78: 8 Jan 1991 (s 2(7)) | s 83 and 84 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (items 43, 44): 29 June 2010 (s 2(1) item 9) | — |\n| Political Broadcasts and Political Disclosures Act 1991 | 203, 1991 | 19 Dec 1991 | s 37 and 38: 16 Jan 1992 | — |\n| Veterans’ Affairs Legislation Amendment Act (No. 2) 1991 | 208, 1991 | 24 Dec 1991 | Sch: 24 Dec 1991 (s 2) | — |\n| Taxation Laws Amendment Act (No. 3) 1991 | 216, 1991 | 24 Dec 1991 | s 10, 12–39, 41, 43, 44, 67–81, 83–86, 89(1), (3)–(19), 91, 92, 102, 103 and Sch 1–4: 24 Dec 1991 (s 2(1))  s 11 and 89(2): 22 Jan 1991 (s 2(2))  s 40 and 42: 6 Jan 1992 (s 2(3))  s 45, 46, 48–51, 54–58, 60–66, 90(1), (3)–(14), 93–96 and 98–101: 21 Aug 1991 (s 2(4))  s 47, 52, 53, 59, 90(2) and 97: 3 pm (A.C.T) 20 Aug 1991 (s 2(5))  s 82(2): 25 Dec 1991 (s 2(6)) | s 89–103 |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 1996 | 43, 1996 | 25 Oct 1996 | Sch 3 (item 119): 24 Dec 1991 (s 2(3)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 59): 29 June 2010 (s 2(1) item 9) | — |\n| Life Insurance Policy Holders’ Protection Levies Collection Act 1991 | 3, 1992 | 6 Jan 1992 | Sch: 6 Jan 1992 (s 2) | — |\n| Taxation Laws Amendment Act 1992 | 35, 1992 | 25 May 1992 | s 7–75: 25 May 1992 (s 2) | s 63–75 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1992 | 98, 1992 | 30 June 1992 | s 103 and 104: 1 July 1992 (s 2(2)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 28): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security (Family Payment) Amendment Act 1992 | 69, 1992 | 26 June 1992 | Sch: 1 Jan 1993 (s 2) | — |\n| Veterans’ Affairs Legislation Amendment Act 1992 | 70, 1992 | 26 June 1992 | Sch (Pt 8): 20 Oct 1991 (s 2(12))  Sch (Pt 9): 1 July 1992 (s 2(13)) | — |\n| Taxation Laws Amendment Act (No. 2) 1992 | 80, 1992 | 30 June 1992 | s 52(2) and 53(2): 1 July 1992 (s 2(3))  Remainder: 30 June 1992 (s 2(1)) | s 65–84 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 45): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security Legislation Amendment Act 1992 | 81, 1992 | 30 June 1992 | s 3 and Sch 2 (Pt 1): 30 June 1992 (s 2(1)(a), (g))  Sch 2 (Pt 6): 1 July 1992 (s 2(14)(c)) | s 3 |\n| Superannuation Guarantee (Consequential Amendments) Act 1992 | 92, 1992 | 30 June 1992 | Sch: 1 July 1992 (s 2) | — |\n| Taxation Laws Amendment Act (No. 3) 1992 | 98, 1992 | 30 June 1992 | s 4–31 and 37–81: 30 June 1992 (s 2(1))  s 32–36: 1 July 1992 (s 2(2)) | s 5, 7, 20, 31, 36, 38, 46, 57, 80 and 81 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act 1993 | 17, 1993 | 9 June 1993 | s 65: 30 June 1992 (s 2(3)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 60): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Self Assessment) Act 1992 | 101, 1992 | 30 June 1992 | s 16–32, 34 and Sch 1–4: 30 June 1992 (s 2) | s 34 |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 1996 | 43, 1996 | 25 Oct 1996 | Sch 3 (item 121): 30 June 1992 (s 2(3)) | — |\n| Sales Tax Amendment (Transitional) Act 1992 | 118, 1992 | 30 Sept 1992 | Sch: 28 Oct 1992 (s 2) | — |\n| Student Assistance Amendment Act 1992 | 138, 1992 | 19 Nov 1992 | s 27–30: 19 Nov 1992 (s 2(1)) | — |\n| Radiocommunications (Transitional Provisions and Consequential Amendments) Act 1992 | 167, 1992 | 11 Dec 1992 | Sch: 1 July 1993 (s 2) | — |\n| Income Tax Assessment Amendment (Foreign Investment) Act 1992 | 190, 1992 | 18 Dec 1992 | 1 Jan 1993 (s 2) | s 11(2), 12(2), 14(2), 24(2), (3) and 25(2) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1993 | 18, 1993 | 9 June 1993 | s 61: 1 Jan 1993 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 4) 1992 | 191, 1992 | 21 Dec 1992 | s 4–35: 21 Dec 1992 (s 2) | s 10, 13, 19, 20(1), 22, 31, 32, 33(2), 34 and 35 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 74): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Superannuation) Act 1992 | 208, 1992 | 22 Dec 1992 | s 4–6, 19–33 and 47–61: 1 July 1994 (s 2(2)(a))  s 7–18 and 34–46: 22 Dec 1992 (s 2(1)) | s 6, 17, 18, 27, 33, 38, 39, 46, 49, 61 and 62 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment (Superannuation) Act 1993 | 7, 1993 | 27 May 1993 | s 63 and 64: 22 Dec 1992 (s 2(6)) | s 64 |\n| Taxation Laws Amendment Act (No. 2) 1995 | 169, 1995 | 16 Dec 1995 | Sch 10 (item 9): 1 July 1994 (s 2(10)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 106): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Fringe Benefits Tax Measures) Act 1992 | 223, 1992 | 24 Dec 1992 | Sch: 1 Apr 1994 (s 2) | — |\n| Taxation Laws Amendment Act (No. 5) 1992 | 224, 1992 | 24 Dec 1992 | s 4–13, 14(1), 15(1), 16(1), 17(1) and 18–87: 24 Dec 1992 (s 2(1))  s 14(2), 15(2), 16(2) and 17(2): 1 July 1993 (s 2(1)) | s 13, 17, 21, 22, 24, 32, 34, 36, 38, 40, 44, 45, 56, 57, 81, 82, 86 and 87 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 85): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 6) 1992 | 227, 1992 | 24 Dec 1992 | s 9 and 10: 19 Aug 1992 (s 2(2))  s 11–13: 1 Jan 1993  (s 2(3))  Remainder: 24 Dec 1992 (s 2(1)) | s 5, 7, 10, 13, 31, 32 and 33 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1994 | 82, 1994 | 23 June 1994 | s 125: 24 Dec 1992 (s 2(7)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 90): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Car Parking) Act 1992 | 237, 1992 | 24 Dec 1992 | s 9 and 10: 24 Dec 1992 (s 2) | s 10 |\n| Income Equalisation Deposits Laws Amendment Act 1992 | 238, 1992 | 24 Dec 1992 | s 23–26: 19 Aug 1992 (s 2) | s 26 |\n| Taxation Laws Amendment (Superannuation) Act 1993 | 7, 1993 | 27 May 1993 | s 4–6, 8–11 and 30–34: 27 May 1993 (s 2(1))  s 7 and  12–29: 1 July 1994 (s 2(2)(a), (3)) | s 5, 11, 20, 25, 29, 33 and 34 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 107): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act 1993 | 17, 1993 | 9 June 1993 | s 8–59: 9 June 1993 (s 2(1)) | s 14, 17, 22, 24, 32, 34, 35, 40, 43, 45, 47, 49, 51, 56, 58 and 59 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 4) 1995 | 171, 1995 | 16 Dec 1995 | Sch 6: 16 Dec 1995 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 16 (item 1): 9 June 1993 (s 2(10)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 29): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 2) 1993 | 18, 1993 | 9 June 1993 | s 8–29, 54–57, 59 and Sch: 9 June 1993 (s 2(1))  s 30–53: 1 Jan 1993 (s 2(2)) | s 13, 14, 22, 56, 57 and 59 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1994 | 138, 1994 | 28 Nov 1994 | s 7(3): 28 Nov 1994 (s 2(1)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 46): 29 June 2010 (s 2(1) item 9) | — |\n| Veterans’ Affairs Legislation Amendment Act 1993 | 27, 1993 | 9 June 1993 | s 3 and 17: 9 June 1993 (s 2(1)) | s 3 |\n| Insolvency (Tax Priorities) Legislation Amendment Act 1993 | 32, 1993 | 16 June 1993 | s 3–5, 8, 10, 12, 14, 16 and 17: 16 June 1993 (s 2(1))  s 6, 7, 9, 11, 13 and 15: 1 June 1993 (s 2(2)) | s 17 |\n| Taxation (Deficit Reduction) Act (No. 2) 1993 | 55, 1993 | 27 Oct 1993 | s 8–12: 27 Oct 1993 (s 2(1))  s 13: 1 July 1995 (s 2(2)(a))  s 14: repealed before commencing (s 2(3)(a))  s 15: 1 July 2000 (s 2(4)) | s 8, 11, 12, 13(2) and 15(2) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment (Budget Measures) Act 1995 | 94, 1995 | 27 July 1995 | Sch 2: 9 May 1995 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 4) 1997 | 174, 1997 | 21 Nov 1997 | Sch 8 (items 1–6): 1 July 1997 (s 2(4)) | — |\n| Taxation Laws Amendment Act (No. 2) 2000 | 58, 2000 | 31 May 2000 | Sch 7 (item 1): 31 May 2000 (s 2(1)) | — |\n| Taxation (Deficit Reduction) Act (No. 1) 1993 | 57, 1993 | 27 Oct 1993 | s 13–34: 27 Oct 1993 (s 2) | s 13, 16, 17, 23, 24, 26–28 and 34 |\n| Taxation (Deficit Reduction) Act (No. 3) 1993 | 58, 1993 | 27 Oct 1993 | s 11–13: 27 Oct 1993 (s 2(1)) | s 13 |\n| Superannuation Industry (Supervision) Consequential Amendments Act 1993 | 82, 1993 | 30 Nov 1993 | s 15, 16(1) and 17–35: 1 July 1994 (s 2(2)(d))  s 16(2): 1 Dec 1993 (s 2(1)) | s 35 |\n| Higher Education Funding Legislation Amendment Act 1993 | 116, 1993 | 24 Dec 1993 | s 22–25: 1 Jan 1994 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 3) 1993 | 118, 1993 | 24 Dec 1993 | s 14–116, 167–175 and 177–179: 24 Dec 1993 (s 2(1)) | s 18, 23, 26, 30, 33, 38, 108–113, 116 and 167–175 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 61): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act 1994 | 56, 1994 | 7 Apr 1994 | s 14–23, 39–54, 65–69, 70(3), 71(3), (4), 72–74, 75(2), 76–82, 83(3) and 84–87: 7 Apr 1994 (s 2(1))  s 24–32: 1 July 1993 (s 2(2))  s 33–38: 20 Mar 1994 (s 2(3))  s 55–64: 1 July 1994 (s 2(4))  s 70(1) and 83(1): 30 June 1989 (s 2(5), (8))  s 70(2), 71(2) and 83(2): 8 Jan 1991 (s 2(9))  s 71(1) and 75(1): 17 Jan 1990 (s 2(6), (7)) | s 14, 18, 19, 23, 24, 32, 33, 38, 39, 46, 47, 48(3), 49, 50, 55, 63–65, 68, 69, 74(2), (3), 75(2), 78(2), 80(2), 82(2), 86, 87 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 30): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 2) 1994 | 82, 1994 | 23 June 1994 | s 8–43, 47–71, 80–83, 93–112, 114–119, 122, 128–134: 23 June 1994 (s 2(1))  s 7, 120 and 121: 22 Oct 1986 (s 2(2))  s 44–46: 9 June 1993 (s 2(3))  s 72–79: 1 Jan 1993 (s 2(4))  s 84–92: 30 June 1992 (s 2(5))  s 113: 21Dec 1992 (s 2(6))  s 123–127): 24 Dec 1992 (s 2(7)) | s 21, 24, 28, 32, 33, 43, 44, 46, 49, 53, 56, 59, 62, 71, 83, 96, 104, 105, 109, 114, 119, 122 and 134 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 47): 29 June 2010 (s 2(1) item 9) | — |\n| Drought Relief Payment Act 1994 | 125, 1994 | 18 Oct 1994 | Sch (items 89–93): 18 Oct 1994 (s 2) | Sch (item 93) |\n| Taxation Laws Amendment Act (No. 3) 1994 | 138, 1994 | 28 Nov 1994 | s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1))  s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2))  s 93–98: 28 Nov 1994 (s 2(3)) | s 4, 8, 10, 11, 14, 16, 17, 19, 21, 24, 25, 27, 29, 30, 33, 34, 37, 39, 40, 42, 44, 49–51, 61–63, 65, 66, 74, 75, 79, 80, 83, 84, 86, 87, 92, 93, 98, 99, 101, 102, 104, 105, 107–109, 111, 115 and 116 |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1995 | 169, 1995 | 16 Dec 1995 | Sch 10 (item 7): 28 Nov 1994 (s 2(8)) | — |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 16 (items 2, 3): 28 Nov 1994 (s 2(11)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 62): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Infrastructure Borrowings) Act 1994 | 163, 1994 | 16 Dec 1994 | s 20–26: 16 Dec 1994 (s 2) | s 26 |\n| Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994 | 174, 1994 | 16 Dec 1994 | s 14, 15 and Sch 4 (items 38–41, 47–51): 1 Jan 1995 (s 2(5))  Sch 1 (items 163–174): 1 July 1995 (s 2(1))  Sch 3 (items 34–38): 20 Sept 1994 (s 2(2)) | s 14 and 15 |\n| Taxation Laws Amendment Act (No. 4) 1994 | 181, 1994 | 19 Dec 1994 | Sch 1 (items 1–21, 86–91), Sch 2 (items 5–23, 23 (2nd occurring)), Sch 3 (items 6–100), Sch 4 (items 9–23) and Sch 5 (items 25–30, 46(10)): 19 Dec 1994 (s 2(1))  Sch 1 (items 22–85): 13 Oct 1994 (s 2(2)) | Sch 1 (items 1, 13, 14, 21, 22, 86, 88, 90, 91), Sch 2 (items 5, 23), Sch 3 (items 6, 13, 14, 17, 18, 23 (2nd occurring), 24, 29, 30, 34, 35, 41, 42, 48, 49, 51, 52, 54, 55, 67, 68, 72, 73, 80, 81, 85, 86, 90, 91, 94, 95, 99, 100), Sch 4 (items 9, 22, 23) and Sch 5 (item 46(10)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 75): 29 June 2010 (s 2(1) item 9) | — |\n| Student Assistance (Youth Training Allowance—Transitional Provisions and Consequential Amendments) Act 1994 | 184, 1994 | 23 Dec 1994 | Sch 3 (items 55–62): 1 Jan 1995 (s 2) | — |\n| Life Insurance (Consequential Amendments and Repeals) Act 1995 | 5, 1995 | 23 Feb 1995 | s 3(2), (3) and Sch (items 14–35): 1 July 1995 (s 2) | s 3(2) and (3) |\n| Income Tax (International Agreements) Amendment Act 1995 | 22, 1995 | 29 Mar 1995 | Sch (items 16–35): 29 Mar 1995 (s 2) | — |\n| Tax Law Improvement (Substantiation) Act 1995 | 30, 1995 | 7 Apr 1995 | Sch 1 and 2: 7 Apr 1995 (s 2) | s 3(3) |\n| Taxation Laws Amendment (Drought Relief Measures) Act 1995 | 31, 1995 | 7 Apr 1995 | Sch 1: 7 Apr 1995 (s 2) | — |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1995 | 170, 1995 | 16 Dec 1995 | Sch 4: 7 Apr 1995 (s 2(2)) | — |\n| Supe","sortOrder":1000138},{"sectionNumber":"full-source-retrieval-0140","sectionType":"document_chunk","heading":"Document excerpt 140","content":"rannuation Laws Amendment (Small Accounts and Other Measures) Act 1995 | 53, 1995 | 23 June 1995 | Sch 2: 1 July 1995 (s 2) | Sch 2 (item 19) |\n| Taxation Laws Amendment (Budget Measures) Act 1995 | 94, 1995 | 27 July 1995 | Sch 10: 9 May 1995 (s 2(1)) | Sch 10 (item 2) |\n| Social Security Legislation Amendment (Family Measures) Act 1995 | 106, 1995 | 29 Sept 1995 | Sch 6: 1 Feb 1996 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 1) 1995 | 120, 1995 | 25 Oct 1995 | Sch 1 (items 1–57, 59–90) and Sch 2 (items 1, 3, 4): 25 Oct 1995 (s 2(1))  Sch 1 (item 58): 23 Nov 1994 (s 2(2)) | Sch 1 (items 6, 7, 20, 21, 24, 35, 43, 44, 53, 57, 59, 71, 85, 86, 89, 90) and Sch 2 (item 1) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 31): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995 | 143, 1995 | 12 Dec 1995 | Sch 6 (item 50): 1 Jan 1997 (s 2(9)) | — |\n| Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 | 145, 1995 | 12 Dec 1995 | Sch 1 (item 6) and Sch 2 (item 15): 12 Dec 1995 (s 2) | Sch 2 (item 15) |\n| Veterans’ Affairs Legislation Amendment (1995‑96 Budget Measures) Act (No. 2) 1995 | 146, 1995 | 12 Dec 1995 | Sch 12 (item 1): 1 Jan 1997 (s 2(13))  Sch 12 (items 2–13): 1 Jan 1996 (s 2(6)) | Sch 12 (item 13) |\n| Taxation Laws Amendment Act (No. 2) 1995 | 169, 1995 | 16 Dec 1995 | Sch 1 (items 1–14, 16), Sch 2 (items 1–8, 11–15), Sch 3 (items 1–36, 40–44) and Sch 8 (items 1–5): 16 Dec 1995 (s 2(1))  Sch 3 (items 37–39): 1 July 1994 (s 2(2))  Sch 10 (item 2): 13 Oct 1994 (s 2(5)) | Sch 1 (item 16), Sch 2 (items 11–15), Sch 3 (items 13, 17, 19, 21, 23, 25, 27, 33, 35, 36, 39, 43, 44) and Sch 8 (item 5) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 48): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 1995 | 170, 1995 | 16 Dec 1995 | Sch 1 and Sch 2 (items 1–53), Sch 3 (items 15, 16): 16 Dec 1995 (s 2(1)) | Sch 1 (items 12, 16, 18, 20, 33, 34, 40, 43, 49, 50), Sch 2 (items 51–53) and Sch 3 (item 16) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 63): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 1995 | 171, 1995 | 16 Dec 1995 | s 4, Sch 1, Sch 2 (items 1, 2, 86), Sch 3 and Sch 4 (items 1–4): 16 Dec 1995 (s 2(1), (3))  Sch 2 (items 3–85, 87–160): 1 July 1995 (s 2(2))  Sch 4 (items 5–14): 1 Mar 1996 (s 2(4)) | s 4, Sch 1 (items 19, 36–40), Sch 2 (items 159, 159A, 160), Sch 3 (item 3) and Sch 4 (items 4, 10–12, 14) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1996 | 76, 1996 | 18 Dec 1996 | Sch 6 (items 1–5): 16 Dec 1995 (s 2(5), (6)) | — |\n| Taxation Laws Amendment Act (No. 1) 1997 | 122, 1997 | 8 July 1997 | Sch 2: 1 July 1995 (s 2(5)) | — |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 16 (item 4): 16 Dec 1995 (s 2(12))  Sch 16 (items 5, 6): 1 July 1995 (s 2(13)) | — |\n| Taxation Laws (Technical Amendments) Act 1998 | 41, 1998 | 4 June 1998 | Sch 6 (items 20, 21): 1 July 1995 (s 2(11), (12)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 76): 29 June 2010 (s 2(1) item 9) | — |\n| Law and Justice Legislation Amendment Act (No. 1) 1995 | 175, 1995 | 16 Dec 1995 | Sch 2: 16 Dec 1995 (s 2(1)) | — |\n| Social Security and Veterans’ Affairs Legislation Amendment Act 1995 | 1, 1996 | 9 Jan 1996 | Sch 11 (items 1–7): 1 July 1996 (s 2(4)(d))  Sch 11 (items 8, 9): 20 Sept 1996 (s 2(5)(d))  Sch 11 (items 10–21): 1 July 1997 (s 2(6)) | — |\n| Income Tax Assessment Amendment Act 1996 | 17, 1996 | 27 June 1996 | Sch 1: 1 July 1996 (s 2(2))  Sch 2: 1 July 1997 (s 2(3)) | Sch 1 (item 6) and Sch 2 (item 6) |\n| Taxation Laws Amendment Act (No. 1) 1996 | 31, 1996 | 9 July 1996 | 9 July 1996 (s 2) | s 4 and Sch 1 (items 3, 10–13) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 32): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (International Tax Agreements) Act 1996 | 39, 1996 | 9 Oct 1996 | Sch 2: 9 Oct 1996 (s 2) | Sch 2 (item 3) |\n| Statute Law Revision Act 1996 | 43, 1996 | 25 Oct 1996 | Sch 4 (items 1 and 93): 25 Oct 1996 (s 2(1)) | — |\n| Workplace Relations and Other Legislation Amendment Act 1996 | 60, 1996 | 25 Nov 1996 | Sch 19 (items 19, 20): 25 Nov 1996 (s 2(1)) | — |\n| as amended by |  |  |  |  |\n| Workplace Relations and Other Legislation Amendment Act (No. 2) 1996 | 77, 1996 | 19 Dec 1996 | Sch 3 (items 1, 2): 25 Nov 1996 (s 2(4)) | — |\n| Family (Tax Initiative) Act 1996 | 63, 1996 | 27 Nov 1996 | s 3 and Sch 1: 1 Jan 1997 (s 2) | s 3 |\n| Taxation Laws Amendment Act (No. 2) 1996 | 76, 1996 | 18 Dec 1996 | s 4 and Sch 1 (items 1–43, 47): 18 Dec 1996 (s 2(1))  Sch 1 (items 44–46): 1 Jan 1993 (s 2(2))  Sch 2: 27 June 1996 (s 2(3))  Sch 4 (items 19–24): 16 Feb 1997 (s 2(4)) | s 4 and Sch 1 (items 29, 32, 37, 47) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 49): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 1996 | 78, 1996 | 19 Dec 1996 | Sch 1, 2 and Sch 4 (items 1–57): 19 Dec 1996 (s 2(1), (2))  Sch 4 (items 56, 57): 5 pm (A.C.T.) 23 July 1996 (s 2(4)) | Sch 1 (items 5, 9, 12, 13), Sch 2 (item 2) and Sch 4 (items 10, 13, 18, 28, 38, 52, 57) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 11 (item 13): 19 Dec 1996 (s 2(5)) | — |\n| Industry Research and Development Amendment Act 1996 | 82, 1996 | 19 Dec 1996 | Sch 2: 19 Dec 1996 (s 2(1)) | Sch 2 (item 2) |\n| Social Security Legislation Amendment (Budget and Other Measures) Act 1996 | 84, 1996 | 23 Dec 1996 | Sch 2 (items 13–15): 1 July 1997 (s 2(4)) | — |\n| Defence Legislation Amendment Act (No. 1) 1997 | 1, 1997 | 19 Feb 1997 | Sch 2 (item 135): 19 Feb 1997 (s 2(1)) | — |\n| Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997 | 29, 1997 | 17 Apr 1997 | Sch 2 (items 68–70): 1 July 1997 (s 2) | — |\n| Income Tax (Consequential Amendments) Act 1997 | 39, 1997 | 17 Apr 1997 | Sch 1: 1 July 1997 (s 2) | Sch 1 (item 274) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1997 | 95, 1997 | 30 June 1997 | Sch 1 (item 24): 1 July 1997 (s 2(2)) | — |\n| Tax Law Improvement Act 1997 | 121, 1997 | 8 July 1997 | s 4: 8 July 1997 (s 2(1))  Sch 12 (items 24–29): 1 July 1997 (s 2(4)) | s 4 |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 14 (items 61–64): 1 July 1997 (s 2(8)) | Sch 14 (item 64) |\n| Taxation Laws Amendment Act (No. 1) 1998 | 16, 1998 | 16 Apr 1998 | Sch 8 (items 1, 2): 1 July 1997 (s 2(3)) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 43): 1 July 1997 (s 2(1) item 47) | — |\n| Taxation Laws Amendment (Private Health Insurance Incentives) Act 1997 | 56, 1997 | 30 Apr 1997 | Sch 1 (items 1, 3–5) and Sch 2 (items 1–6, 10(1)): 1 July 1997 (s 2(2), (4))  Sch 1 (item 2): 1 July 1994 (s 2(3))  Sch 3: 30 Apr 1997 (s 2(1)) | Sch 1 (item 5), Sch 2 (item 10(1)) and Sch 3 (item 2) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 16 (item 9): 30 Apr 1997 (s 2(16)) | — |\n| Taxation Laws Amendment Act (No. 3) 1999 | 11, 1999 | 31 Mar 1999 | Sch 3 (items 5, 6): 1 July 1997 (s 2(6)) | — |\n| Retirement Savings Accounts (Consequential Amendments) Act 1997 | 62, 1997 | 28 May 1997 | Sch 13: 2 June 1997 (s 2) | — |\n| Superannuation Contributions Tax (Consequential Amendments) Act 1997 | 71, 1997 | 5 June 1997 | Sch 1: 5 June 1997 (s 2) | — |\n| Taxation Laws Amendment Act (No. 2) 1997 | 95, 1997 | 30 June 1997 | s 4, Sch 1 (items 1–22), Sch 2, Sch 3 (items 1–14), Sch 4, Sch 5 (items 1–9, 12, 13, 17–21) and Sch 6: 30 June 1997 (s 2(1), (3), (4)) | s 4 and Sch 1 (item 22), Sch 2 (items 19, 20), Sch 3 (item 14), Sch 4 (items 3, 4) and Sch 5 (items 18, 21) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | Sch 16 (item 8): 30 June 1997 (s 2(15)) | — |\n| Taxation Laws (Technical Amendments) Act 1998 | 41, 1998 | 4 June 1998 | Sch 6 (item 22): 30 June 1997 (s 2(13)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 50): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Infrastructure Borrowings) Act 1997 | 104, 1997 | 30 June 1997 | Sch 2: 30 June 1997 (s 2) | — |\n| Aged Care (Consequential Provisions) Act 1997 | 114, 1997 | 7 July 1997 | Sch 5 (items 30, 31): 1 Oct 1997 (s 2(1)) | — |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 38): 1 Oct 1997 (s 2(1) item 42) | — |\n| Tax Law Improvement Act 1997 | 121, 1997 | 8 July 1997 | s 4: 8 July 1997 (s 2(1))  Sch 2 (items 18–37), Sch 3 (items 31–61), Sch 4 (items 63–138), Sch 5 (items 43–93), Sch 6 (items 68–132), Sch 7 (items 5–7), Sch 8 (items 32–51), Sch 9 (items 16–40), Sch 10 (items 12–15), Sch 11 (items 37–57) and Sch 12 (items 15–23): 1 July 1997 (s 2(3), (5)) | s 4, Sch 2 (items 31, 33), Sch 3 (items 47, 52, 56, 59) and Sch 4 (item 78) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 6) 1999 | 54, 1999 | 5 July 1999 | Sch 4 (items 11, 12): 5 July 1999 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 65): 1 July 1997 (s 2(1) item 63) | — |\n| Taxation Laws Amendment Act (No. 1) 1997 | 122, 1997 | 8 July 1997 | s 4, Sch 1 (items 1–15, 20), Sch 3 (items 1, 2, 6–21) and Sch 5: 8 July 1997 (s 2(1))  Sch 1 (items 17–19): 3 June 1990 (s 2(2))  Sch 1 (items 22, 23): 1 Sept 1994 (s 2(4))  Sch 1 (item 24): 1 Jan 1993 (s 2(3))  Sch 3 (items 3, 4): 24 June 1986 (s 2(6))  Sch 3 (item 5): 30 June 1992 (s 2(7))  Sch 4: 20 Jan 1997 (s 2(8))  Sch 6: 27 June 1996 (s 2(9))  Sch 8: 19 Dec 1996 (s 2(11)) | s 4, Sch 1 (items 16, 21), Sch 3 (items 22, 23), Sch 5 (item 5) and Sch 8 (item 6) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 1997 | 95, 1997 | 30 June 1997 | Sch 1 (item 23): 30 June 1997 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 50): 8 July 1997 (s 2(1) item 51) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 33): 29 June 2010 (s 2(1) item 9) | — |\n| Franchise Fees Windfall Tax (Consequential Amendments) Act 1997 | 134, 1997 | 19 Sept 1997 | s 4 and Sch 1 (items 1, 2): 19 Sept 1997 (s 2) | s 4 |\n| Taxation Laws Amendment Act (No. 3) 1997 | 147, 1997 | 14 Oct 1997 | s 4, Sch 1 (items 1–43, 45), Sch 2 (item 1), Sch 3–5, Sch 6 (items 1–3, 5–9), Sch 8, Sch 10, Sch 13, Sch 14 (items 1–39, 41, 42), Sch 15 (items 1–6) and Sch 17: 14 Oct 1997 (s 2(1), (4))  Sch 6 (item 4) and Sch 14 (item 40): 1 July 1997 (s 2(2), (6A))  Sch 11 (items 1–12): 19 Dec 1996 (s 2(5)) | s 4, Sch 1 (item 45), Sch 3 (item 5), Sch 4 (item 3), Sch 5 (item 34), Sch 6 (item 9), Sch 8 (item 3), Sch 10 (item 6), Sch 11 (item 12), Sch 13 (item 2), Sch 14 (items 17, 41) and Sch 17 (item 3) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 54): 14 Oct 1997 (s 2(1) item 54) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 64): 29 June 2010 (s 2(1) item 9) | — |\n| Foreign Affairs and Trade Legislation Amendment Act 1997 | 150, 1997 | 17 Oct 1997 | Sch 2 (items 3–7): 17 Oct 1997 (s 2(1)) | — |\n| Audit (Transitional and Miscellaneous) Amendment Act 1997 | 152, 1997 | 24 Oct 1997 | Sch 2 (items 877–880): 1 Jan 1998 (s 2(2)) | — |\n| Taxation Laws Amendment (Foreign Income Measures) Act 1997 | 155, 1997 | 24 Oct 1997 | 24 Oct 1997 (s 2) | s 4, Sch 1 (items 120–129 and Sch 2 (item 5) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (items 99, 100): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 1997 | 174, 1997 | 21 Nov 1997 | s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3)) | s 4, Sch 1 (items 17, 18), Sch 2 (item 6), Sch 3 (item 3), Sch 4 (items 8, 9), Sch 5 (item 11), Sch 6 (item 23(2), (3)), Sch 7 (item 32(1)) and Sch 9 (item 30(2), (3)) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | Sch 6 (item 39): 21 Nov 1997 (s 2(1) item 34) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 77): 29 June 2010 (s 2(1) item 9) | — |\n| Farm Household Support Amendment (Restart and Exceptional Circumstances) Act 1997 | 179, 1997 | 25 Nov 1997 | Sch 2 (items 10, 11): 25 Nov 1997 (s 2) | — |\n| Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1997 | 191, 1997 | 7 Dec 1997 | Sch 1: 7 Dec 1997 (s 2(1)) | — |\n| Child Care Payments (Consequential Amendments and Transitional Provisions) Act 1997 | 196, 1997 | 8 Dec 1997 | Sch 1 (items 17, 18): 8 Dec 1997 (s 2(5)) | — |\n| Social Security Legislation Amendment (Parenting and Other Measures) Act 1997 | 197, 1997 | 11 Dec 1997 | Sch 1 (items 313–337): 20 Mar 1998 (s 2(2)) | — |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 1999 | 11, 1999 | 31 Mar 1999 | Sch 3 (items 7, 8): 20 Mar 1998 (s 2(7)) | — |\n| Social Security and Veterans’ Affairs Legislation Amendment (Family and Other Measures) Act 1997 | 202, 1997 | 16 Dec 1997 | Sch 1 (items 41–43): 1 Jan 1998 (s 2(2)) | — |\n| Taxation Laws Amendment Act (No. 1) 1998 | 16, 1998 | 16 Apr 1998 | s 4, Sch 1 (items 1–58), Sch 6 (items 1–17) and Sch 10 (items 20–57): 16 Apr 1998 (s 2(1), (2)) | s 4, Sch 1 (items 26, 58), Sch 6 (item 17) and Sch 10 (item 57) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) Act 1999 | 11, 1999 | 31 Mar 1999 | Sch 3 (items 3, 4): 16 Apr 1998 (s 2(5)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 34): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 | 17, 1998 | 16 Apr 1998 | s 4 and Sch 1: 16 Apr 1998 (s 2) | s 4 and Sch 1 (items 13–22, 22A, 23, 23A–26) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2000 | 58, 2000 | 31 May 2000 | Sch 11 (items 2–11): 31 May 2000 (s 2(1)) | Sch 11 (item 11) |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 64): 16 Apr 1998 (s 2(1) item 62)  Sch 12 (items 77, 86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 109): 29 June 2010 (s 2(1) item 9) | — |\n| Commonwealth Places (Consequential Amendments) Act 1998 | 23, 1998 | 17 Apr 1998 | s 4(1) and Sch 1 (items 2, 3): 17 Apr 1998 (s 2) | s 4(1) |\n| Taxation Laws (Technical Amendments) Act 1998 | 41, 1998 | 4 June 1998 | s 4, Sch 1 (items 4–16, 18–26), Sch 2 (items 1–4), Sch 3 (items 1–3, 7(1)), Sch 4 (items 4, 5), Sch 5 (items 16, 18) and Sch 6 (items 1, 2, 4, 5, 7–13, 15–18, 27): 4 June 1998 (s 2(1))  Sch 1 (item 17): 9 Apr 1999 (s 2(2))  Sch 5 (items 17, 19): 12 Dec 1995 (s 2(5))  Sch 6 (item 3): 16 Dec 1985 (s 2(6))  Sch 6 (item 6): 1 Jan 1993 (s 2(7))  Sch 6 (item 14): never commenced (s 2(9))  Sch 6 (item 16): 1 July 1998 (s 2(10)) | s 4, Sch 1 (item 26), Sch 2 (item 4), Sch 3 (item 7(1)), Sch 4 (item 5) and Sch 6 (item 27) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (items 82, 86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 110): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998 | 45, 1998 | 17 June 1998 | Sch 12 (items 1–24): 1 July 1998 (s 2(1)) | Sch 12 (items 23, 24) |\n| Tax Law Improvement Act (No. 1) 1998 | 46, 1998 | 22 June 1998 | s 4, Sch 2 (items 49–522), Sch 3 (items 13–20), Sch 4 (items 12–27), Sch 5 (items 6–10), Sch 6 (items 8–30), Sch 7 (items 12–19), Sch 8 (items 2–9) and Sch 9 (items 7, 8): 22 June 1998 (s 2(1)–(4)) | s 4, Sch 5 (item 10), Sch 6 (item 30), Sch 8 (item 9) and Sch 9 (item 8) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (items 66–68): 22 June 1998 (s 2(1) items 64, 65)  Sch 12 (items 84–86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | Sch 6 (items 44, 45): 22 June 1998 (s 2(1) items 39, 40) | — |\n| Taxation Laws Amendment Act (No. 3) 1998 | 47, 1998 | 23 June 1998 | Sch 3 (items 17–20), Sch 4 (items 1, 6–65, 69), Sch 6, 7, Sch 8 (items 1–10) and Sch 9 (items 7–14, 15(3), 16): 23 June 1998 (s 2(1)) | s 4, Sch 3 (item 20), Sch 4 (item 69), Sch 6 (item 6), Sch 7 (item 9, 26), Sch 8 (items 7–10) and Sch 9 (items 14, 15(3), 16) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2000 | 58, 2000 | 31 May 2000 | Sch 3 (item 8): 23 June 1998 (s 2(7)) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (items 78, 86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 65): 29 June 2010 (s 2(1) item 9) | — |\n| Financial Sector Reform (Consequential Amendments) Act 1998 | 48, 1998 | 29 June 1998 | Sch 1 (items 83–97): 1 July 1998 (s 2(2)) | — |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 72, 86): 3 July 2002 (s 2(1) item","sortOrder":1000139},{"sectionNumber":"full-source-retrieval-0141","sectionType":"document_chunk","heading":"Document excerpt 141","content":"66) | Sch 12 (item 86) |\n| Taxation Laws Amendment (Company Law Review) Act 1998 | 63, 1998 | 29 June 1998 | Sch 1–4 and Sch 5 (items 1–22, 25–53, 58–67): 1 July 1998 (s 2(1) and gaz 1998, No S325)  Sch 5 (items 23, 24, 54–57): 1 July 1998 (s 2(2)) | Sch 1 (item 3), Sch 2 (items 8, 9), Sch 3 (item 8), Sch 4 (item 5) and Sch 5 (item 67) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 7) 1999 | 117, 1999 | 22 Sept 1999 | Sch 1 (items 5–7): 1 July 1998 (s 2(2)) | — |\n| Tax Laws Amendment (2004 Measures No. 7) Act 2005 | 41, 2005 | 1 Apr 2005 | Sch 10 (item 267): 29 June 1998 (s 2(1) item 20) | — |\n| Taxation Laws Amendment (Farm Management Deposits) Act 1998 | 85, 1998 | 2 July 1998 | Sch 1: 2 Jan 1999 (s 2(2)) | — |\n| Taxation Laws Amendment (Landcare and Water Facility Tax Offset) Act 1998 | 91, 1998 | 14 July 1998 | Sch 1 (items 14–19): 14 July 1998 (s 2(1)) | Sch 1 (item 19) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 1) 1999 | 16, 1999 | 9 Apr 1999 | Sch 7 (items 15, 16): 14 July 1998 (s 2(2)) | — |\n| Primary Industries and Energy Legislation Amendment Act (No. 1) 1998 | 102, 1998 | 30 July 1998 | Sch 2 (items 1, 2): 30 July 1998 (s 2) | — |\n| Taxation Laws Amendment (Film Licensed Investment Company) Act 1998 | 108, 1998 | 7 Dec 1998 | Sch 1 (item 12): 7 Dec 1998 (s 2) | — |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (items 79, 86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Taxation Laws Amendment (Private Health Insurance) Act 1998 | 128, 1998 | 21 Dec 1998 | Sch 1: 21 Dec 1998 (s 2) | Sch 1 (item 6) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (items 81, 86): 3 July 2002 (s 2(1) item 66) | Sch 12 (item 86) |\n| Taxation Laws Amendment Act (No. 3) 1999 | 11, 1999 | 31 Mar 1999 | Sch 1 (items 12–276, 398–404): 1 July 1999 (s 2(3), (4))  Sch 2: 9 Apr 1999 (s 2(2))  Sch 3 (items 1, 2): 31 Mar 1999 (s 2(1)) | Sch 1 (items 398–404) |\n| as amended by |  |  |  |  |\n| A New Tax System (Pay As You Go) Act 1999 | 178, 1999 | 22 Dec 1999 | Sch 2 (items 87, 89–93): 22 Dec 1999 (s 2(1)) | Sch 2 (items 92, 93) |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 55): 1 July 1999 (s 2(1) item 55) | — |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | Sch 6 (items 36, 37): 1 July 1999 (s 2(1) item 32) | — |\n| Assistance for Carers Legislation Amendment Act 1999 | 13, 1999 | 9 Apr 1999 | Sch 1 (items 126–128): 1 July 1997 (s 2(3))  Sch 2 (items 56–64): 1 July 1999 (s 2(2)(b)) | Sch 1 (item 128) and Sch 2 (items 63, 64(2)) |\n| Taxation Laws Amendment Act (No. 1) 1999 | 16, 1999 | 9 Apr 1999 | s 4, Sch 1, Sch 3 (items 8–10, 12(3)), Sch 5, 6, Sch 7 (items 1–8) and Sch 8–11: 9 Apr 1999 (s 2(1)) | s 4, Sch 1 (item 14), Sch 3 (item 12(3)), Sch 5 (item 16), Sch 6 (item 28), Sch 7 (item 8), Sch 8 (item 2), Sch 9 (item 10), Sch 10 (items 3, 4) and Sch 11 (item 2) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 35): 29 June 2010 (s 2(1) item 9) | — |\n| A New Tax System (Fringe Benefits Reporting) Act 1999 | 17, 1999 | 19 Apr 1999 | Sch 2 (items 1–13, 15–40): 19 Apr 1999 (s 2(1))  Sch 2 (item 14): 17 May 1999 (s 2(2)) | Sch 2 (items 17, 20, 26, 29, 32, 39, 40) |\n| Taxation Laws Amendment (Software Depreciation) Act 1999 | 39, 1999 | 31 May 1999 | s 4 and Sch 1 (items 1–3): 31 May 1999 (s 2) | s 4 and Sch 1 (item 21) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 103): 29 June 2010 (s 2(1) item 9) | — |\n| Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 | 44, 1999 | 17 June 1999 | Sch 7 (items 59–104): 1 July 1999 (s 3(2)(e))  Sch 8 (items 18, 22, 23): 17 June 1999 (s 2(1)) | Sch 8 (items 18, 22, 23) |\n| as amended by |  |  |  |  |\n| Financial Sector Legislation Amendment Act (No. 1) 2000 | 160, 2000 | 21 Dec 2000 | Sch 4 (item 4): 18 Jan 2001 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 6) 1999 | 54, 1999 | 5 July 1999 | s 4, Sch 1 (items 2–13, 36), Sch 3, Sch 5 (items 11–15), Sch 6 and Sch 7 (items 1, 3): 5 July 1999 (s 2(1)) | s 4, Sch 1 (item 36), Sch 3 (item 11), Sch 5 (item 15), Sch 6 (item 2) and Sch 7 (item 3) |\n| A New Tax System (Income Tax Laws Amendment) Act 1999 | 60, 1999 | 8 July 1999 | Sch 2 (items 8–12): 9 July 1999 (s 2) | Sch 2 (item 12) |\n| A New Tax System (Personal Income Tax Cuts) Act 1999 | 69, 1999 | 8 July 1999 | Sch 2 (item 1) and Sch 3: 9 July 1999 (s 2) | Sch 3 |\n| A New Tax System (Closely Held Trusts) Act 1999 | 70, 1999 | 8 July 1999 | Sch 1 and Sch 2 (items 1–12): 8 July 1999 (s 2) | Sch 1 (items 3, 4) and Sch 2 (item 12) |\n| A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999 | 82, 1999 | 8 July 1999 | Sch 8 (items 1–25, 29): 1 July 2000 (s 2(2)) | Sch 8 (item 29) |\n| A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 2) 1999 | 83, 1999 | 8 July 1999 | Sch 10 (item 22): 10 Dec 1999 (s 2(6A))  Sch 10 (items 7–21, 23, 68): 1 July 2000 (s 2(2)) | Sch 10 (item 68) |\n| as amended by |  |  |  |  |\n| Family and Community Services Legislation Amendment (1999 Budget and Other Measures) Act 1999 | 172, 1999 | 10 Dec 1999 | Sch 2 (items 1, 2): 8 July 1999 (s 2(4)) | — |\n| Tax Laws Amendment (2006 Measures No. 2) Act 2006 | 58, 2006 | 22 June 2006 | Sch 7 (item 171): 1 July 2000 (s 2(1) item 7) | — |\n| Taxation Laws Amendment Act (No. 2) 1999 | 93, 1999 | 16 July 1999 | s 4, Sch 1 (items 1–35, 39–48), Sch 2, Sch 3 (items 26–33), Sch 4 (items 1–23, 25), Sch 5 and 7: 16 July 1999 (s 2(1))  Sch 4 (item 24): 16 Apr 1998 (s 2(2)) | s 4, Sch 1 (items 39, 46, 48), Sch 2 (item 3), Sch 3 (item 33), Sch 4 (item 25) and Sch 5 (items 80, 81) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 51): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 1999 | 94, 1999 | 16 July 1999 | s 4, Sch 3 (items 1–3), Sch 4, Sch 5 (items 23–35) and Sch 6 (items 67–73): 16 July 1999 (s 2(1)) | s 4, Sch 3 (item 3), Sch 4 (item 2), Sch 5 (item 35) and Sch 6 (item 73) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 78): 29 June 2010 (s 2(1) item 9) | — |\n| Superannuation Legislation Amendment Act (No. 2) 1999 | 96, 1999 | 16 July 1999 | Sch 2: 16 July 1999 (s 2) | Sch 2 (items 3, 4) |\n| Taxation Laws Amendment (CPI Indexation) Act 1999 | 102, 1999 | 16 July 1999 | Sch 2: 16 July 1999 (s 2(1)) | Sch 2 (item 2) |\n| Taxation Laws Amendment (Demutualisation of Non‑insurance Mutual Entities) Act 1999 | 103, 1999 | 16 July 1999 | Sch 1: 16 July 1999 (s 2) | Sch 1 (item 4) |\n| Taxation Laws Amendment Act (No. 7) 1999 | 117, 1999 | 22 Sept 1999 | Sch 1 (items 1–4, 8): 1 July 1998 (s 2(1)) | Sch 1 (item 8) |\n| Statute Stocktake Act 1999 | 118, 1999 | 22 Sept 1999 | Sch 2 (items 24, 49–51): 22 Sept 1999 (s 2(1)) | Sch 2 (item 51) |\n| Superannuation Legislation Amendment Act (No. 3) 1999 | 121, 1999 | 8 Oct 1999 | Sch 2 (items 5, 6): 8 Oct 1999 (s 2(1)) | — |\n| Superannuation (Unclaimed Money and Lost Members) Consequential and Transitional Act 1999 | 128, 1999 | 13 Oct 1999 | s 8, Sch 1 (items 3–11) and Sch 3 (item 4): 13 Oct 1999 (s 2(1), (2), (6))  Sch 3 (item 1): 2 June 1997 (s 2(5)) | s 8 |\n| Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999 | 131, 1999 | 13 Oct 1999 | Sch 4: 13 Oct 1999 (s 2(1)) | — |\n| Public Employment (Consequential and Transitional) Amendment Act 1999 | 146, 1999 | 11 Nov 1999 | Sch 1 (items 525–531): 5 Dec 1999 (s 2(1), (2)) | — |\n| New Business Tax System (Capital Allowances) Act 1999 | 164, 1999 | 10 Dec 1999 | Sch 3 (items 11–14): 10 Dec 1999 (s 2(1)) | Sch 3 (item 14) |\n| New Business Tax System (Capital Gains Tax) Act 1999 | 165, 1999 | 10 Dec 1999 | s 4 and Sch 1: 10 Dec 1999 (s 2) | s 4 and Sch 1 (items 61, 62) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 7) 2000 | 173, 2000 | 21 Dec 2000 | Sch 3 (item 16): 21 Dec 2000 (s 2(1)) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 11): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Integrity and Other Measures) Act 1999 | 169, 1999 | 10 Dec 1999 | Sch 2 (items 4, 5), Sch 3 (items 5–7), Sch 4 (items 16–19), Sch 7 (items 1–5, 10, 12) and Sch 9 (items 16–22): 10 Dec 1999 (s 2(1), (3))  Sch 5 (item 15): 22 Feb 1999 (s 2(2))  Sch 7 (items 6–9): 22 Sept 2002 (s 2(4))  Sch 9 (item 15): 22 Dec 1999 (s 2(5)) | Sch 2 (item 5), Sch 3 (item 7), Sch 4 (item 19), Sch 7 (item 12) and Sch 9 (item 22) |\n| as amended by |  |  |  |  |\n| New Business Tax System (Miscellaneous) Act (No. 2) 2000 | 89, 2000 | 30 June 2000 | Sch 8 (item 10): 30 June 2000 (s 2(1)) | — |\n| New Business Tax System (Simplified Tax System) Act 2001 | 78, 2001 | 30 June 2001 | Sch 3 (items 14): 22 Sept 2002 (s 2(2))  s 15(2)): 30 June 2001 (s 2(1)) | Sch 3 (item 15(2)) |\n| A New Tax System (Indirect Tax and Consequential Amendments) Act 1999 | 176, 1999 | 22 Dec 1999 | Sch 8 (items 16–25): 1 July 2000 (s 2(17)) | — |\n| A New Tax System (Pay As You Go) Act 1999 | 178, 1999 | 22 Dec 1999 | s 4, Sch 1 (items 9–49A), Sch 2 (items 23–32, 35, 40–62, 92, 93): 22 Dec 1999 (s 2(1)) | s 4, Sch 1 (item 49A) and Sch 2 (items 35, 92 and 93) |\n| as amended by |  |  |  |  |\n| A New Tax System (Tax Administration) Act 1999 | 179, 1999 | 22 Dec 1999 | Sch 10 (item 21): 22 Dec 1999 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 40): 22 Dec 1999 (s 2(1) item 44) | — |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | Sch 6 (item 3): 22 Dec 1999 (s 2(1) item 10) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 1): 29 June 2010 (s 2(1) item 9) | — |\n| A New Tax System (Tax Administration) Act 1999 | 179, 1999 | 22 Dec 1999 | Sch 2 (items 20–47), Sch 3 (items 3–6), Sch 5 (item 74), Sch 6 (items 1–13, 24(1)–(4)), Sch 10 (items 22–24), Sch 11 (item 44), Sch 16 (items 3–17, 37) and Sch 17 (items 1, 2): 22 Dec 1999 (s 2(1), (4), (7)(b)–(d))  Sch 5 (items 1–64), Sch 11 (items 14–43, 45–79) and Sch 12 (item 3): 1 July 2000 (s 2(9), (12)) | Sch 5 (item 74), Sch 6 (item 24(1)–(4)), Sch 10 (item 24), Sch 11 (item 79), Sch 16 (item 37) and Sch 17 (item 2) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 42): 1 July 2000 (s 2(1) item 46) | — |\n| Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 2000 | 24, 2000 | 3 Apr 2000 | Sch 11 (item 5): 12 May 2000 (s 2(11)) | — |\n| Timor Gap Treaty (Transitional Arrangements) Act 2000 | 25, 2000 | 3 Apr 2000 | s 4–6 and Sch 2 (items 34, 35): 1:23am (Australian Central Standard Time) 26 Oct 1999 (s 2(2), 4) | s 4–6 |\n| Radiocommunications Legislation Amendment Act 2000 | 34, 2000 | 3 May 2000 | Sch 1 (items 38–40): 31 May 2000 (s 2) | — |\n| Taxation Laws Amendment Act (No. 5) 2000 | 43, 2000 | 3 May 2000 | s 4, Sch 2 and 3: 3 May 2000 (s 2) | s 4, Sch 2 (item 6) and Sch 3 (items 9, 10) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 86): 29 June 2010 (s 2(1) item 9) | — |\n| A New Tax System (Tax Administration) Act (No. 1) 2000 | 44, 2000 | 3 May 2000 | Sch 3 (items 14–33, 36, 37), Sch 4 (items 10–12): 22 Dec 1999 (s 2(1))  Sch 3 (items 34, 35) and Sch 4 (items 4–9): 1 July 2000 (s 2(4), (5), (11)) | Sch 4 (items 5, 7, 9) |\n| A New Tax System (Family Assistance and Related Measures) Act 2000 | 45, 2000 | 3 May 2000 | Sch 4 (items 11–28): 1 July 2000 (s 2(10), (11)  Sch 4 (item 29): 3 May 2000 (s 2(1)) | Sch 4 (item 29) |\n| as amended by |  |  |  |  |\n| Family and Community Services Legislation (Simplification and Other Measures) Act 2001 | 71, 2001 | 30 June 2001 | Sch 2 (item 1): 3 May 2000 (s 2(5)) | — |\n| Family and Community Services Legislation Amendment Act 2003 | 30, 2003 | 15 Apr 2003 | Sch 2 (item 87): 3 May 2000 (s 2(1) item 11) | — |\n| Taxation Laws Amendment Act (No. 2) 2000 | 58, 2000 | 31 May 2000 | s 4, Sch 1, Sch 2 (items 1, 4(1)), Sch 3 (item 3), Sch 6 (item 34), Sch 10 (items 1–11, 17(1), (2), 18–30, 38(1), (2)) and Sch 11 (items 1, 11): 31 May 2000 (s 2(1), (2))  Sch 3 (items 1, 2, 4–7) and Sch 6 (item 33): 16 July 1999 (s 2(3)–(6), (12))  Sch 8 (items 1–17, 21): 1 July 1998 (s 2(13))  Sch 8 (item 18): 1 July 1999 (s 2(13)) | s 4, Sch 1 (items 10, 11, 27), Sch 2 (item 4(1)), Sch 3 (item 3), Sch 6 (item 34), Sch 8 (item 21), Sch 10 (items 17(1), (2), 21, 38(1), (2)) and Sch 11 (item 11) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 52): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 2000 | 66, 2000 | 22 June 2000 | Sch 2 (item 2): 7 Dec 1998 (s 2(3)) | — |\n| Taxation Laws Amendment Act (No. 6) 2000 | 76, 2000 | 28 June 2000 | Sch 1 (items 1–5, 8(1)–(3)): 28 June 2000 (s 2) | s 4 and Sch 1 (item 8(1)–(3)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 91): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Miscellaneous) Act (No. 1) 2000 | 79, 2000 | 30 June 2000 | s 4: 30 June 2000 (s 2(1))  Sch 1 (items 1, 2, 4), Sch 2 (items 6A–6J, 7), Sch 3, Sch 4 (items 1–5) and Sch 6 (items 12–15): 1 July 2000 (s 2(2))  Sch 4 (items 6–10): 1 July 2001 (s 2(3))  Sch 5: 10 Dec 1999 (s 2(4)) | s 4, Sch 1 (item 4), Sch 2 (item 7), Sch 3 (item 14), Sch 4 (items 5, 10), Sch 5 (item 45) and Sch 6 (item 15) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 17): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Alienation of Personal Services Income) Act 2000 | 86, 2000 | 30 June 2000 | Sch 1 (items 62, 72): 30 June 2000 (s 2(1))  Sch 1 (items 63–71): 1 July 2000 (s 2(2)) | — |\n| New Business Tax System (Miscellaneous) Act (No. 2) 2000 | 89, 2000 | 30 June 2000 | s 4, Sch 1 (item 66), Sch 2 (items 1–24, 35, 36, 48, 53–62), Sch 3 (items 1–29, 98–100), Sch 5 (items 32–34(1)) and Sch 8 (items 1–8, 11): 30 June 2000 (s 2(1))  Sch 1 (item 67): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2))  Sch 2 (items 25, 26) and Sch 3 (items 30–97): 1 July 2000 (s 2(3), (8), (9)) | s 4, Sch 2 (item 62), Sch 3 (items 29, 84, 100), Sch 5 (item 34(1)) and Sch 8 (item 11) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 18): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Integrity Measures) Act 2000 | 90, 2000 | 30 June 2000 | Sch 2: 30 June 2000 (s 2) | Sch 2 (item 11) |\n| A New Tax System (Tax Administration) Act (No. 2) 2000 | 91, 2000 | 30 June 2000 | Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Sch 2 (items 144(1), 147) |\n| Indirect Tax Legislation Amendment Act 2000 | 92, 2000 | 30 June 2000 | Sch 7 (items 26, 27): 1 July 2000 (s 2(1)) | — |\n| Social Security and Veterans’ Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000 | 94, 2000 | 30 June 2000 | Sch 4: 1 July 2000 (s 2(5)) | — |\n| Youth Allowance Consolidation Act 2000 | 106, 2000 | 6 July 2000 | Sch 5 (items 2–4): 6 July 2000 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 4) 2000 | 114, 2000 | 5 Sept 2000 | s 4, Sch 3 and Sch 4 (items 1, 2, 82(1)): 5 Sept 2000 (s 2(1)) | s 4, Sch 3 (item 3) and Sch 4 (item 82(1)) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | Sch 6 (item 40): 5 Sept 2000 (s 2(1) item 35) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 79): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security and Veterans’ Entitlements Legislation Amendment (Private Trusts and Private Companies—Integrity of Means Testing) Act 2000 | 132, 2000 | 13 Nov 2000 | Sch 4: 13 Nov 2000 (s 2) | — |\n| Criminal Code Amendment (Theft, Fraud, Bribery and Related Offences) Act 2000 | 137, 2000 | 24 Nov 2000 | Sch 2 (items 242, 418, 419): 24 May 2001 (s 2(3)) | Sch 2 (items 418, 419) |\n| Farm Household Support Amendment Act 2000 | 144, 2000 | 7 Dec 2000 | Sch 2 (items 5, 6) and Sch 3 (item 7(3), 8):18 Dec 2000 (s 2(2) and gaz, 2000 No S634) | Sch 3 (item 7(3), 8) |\n| Taxation Laws Amendment Act (No. 8) 2000 | 156, 2000 | 21 Dec 2000 | Sch 7 (items 13, 14): 21 Dec 2000 (s 2(1)) | — |\n| Taxation Laws Amendment Act (No. 7) 2000 | 173, 2000 | 21 Dec 2000 | s 4 and Sch 4 (items 1–5, 65(1), (2)): 21 Dec 2000 (s 2(1)) | s 4 and Sch 4 (item 65(1), (2)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 94): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Changes for Senior Australians) Act 2001 | 44, 2001 | 25 May 2001 | Sch 1: 25 May 2001 (s 2) | Sch 1 (items 11, 12) |\n| Corporations (Repeals, Consequentials and Transitionals) Act 2001 | 55, 2001 | 28 June 2001 | s 4–14 and Sch 3 (items 220–263): 15 July 2001 (s 2(1), (3)) | s 4–14 |\n| Governor‑General Legislation Amendment Act 2001 | 57, 2001 | 28 June 2001 | Sch 2 (items 1, 2, 4): 28 June 2001 (s 2) | Sch 2 (item 4) |\n| Taxation Laws Amendment Act (No. 1) 2001 | 72, 2001 | 30 June 2001 | Sch 2 (items 2–6, 62–65, 101–107, 108(2), 109(2), 110): 30 June 2001 (s 2) | Sch 2 (items 108(2), 109(2), 110) |\n| Taxation Laws Amendment Act (No. 3) 2001 | 73, 2001 | 30 June 2001 | Sch 2 (items 54–85, 95), Sch 3 (items 9–17) and Sch 4 (items 5, 6, 10): 30 June 2001 (s 2(1)) | Sch 2 (item 95), Sch 3 (item 17) and Sch 4 (item 10) |\n| Child Support Legislation Amen","sortOrder":1000140},{"sectionNumber":"full-source-retrieval-0142","sectionType":"document_chunk","heading":"Document excerpt 142","content":"dment Act 2001 | 75, 2001 | 30 June 2001 | Schedule 5 (items 68, 69): 30 June 2001 (s 2(1)) | — |\n| New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001 | 77, 2001 | 30 June 2001 | Sch 2 (items 20–148, 488(1)): 30 June 2001 (s 2(1)) | Sch 2 (item 488(1)) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 5) 2002 | 119, 2002 | 2 Dec 2002 | Sch 3 (item 97): 30 June 2001 (s 2(1) item 9) | — |\n| New Business Tax System (Simplified Tax System) Act 2001 | 78, 2001 | 30 June 2001 | Sch 3 (items 1–4, 6–13, 15): 30 June 2001 (s 2(1))  Sch 3 (item 5): 22 Sept 2002 (s 2(2)) | Sch 3 (item 15) |\n| Taxation Laws Amendment (Superannuation Contributions) Act 2001 | 89, 2001 | 18 July 2001 | Sch 1 (items 1–4, 11(1), 12): 18 July 2001 (s 2) | Sch 1 (items 11(1), 12) |\n| Family Law Legislation Amendment (Superannuation) (Consequential Provisions) Act 2001 | 114, 2001 | 18 Sept 2001 | Sch 1 (items 3–15): 28 Dec 2002 (s 2) | — |\n| Financial Sector (Collection of Data—Consequential and Transitional Provisions) Act 2001 | 121, 2001 | 24 Sept 2001 | Sch 2 (items 154–157): 1 July 2002 (s 2(2)) | — |\n| Financial Services Reform (Consequential Provisions) Act 2001 | 123, 2001 | 27 Sept 2001 | Sch 1 (items 238, 239): 11 Mar 2002 (s 2(1), (6)) | — |\n| Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 2001 | 144, 2001 | 1 Oct 2001 | Sch 3 (item 3): 1 Oct 2001 (s 2(1)) | — |\n| Treasury Legislation Amendment (Application of Criminal Code) Act (No. 2) 2001 | 146, 2001 | 1 Oct 2001 | Sch 4 (items 41–91): 15 Dec 2001 (s 2(1)) | — |\n| New Business Tax System (Thin Capitalisation) Act 2001 | 162, 2001 | 1 Oct 2001 | Sch 1 (items 2–13, 23–26): 1 July 2001 (s 2(1)) | Sch 1 (items 23–26) |\n| New Business Tax System (Debt and Equity) Act 2001 | 163, 2001 | 1 Oct 2001 | Sch 1 (items 35–116, 118(1), (2), (6)–(13)): 1 July 2001 (s 2) | Sch 1 (item 118(1), (2), (6)–(13)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2005 Measures No. 5) Act 2005 | 162, 2005 | 19 Dec 2005 | Sch 6 (items 26, 27): 1 July 2001 (s 2(1) item 6) | — |\n| Taxation Laws Amendment Act (No. 2) 2001 | 167, 2001 | 1 Oct 2001 | Sch 2, 3, Sch 4 (items 5–7), Sch 6 (items 1–3): 1 Oct 2001 (s 2(1))  Sch 5: 1 July 2000 (s 2(2)) | Sch 2 (item 3), Sch 4 (item 7), Sch 5 (item 4) and Sch 6 (item 3) |\n| Taxation Laws Amendment Act (No. 5) 2001 | 168, 2001 | 1 Oct 2001 | s 4: 1 Oct 2001 (s 2(1))  Sch 2 (items 1–3): 1 July 2000 (s 2(2)) | s 4 and Sch 2 (item 3) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2006 Measures No. 2) Act 2006 | 58, 2006 | 22 June 2006 | Sch 7 (item 270): 22 June 2006 (s 2(1) item 24) | — |\n| Tax Laws Amendment (2006 Measures No. 6) Act 2007 | 4, 2007 | 19 Feb 2007 | Sch 2 (item 22): 19 Feb 2007 (s 2(1) item 3) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 87): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 6) 2001 | 169, 2001 | 1 Oct 2001 | s 4, Sch 2, 3 and Sch 6 (items 16A–16K, 19(1), (2), (2B)): 1 Oct 2001 (s 2(1)) | s 4, Sch 2 (item 3) and Sch 6 (item 19(1), (2), (2B)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 92): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Research and Development) Act 2001 | 170, 2001 | 1 Oct 2001 | Sch 1 (items 1, 5, 6), Sch 2 (items 1, 2), Sch 3 (items 1–10, 19(1)) and Sch 4: 1 Oct 2001 (s 2(1))  Sch 2 (items 4–27, 51): 12 pm (A.C.T.) 29 Jan 2001 (s 2(2))  Sch 2 (items 52–68, 92): 30 June 2001 (s 2(3)) | Sch 1 (item 6), Sch 2 (items 2, 51, 92), Sch 3 (item 19(1)) and Sch 4 (item 11) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 12 (item 63): 1 Oct 2001 (s 2(1) item 61) | — |\n| Tax Laws Amendment (2004 Measures No. 7) Act 2005 | 41, 2005 | 1 Apr 2005 | Sch 10 (item 268): 1 Oct 2001 (s 2(1) item 21) | — |\n| Taxation Laws Amendment (Superannuation) Act (No. 1) 2002 | 15, 2002 | 4 Apr 2002 | Sch 1 (items 1–4, 21): 4 Apr 2002 (s 2(1) item 2) | Sch 1 (item 21) |\n| Taxation Laws Amendment Act (No. 1) 2002 | 26, 2002 | 4 Apr 2002 | Sch 1 (items 1, 8, 9(1), (3)): 4 Apr 2002 (s 2) | Sch 1 (item 9(1), (3)) |\n| Taxation Laws Amendment (Film Incentives) Act 2002 | 27, 2002 | 4 Apr 2002 | Sch 1 (items 10–12): 4 Apr 2002 (s 2) | Sch 1 (item 12) |\n| Taxation Laws Amendment (Baby Bonus) Act 2002 | 32, 2002 | 30 May 2002 | s 4 and Sch 2: 30 May 2002 (s 2) | s 4 |\n| Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 | 39, 2002 | 26 June 2002 | s 4 and Sch 2 (items 1–3): 26 June 2002 (s 2) | s 4 and Sch 2 (item 3) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 102): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Imputation) Act 2002 | 48, 2002 | 29 June 2002 | Sch 3 (item 1) and Sch 4 (item 1): 29 June 2002 (s 2) | — |\n| Taxation Laws Amendment (Superannuation) Act (No. 2) 2002 | 51, 2002 | 29 June 2002 | s 4, Sch 1 (item 202(2)), Sch 3 (items 1, 2, 4), Sch 4 and 5: 29 June 2002 (s 2(1) items 3, 7–9)  Sch 1 (items 170–184): 1 July 2003 (s 2(1) item 2) | s 4, Sch 1 (item 202(2)), Sch 3 (item 4), Sch 4 (item 3) and Sch 5 (item 2) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 108): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 2002 | 53, 2002 | 29 June 2002 | s 4 and Sch 1 (items 43, 44, 47, 48): 29 June 2002 (s 2(1) items 1, 2) | s 4 and Sch 1 (items 47, 48) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 80): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 2) 2002 | 57, 2002 | 3 July 2002 | Sch 1: 1 July 2001 (s 2(1) item 2)  Sch 3, 5, 6, Sch 9 (items 1–8, 41–44), Sch 11 (items 1, 5), Sch 12 ,(items 8–10, 14, 15): 3 July 2002 (s 2(1) items 4, 7, 8, 16, 18, 24, 27)  Sch 4 (items 1, 2, 4) and Sch 12 (item 42): 1 July 2000 (s 2(1) items 5, 46)  Sch 10: 17 Nov 1999 (s 2(1) item 17)  Sch 12 (items 4, 11): 1 July 1998 (s 2(1) items 21, 25)  Sch 12 (items 5, 6): 21 Dec 1998 (s 2(1) item 22)  Sch 12 (item 7): 7 Dec 1998 (s 2(1) item 23)  Sch 12 (items 12, 13): 23 June 1998 (s 2(1) item 26)  Sch 12 (item 38): 1 Oct 1997 (s 2(1) item 42)  Sch 12 (item 40): 22 Dec 1999 (s 2(1) item 44)  Sch 12 (items 43, 65): 1 July 1997 (s 2(1) items 47, 63) | Sch 1 (item 11), Sch 3 (item 4), Sch 4 (item 4(1)), Sch 5 (item 2), Sch 6 (item 3), Sch 9 (items 41–44), Sch 11 (items 5) and Sch 12 (items 6, 9, 13) |\n|  |  |  | Sch 12 (item 50): 8 July 1997 (s 2(1) item 51)  Sch 12 (item 54): 14 Oct 1997 (s 2(1) item 54)  Sch 12 (item 55): 1 July 1999 (s 2(1) item 55)  Sch 12 (item 63): 1 Oct 2001 (s 2(1) item 61)  Sch 12 (item 64): 16 Apr 1998 (s 2(1) item 62)  Sch 12 (items 66–68): 22 June 1998 (s 2(1) items 64, 65) |  |\n| New Business Tax System (Consolidation) Act (No. 1) 2002 | 68, 2002 | 22 Aug 2002 | s 4 and Sch 3 (item 40): 24 Oct 2002 (s 2) | s 4 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 12): 29 June 2010 (s 2(1) item 9) | — |\n| New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 | 90, 2002 | 24 Oct 2002 | s 4, Sch 10, Sch 15 (items 16–18) and Sch 16 (items 2–20, 54, 55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) | s 4, Sch 10 (items 2–11) and Sch 16 (items 54, 55) |\n| as amended by |  |  |  |  |\n| New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 | 117, 2002 | 2 Dec 2002 | Sch 15 (items 2–4): 24 Oct 2002 (s 2(1) item 9) | — |\n| New Business Tax System (Consolidation and Other Measures) Act 2003 | 16, 2003 | 11 Apr 2003 | Sch 18 (item 1): 24 Oct 2002 (s 2(1) item 10) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 15): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 3) 2002 | 97, 2002 | 10 Nov 2002 | s 4 and Sch 2 (items 1–9): 10 Nov 2002 (s 2(1) items 1, 2)  Sch 3: 3 July 2002 (s 2(1) item 3) | s 4 and Sch 3 (item 2) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 66): 29 June 2010 (s 2(1) item 9) | — |\n| Workplace Relations Legislation Amendment (Registration and Accountability of Organisations) (Consequential Provisions) Act 2002 | 105, 2002 | 14 Nov 2002 | Sch 3 (item 51): 12 May 2003 (s 2(1) item 27) | — |\n| New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 | 117, 2002 | 2 Dec 2002 | s 4 and Sch 16: 2 Dec 2002 (s 2(1) items 1, 10)  Sch 11 (items 1–7), Sch 14 (items 3–7): 24 Oct 2002 (s 2(1) item 9) | s 4 and Sch 16 (item 3) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 14): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 5) 2002 | 119, 2002 | 2 Dec 2002 | s 4, Sch 3 (item 100(1)) and Sch 4: 2 Dec 2002 (s 2(1) items 1, 10)  Sch 3 (items 1–3): 30 June 2001 (s 2(1) item 3) | s 4, Sch 3 (item 100(1)) and Sch 4 (item 19) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 88): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Venture Capital) Act 2002 | 136, 2002 | 19 Dec 2002 | Sch 2 (items 1–17, 28): 19 Dec 2002 (s 2(1) item 6) | Sch 2 (item 28) |\n| Taxation Laws Amendment (Earlier Access to Farm Management Deposits) Act 2002 | 138, 2002 | 19 Dec 2002 | s 4: 19 Dec 2002 (s 2(1) item 1)  Sch 1 (items 1–6): 2 Jan 1999 (s 2(1) item 2)  Sch 1 (items 7–13): 1 July 2002 (s 2(1) item 3) | s 4 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 97): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Structured Settlements and Structured Orders) Act 2002 | 139, 2002 | 19 Dec 2002 | s 4 and Sch 1 (items 3–5): 19 Dec 2002 (s 2) | s 4 |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 104): 29 June 2010 (s 2(1) item 9) | — |\n| Petroleum (Timor Sea Treaty) (Consequential Amendments) Act 2003 | 10, 2003 | 2 Apr 2003 | s 4: 2 Apr 2003 (s 2(1) item 1)  Sch 1 (items 34–52, 81): 20 May 2002 (s 2(1) item 2) | s 4 and Sch 1 (item 81) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 20): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 1) 2003 | 12, 2003 | 2 Apr 2003 | Sch 1: 29 Aug 2001 (s 2(1) item 2)  Sch 3 (items 7, 11): 2 Apr 2003 (s 2(1) item 4) | Sch 1 (item 10) and Sch 3 (item 11) |\n| New Business Tax System (Consolidation and Other Measures) Act 2003 | 16, 2003 | 11 Apr 2003 | s 4: 11 Apr 2003 (s 2(1) item 1)  Sch 5 (item 1), Sch 9 (items 3–12), Sch 10 (item 1) and Sch 23 (items 1–9): 24 Oct 2002(s 2(1) items 4–6, 13)  Sch 29 (items 1–11, 14): 29 June 2002 (s 2(1) items 20, 22) | s 4, Sch 9 (item 12) and Sch 29 (item 14) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2004 Measures No. 2) Act 2004 | 83, 2004 | 25 June 2004 | Sch 2 (item 51): 25 June 2004 (s 2(1) item 16) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 13): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment (Personal Income Tax Reduction) Act 2003 | 45, 2003 | 24 June 2003 | s 4 and Sch 1 (items 1–3): 24 June 2003 (s 2) | s 4 |\n| Energy Grants (Credits) Scheme (Consequential Amendments) Act 2003 | 54, 2003 | 27 June 2003 | Sch 6 (item 2): 1 July 2003 (s 2) | — |\n| Taxation Laws Amendment Act (No. 2) 2003 | 65, 2003 | 30 June 2003 | s 4, Sch 3 (items 1, 2), Sch 4, Sch 5 (items 2, 4): 30 June 2003 (s 2(1) items 1, 3, 4, 7)  Sch 5 (item 1): 16 July 1999 (s 2(1) item 6) | s 4, Sch 3 (item 2), Sch 4 (item 2) and Sch 5 (item 4) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 53): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 4) 2003 | 66, 2003 | 30 June 2003 | s 4, Sch 1 and Sch 3 (items 1–46, 47, 48, 140(1), (5), (7)): 30 June 2003 (s 2(1) items 1, 2, 4–6, 14)  Sch 3 (item 46A): 29 June 2002 (s 2(1) item 5A) | s 4, Sch 1 (item 18) and Sch 3 (item 140(1), (5), (7)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 81): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 6) 2003 | 67, 2003 | 30 June 2003 | s 4: 30 June 2003 (s 2(1) item 1)  Sch 9 (items 6–15, 18(1)(b), (2), 19): 1 Sept 2003 (s 2(1) item 5) | s 4 and Sch 9 (items 18(1)(b), (2), 19) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 93): 29 June 2010 (s 2(1) item 9) | — |\n| Australian Heritage Council (Consequential and Transitional Provisions) Act 2003 | 86, 2003 | 23 Sept 2003 | Sch 1 (item 3): 1 Jan 2004 (s 2(1) item 2) | — |\n| Taxation Laws Amendment Act (No. 3) 2003 | 101, 2003 | 14 Oct 2003 | s 4, Sch 1 (items 1, 21), Sch 3 (items 1, 6), Sch 4, Sch 6 (items 7–15): 14 Oct 2003 (s 2(1) items 1, 3, 5, 6, 14–16)  s 5: 11 Oct 2002 (s 2(1) item 2)  Sch 6 (item 5): 1 July 1998 (s 2(1) item 12)  Sch 6 (item 6): 30 June 1992 (s 2(1) item 13) | s 4, 5, Sch 1 (item 21), Sch 3 (item 6) and Sch 4 (item 2) |\n| as amended by |  |  |  |  |\n| Taxation Laws Amendment Act (No. 6) 2003 | 67, 2003 | 30 June 2003 | Sch 10 (item 13): 14 Oct 2003 (s 2(1) item 8) | — |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 67): 29 June 2010 (s 2(1) item 9) | — |\n| Taxation Laws Amendment Act (No. 8) 2003 | 107, 2003 | 21 Oct 2003 | s 4, Sch 1 (items 5–9) and Sch 7 (items 11, 12): 21 Oct 2003 (s 2(1) items 1, 2, 6)  Sch 6: 1 July 2003 (s 2(1) item 3) | s 4, Sch 1 (item 9(2)), Sch 6 (item 3) and Sch 7 (item 12) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 95): 29 June 2010 (s 2(1) item 9) | — |\n| Superannuation (Government Co‑contribution for Low Income Earners) (Consequential Amendments) Act 2003 | 111, 2003 | 12 Nov 2003 | Sch 1 (items 1–6, 25): 12 Nov 2003 (s 2(1) items 2, 4) | Sch 1 (item 25) |\n| Family and Community Services and Veterans’ Affairs Legislation Amendment (2003 Budget and Other Measures) Act 2003 | 122, 2003 | 5 Dec 2003 | Sch 2 (items 16–18): 5 Dec 2003 (s 2(1) item 2) | Sch 2 (item 18) |\n| International Tax Agreements Amendment Act 2003 | 123, 2003 | 5 Dec 2003 | Sch 3 (items 1, 2): 5 Dec 2003 (s 2) | — |\n| New Business Tax System (Taxation of Financial Arrangements) Act (No. 1) 2003 | 133, 2003 | 17 Dec 2003 | Sch 1 (items 1–3, 17(1)) and Sch 4 (items 21–37, 77, 78): 17 Dec 2003 (s 2) | s 4, Sch 1 (item 17(1)) and Sch 4 (items 77, 78) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 | 15, 2009 | 26 Mar 2009 | Sch 1 (items 113, 114): 17 Dec 2003 (s 2(1) item 3) | Sch 1 (item 114) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 19): 29 June 2010 (s 2(1) item 9) | — |\n| Legislative Instruments (Transitional Provisions and Consequential Amendments) Act 2003 | 140, 2003 | 17 Dec 2003 | Sch 1 (item 27): 1 Jan 2005 (s 2(1) item 3) | — |\n| Taxation Laws Amendment Act (No. 5) 2003 | 142, 2003 | 17 Dec 2003 | s 4, Sch 1 (items 1, 16, 17), Sch 2 (items 1, 3), Sch 4 (items 1, 2) and Sch 8 (items 1–3, 24(1)): 17 Dec 2003 (s 2(1) items 1–3, 6, 11, 13) | s 4, Sch 1 (item 1), Sch 2 (item 1), Sch 4 (item 2) and Sch 8 (item 24(1)) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 89): 29 June 2010 (s 2(1) item 9) | — |\n| Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 | 150, 2003 | 19 Dec 2003 | Sch 2 (items 125–132): 1 Jan 2004 (s 2(1) item 16) | — |\n| Taxation Laws Amendment Act (No. 2) 2004 | 20, 2004 | 23 Mar 2004 | s 4, Sch 4 (item 1) and Sch 8 (items 9–11, 14): (s 2(1) items 1, 2, 4)  Sch 6: 1 July 2000 (s 2(1) item 3) | s 4, Sch 4 (item 9) and Sch 8 (item 14) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 54): 29 June 2010 (s 2(1) item 9) | — |\n| Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 | 52, 2004 | 27 Apr 2004 | Sch 4 (items 1–9, 14(1), 15): 1 July 2004 (s 2(1) item 7) | Sch 4 (items 14(1), 15) |\n| Family Assistance Legislation Amendment (More Help for Families—Increased Payments) Act 2004 | 59, 2004 | 26 May 2004 | Sch 2 (items 34, 35): 1 July 2004 (s 2(1) item 3) | Sch 2 (item 35) |\n| Family Assistance Legislation Amendment (More Help for Families—One‑off Payments) Act 2004 | 60, 2004 | 26 May 2004 | Sch 1 (items 14, 15), Sch 2 (items 7, 8) and Sch 3: 26 May 2004 (s 2) | Sch 3 |\n| New International Tax Arrangements Act 2004 | 73, 2004 | 23 June 2004 | 23 June 2004 (s 2) | Sch 1 (item 13), Sch 2 (item 6), Sch 3 (item 2) and Sch 4 (item 2) |\n| Tax Laws Amendment (2004 Measures No. 2) Act 2004 | 83, 2004 | 25 June 2004 | s 4, Sch 1 (items 108–115, 126(7)), Sch 2 (items 1, 3, 4, 35, 37), Sch 3 (items 1–3, 6, 7), Sch 9, Sch 10 (item 43(1)) and Sch 11: 25 June 2004 (s 2(1) items 1, 12, 13, 16, 17, 21, 27, 28)  Sch 1 (item 1): 30 June 2000 (s 2(1) item 2)  Sch 10 (items 1, 2): 1 July 2000 (s 2(1) item 22) | s 4, Sch 1 (item 126(7)), Sch 2 (items 1, 37), Sch 3 (items 6, 7), Sch 9 (item 7), Sch 10 (item 43(1)) and Sch 11 (item 5) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 112): 29 June 2010 (s 2(1) item 9) |","sortOrder":1000141},{"sectionNumber":"full-source-retrieval-0143","sectionType":"document_chunk","heading":"Document excerpt 143","content":"— |\n| Superannuation Laws Amendment (2004 Measures No. 1) Act 2004 | 92, 2004 | 29 June 2004 | Sch 1 (item 1): 29 June 2004 (s 2) | — |\n| Superannuation Laws Amendment (2004 Measures No. 2) Act 2004 | 93, 2004 | 29 June 2004 | Sch 1 (items 1, 2): 29 June 2004 (s 2(1) item 2) | — |\n| Tax Laws Amendment (2004 Measures No. 1) Act 2004 | 95, 2004 | 29 June 2004 | s 4, Sch 1, 8 and 9: 29 June 2004 (s 2(1) items 1, 2, 7)  Sch 7 (items 11–13): 1 July 2004 (s 2(1) item 6) | s 4, Sch 1 (item 2), Sch 7 (item 13), Sch 8 (items 8, 9) and Sch 9 (item 9) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 111): 29 June 2010 (s 2(1) item 9) | — |\n| New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 | 96, 2004 | 29 June 2004 | Sch 2 (items 1–80, 85–138, 140, 141) and Sch 3: 29 June 2004 (s 2(1) items 3, 5, 6) | Sch 2 (items 140, 141) and Sch 3 (item 10) |\n| as amended by |  |  |  |  |\n| New International Tax Arrangements (Foreign‑owned Branches and Other Measures) Act 2005 | 64, 2005 | 26 June 2005 | Sch 5: 29 June 2004 (s 2(1) item 5) | — |\n| Veterans’ Entitlements (Clarke Review) Act 2004 | 100, 2004 | 30 June 2004 | Sch 2 (item 31): 20 Sept 2004 (s 2(1) item 3D) | — |\n| Taxation Laws Amendment Act (No. 1) 2004 | 101, 2004 | 30 June 2004 | s 4, Sch 1 (items 1, 4), Sch 8, Sch 10 (items 1–6) and Sch 11 (items 161, 162): 30 June 2004 (s 2(1) items 1, 2, 9, 10, 18)  Sch 11 (items 1, 2): 16 July 1999 (s 2(1) item 11)  Sch 11 (items 17–34, 38–43): 30 June 2000 (s 2(1) item 13)  Sch 11 (items 44–46, 49–51, 60–87, 101–127): 1 July 2000 (s 2(1) item 14)  Sch 11 (items 131–140): 1 July 2001 (s 2(1) item 16) | s 4, Sch 1 (item 4), Sch 8 (item 3), Sch 10 (item 6) and Sch 11 (items 2, 18, 20, 22, 24, 26, 28, 30, 32, 34, 40, 43, 50, 63, 65, 68, 70, 72, 74, 76, 79, 81, 83, 85, 87, 104, 106, 109, 114, 116, 119, 121, 123, 125, 127, 133, 135, 137, 140, 162) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 36): 29 June 2010 (s 2(1) item 9) | — |\n| Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2004 | 102, 2004 | 30 June 2004 | Sch 2 (items 1–3, 10(1)): 30 June 2004 (s 2(1) item 3) | Sch 2 (item 10(1)) |\n| Tax Laws Amendment (2004 Measures No. 3) Act 2004 | 105, 2004 | 30 June 2004 | s 4, Sch 1 (items 1–3) and Sch 3: 30 June 2004 (s 2(1) items 1, 2, 4) | s 4 and Sch 1 (item 19) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 113): 29 June 2010 (s 2(1) item 9) | — |\n| Higher Education Legislation Amendment Act (No. 2) 2004 | 114, 2004 | 13 July 2004 | Sch 5: 13 July 2004 (s 2(1) item 10) | — |\n| Financial Framework Legislation Amendment Act 2005 | 8, 2005 | 22 Feb 2005 | s 4 and Sch 1 (items 156–158, 496): 22 Feb 2005 (s 2(1) items 1, 2) | s 4 and Sch 1 (item 496) |\n| New International Tax Arrangements (Managed Funds and Other Measures) Act 2005 | 21, 2005 | 21 Mar 2005 | Sch 3 (items 1–31, 45, 47(1), (2)): 21 Mar 2005 (s 2) | Sch 3 (item 47(1), (2)) |\n| Tax Laws Amendment (2004 Measures No. 6) Act 2005 | 23, 2005 | 21 Mar 2005 | s 4 and Sch 3 (items 14–74, 111(3)–(5), 112–114): 21 Mar 2005 (s 2(1) items 1, 6) | s 4 and Sch 3 (items 111(3)–(5), 112–114) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 114): 29 June 2010 (s 2(1) item 9) | — |\n| Tax Laws Amendment (2004 Measures No. 7) Act 2005 | 41, 2005 | 1 Apr 2005 | s 4, Sch 3 (items 1–16, 22), Sch 6 (items 1, 6–11), Sch 8, Sch 9 (items 3–13), Sch 10 (items 19–35, 270) and Sch 11 (items 1–3, 5): 1 Apr 2005 (s 2(1) items 1, 2, 4, 5, 23, 24)  Sch 9 (items 1, 2): 29 June 2004 (s 2(1) item 3) | s 4, Sch 3 (item 22), Sch 6 (item 1), Sch 8 (item 5), Sch 9 (items 2, 13), Sch 10 (item 30) and Sch 11 (item 5) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 6 (item 115): 29 June 2010 (s 2(1) item 9) | — |\n| Social Security Legislation Amendment (One‑off Payments for Carers) Act 2005 | 55, 2005 | 25 May 2005 | Sch 1 (items 10, 11) and Sch 2: 25 May 2005 (s 2) | Sch 2 |\n| as amended by |  |  |  |  |\n| Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008 | 19, 2008 | 26 May 2008 | Sch 3 (item 70): 26 May 2008 (s 2(1) item 6) | — |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 2010 | 8, 2010 | 1 Mar 2010 | Sch 2 (item 20): 26 May 2008 (s 2(1) item 21) | — |\n| Statute Update (Autumn 2018) Act 2018 | 41, 2018 | 22 May 2018 | Sch 5 (item 1): 19 June 2018 (s 2(1) item 4) | — |\n| Tax Laws Amendment (2005 Measures No. 3) Act 2005 | 63, 2005 | 26 June 2005 | Sch 1 (items 1–4, 23), Sch 2 and Sch 5: 26 June 2005 (s 2(1) items 2, 4) | Sch 1 (item 23), Sch 2 (item 3) and Sch 5 (item 4) |\n| New International Tax Arrangements (Foreign‑owned Branches and Other Measures) Act 2005 | 64, 2005 | 26 June 2005 | Sch 1 (items 1–6), Sch 3 (items 1–4) and Sch 4 (items 2–27, 38, 39): 26 June 2005 (s 2(1) items 2, 4)  Sch 2 (items 1–9): 27 June 2005 (s 2(1) item 3) | Sch 3 (item 4) and Sch 4 (items 38, 39) |\n| Tax Laws Amendment (Improvements to Self Assessment) Act (No. 1) 2005 | 75, 2005 | 29 June 2005 | Sch 1 (items 2–17, 31): 29 June 2005 (s 2) | Sch 1 (item 31) |\n| Tax Laws Amendment (2005 Measures No. 2) Act 2005 | 78, 2005 | 29 June 2005 | Sch 7: 29 June 2005 (s 2) | — |\n| Superannuation (Consequential Amendments) Act 2005 | 81, 2005 | 29 June 2005 | Sch 7 (item 1): 1 July 2005 (s 2(1) item 6) | — |\n| Human Services Legislation Amendment Act 2005 | 111, 2005 | 6 Sept 2005 | Sch 2 (item 398): 1 Oct 2005 (s 2(1) item 7) | — |\n| Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 | 147, 2005 | 14 Dec 2005 | Sch 1 (items 1–3, 169(1)), Sch 2 (items 2–11, 27(1)–(4), 28(1)–(3)), Sch 4 (items 1–3, 12), Sch 5 (items 1–12, 20) and Sch 7 (items 1–13, 19, 20): 14 Dec 2005 (s 2(1) items 2, 3, 5, 6) | Sch 1 (item 169(1)), Sch 2 (items 27(1)–(4), 28(1)–(3)), Sch 4 (item 12), Sch 5 (item 20) and Sch 7 (item 19, 20) |\n| Tax Laws Amendment (Superannuation Contributions Splitting) Act 2005 | 148, 2005 | 14 Dec 2005 | 14 Dec 2005 (s 2) | — |\n| Tax Laws Amendment (2005 Measures No. 4) Act 2005 | 160, 2005 | 19 Dec 2005 | Sch 3: 19 Dec 2005 (s 2(1) item 2) | Sch 3 (item 3) |\n| Tax Laws Amendment (Improvements to Self Assessment) Act (No. 2) 2005 | 161, 2005 | 19 Dec 2005 | Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Sch 1 (items 15, 19, 25, 68, 73) and Sch 2 (items 28–32) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2006 Measures No. 3) Act 2006 | 80, 2006 | 30 June 2006 | Sch 13: 19 Dec 2005 (s 2(1) item 13) | Sch 13 (item 2) |\n| Tax Laws Amendment (2005 Measures No. 5) Act 2005 | 162, 2005 | 19 Dec 2005 | Sch 1, Sch 3 (items 8–15, 33) and Sch 5: 19 Dec 2005 (s 2(1) item 2)  Sch 6 (items 14, 15): 1 July 2001 (s 2(1) item 6) | Sch 1 (item 5) and Sch 3 (item 33) |\n| Tax Laws Amendment (2005 Measures No. 6) Act 2006 | 13, 2006 | 29 Mar 2006 | Sch 4: 29 Mar 2006 (s 2(1) item 5) | Sch 4 (item 9) |\n| Offshore Petroleum (Repeals and Consequential Amendments) Act 2006 | 17, 2006 | 29 Mar 2006 | Sch 2 (items 38–40): 1 July 2008 (s 2(1) item 2) | Sch 2 (item 40) |\n| Tax Laws Amendment (2006 Measures No. 1) Act 2006 | 32, 2006 | 6 Apr 2006 | Sch 1 (items 4–15, 40(8), (9)): 6 Apr 2006 (s 2) | Sch 1 (item 40(8), (9)) |\n| Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 | 41, 2006 | 22 May 2006 | Sch 1 (item 8) and Sch 3 (items 10–12): 22 May 2006 (s 2) | — |\n| Tax Laws Amendment (Personal Tax Reduction and Improved Depreciation Arrangements) Act 2006 | 55, 2006 | 19 June 2006 | Sch 3: 1 July 2006 (s 2(1) item 4) | Sch 3 (item 4) |\n| Tax Laws Amendment (2006 Measures No. 2) Act 2006 | 58, 2006 | 22 June 2006 | s 4 and Sch 7 (items 35–50, 241–256): 22 June 2006 (s 2(1) items 1, 6, 24)  Sch 7 (items 173, 175): 30 June 2000 (s 2(1) items 9, 11)  Sch 7 (item 174): 24 Oct 2002 (s 2(1) item 10)  Sch 7 (items 176, 178): 30 June 2004 (s 2(1) items 12, 14)  Sch 7 (item 177): 24 Dec 1992 (s 2(1) item 13) | s 4 and Sch 7 (item 38) |\n| Electoral and Referendum Amendment (Electoral Integrity and Other Measures) Act 2006 | 65, 2006 | 22 June 2006 | Sch 4 (items 11, 12): 22 June 2006 (s 2(1) item 22) | Sch 4 (item 12) |\n| Fuel Tax (Consequential and Transitional Provisions) Act 2006 | 73, 2006 | 26 June 2006 | Sch 5 (items 4, 154, 155): 1 July 2006 (s 2(1) items 18, 21) | — |\n| Tax Laws Amendment (2006 Measures No. 3) Act 2006 | 80, 2006 | 30 June 2006 | Sch 1 (items 1, 4), Sch 2, Sch 3 (items 1, 5), Sch 4 (items 3, 4, 14, 21, 22, 30), Sch 6 (item 2) and Sch 9: 30 June 2006 (s 2(1) items 2–4, 6, 7)  Sch 4 (items 15–19): 30 June 2002 (s 2(1) item 5) | Sch 1 (item 4), Sch 2 (item 1), Sch 3 (item 5), Sch 4 (items 14, 19, 30), Sch 9 (item 5) and Sch 13 (item 2) |\n| Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 | 101, 2006 | 14 Sept 2006 | Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4)  Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3) | Sch 6 (items 1–4, 6–15) |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 2010 | 8, 2010 | 1 Mar 2010 | Sch 2 (item 28): 1 Mar 2010 (s 2(1) item 24) | — |\n| Corporations (Aboriginal and Torres Strait Islander) Consequential, Transitional and Other Measures Act 2006 | 125, 2006 | 4 Nov 2006 | Sch 2 (item 98): 1 July 2007 (s 2(1) item 2) | — |\n| Tax Laws Amendment (2006 Measures No. 4) Act 2006 | 168, 2006 | 12 Dec 2006 | s 4 and Sch 4 (items 14–28, 112): 12 Dec 2006 (s 2(1) items 1, 5)  Sch 3 (items 3–5): 13 Dec 2005 (s 2(1) item 4) | s 4, Sch 3 (item 5) and Sch 4 (item 112) |\n| Tax Laws Amendment (2006 Measures No. 6) Act 2007 | 4, 2007 | 19 Feb 2007 | Sch 2 (items 1–10): 19 Feb 2007 (s 2(1) item 4) | Sch 2 (item 2) |\n| Statute Law Revision Act 2007 | 8, 2007 | 15 Mar 2007 | Sch 1 (item 16): 5 June 1997 (s 2(1) item 13) | — |\n| Tax Laws Amendment (Simplified Superannuation) Act 2007 | 9, 2007 | 15 Mar 2007 | Sch 1 (items 3, 4, 24(1), 26, 27, 37): 15 Mar 2007 (s 2(1) item 2) | Sch 1 (items 24(1), 37) |\n| Superannuation Legislation Amendment (Simplification) Act 2007 | 15, 2007 | 15 Mar 2007 | Sch 1 (items 1–8, 22–149, 406(1)–(3)) and Sch 3 (items 6, 7): 15 Mar 2007 (s 2(1) items 2, 6) | Sch 1 (item 406(1)–(3)) |\n| Private Health Insurance (Transitional Provisions and Consequential Amendments) Act 2007 | 32, 2007 | 30 Mar 2007 | Sch 3 (items 1–7): 1 July 2007 (s 2(1) item 8) | — |\n| Tax Laws Amendment (2006 Measures No. 7) Act 2007 | 55, 2007 | 12 Apr 2007 | Sch 1 (items 1, 2) and Sch 6: 12 Apr 2007 (s 2) | Sch 6 (item 4) |\n| Tax Laws Amendment (2007 Measures No. 1) Act 2007 | 56, 2007 | 12 Apr 2007 | Sch 3 (items 1–7, 14–16, 39): 12 Apr 2007 (s 2) | Sch 3 (item 39) |\n| Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007 | 66, 2007 | 11 May 2007 | Sch 1 (item 16) and Sch 3 (items 10–12): 11 May 2007 (s 2(1) item 2) | — |\n| Tax Laws Amendment (2007 Budget Measures) Act 2007 | 75, 2007 | 21 June 2007 | Sch 1 (items 1–13): 21 June 2007 (s 2) | Sch 1 (item 13) |\n| Tax Laws Amendment (Personal Income Tax Reduction) Act 2007 | 76, 2007 | 21 June 2007 | Sch 1 (items 1–3, 11): 21 June 2007 (s 2) | Sch 1 (item 11) |\n| Tax Laws Amendment (2007 Measures No. 2) Act 2007 | 78, 2007 | 21 June 2007 | s 4, Sch 3 (items 1–20), Sch 7 (items 1, 15) and Sch 8 (items 86–95): 21 June 2007 (s 2(1) items 1–3, 5, 6) | s 4, Sch 3 (items 4, 6, 9, 11, 14, 16, 18, 20) and Sch 7 (item 15) |\n| Tax Laws Amendment (2007 Measures No. 3) Act 2007 | 79, 2007 | 21 June 2007 | Sch 1 (items 1–27, 33–38, 43(1), (4), (5)), Sch 6 (items 1, 2, 8), Sch 7 (items 1–16), Sch 9 (items 1–13, 30–33) and Sch 10 (items 3–9, 32): 21 June 2007 (s 2(1) items 2, 4, 6)  Sch 8 (items 1, 4–11, 26(1), (2) and (4)): 1 July 2007 (s 2(1) item 5) | Sch 1 (items 43(1), (4), (5)), Sch 6 (item 8), Sch 7 (item 16), Sch 8 (item 26(1), (2), (4)), Sch 9 (items 30–33) and Sch 10 (item 32) |\n| Tax Laws Amendment (Small Business) Act 2007 | 80, 2007 | 21 June 2007 | Sch 3 (items 97–108) and Sch 8 (items 1, 9): 21 June 2007 (s 2) | Sch 8 (item 9) |\n| Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Act 2007 | 82, 2007 | 21 June 2007 | Sch 6 (item 38): 1 July 2007 (s 2(1) item 22)  Sch 9: 1 July 2008 (s 2(1) item 26) | Sch 9 (item 5) |\n| Veterans’ Affairs Legislation Amendment (2007 Measures No. 1) Act 2007 | 89, 2007 | 21 June 2007 | Sch 4: 22 June 2007 (s 2(1) item 22) | — |\n| Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 | 101, 2007 | 28 June 2007 | Sch 1 (item 222): 1 Sept 2007 (s 2(1) item 4) | — |\n| Families, Community Services and Indigenous Affairs Legislation Amendment (Child Care and Other 2007 Budget Measures) Act 2007 | 113, 2007 | 28 June 2007 | Sch 1 (item 19): 1 July 2007 (s 2(1) item 2) | — |\n| Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 | 130, 2007 | 17 Aug 2007 | Sch 3 (item 1): 18 Aug 2007 (s 2) | — |\n| Tax Laws Amendment (2007 Measures No. 4) Act 2007 | 143, 2007 | 24 Sept 2007 | Sch 1 (items 2, 3, 18–127, 222, 223, 224(1), (2), 225, 226), Sch 4 (items 1–46, 51, 52), Sch 7 (items 9–17, 104(2)) and Sch 8: 24 Sept 2007 (s 2(1) items 2, 4, 11, 12) | Sch 1 (items 222, 223, 224(1), (2), 225, 226), Sch 4 (items 51, 52), Sch 7 (items 14, 17) and Sch 8 (item 14) |\n| as amended by |  |  |  |  |\n| Statute Law Revision Act 2010 | 8, 2010 | 1 Mar 2010 | Sch 2 (item 26): 1 Mar 2010 (s 2(1) item 24) | — |\n| Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007 | 154, 2007 | 24 Sept 2007 | Sch 1 (item 172A): 1 Jan 2008 (s 2(1) item 3)  Sch 1 (item 296) and Sch 3 (item 3): 24 Sept 2007 (s 2(1) items 6, 7) | Sch 1 (item 296) |\n| Tax Laws Amendment (2007 Measures No. 5) Act 2007 | 164, 2007 | 25 Sept 2007 | s 4, Sch 1 (items 27–35, 71), Sch 8 (items 1–5, 13(1)), Sch 10 (items 2–6) and Sch 11 (items 1–48, 78–80): 25 Sept 2007 (s 2(1) items 1, 2, 5, 8)  Sch 10 (items 26–56): 1 July 2010 (s 2(1) item 6)  Sch 12 (items 66–71): 27 Sept 2007 (s 2(1) item 9) | s 4, Sch 1 (item 71), Sch 8 (item 13(1)) and Sch 11 (items 78–80) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2008 Measures No. 4) Act 2008 | 97, 2008 | 3 Oct 2008 | Sch 3 (items 187, 188): 3 Oct 2008 (s 2(1) item 5) | — |\n| Families, Community Services and Indigenous Affairs Legislation Amendment (Child Disability Assistance) Act 2007 | 182, 2007 | 28 Sept 2007 | Sch 1 (item 14): 1 Oct 2007 (s 2(1) item 4) | — |\n| Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008 | 19, 2008 | 26 May 2008 | Sch 1 (item 16) and Sch 3 (items 11–13): 26 May 2008 (s 2(1) items 3, 6) | — |\n| Tax Laws Amendment (Personal Income Tax Reduction) Act 2008 | 29, 2008 | 23 June 2008 | Sch 1 (items 1, 2, 10): 1 July 2008 (s 2(1) item 2)  Sch 1 (items 11, 12, 20): 1 July 2009 (s 2(1) item 3)  Sch 1 (items 21, 22, 30): 1 July 2010 (s 2(1) item 4) | Sch 1 (items 10, 20, 30) |\n| Tax Laws Amendment (Election Commitments No. 1) Act 2008 | 32, 2008 | 23 June 2008 | Sch 1 (items 4–11, 58): 23 June 2008 (s 2) | Sch 1 (item 58) |\n| Tax Laws Amendment (2008 Measures No. 2) Act 2008 | 38, 2008 | 24 June 2008 | Sch 9 (items 1, 4) and Sch 11: 24 June 2008 (s 2(1) item 7) | Sch 9 (item 4) and Sch 11 (item 2) |\n| First Home Saver Accounts (Consequential Amendments) Act 2008 | 45, 2008 | 25 June 2008 | Sch 1 (items 2–7), Sch 4 (items 1–7) and Sch 7 (items 1–5): 26 June 2008 (s 2) | — |\n| Tax Laws Amendment (Budget Measures) Act 2008 | 59, 2008 | 30 June 2008 | Sch 1 (items 6, 7, 10–13): 30 June 2008 (s 2) | Sch 1 (items 7, 13) |\n| Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Act 2008 | 63, 2008 | 30 June 2008 | s 4: 30 June 2008 (s 2(1) item 1)  Sch 1 (items 8–11, 16): 1 July 2008 (s 2(1) item 2) | s 4 and Sch 1 (item 16) |\n| First Home Saver Accounts (Further Provisions) Amendment Act 2008 | 92, 2008 | 30 Sept 2008 | Sch 1 (items 5–9, 26) and Sch 2 (item 38): 1 Oct 2008 (s 2(1) item 2) | Sch 1 (item 26) |\n| Tax Laws Amendment (2008 Measures No. 4) Act 2008 | 97, 2008 | 3 Oct 2008 | Sch 1 (items 1, 2, 12) and Sch 3 (items 5–43): 3 Oct 2008 (s 2(1) items 2, 3) | Sch 1 (item 12) and Sch 3 (items 11, 14, 18) |\n| Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008 | 105, 2008 | 17 Oct 2008 | Sch 1 (item 58): 18 Oct 2008 (s 2(1) item 2) | — |\n| Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008 | 117, 2008 | 21 Nov 2008 | Sch 3 (item 15): 22 Nov 2008 (s 2(1) item 4) | — |\n| Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 | 131, 2008 | 1 Dec 2008 | Sch 5 (items 1, 2): 1 Dec 2008 (s 2) | — |\n| Same‑Sex Relationships (Equal Treatment in Commonwealth Laws—General Law Reform) Act 2008 | 144, 2008 | 9 Dec 2008 | Sch 14 (items 7–58): 10 Dec 2008 (s 2(1) item 36) | Sch 14 (item 58) |\n| Tax Laws Amendment (2008 Measures No. 5) Act 2008 | 145, 2008 | 9 Dec 2008 | Sch 3 and 5: 9 Dec 2008 (s 2) | Sch 3 (item 2) and Sch 5 (items 9, 10) |\n| Household Stimulus Package Act (No. 2) 2009 | 4, 2009 | 18 Feb 2009 | Sch 4 and Sch 5 (items 4, 5): 18 Feb 2009 (s 2(1) item 5) | Sch 4 |\n| Tax Bonus for Working Australians (Consequential Amendments) Act (No. 2) 2009 | 6, 2009 | 18 Feb 2009 | Sch 1 (item 1): 18 Feb 2009 (s 2(1) item 2) | — |\n| Tax Laws Amendment (2008 Measures No. 6) Act 2009 | 14, 2009","sortOrder":1000142},{"sectionNumber":"full-source-retrieval-0144","sectionType":"document_chunk","heading":"Document excerpt 144","content":"| 26 Mar 2009 | Sch 4 (items 6–10): 26 Mar 2009 (s 2(1) item 2)  Sch 5 (items 1, 14(1)): 29 Jan 2009 (s 2(1) items 3, 7)  Sch 5 (item 4): never commenced (s 2(1) item 4) | Sch 5 (item 14(1)) |\n| Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 | 15, 2009 | 26 Mar 2009 | Sch 1 (items 31–51, 102–105): 26 Mar 2009 (s 2(1) item 2) | Sch 1 (items 102–105) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2010 Measures No. 4) Act 2010 | 136, 2010 | 7 Dec 2010 | Sch 3 (items 133, 134): 26 Mar 2009 (s 2(1) item 8) | — |\n| Tax Laws Amendment (2011 Measures No. 7) Act 2011 | 147, 2011 | 29 Nov 2011 | Sch 4: 30 Nov 2011 (s 2(1) item 6) | Sch 4 (item 4) |\n| Tax Laws Amendment (2012 Measures No. 2) Act 2012 | 99, 2012 | 29 June 2012 | Sch 2 (item 5): 26 Mar 2009 (s 2(1) item 6) | — |\n| Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 | 85, 2013 | 28 June 2013 | Sch 8 (items 49–54): 26 Mar 2009 (s 2(1) item 11) | — |\n| Social Security Amendment (Liquid Assets Waiting Period) Act 2009 | 25, 2009 | 26 Mar 2009 | Sch 1 (item 7): 18 Feb 2009 (s 2(1) item 3) | — |\n| Tax Laws Amendment (2009 Measures No. 1) Act 2009 | 27, 2009 | 26 Mar 2009 | Sch 3 (items 1–5, 40–43, 94–100, 102(1)): 27 Mar 2009 (s 2(1) item 5) | Sch 3 (item 102(1)) |\n| Tax Laws Amendment (2009 Measures No. 2) Act 2009 | 42, 2009 | 23 June 2009 | Sch 1 (items 11–16), Sch 2 (items 17, 18) and Sch 4 (item 1): 23 June 2009 (s 2(1) items 2, 4, 8) | Sch 1 (item 16) |\n| Tax Laws Amendment (2009 Budget Measures No. 1) Act 2009 | 62, 2009 | 29 June 2009 | Sch 1: 29 June 2009 (s 2) | Sch 1 (item 2) |\n| Financial Sector Legislation Amendment (Enhancing Supervision and Enforcement) Act 2009 | 75, 2009 | 27 Aug 2009 | Sch 1 (items 206, 207): 27 Feb 2010 (s 2(1) item 2) | — |\n| Tax Laws Amendment (2009 Measures No. 4) Act 2009 | 88, 2009 | 18 Sept 2009 | s 4, Sch 1, Sch 3 (items 2–4), Sch 4 (items 1, 5) and Sch 5 (items 21–112, 306–318): 18 Sept 2009 (s 2(1) items 1, 2, 6, 7, 10)  Sch 2 (items 2, 3): 1 Oct 2009 (s 2(1) item 3) | s 4, Sch 1 (item 2), Sch 3 (item 4), Sch 4 (item 5) and Sch 5 (items 307, 316, 318) |\n| Tax Agent Services (Transitional Provisions and Consequential Amendments) Act 2009 | 114, 2009 | 16 Nov 2009 | Sch 1 (items 5–7) and Sch 2: 1 Mar 2010 (s 2(1) items 2, 4) | Sch 2 |\n| Tax Laws Amendment (2009 Measures No. 5) Act 2009 | 118, 2009 | 4 Dec 2009 | Sch 5: 5 Dec 2009 (s 2(1) item 9) | Sch 5 (item 3) |\n| Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 | 133, 2009 | 14 Dec 2009 | Sch 1 (items 9–20, 86, 87): 14 Dec 2009 (s 2(1) item 2) | Sch 1 (items 86, 87) |\n| Tax Laws Amendment (2009 Measures No. 6) Act 2010 | 19, 2010 | 24 Mar 2010 | Sch 5 (item 1): 25 Feb 2009 (s 2(1) item 12)  Sch 5 (item 6): 24 Mar 2010 (s 2(1) item 14) | Sch 5 (item 6) |\n| Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Miscellaneous Measures) Act 2010 | 33, 2010 | 13 Apr 2010 | Sch 2 (items 1–5): 13 Apr 2010 (s 2(1) item 3) | — |\n| Tax Laws Amendment (2010 Measures No. 1) Act 2010 | 56, 2010 | 3 June 2010 | s 4, Sch 3 (items 1, 10(1)) and Sch 6 (items 17, 18, 55, 114, 118–126): 3 June 2010 (s 2(1) items 1, 7, 15, 23)  Sch 1 (item 7): 1 July 2010 (s 2(1) item 3)  Sch 2 (items 1, 4): 4 June 2010 (s 2(1) item 6)  Sch 6 (item 108): 1 July 2006 (s 2(1) item 19) | s 4, Sch 2 (item 4), Sch 3 (item 10(1)) and Sch 6 (items 18, 119, 125) |\n| Child Support and Family Assistance Legislation Amendment (Budget and Other Measures) Act 2010 | 65, 2010 | 28 June 2010 | Sch 2 (items 98, 99): 1 July 2010 (s 2(1) item 2) | — |\n| Corporations Amendment (Corporate Reporting Reform) Act 2010 | 66, 2010 | 28 June 2010 | Sch 1 (items 56, 57): 28 June 2010 (s 2(1) item 5) | Sch 1 (item 57) |\n| Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Sch 1 (items 1–33, 35) and Sch 6 (items 2–6): 29 June 2010 (s 2(1) item 2)  Sch 2 (items 1, 2, 25): 1 July 2010 (s 2(1) item 3)  Sch 5 (items 2–6): 28 June 2010 (s 2(1) item 7) | Sch 1 (item 35) and Sch 2 (item 25) |\n| Tax Laws Amendment (Transfer of Provisions) Act 2010 | 79, 2010 | 29 June 2010 | Sch 1 (items 1, 2, 17–26, 53, 57, 66), Sch 3 (item 1), Sch 4 (items 1, 9–37, 51) and Sch 5 (items 1, 3–5, 13): 1 July 2010 (s 2(1) items 2, 4)  Sch 2 (items 1, 10–15): 1 July 2010 (s 2(1) item 3) | Sch 1 (items 53, 57, 66), Sch 4 (item 51) and Sch 5 (item 13) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2011 Measures No. 2) Act 2011 | 41, 2011 | 27 June 2011 | Sch 5 (item 372): 1 July 2010 (s 2(1) item 22) | — |\n| Tax Laws Amendment (2010 Measures No. 3) Act 2010 | 90, 2010 | 29 June 2010 | Sch 4 (items 1–4, 8): 29 June 2010 (s 2(1) item 3) | Sch 4 (item 8) |\n| Paid Parental Leave (Consequential Amendments) Act 2010 | 105, 2010 | 14 July 2010 | Sch 1 (items 37–52) and Sch 2 (items 1, 2): 1 Oct 2010 (s 2(1) items 9–11, 14) | Sch 2 (items 1, 2) |\n| Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010 | 114, 2010 | 14 July 2010 | Sch 1 (items 1–39, 93–96): 14 July 2010 (s 2(1) items 2, 4)  Sch 1 (items 88–92): 14 Sept 2006 (s 2(1) item 3) | Sch 1 (items 93–96) |\n| Tax Laws Amendment (2010 Measures No. 4) Act 2010 | 136, 2010 | 7 Dec 2010 | s 4 and Sch 5: 7 Dec 2010 (s 2(1) items 1, 10)  Sch 3 (items 1, 2: 26 Mar 2009 (s 2(1) item 3) | s 4 and Sch 5 (item 4) |\n| Tax Laws Amendment (Confidentiality of Taxpayer Information) Act 2010 | 145, 2010 | 16 Dec 2010 | Sch 2 (items 31–33) and Sch 3 (items 1–6): 17 Dec 2010 (s 2(1) item 2) | — |\n| Human Services Legislation Amendment Act 2011 | 32, 2011 | 25 May 2011 | Sch 4 (items 282–284) and Sch 5: 1 July 2011 (s 2(1) items 3, 8)  Sch 4 (items 621–624): never commenced (s 2(1) item 4) | — |\n| Tax Laws Amendment (2011 Measures No. 2) Act 2011 | 41, 2011 | 27 June 2011 | Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11)  Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23) | Sch 5 (items 69, 72) |\n| Tax Laws Amendment (2011 Measures No. 4) Act 2011 | 43, 2011 | 27 June 2011 | s 4 and Sch 2 (items 1–3, 6): 27 June 2011 (s 2(1) items 1, 5) | s 4 and Sch 2 (item 6) |\n| Acts Interpretation Amendment Act 2011 | 46, 2011 | 27 June 2011 | Sch 2 (items 688–692) and Sch 3 (items 10, 11): 27 Dec 2011 (s 2(1) items 5, 12) | Sch 3 (items 10, 11) |\n| Tax Laws Amendment (2011 Measures No. 5) Act 2011 | 62, 2011 | 29 June 2011 | Sch 1 (items 4, 5, 14), Sch 2 (items 1–7, 28–44, 51) and Sch 4 (items 1–32, 34): 29 June 2011 (s 2(1) items 2, 6) | Sch 1 (item 14), Sch 2 (item 51) and Sch 4 (item 34) |\n| as amended by |  |  |  |  |\n| Tax Laws Amendment (2012 Measures No. 6) Act 2013 | 84, 2013 | 28 June 2013 | Sch 4: 28 June 2013 (s 2(1) item 2) | — |\n| Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 | 53, 2016 | 5 May 2016 | Sch 8 (items 4, 5): 5 May 2016 (s 2(1) item 4) | — |\n| Tax Laws Amendment (Research and Development) Act 2011 | 93, 2011 | 8 Sept 2011 | Sch 3 (items 5–14, 44–53) and Sch 4 (items 1–6): 8 Sept 2011 (s 2(1) items 3, 6, 7)  Sch 3 (item 43): never commenced (s 2(1) item 5) | Sch 4 (items 1–6) |\n| as amended by |  |  |  |  |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 | 110, 2014 | 16 Oct 2014 | Sch 5 (items 153, 154): 8 Sept 2011 (s 2(1) item 17) | — |\n| Higher Education Legislation Amendment (Student Services and Amenities) Act 2011 | 130, 2011 | 3 Nov 2011 | Sch 1 (item 44): 1 Jan 2012 (s 2(1) item 2) | — |\n| Clean Energy (Consequential Amendments) Act 2011 | 132, 2011 | 18 Nov 2011 | Sch 2 (item 3): 2 Apr 2012 (s 2(1) item 5) | — |\n| Clean Energy (Household Assistance Amendments) Act 2011 | 141, 2011 | 29 Nov 2011 | Sch 6 (item 11): 14 May 2012 (s 2(1) item 14) | — |\n| Tax Laws Amendment (2011 Measures No. 7) Act 2011 | 147, 2011 | 29 Nov 2011 | s 4, Sch 7 and Sch 8 (item 42): 29 Nov 2011 (s 2(1) items 1, 7, 11) | s 4 and Sch 7 |\n| Clean Energy (Tax Laws Amendments) Act 2011 | 159, 2011 | 4 Dec 2011 | Sch 1 (items 1–3) and Sch 3 (items 1–16, 24): 1 July 2012 (s 2(1) items 2, 5)  Sch 1 (items 4–6): repealed before commencing (s 2(1) item 3) | Sch 1 (items 3, 6) and Sch 3 (item 24) |\n| as amended by |  |  |  |  |\n| Labor 2013‑14 Budget Savings (Measures No. 1) Act 2015 | 72, 2015 | 25 June 2015 | Sch 2 (items 1, 2): 26 June 2015 (s 2) | — |\n| Tax Laws Amendment (2011 Measures No. 9) Act 2012 | 12, 2012 | 21 Mar 2012 | s 4 and Sch 6 (items 1, 2, 188, 189, 219–234, 248, 252–255): 21 Mar 2012 (s 2(1) items 1, 6, 31)  Sch 6 (items 30, 31): 15 Mar 2007 (s 2(1) item 12)  Sch 6 (items 153–156): 22 Mar 2012 (s 2(1) item 26) | s 4 and Sch 6 (items 31, 155, 156, 189, 248, 253, 255) |\n| as amended by |  |  |  |  |\n| Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 | 88, 2013 | 28 June 2013 | Sch 7 (item 228): 28 June 2013 (s 2(1) item 23) | — |\n| Fairer Private Health Insurance Incentives Act 2012 | 26, 2012 | 4 Apr 2012 | Sch 1 (items 2, 48(1)): 1 July 2012 (s 2(1) item 2) | Sch 1 (item 48(1)) |\n| Tax Laws Amendment (Shipping Reform) Act 2012 | 57, 2012 | 21 June 2012 | Sch 4: 21 June 2012 (s 2) | Sch 4 (item 2) |\n| Tax Laws Amendment (2012 Measures No. 3) Act 2012 | 58, 2012 | 21 June 2012 | Sch 1 (item 1) and Sch 3: 21 June 2012 (s 2(1) items 2, 3) | Sch 3 (item 2) |\n| Tax Laws Amendment (2012 Measures No. 1) Act 2012 | 71, 2012 | 27 June 2012 | Sch 4: 27 June 2012 (s 2(1) item 5) | Sch 4 (item 12) |\n| Tax Laws Amendment (Cross‑Border Transfer Pricing) Act (No. 1) 2012 | 115, 2012 | 8 Sept 2012 | Sch 1 (items 1–4): 8 Sept 2012 (s 2) | — |\n| Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012 | 158, 2012 | 28 Nov 2012 | Sch 4 (items 48–52): 29 Nov 2012 (s 2(1) item 10) | — |\n| Australian Charities and Not‑for‑profits Commission (Consequential and Transitional) Act 2012 | 169, 2012 | 3 Dec 2012 | Sch 2 (items 1–3, 26, 27): 3 Dec 2012 (s 2(1) item 3) | — |\n| Personal Liability for Corporate Fault Reform Act 2012 | 180, 2012 | 10 Dec 2012 | Sch 6 (items 17–19) and Sch 7: 11 Dec 2012 (s 2) | Sch 7 |\n| Social Security Legislation Amendment (Disaster Recovery Allowance) Act 2013 | 62, 2013 | 26 June 2013 | Sch 1 (item 11): 1 Oct 2013 (s 2) | — |\n| Tax Laws Amendment (2012 Measures No. 6) Act 2013 | 84, 2013 | 28 June 2013 | s 4, Sch 1 (items 1, 9(1), 10–18) and Sch 5: 28 June 2013 (s 2(1) items 1, 2) | s 4, Sch 1 (item 9(1)) and Sch 5 (item 21) |\n| Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 | 85, 2013 | 28 June 2013 | s 4 and Sch 7 (items 2–6, 10): 28 June 2013 (s 2(1) items 1, 10) | s 4 and Sch 7 (item 10) |\n| Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 | 88, 2013 | 28 June 2013 | s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21)  Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10)  Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13)  Sch 5 (item 35): 29 June 2013 (s 2(1) item 12) | s 4 and Sch 5 (item 24) |\n| Charities (Consequential Amendments and Transitional Provisions) Act 2013 | 96, 2013 | 28 June 2013 | Sch 1 (items 19–22): 1 Jan 2014 (s 2(1) item 2) | — |\n| Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 | 101, 2013 | 29 June 2013 | Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3) | Sch 1 (item 10) and Sch 2 (item 50) |\n| Private Health Insurance Amendment (Lifetime Health Cover Loading and Other Measures) Act 2013 | 105, 2013 | 29 June 2013 | Sch 1 (item 3): 1 July 2013 (s 2) | — |\n| Tax Laws Amendment (2013 Measures No. 2) Act 2013 | 124, 2013 | 29 June 2013 | Sch 2 (items 1, 7–20): 11 July 2013 (s 2(1) item 3)  Sch 2 (items 49–65): 29 June 2013 (s 2(1) item 4)  Sch 11 (items 33, 34, 56(1)): 30 June 2013 (s 2(1) item 22) | Sch 11 (item 56(1)) |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 | 11, 2014 | 18 Mar 2014 | Sch 3 (item 1): 18 Mar 2014 (s 2(1) item 4)  Sch 3 (items 3, 4, 6): 1 July 2019 (s 2(1) item 6)  Sch 3 (item 5): repealed before commencing (s 2(1) item 6) | — |\n| as amended by |  |  |  |  |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 | 70, 2015 | 25 June 2015 | Sch 2 (items 33, 38): 25 June 2015 (s 2(1) item 7) | Sch 2 (item 38) |\n| Farm Household Support (Consequential and Transitional Provisions) Act 2014 | 13, 2014 | 28 Mar 2014 | Sch 2 (items 31, 32, 56): 1 July 2014 (s 2(1) item 3) | Sch 2 (item 56) |\n| Statute Law Revision Act (No. 1) 2014 | 31, 2014 | 27 May 2014 | Sch 4 (items 97, 98): 24 June 2014 (s 2(1) item 9) | — |\n| Tax Laws Amendment (2014 Measures No. 1) Act 2014 | 34, 2014 | 30 May 2014 | Sch 2 (items 13, 14, 16): 30 May 2014 (s 2(1) item 3) | Sch 2 (item 16) |\n| Tax Laws Amendment (Interest on Non‑Resident Trust Distributions) (Temporary Budget Repair Levy) Act 2014 | 47, 2014 | 25 June 2014 | 25 June 2014 (s 2(1) items 1, 2) | — |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 2) Act 2014 | 68, 2014 | 30 June 2014 | Sch 1 (items 1, 6(1)) and Sch 2: 30 June 2014 (s 2(1) item 2) | Sch 1 (item 6(1)) |\n| Trade Support Loans (Consequential Amendments) Act 2014 | 82, 2014 | 17 July 2014 | Sch 1 (items 2–4): 18 July 2014 (s 2(1) item 2) | — |\n| Minerals Resource Rent Tax Repeal and Other Measures Act 2014 | 96, 2014 | 5 Sept 2014 | Sch 2 (items 3–13, 42, 43): 30 Sept 2014 (s 2(1) item 2) | Sch 2 (items 42, 43) |\n| Omnibus Repeal Day (Autumn 2014) Act 2014 | 109, 2014 | 16 Oct 2014 | Sch 10 (items 20, 27): 17 Oct 2014 (s 2(1) item 8) | Sch 10 (item 27) |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 | 110, 2014 | 16 Oct 2014 | Sch 2 (items 1, 6–12, 23): 17 Oct 2014 (s 2(1) item 2)  Sch 5 (items 7–15, 95–97): 16 Oct 2014 (s 2(1) items 4, 7) | Sch 2 (item 23) |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 6) Act 2014 | 133, 2014 | 12 Dec 2014 | Sch 1 (items 2, 3, 39) and Sch 3: 12 Dec 2014 (s 2(1) item 2) | Sch 1 (item 39) and Sch 3 (item 3) |\n| Treasury Legislation Amendment (Repeal Day) Act 2015 | 2, 2015 | 25 Feb 2015 | Sch 2 (items 73, 100–110) and Sch 4 (items 9–23, 79): 25 Feb 2015 (s 2(1) items 5, 6)  Sch 2 (items 24–28): 1 July 2015 (s 2(1) item 4) | Sch 2 (item 73) and Sch 4 (item 79) |\n| as amended by |  |  |  |  |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 | 70, 2015 | 25 June 2015 | Sch 6 (item 64): 25 Feb 2015 (s 2(1) item 18) | — |\n| Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 | 21, 2015 | 19 Mar 2015 | Sch 2 (items 36, 44–46): 1 May 2015 (s 2(1) item 3)  Sch 6 (items 3–15, 73): 19 Mar 2015 (s 2(1) item 7)  Sch 6 (items 38–50, 74–79): never commenced (s 2(1) item 12)  Sch 7 (items 9–12): 20 Mar 2015 (s 2(1) item 15) | Sch 2 (items 44–46), Sch 6 (items 73–79) and Sch 7 (item 10) |\n| as amended by |  |  |  |  |\n| Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018 | 15, 2018 | 28 Mar 2018 | Sch 2: 29 Mar 2018 (s 2(1) item 6) | — |\n| Public Governance and Resources Legislation Amendment Act (No. 1) 2015 | 36, 2015 | 13 Apr 2015 | Sch 5 (items 38, 39, 74–77) and Sch 7: 14 Apr 2015 (s 2) | Sch 5 (items 74–77) and Sch 7 |\n| as amended by |  |  |  |  |\n| Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015 | 126, 2015 | 10 Sept 2015 | Sch 1 (item 486): 5 Mar 2016 (s 2(1) item 2) | — |\n| Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015 | 53, 2015 | 26 May 2015 | Sch 1 (items 1–8, 19): 1 July 2016 (s 2) | Sch 1 (item 19) |\n| Tax Laws Amendment (Small Business Measures No. 1) Act 2015 | 66, 2015 | 22 June 2015 | Sch 1 (items 4, 5, 32): 22 June 2015 (s 2(1) items 3, 5) | Sch 1 (item 32) |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 | 70, 2015 | 25 June 2015 | Sch 1 (items 47–64, 195–205): 1 July 2015 (s 2(1) items 3, 6)  Sch 2 (items 1–16, 18–23, 38), Sch 3 and Sch 7 (items 2, 3, 11): 25 June 2015 (s 2(1) items 7, 20) | Sch 1 (items 195–205), Sch 2 (item 38), Sch 3 (item 34) and Sch 7 (item 11) |\n| Tax and Superannuation Laws Amendment (Employee Share Schemes) Act 2015 | 105, 2015 | 30 June 2015 | Sch 1 (items 1, 44): 1 July 2015 (s 2) | Sch 1 (item 44) |\n| Business Services Wage Assessment Tool Payment Scheme (Consequential Amendments) Act 2015 | 112, 2015 | 30 June 2015 | Sch 1 (items 1, 2): 1 July 2015 (s 2(1) item 2) | — |\n| Passports Legislation Amendment (Integrity) Act 2015 | 122, 2015 | 10 Sept 2015 | Sch 1 (item 102): 8 Oct 2015 (s 2(1) item 2) | — |\n| Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015 | 126, 2015 | 10 Sept 2015 | Sch 1 (item 298): 5 Mar 2016 (s 2(1) item 2) | — |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 4) Act 2015 | 135, 2015 | 13 Oct 2015 | Sch 2: 13 Oct 2015 (s 2(1) item 2) | Sch 2 (item 2) |\n| Social Services Legislation Amendment (Low Income Supplement) Act 2015 | 143, 2015 | 12 Nov 2015 | Sch 1 (items 17, 22): 1 July 2017 (s 2(1) items 2, 5) | Sch 1 (item 22) |\n| Statute Law Revision Act (No. 2) 2015 | 145, 2015 | 12 Nov 2015 | Sch 4 (items 18–20): 10 Dec 2015 (s 2(1) item 7) | — |\n| Education Legislation Amendment (Overseas Debt Recovery) Act 2015 | 154, 2015 | 26 Nov 2015 | Sch 5 (item 1): 1 Jan 2016 (s 2(1) item 9) | — |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 5) Act 2015 | 162, 2015 | 30 Nov 2015 | Sch 2: 30 Nov 2015 (s 2(1) item 2) | Sch 2 (item 15) |\n| Defence Legislation Amendment (First Principles) Act 2015 | 164, 2015 | 2 Dec 2015 | Sch 2 (items 56, 80): 1 July 2016 (s 2(1) item 2) | Sch 2 (item 80) |\n| Labor 2013‑14 Budget Savings (Measures No. 2) Act 2015 | 169, 2015 | 11 Dec 2015 | Sch 1 (items 2–5, 111): 1 Jan 2016 (s 2(1) item 2) | Sch 1 (item 111) |\n| Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 | 170, 2015 | 11 Dec 2015 | Sch 2 (items 1–4, 7): 11 Dec 2015 (s 2(1) item 1) | Sch 2 (item 7) |\n| Statute Law Revision Act (No. 1) 2016 | 4, 2016 | 11 Feb 2016 | Sch 4 (items 1, 188, 397–399): 10 Mar 2016 (s 2(1) item 6)","sortOrder":1000143},{"sectionNumber":"full-source-retrieval-0145","sectionType":"document_chunk","heading":"Document excerpt 145","content":"| — |\n| Tax and Superannuation Laws Amendment (2015 Measures No. 6) Act 2016 | 10, 2016 | 25 Feb 2016 | Sch 2 (items 2, 30): 26 Feb 2016 (s 2(1) item 4) | Sch 2 (item 30) |\n| Omnibus Repeal Day (Autumn 2015) Act 2016 | 47, 2016 | 5 May 2016 | Sch 6 (items 8–15, 19–25): 6 May 2016 (s 2(1) item 8) | Sch 6 (items 19–25) |\n| Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 | 53, 2016 | 5 May 2016 | Sch 3 (item 1), Sch 5 (items 1, 3, 6–28, 75), Sch 6 (items 1–20) and Sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) | Sch 5 (item 75) and Sch 8 (item 1) |\n| as amended by |  |  |  |  |\n| Treasury Laws Amendment (2018 Measures No. 5) Act 2019 | 15, 2019 | 12 Mar 2019 | Sch 1 (items 34–46): 1 Apr 2019 (s 2(1) item 2) | Sch 1 (item 46) |\n| Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 | 54, 2016 | 5 May 2016 | Sch 1 (items 2–11, 19): 1 July 2016 (s 2(1) item 2) | Sch 1 (item 19) |\n| Budget Savings (Omnibus) Act 2016 | 55, 2016 | 16 Sept 2016 | Sch 15 (items 2, 3, 5): 1 Jan 2017 (s 2(1) item 17)  Sch 23 (items 37–39, 41–43): 1 Oct 2016 (s 2(1) item 25) | Sch 15 (item 5) and Sch 23 (items 41, 43) |\n| Statute Update Act 2016 | 61, 2016 | 23 Sept 2016 | Sch 1 (item 296) and Sch 3 (items 24, 25): 21 Oct 2016 (s 2(1) item 1) | — |\n| Higher Education Support Legislation Amendment (2016 Measures No. 1) Act 2016 | 74, 2016 | 23 Nov 2016 | Sch 2 (items 19–23): 24 Nov 2016 (s 2(1) item 6) | Sch 2 (items 20–23) |\n| Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 | 81, 2016 | 29 Nov 2016 | Sch 10 (items 66–71, 93): 1 Jan 2017 (s 2(1) item 6) | Sch 10 (item 93) |\n| Tax and Superannuation Laws Amendment (2016 Measures No. 2) Act 2017 | 15, 2017 | 28 Feb 2017 | Sch 4 (items 1–3, 7, 8): never commenced (s 2(1) items 5–7)  Sch 4 (items 20–25): 1 Apr 2017 (s 2(1) item 8) | Sch 4 (item 8) |\n| Treasury Laws Amendment (2016 Measures No. 1) Act 2017 | 25, 2017 | 4 Apr 2017 | Sch 4 (items 1, 2): 5 Apr 2017 (s 2(1) item 6) | — |\n| Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 | 27, 2017 | 4 Apr 2017 | Sch 1 (items 2–6, 8–13, 52): 1 July 2017 (s 2(1) items 2, 4)  Sch 1 (item 7): never commenced (s 2(1) item 3) | Sch 1 (item 52) |\n| Veterans’ Affairs Legislation Amendment (Budget Measures) Act 2017 | 59, 2017 | 22 June 2017 | Sch 1 (item 25): 1 July 2017 (s 2(1) item 4) | — |\n| Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Act 2017 | 132, 2017 | 13 Dec 2017 | Sch 1 (item 26): 1 July 2018 (s 2(1) item 2) | — |\n| Statute Update (Smaller Government) Act 2018 | 4, 2018 | 20 Feb 2018 | Sch 6 (items 4–8, 27): 21 Feb 2018 (s 2(1) item 1) | Sch 6 (item 27) |\n| Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018 | 15, 2018 | 28 Mar 2018 | Sch 1 (items 7–10, 65–67): 1 Apr 2018 (s 2(1) items 2, 4)  Sch 1 (items 29–41, 68–73): repealed before commencing (s 2(1) items 3, 5) | Sch 1 (items 65–73) |\n| as amended by |  |  |  |  |\n| Treasury Laws Amendment (2021 Measures No. 4) Act 2021 | 72, 2021 | 30 June 2021 | Sch 2 (items 13–16): 1 July 2021 (s 2(1) item 3) | — |\n| Veterans’ Affairs Legislation Amendment (Veteran‑centric Reforms No. 1) Act 2018 | 17, 2018 | 28 Mar 2018 | Sch 2 (items 45, 46): 1 May 2018 (s 2(1) item 3) | — |\n| Treasury Laws Amendment (2018 Measures No. 1) Act 2018 | 23, 2018 | 29 Mar 2018 | Sch 1 (items 10, 11, 19, 57–59): 1 Apr 2018 (s 2(1) items 3, 8)  Sch 1 (items 75–79): 30 Mar 2018 (s 2(1) item 9) | Sch 1 (items 19, 75–79) |\n| Social Services Legislation Amendment (Welfare Reform) Act 2018 | 26, 2018 | 11 Apr 2018 | Sch 1 (items 12, 13, 342–354), Sch 2 (items 1, 2, 82–93) and Sch 3 (items 3, 4, 98–111): 20 Mar 2020 (s 2(1) items 2, 4, 5)  Sch 5 (items 26–31, 139–148): 20 Sept 2020 (s 2(1) item 8)  Sch 6 (items 5, 63–72) and Sch 7 (items 1, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Sch 1 (items 342–354), Sch 2 (items 82–93), Sch 3 (items 98–111), Sch 5 (items 139–148), Sch 6 (items 63–72) and Sch 7 (items 68–77) |\n| Treasury Laws Amendment (Personal Income Tax Plan) Act 2018 | 47, 2018 | 21 June 2018 | Sch 1 (item 5): 1 July 2018 (s 2(1) item 2)  Sch 1 (item 10): repealed before commencing (s 2(1) item 3) | — |\n| as amended by |  |  |  |  |\n| Treasury Laws Amendment (A Tax Plan for the COVID‑19 Economic Recovery) Act 2020 | 92, 2020 | 14 Oct 2020 | Sch 1 (items 28, 30): 15 Oct 2020 (s 2(1) item 6) | — |\n| Corporations Amendment (Asia Region Funds Passport) Act 2018 | 61, 2018 | 29 June 2018 | Sch 2A (item 7): 18 Sept 2018 (s 2(1) item 2) | — |\n| Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Act 2018 | 84, 2018 | 24 Aug 2018 | Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1) | Sch 1 (item 15) and Sch 2 (items 9, 10) |\n| Migration and Other Legislation Amendment (Enhanced Integrity) Act 2018 | 90, 2018 | 31 Aug 2018 | Sch 1 (items 6, 10): 13 Dec 2018 (s 2(1) item 1) | Sch 1 (item 10) |\n| Education and Other Legislation Amendment (VET Student Loan Debt Separation) Act 2018 | 116, 2018 | 25 Sept 2018 | Sch 1 (item 26): 1 July 2019 (s 2(1) item 2B) | — |\n| Treasury Laws Amendment (Tax Integrity and Other Measures) Act 2018 | 124, 2018 | 3 Oct 2018 | Sch 1: 1 Jan 2019 (s 2(1) item 1) | Sch 1 (item 3) |\n| Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Act 2019 | 7, 2019 | 1 Mar 2019 | Sch 1 (items 14–32, 164): 1 Apr 2019 (s 2(1) item 1) | Sch 1 (items 22, 164) |\n| Treasury Laws Amendment (2018 Measures No. 4) Act 2019 | 8, 2019 | 1 Mar 2019 | Sch 6 (items 1, 2): 1 July 2018 (s 2(1) item 6)  Sch 7 (item 1) and Sch 8 (items 12, 27–34): 1 Apr 2019 (s 2(1) items 7, 11) | Sch 6 (item 2) and Sch 8 (item 31) |\n| Treasury Laws Amendment (2018 Measures No. 5) Act 2019 | 15, 2019 | 12 Mar 2019 | Sch 1 (items 1, 46): 1 Apr 2019 (s 2(1) item 2) | Sch 1 (item 46) |\n| Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 | 34, 2019 | 5 Apr 2019 | Sch 1 (items 15, 16), Sch 3 and Sch 4 (items 1, 2): 1 July 2019 (s 2(1) item 2) | Sch 1 (item 16) and Sch 3 (item 3) |\n| Treasury Laws Amendment (Mutual Reforms) Act 2019 | 37, 2019 | 5 Apr 2019 | Sch 2 (items 13–16): 6 Apr 2019 (s 2(1) item 1) | — |\n| Treatment Benefits (Special Access) (Consequential Amendments and Transitional Provisions) Act 2019 | 42, 2019 | 5 Apr 2019 | Sch 1 and Sch 2 (item 8): 6 Apr 2019 (s 2(1) item 2) | Sch 1 |\n| Treasury Laws Amendment (2019 Measures No. 1) Act 2019 | 49, 2019 | 5 Apr 2019 | Sch 4 (items 67–70): 1 July 2019 (s 2(1) item 12) | — |\n| Treasury Laws Amendment (Timor Sea Maritime Boundaries Treaty) Act 2019 | 59, 2019 | 7 Aug 2019 | Sch 2 (items 4–8): 30 Aug 2019 (s 2(1) item 2) | — |\n| Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 | 65, 2019 | 13 Sept 2019 | Sch 1 (items 1–3, 17): 1 Oct 2019 (s 2(1) item 2) | Sch 1 (item 17) |\n| Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Act 2019 | 95, 2019 | 28 Oct 2019 | Sch 1 and Sch 4 (items 1–4, 6): 1 Jan 2020 (s 2(1) item 2) | Sch 1 (item 5) and Sch 4 (item 6) |\n| Treasury Laws Amendment (2018 Measures No. 2) Act 2020 | 8, 2020 | 26 Feb 2020 | Sch 2 (items 18, 19): 1 Apr 2020 (s 2(1) item 3) | Sch 2 (item 19) |\n| Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020 | 38, 2020 | 9 Apr 2020 | Sch 2 (items 1, 2): 9 Apr 2020 (s 2(1) item 4) | Sch 2 (item 2) |\n| Treasury Laws Amendment (2019 Measures No. 3) Act 2020 | 64, 2020 | 22 June 2020 | Sch 1: 1 July 2020 (s 2(1) item 2)  Sch 3 (items 203–227, 325, 326): 1 Oct 2020 (s 2(1) item 6) | Sch 1 (item 3) and Sch 3 (items 325, 326) |\n| Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 | 69, 2020 | 22 June 2020 | Sch 2 (item 15): 4 Apr 2021 (s 2(1) item 6) | — |\n| Treasury Laws Amendment (A Tax Plan for the COVID‑19 Economic Recovery) Act 2020 | 92, 2020 | 14 Oct 2020 | Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4)  Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7) | Sch 1 (item 24), Sch 3 (item 40) and Sch 5 (item 56) |\n| Social Services and Other Legislation Amendment (Omnibus) Act 2020 | 107, 2020 | 26 Nov 2020 | Sch 3 (item 1): 27 Nov 2020 (s 2(1) item 3) | — |\n| Treasury Laws Amendment (2020 Measures No. 6) Act 2020 | 141, 2020 | 17 Dec 2020 | Sch 4 (item 126): 4 Apr 2021 (s 2(1) item 13) | — |\n| Treasury Laws Amendment (2021 Measures No. 2) Act 2021 | 110, 2021 | 13 Sept 2021 | Sch 2 (items 1–7, 13–15): 1 Oct 2021 (s 2(1) item 2) | Sch 2 (item 13) |\n| Treasury Laws Amendment (2021 Measures No. 5) Act 2021 | 127, 2021 | 7 Dec 2021 | Sch 3 (item 32): 8 Dec 2021 (s 2(1) item 4) | — |\n| Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 | 142, 2021 | 13 Dec 2021 | Sch 1 (items 10–14): 1 Jan 2022 (s 2(1) item 2) | Sch 1 (item 14) |\n| Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 | 8, 2022 | 22 Feb 2022 | Sch 8 (items 39, 40, 43): 4 Apr 2021 (s 2(1) item 12) | Sch 8 (item 43) |\n| Treasury Laws Amendment (2022 Measures No. 1) Act 2022 | 35, 2022 | 9 Aug 2022 | Sch 3 (item 1): 1 Oct 2022 (s 2(1) item 4) | — |\n| Treasury Laws Amendment (2022 Measures No. 3) Act 2022 | 75, 2022 | 5 Dec 2022 | Sch 4 (items 1, 38): 1 July 2022 (s 2(1) item 4) | Sch 4 (item 38) |\n| Treasury Laws Amendment (2022 Measures No. 2) Act 2022 | 84, 2022 | 12 Dec 2022 | Sch 3 (items 18–27, 33): 1 Jan 2023 (s 2(1) item 2) | Sch 3 (item 33) |\n| Trade Support Loans Amendment Act 2023 | 61, 2023 | 21 Aug 2023 | Sch 1 (items 130, 131, 156–165): 1 Jan 2024 (s 2(1) item 1) | Sch 1 (items 156–165) |\n| Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 | 69, 2023 | 14 Sept 2023 | Sch 1 (items 105–108): 1 Jan 2024 (s 2(1) item 3) | — |\n| Treasury Laws Amendment (2023 Law Improvement Package No. 1) Act 2023 | 76, 2023 | 20 Sept 2023 | Sch 2 (item 648): 20 Oct 2023 (s 2(1) item 2) | — |\n| Treasury Laws Amendment (2023 Measures No. 1) Act 2023 | 101, 2023 | 27 Nov 2023 | Sch 4 (items 1–5, 9–12): 1 Jan 2024 (s 2(1) item 6) | Sch 4 (item 9) |\n| Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2024 | 23, 2024 | 8 Apr 2024 | Sch 2 (items 1, 2, 144, 146): 1 July 2024 (s 2(1) item 3) | Sch 2 (items 144, 146) |\n| Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024 | 38, 2024 | 31 May 2024 | Sch 1 (items 29, 30, 63): 14 Oct 2024 (s 2(1) item 2) | — |\n| Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 | 67, 2024 | 9 July 2024 | Sch 5 (items 41–43, 48): 1 Oct 2024 (s 2(1) item 10) | Sch 5 (item 48) |\n| Treasury Laws Amendment (Multinational—Global and Domestic Minimum Tax) (Consequential) Act 2024 | 134, 2024 | 10 Dec 2024 | Sch 1 (items 3–5, 65): 11 Dec 2024 (s 2(1) item 1) | Sch 1 (item 65) |\n| Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024 | 135, 2024 | 10 Dec 2024 | Sch 3 (items 1–3): 1 Jan 2024 (s 2(1) item 4) | — |\n| Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 | 138, 2024 | 10 Dec 2024 | Sch 1 (item 1): 1 Jan 2024 (s 2(1) item 2) | — |\n| Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 | 9, 2025 | 14 Feb 2025 | Sch 1 (items 8–13) and Sch 2 (items 2–11): 1 Apr 2025 (s 2(1) items  3, 5)  Sch 1 (items 22–31): 1 Jan 2026 (s 2(1) item 4) | Sch 1 (item 13) |\n| Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 | 17, 2025 | 20 Feb 2025 | Sch 8 (items 33–37): 1 July 2026 (s 2(1) item 6) | Sch 8 (item 37) |\n| Treasury Laws Amendment (Payday Superannuation) Act 2025 | 57, 2025 | 6 Nov 2025 | sch 1 (item 78): 1 July 2026 (s 2(1) item 1) | sch 1 (items 181, 183) |","sortOrder":1000144},{"sectionNumber":"full-source-retrieval-0146","sectionType":"document_chunk","heading":"Document excerpt 146","content":"Endnote 4—Amendment history","sortOrder":1000145},{"sectionNumber":"full-source-retrieval-0147","sectionType":"document_chunk","heading":"Document excerpt 147","content":"| Provision affected | How affected |\n| --- | --- |\n| Part I |  |\n| s. 1..................... | rs. No. 48, 1950; No. 103, 1965 |\n| s 2..................... | am No 4, 1945; No 51, 1973; No 216, 1973 (as am by No 20, 1974); No 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 3..................... | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 4..................... | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s 6..................... | am No 88, 1936; No 30, 1939; No 50, 1942; No 3, 1944; No 6, 1946; No 44, 1948; No 48, 1950; No 1, 1953; No 65, 1957; No 55, 1958; No 85, 1959; No 18, 1960; No 108, 1960; No 17, 1961; No 69, 1963; No 110, 1964; No 103, 1965; No 85, 1967; No 4, 1968; No 60, 1968; No 87, 1968; No 93, 1969; No 54, 1971; No 51, 1973; No 164, 1973; No 216, 1973 (as am by No 20, 1974); No 126, 1974; No 80, 1975; No 117, 1975; No 50, 1976; No 143, 1976; No 205, 1976; No 87, 1978; No 172, 1978; No 27, 1979; No 24, 1980; No 108, 1981; No 154, 1981; No 103, 1983; No 47, 1984; No 123, 1984; No 168, 1985; No 41, 1986; No 48, 1986; No 52, 1986; No 154, 1986; No. 138, 1987; No 73, 1989; No 97, 1989; No 105, 1989; No 107, 1989; No 20, 1990; No 35, 1990; No 135, 1990; No 4, 1991; No 5, 1991; No 100, 1991; No 216, 1991; No 80, 1992; No 98, 1992; No 224, 1992; No 17, 1993; No 18, 1993; No 57, 1993; No 82, 1993; No 138, 1994; No 181, 1994; No 5, 1995; No 169, 1995; No 39, 1997; No 62, 1997; No 95, 1997; No 121, 1997; No 122, 1997; No 147, 1997; No 174, 1997; No 45, 1998; No 46, 1998; No 48, 1998; No 63, 1998; No 85, 1998; No 11, 1999; No 17, 1999; No 44, 1999; No 54, 1999; No 117, 1999; No 176, 1999; 178, 1999; No 179, 1999; No 25, 2000; No 89, 2000; No 91, 2000; No 92, 2000; No 77, 2001; No 163, 2001; No 15, 2002; No 90, 2002; No 97, 2002; No 117, 2002; No 136, 2002; No 10, 2003; No 16, 2003; No 66, 2003; No 52, 2004; No 83, 2004; No 95, 2004; No 101, 2004; No 23, 2005; No 41, 2005; No 75, 2005; No 161, 2005; No 58, 2006; No 80, 2006; No 101, 2006; No 168, 2006; No 9, 2007; No 15, 2007; No 78, 2007; No 79, 2007; No 80, 2007; No 143, 2007; No 32, 2008; No 45, 2008; No 92, 2008; No 97, 2008; No 144, 2008; No 15, 2009; No 27, 2009; No 88, 2009; No 114, 2009; No 133, 2009; No 56, 2010; No 75, 2010; No 79, 2010; No 90, 2010; No 105, 2010; No 114, 2010; No 145, 2010; No 32, 2011; No 41, 2011; No 43, 2011; No 147, 2011; No 159, 2011; No 12, 2012; No 169, 2012; No 84, 2013; No 88, 2013; No 101, 2013; No 11, 2014; No 31, 2014; No 96, 2014; No 110, 2014; No 2, 2015; No 21, 2015; No 70, 2015; No 53, 2016; No 55, 2016; No 15, 2017; No 27, 2017 |\n|  | ed C141 |\n|  | am No 132, 2017; No 4, 2018; No 15, 2018 |\n|  | ed C160 |\n|  | am No 34, 2019; No 59, 2019; No 64, 2020; No 92, 2020; No 101, 2023; No 38, 2024; No 17, 2025 |\n| s 6AA................... | ad No 87, 1968 |\n|  | am No 51, 1973; No 216, 1973 (as am by No 20, 1974); No 126, 1974; No 80, 1975; No 108, 1981; No 11, 1988; No 10, 2003; No 17, 2006; No 101, 2006; No 117, 2008; No 41, 2011 |\n|  | rep No 2, 2015 |\n| s. 6A.................... | ad. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 41, 2011 |\n|  | rep No 49, 2019 |\n| s 6AB................... | ad No51, 1986 |\n|  | am No 78, 1988; No 5, 1991; No 48, 1991; No 190, 1992; No 181, 1994; No 22, 1995; No 170, 1995; No 163, 2001; No 66, 2003; No 96, 2004; No 15, 2007; No 143, 2007; No 114, 2010 |\n| s. 6AC.................. | ad. No. 51, 1986 |\n|  | am. No. 5, 1991; No. 190, 1992; No. 163, 2001; No. 96, 2004 |\n|  | rep. No. 143, 2007 |\n| s. 6AD.................. | ad. No. 179, 1999 |\n|  | am. No. 169, 1999; No. 95, 2004 |\n|  | rep. No. 161, 2005 |\n| s. 6B.................... | ad. No. 85, 1967 |\n|  | am No 51, 1973; No 108, 1981; No 51, 1986; No 5, 1991; No 163, 2001; No 143, 2007 |\n| s 6BA................... | ad No 57, 1978 |\n|  | am No 146, 1979; No 108, 1981; No 47, 1984; No 52, 1986; No 120, 1995; No 121, 1997; No 63, 1998; No 58, 2000; No 163, 2001; No 101, 2003; No 101, 2006; No 133, 2009; No 101, 2023 |\n| s. 6C.................... | ad. No. 4, 1968 |\n|  | am. No. 51, 1973; No. 26, 1974; Nos. 50 and 143, 1976; No. 126, 1977; No. 12, 1979; No. 57, 1980; No. 108, 1981; No. 224, 1992; No. 39, 1997; No. 101, 2006 |\n| s. 6CA.................. | ad. No. 154, 1986 |\n|  | am. No. 22, 1995; No. 39, 1997; No. 101, 2006 |\n| s. 6D.................... | ad. No. 117, 1999 |\n|  | rep. No. 80, 2006 |\n|  | ad. No. 143, 2007 |\n| s. 6E.................... | ad. No. 181, 1994 |\n|  | am. No. 169, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 6F.................... | ad. No. 35, 1990 |\n|  | am. No. 101, 2006 |\n| s. 6G.................... | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 6H.................... | ad. No. 57, 1993 |\n|  | am. No. 181, 1994; No. 101, 2004 |\n|  | ed C162 |\n| s 7A.................... | ad No 164, 1973 |\n|  | rep No 2, 2015 |\n| s. 7B.................... | ad. No. 146, 2001 |\n| Part II |  |\n| s. 8..................... | rs. No. 1, 1953 |\n|  | am. No. 145, 2010 |\n| s. 14.................... | rs. No. 39, 1983 |\n|  | am. No. 123, 1984; No. 41, 2011 |\n| s. 16.................... | am. No. 46, 1938; No. 58, 1941; No. 10, 1943; No. 28, 1944; No. 44, 1948; No. 44, 1951; No. 90, 1952; No. 1, 1953; No. 18, 1960; No. 68, 1964; No. 143, 1965; No. 87, 1968; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 50, 1976; Nos. 36 and 87, 1978; No. 108, 1981; Nos. 38, 39, 76, 80 and 106, 1982; Nos. 42 and 47, 1984; No. 123, 1984 (as am. by No. 65, 1985); Nos. 124, 165 and 174, 1984; Nos. 49, 104, 123 and 168, 1985; Nos. 46, 48 and 49, 1986; Nos. 108 and 138, 1987; Nos. 59, 75, 78 and 97, 1988; Nos. 73 and 107, 1989; Nos. 98 and 191, 1992; Nos. 18 and 82, 1993; Nos. 82, 163 and 184, 1994; Nos. 29, 56, 191 and 196, 1997; Nos. 45, 48 and 128, 1998; Nos. 83 and 179, 1999; No. 91, 2000; Nos. 75, 144 and 146, 2001; No. 122, 2003; Nos. 52 and 105, 2004; Nos. 111 and 160, 2005; No. 101, 2006; Nos. 32, 143 and 164, 2007; Nos. 92 and 97, 2008; Nos. 88 and 114, 2009; Nos. 56 and 105, 2010 |\n|  | rep. No. 145, 2010 |\n| s. 16A................... | ad. No. 120, 1987 |\n|  | am. No. 97, 1988 |\n|  | rep. No. 145, 2010 |\n| Part III |  |\n| Division I |  |\n| s. 17.................... | am. No. 22, 1942; No. 10, 1943; Nos. 4 and 37, 1945; No. 11, 1947 |\n|  | rs. No. 48, 1950; No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 18.................... | am. No. 108, 1981; No. 39, 1997; No. 136, 2002; No. 101, 2006 |\n| s. 18A................... | ad. No. 136, 2002 |\n|  | am. No. 78, 2007 |\n| s. 19.................... | am. No. 52, 1986; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 20.................... | am. No. 51, 1986 |\n|  | rep. No. 133, 2003 |\n| s. 21.................... | am. No. 95, 1988 |\n| s 21A................... | ad No 95, 1988 |\n|  | am No 30, 1995; No 39, 1997; No 121, 1997; No 133, 2009; No 75, 2010; No 84, 2022 |\n| s. 22.................... | rep. No. 101, 2006 |\n| s. 22A................... | ad. No. 121, 1997 |\n|  | am. No. 54, 1999; No. 101, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 23.................... | am. No. 88, 1936; No. 46, 1938; No. 17, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; No. 3, 1944; No. 4, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; No. 43, 1954; Nos. 30 and 101, 1956; Nos. 70 and 85, 1959; No. 18, 1960; No. 98, 1962; No. 34, 1963; Nos. 68 and 110, 1964; Nos. 33 and 103, 1965; Nos. 19 and 85, 1967; No. 60, 1968; No. 65, 1972; Nos. 51, 52, 164 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 26, 1974; No. 80, 1975; Nos. 50 and 205, 1976; Nos. 57 and 127, 1977; Nos. 36, 57 and 123, 1978; Nos. 61, 108 and 154, 1981; Nos. 39 and 76, 1982; Nos. 54 and 103, 1983; Nos. 47 and 123, 1984; Nos. 123 and 168, 1985; Nos. 49, 51, 52, 112 and 154, 1986; Nos. 61, 108 and 138, 1987; Nos. 78 and 153, 1988; Nos. 97 and 107, 1989; Nos. 57 and 135, 1990; No. 100, 1991; No. 35, 1992; No. 118, 1993; No. 56, 1994; No. 169, 1995; No. 78, 1996; Nos. 39, 121, 122, 134, 147 and 174, 1997; No. 23, 1998; No. 118, 1999; No. 114, 2000; No. 163, 2001; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| ss. 23AAAA, 23AAAB....... | ad. No. 174, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 23AAA................ | ad. No. 80, 1975 |\n|  | rep. No. 101, 2006 |\n| s 23AA.................. | ad No 69, 1963 |\n|  | am No 38, 1967; No 93, 1971; No 51, 1973; No 216, 1973 (as am by No 20, 1974); No 117, 1975; No 108, 1981; No 82, 1994; No 41, 2011; No 133, 2014; No 2, 2015 |\n| s. 23AB.................. | ad. No. 68, 1964 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 117, 1975; No. 56, 1976; No. 108, 1981; No. 29, 1982; No. 124, 1984; No. 173, 1985 (as am. by No. 49, 1986); Nos. 75 and 78, 1988; No. 208, 1991; Nos. 70 and 224, 1992; Nos. 18 and 27, 1993; No. 138, 1994; Nos. 82 and 179, 1999; No. 45, 2000; No. 101, 2004; No. 101, 2006; No. 75, 2007; No. 14, 2009; No. 105, 2010; Nos. 41 and 62, 2011; No. 71, 2012; No 70, 2015; No 64, 2020 |\n| s 23AC.................. | ad No 103, 1965 |\n|  | am No 51, 1973; No 108, 1981; No 167, 1989; No 135, 1990; No 216, 1991; No 80, 1992; No 18, 1993; No 58, 2006; No 41, 2011 |\n|  | rep No 2, 2015 |\n| s. 23AD................. | ad. No. 18, 1993 |\n|  | am. No. 58, 2006 |\n|  | ed C166 |\n| s. 23ADA................ | ad. No. 18, 1993 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 23AE.................. | ad. No. 27, 1979 |\n|  | am. No. 121, 1997; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 23AF.................. | ad. No. 133, 1980 |\n|  | am. No. 108, 1981; No. 123, 1984; No. 51, 1986; Nos. 100 and 216, 1991; No. 181, 1994; No. 39, 1996; No. 147, 1997; Nos. 69 and 83, 1999; No. 64, 2005; No. 15, 2007; Nos. 88 and 133, 2009; No. 41, 2011 |\n| s 23AG.................. | ad. No. 51, 1986 |\n|  | am No 78, 1988; No 100, 1991; No 216, 1991; No 181, 1994; No 147, 1997; No 150, 1997; No 69, 1999; No 83, 1999; No 10, 2003; No 64, 2005; No 162, 2005; No 15, 2007; No 14, 2009; No 62, 2009; No 133, 2009; No 75, 2010; No 169, 2012; No 124, 2013; No 135, 2015; No 59, 2019 |\n| s 23AH.................. | ad No 5, 1991 |\n|  | am No 48, 1991; No 80, 1992; No 121, 1997; No 155, 1997; No 46, 1998; No 77, 2001; No 66, 2003 |\n|  | rs No 96, 2004 |\n|  | am No 41, 2005; No 63, 2005; No 168, 2006; No 84, 2018; No 49, 2019 |\n| s. 23AI.................. | ad. No. 5, 1991 |\n|  | am. No. 216, 1991; No. 66, 2003; No. 143, 2007 |\n| s. 23AJ.................. | ad. No. 5, 1991 |\n|  | am. No. 66, 2003 |\n|  | rs. No. 96, 2004 |\n|  | rep No 110, 2014 |\n| s. 23AK................. | ad. No. 190, 1992 |\n|  | am. No. 181, 1994; No. 66, 2003; No. 58, 2006; No. 143, 2007 |\n|  | rs. No. 114, 2010 |\n| s. 23AL.................. | ad. No. 101, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 23B................... | ad. No. 114, 2010 |\n| s. 23C................... | ad. No. 44, 1951 |\n|  | am. No. 12, 1959; No. 18, 1960; No. 18, 1969; Nos. 51 and 164, 1973; No. 80, 1975; No. 108, 1981; No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 23D................... | ad. No. 90, 1952 |\n|  | rs. No. 62, 1955 |\n|  | am. No. 25, 1956; No. 18, 1960; No. 27, 1961; Nos. 51 and 164, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 23E................... | ad. No. 85, 1959 |\n|  | am. No. 108, 1981; No. 107, 1989; No. 224, 1992; No. 66, 2003; No. 97, 2008 |\n|  | rep No 47, 2016 |\n| s. 23G................... | ad. No. 126, 1974 |\n|  | am. No. 108, 1981; No. 57, 1993; No. 44, 1999 |\n| s. 23GA................. | ad. No. 58, 2000 |\n|  | rep. No. 143, 2007 |\n| s. 23H................... | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 14, 1984; No. 168, 1985; No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 23J................... | ad. No. 76, 1982 |\n|  | am. No. 124, 1984; No. 138, 1994; No. 121, 1997; No. 66, 2003 |\n|  | rep No 47, 2016 |\n| s. 23K................... | ad. No. 124, 1984 |\n| s. 23L................... | ad. No. 41, 1986 |\n|  | am. No. 95, 1988; No. 66, 2003; No. 101, 2006; No. 97, 2008 |\n| Division 1AA heading........ | am. No. 184, 1994 |\n|  | rs. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Division 1AA.............. | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| Subdivision AA............ | ad. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24.................... | ad. No. 121, 1997 |\n|  | am. No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 24A................... | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 56, 1994; No. 120, 1995; No. 1, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 24AA................. | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24AAA................ | ad. No. 100, 1991 |\n|  | am. Nos. 125 and 184, 1994; No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24AB.................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; Nos. 35, 69, 81, 191 and 227, 1992; Nos. 56, 138 and 174, 1994; Nos. 106, 120 and 169, 1995; Nos. 1, 63 and 84, 1996; No. 202, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24ABA................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; Nos. 69 and 191, 1992; Nos. 56, 138 and 174, 1994; Nos. 120, 143 and 169, 1995; Nos. 1 and 84, 1996; No. 114, 1997 (as am. by No. 57, 2002) |\n|  | rep. No. 101, 2006 |\n| s. 24ABB................ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABC................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 69, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABD................ | ad. No. 100, 1991 |\n|  | rs. No. 216, 1991 |\n|  | am. Nos. 69 and 191, 1992 |\n|  | rs. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 24ABDB, 24ABDC........ | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABE................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 69, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABF................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 69, 1992; No. 56, 1994; No. 84, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 24ABG................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 69, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABH................ | ad. No. 100, 1991 |\n|  | am. No. 69, 1992; No. 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABI................. | ad. No. 100, 1991 |\n|  | am. No. 69, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABJA................ | ad. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ABJ................. | ad. No. 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABM................ | ad. No. 100, 1991 |\n|  | rs. No. 216, 1991 |\n|  | am. No. 69, 1992; Nos. 56 and 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABMA............... | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABMB............... | ad. No. 56, 1994 |\n|  | am. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ABMC............... | ad. No. 1, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 24ABN................ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABNA............... | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABO................ | ad. No. 100, 1991 |\n|  | rs. No. 216, 1991 |\n|  | am. No. 69, 1992; Nos. 56 and 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABP................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 69, 1992; Nos. 56 and 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABPA............... | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABQ................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABR................ | ad. No. 100, 1991 |\n|  | rs. No. 216, 1991 |\n|  | am. No. 191, 1992 |\n|  | rs. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ABS................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 24ABT–24ABV.......... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABW................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rs. No. 69, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABX................ | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABXAA.............. | ad. No. 106, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ABXAAA............. | ad. No. 202, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24ABXAB.............. | ad. No. 63, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 24ABXA............... | ad. No. 138, 1994 |\n|  | am. No. 174, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24ABXB............... | ad. No. 174, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 24ABY, 24ABZ.......... | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABZA............... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ABZAA.............. | ad. No. 81, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 24ABZB............... | ad. No. 100, 1991 |\n|  | am. No. 191, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 24ABZC, 24ABZD........ | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdivision BA............ | ad. No. 184, 1994 |\n|  | rs. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24ABZE................ | ad. No. 184, 1994 |\n|  | am. No. 169, 1995 |\n|  | rs. No. 122, 1997 |\n|  | am. No. 45, 1998; No. 150, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 24ABZF................ | ad. No. 184, 1994 |\n|  | rs. No. 122, 1997 |\n|  | am. No. 45, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 24AC.................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 70, 1992; No. 146, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ACA................ | ad. No. 100, 1991 |\n|  | am. No. 146, 1995; No. 114, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 24ACB................ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ACC................ | ad. No. 100, 1991 |\n|  | rs. No. 146, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ACD................ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 24ACE–24ACH.......... | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rs. No. 146, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 24ACHA............... | ad. No. 146, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 24ACI–24ACV.......... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24ACW................ | ad. No. 100, 1991 |\n|  | am. No. 146, 1995 |\n|","sortOrder":1000146},{"sectionNumber":"full-source-retrieval-0148","sectionType":"document_chunk","heading":"Document excerpt 148","content":"| rep. No. 101, 2006 |\n| s. 24ACWA............... | ad. No. 70, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 24AE–24AI............. | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| Subdivision IA............. | ad. No. 125, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 24AIA................. | ad. No. 125, 1994 |\n|  | am. No. 1, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 24AIB................. | ad. No. 125, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdivision IB............. | ad. No. 102, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 24AIC................. | ad. No. 102, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 24AJ.................. | ad. No. 100, 1991 |\n|  | am. No. 81, 2005 |\n|  | rep. No. 101, 2006 |\n| Division 1AB |  |\n| Division 1AB.............. | ad. No. 169, 1995 |\n| Subdivision A |  |\n| Subdivision A............. | ad. No. 169, 1995 |\n| s. 24AK................. | ad. No. 169, 1995 |\n| s. 24AL.................. | ad. No. 169, 1995 |\n|  | am. No. 41, 2005 |\n| s. 24AM................. | ad. No. 169, 1995 |\n| s. 24AN................. | ad. No. 169, 1995 |\n|  | am. No. 101, 2004 |\n| ss. 24AO–24AS............ | ad. No. 169, 1995 |\n| s. 24AT.................. | ad. No. 169, 1995 |\n|  | am. No. 169, 2001; No. 101, 2006; No 124, 2013 |\n| s. 24AU................. | ad. No. 169, 1995 |\n| s 24AV.................. | ad No 169, 1995 |\n|  | am No 58, 2006; No 126, 2015 |\n| Subdivision B |  |\n| Subdivision B.............. | ad. No. 169, 1995 |\n| s. 24AW................. | ad. No. 169, 1995 |\n|  | rs. No. 39, 1997 |\n|  | am. No. 46, 1998; No. 94, 1999 |\n| s. 24AX................. | ad. No. 169, 1995 |\n|  | am. No. 39, 1997; No. 46, 1998 |\n| s. 24AY................. | ad. No. 169, 1995 |\n|  | am. No. 39, 1997 |\n| s. 24AYA................ | ad. No. 169, 1995 |\n|  | am. No. 15, 2007 |\n| s. 24AZ.................. | ad. No. 169, 1995 |\n|  | am. No. 39, 1997 |\n| Division 1A............... | ad. No. 164, 1973 |\n|  | rep No 53, 2015 |\n| s. 24B................... | ad. No. 164, 1973 |\n|  | am. No. 52, 1986; No. 11, 1988; No. 101, 2006; No. 41, 2011 |\n|  | rep No 53, 2015 |\n| s. 24BA.................. | ad. No. 49, 1985 |\n|  | am. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 24BB.................. | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s 24C................... | ad No 164, 1973 |\n|  | am No 108, 1981; No 41, 2011; No 2, 2015 |\n|  | rep No 53, 2015 |\n| s 24D................... | ad No 164, 1973 |\n|  | am No 108, 1981; No 41, 2011; No 144, 2008 |\n|  | rep No 53, 2015 |\n| s. 24E................... | ad. No. 164, 1973 |\n|  | am. No. 108, 1981; No. 41, 2011 |\n|  | rep No 53, 2015 |\n| s 24F................... | ad No 164, 1973 |\n|  | am No 12, 1979; No 108, 1981; No 144, 2008; No 2, 2015 |\n|  | rep No 53, 2015 |\n| s. 24G................... | ad. No. 164, 1973 |\n|  | am. No. 108, 1981; No. 41, 2011; No 144, 2008 |\n|  | rep No 53, 2015 |\n| s. 24H................... | ad. No. 164, 1973 |\n|  | rep No 53, 2015 |\n| s. 24J................... | ad. No. 164, 1973 |\n|  | am. No. 108, 1981 |\n|  | rep No 53, 2015 |\n| s. 24K................... | ad. No. 164, 1973 |\n|  | rep No 53, 2015 |\n| s 24L................... | ad No 164, 1973 |\n|  | am No 26, 1974; No 50, 1976; No 108, 1981; No 101, 2006; No 2, 2015 |\n|  | rep No 53, 2015 |\n| s. 24M.................. | ad. No. 164, 1973 |\n|  | am No 144, 2008 |\n|  | rep No 53, 2015 |\n| s. 24N................... | ad. No. 164, 1973 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 24P................... | ad. No. 100, 1991 |\n|  | am. Nos. 41 and 46, 1998; No. 101, 2006 |\n|  | rep No 53, 2015 |\n| Division 2 |  |\n| Subdivision A |  |\n| s. 25.................... | am. No. 47, 1984; No. 39, 1997; No. 73, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 25A................... | ad. No. 47, 1984 |\n|  | am. No. 52, 1986; No. 121, 1997; No. 101, 2006; No. 41, 2011 |\n| s. 25B................... | ad. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 26.................... | am. No. 58, 1941; No. 10, 1943; No. 6, 1946; No. 63, 1947; No. 43, 1954; No. 69, 1963; No. 110, 1964; Nos. 103 and 143, 1965; No. 4, 1968; No. 51, 1973; No. 26, 1974; No. 143, 1976; No. 123, 1978; No. 12, 1979; Nos. 108 and 175, 1981; No. 14, 1983; No. 47, 1984; No. 41, 1986; No. 17, 1993; No. 181, 1994; No. 56, 1997; No. 70, 1999; No. 163, 2001; No. 83, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 26AAAC............... | ad. No. 173, 1985 |\n|  | am. No. 39, 1997 (as rep. by No. 121, 1997); No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 26AAB................ | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 26AAC................ | ad. No. 126, 1974 |\n|  | am. No. 108, 1981; No. 52, 1986; No. 153, 1988; No. 101, 1992; No. 169, 1995; No. 122, 1997; No. 46, 1998; No. 55, 2001; No. 147, 2005; No. 101, 2006 |\n|  | rep. No. 133, 2009 |\n| s. 26AAD................ | ad. No. 147, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 26AB.................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 121, 1997; No. 46, 1998; No. 101, 2006; No. 41, 2011 |\n| s. 26AC.................. | ad. No. 123, 1978 |\n|  | rep. No. 15, 2007 |\n| s. 26AD................. | ad. No. 123, 1978 |\n|  | am. No. 149, 1979; No. 49, 1985; No. 100, 1991; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 26AF.................. | ad. No. 124, 1980 |\n|  | am. No. 108, 1981; No. 47, 1984; No. 49, 1985; No. 138, 1987; No. 15, 2007 |\n| s. 26AFA................. | ad. No. 115, 1984 |\n|  | am. No. 49, 1985; No. 138, 1987; No. 15, 2007 |\n| s. 26AFB................. | ad. No. 138, 1987 |\n|  | am. No. 97, 1989; No. 82, 1993; No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 26AG................. | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 49, 1985; No. 51, 1986; No. 176, 1999; No. 101, 2006; No. 164, 2007; No. 41, 2011 |\n| s. 26AH................. | ad. No. 14, 1984 |\n|  | am. No. 55, 1993; No. 62, 1997; No. 89, 2000; No. 12, 2003; No. 83, 2004; No. 15, 2007; No. 45, 2008; No. 41, 2011; No 70, 2015 |\n| s 26AJ.................. | ad No 216, 1991 |\n|  | am No 30, 1995; No 39, 1997; No 101, 2006; No 75, 2010; No 84, 2022 |\n| s. 26A................... | ad. No. 11, 1947 |\n|  | rs. No. 85, 1967 |\n|  | am. No. 51, 1973; No. 163, 2001 |\n|  | rep. No. 143, 2007 |\n| s. 26B................... | ad. No. 28, 1952 |\n|  | am. No. 101, 1956; No. 18, 1960; Nos. 51 and 164, 1973; No. 80, 1975; No. 108, 1981; No. 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 26BA.................. | ad. No. 103, 1965 |\n|  | rs. No. 50, 1966 |\n|  | am. No. 76, 1967; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 26BB.................. | ad. No. 107, 1989 |\n|  | am. No. 133, 2003; No 47, 2016 |\n|  | ed C142 |\n| s 26BC.................. | ad No 57, 1990 |\n|  | am No 100, 1991; No 82, 1994; No 46, 1998; No 101, 2004; No 8, 2019 |\n| s. 26C................... | ad. No. 85, 1959 |\n|  | am. No. 34, 1963; No. 103, 1965; No. 70, 1968; No. 108, 1981; No. 41, 2011 |\n|  | rep No 47, 2016 |\n| s. 26D................... | ad. No. 190, 1992 |\n|  | rep. No. 143, 2007 |\n| s. 26E................... | ad. No. 62, 1997 |\n| s 27.................... | am. No. 51, 1973; No. 108, 1981; No. 41, 2011 |\n|  | rep No 49, 2019 |\n| Subdivision AA |  |\n| Subdivision AA heading....... | rs. No. 15, 2007 |\n| Subdivision AA............ | ad. No. 47, 1984 |\n| s. 27A................... | ad. No. 47, 1984 |\n|  | am. Nos. 49, 123, 129 and 173, 1985; No. 138, 1987; Nos. 11 and 87, 1988; Nos. 97, 105, 129 and 167, 1989; Nos. 61 and 135, 1990; No. 100, 1991; No. 208, 1992; Nos. 7 and 82, 1993; No. 181, 1994; Nos. 53 and 169, 1995; Nos. 60 and 78, 1996; Nos. 62, 147 and 191, 1997; No. 41, 1998; Nos. 44, 94, 128, 131 and 165, 1999; No. 163, 2001; Nos. 15, 51 and 105, 2002; No. 66, 2003; Nos. 83, 101 and 102, 2004; Nos. 78 and 148, 2005; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 27AAAA............... | ad. No. 169, 1995 |\n|  | am. No. 66, 2003 |\n|  | rep. No. 15, 2007 |\n| s. 27AAA................ | ad. No. 7, 1993 |\n|  | am. No. 53, 1995; No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 27AAB................ | ad. No. 102, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 27AA................. | ad. No. 105, 1989 |\n|  | am. Nos. 61 and 135, 1990; No. 208, 1992 (as am. by No. 7, 1993); No. 53, 1995; No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 27AB.................. | ad. No. 105, 1989 |\n|  | am. No. 61, 1990; No. 208, 1992; No. 53, 1995; No. 147, 1997; No. 66, 2003; No. 148, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 27AC.................. | ad. No. 208, 1992 |\n|  | am. No. 208, 1992; No. 53, 1995; No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| ss. 27ACA, 27ACB.......... | ad. No. 114, 2001 |\n|  | am. No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 27B................... | ad. No. 47, 1984 |\n|  | am. No. 173, 1985 |\n|  | rs. No. 105, 1989 |\n|  | am. No. 61, 1990; No. 208, 1992; No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 27C................... | ad. No. 47, 1984 |\n|  | rs. No. 105, 1989 |\n|  | am. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 27CAA................ | ad. No. 181, 1994 |\n|  | rs. No. 83, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 27CAB................ | ad. No. 83, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 27CA.................. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 27CB.................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997; No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 27CC.................. | ad. No. 82, 1993 |\n|  | am. No. 128, 1999 |\n|  | rep. No. 15, 2007 |\n| ss. 27CD, 27CE............ | ad. No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 27D................... | ad. No. 47, 1984 |\n|  | am. No. 105, 1989; No. 208, 1992; Nos. 62 and 147, 1997; No. 66, 2003; No. 148, 2005 |\n|  | rep. No. 15, 2007 |\n| ss. 27E, 27F............... | ad. No. 47, 1984 |\n|  | am. No. 129, 1985; No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 27G................... | ad. No. 47, 1984 |\n|  | am. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 27GA................. | ad. No. 15, 2002 |\n|  | rep. No. 15, 2007 |\n| s. 27H................... | ad. No. 47, 1984 |\n|  | am. No. 129, 1985; No. 138, 1987; No. 105, 1989; No. 35, 1990; No. 208, 1992; No. 181, 1994; No. 169, 1995; No. 139, 2002; No. 15, 2007 |\n| s. 27HA................. | ad. No. 148, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 27J................... | ad. No. 47, 1984 |\n|  | am. No. 61, 1990 |\n|  | rep. No. 15, 2007 |\n| Subdivision B.............. | rep. No. 101, 2006 |\n| ss. 28, 29................. | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 31.................... | rs. No. 69, 1963 |\n|  | am. No. 108, 1981; No. 190, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 31C................... | ad. No. 57, 1977 |\n|  | am. No. 108, 1981; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 32.................... | rs. No. 168, 1985 |\n|  | am. No. 112, 1986 |\n|  | rs. No. 224, 1992 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 32A................... | ad. No. 224, 1992 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 33.................... | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 34.................... | am. No. 44, 1951; No. 112, 1986; No. 95, 1988; No. 101, 1992; No. 120, 1995; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 36.................... | am. No. 88, 1936; No. 58, 1941; No. 4, 1945; No. 90, 1952; No. 62, 1955; No. 18, 1960; No. 50, 1966; No. 76, 1967; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 57, 1978; No. 146, 1979; No. 108, 1981; No. 101, 1992; No. 171, 1995; No. 121, 1997; No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 36AAA................ | ad. No. 76, 1967 |\n|  | am. Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 124, 1980; No. 108, 1981; No. 112, 1986; No. 57, 1990; No. 4, 1991; No. 101, 1992; No. 121, 1997; No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 36AA................. | ad. No. 94, 1961 |\n|  | am. Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 108, 1981; No. 57, 1990; No. 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 36A................... | ad. No. 90, 1952 |\n|  | am. No. 94, 1961; No. 51, 1973; No. 57, 1977; No. 146, 1979; No. 108, 1981; No. 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 37.................... | am. No. 88, 1936; No. 90, 1952; No. 51, 1973; No. 108, 1981; No. 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdivision C.............. | rep. No. 101, 2006 |\n| ss. 38, 39................. | am. No. 176, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 40.................... | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 41.................... | rep. No. 101, 2006 |\n| s. 42.................... | am. No. 46, 1938 |\n|  | rep. No. 101, 2006 |\n| s. 43.................... | rep. No. 101, 2006 |\n| Subdivision D |  |\n| s. 43A................... | ad. No. 100, 1991 |\n|  | rs. No. 23, 2005 |\n| s. 43B................... | ad. No. 163, 2001 |\n| s. 44.................... | am. No. 46, 1938; No. 17, 1940; No. 58, 1941; No. 50, 1942; No. 11, 1947; No. 44, 1951; No. 45, 1953; No. 43, 1954; No. 62, 1955; No. 85, 1959; No. 18, 1960; Nos. 34 and 69, 1963; No. 46, 1964; No. 103, 1965; No. 85, 1967; No. 93, 1969; No. 87, 1970; Nos. 51, 164 and 165, 1973; No. 80, 1975; No. 50, 1976; No. 57, 1980; No. 108, 1981; Nos. 46 and 51, 1986; No. 62, 1987; No. 63, 1998; No. 163, 2001; No. 90, 2002; No. 64, 2005; No. 147, 2005; No. 66, 2010; No 110, 2014 |\n| s. 45.................... | ad. No. 63, 1998 |\n|  | am. No. 101, 2006 |\n| s. 45A................... | ad. No. 63, 1998 |\n|  | am. No. 58, 2000; No. 163, 2001; No. 101, 2006 |\n| s. 45B................... | ad. No. 63, 1998 |\n|  | am. No. 58, 2000; No. 163, 2001 |\n|  | rs. No. 90, 2002 |\n|  | am. No. 101, 2006; No. 56, 2010; Nos. 88 and 101, 2013 |\n| s. 45BA.................. | ad. No. 90, 2002 |\n| s. 45C................... | ad. No. 63, 1998 |\n|  | am. No. 58, 2000; No. 163, 2001; No. 90, 2002; No. 101, 2006; No. 41, 2011; No. 12, 2012 |\n| s 45D................... | ad No 63, 1998 |\n|  | am No 58, 2000; No 90, 2002; No 41, 2011; No 81, 2016; No 69, 2023; No 101, 2023 |\n| s. 45Z................... | ad. No. 35, 1992 |\n|  | am. No. 47, 1998; No. 93, 1999; No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 45ZA.................. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 45ZB.................. | ad. No. 93, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 46AA................. | ad. No. 117, 2002 |\n|  | am. No. 16, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 46AB.................. | ad. No. 117, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 46AC.................. | ad. No. 117, 2002 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 46AD................. | ad. No. 117, 2002 |\n|  | rep. No. 16, 2003 |\n| s. 46AE.................. | ad. No. 117, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 46.................... | am. No. 88, 1936; No. 30, 1939; Nos. 17 and 65, 1940; No. 58, 1941; No. 22, 1942; No. 44, 1948; No. 44, 1951; No. 17, 1961 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 143, 1965; No. 47, 1972; Nos. 51 and 165, 1973; No. 80, 1975; No. 172, 1978; No. 108, 1981; No. 49, 1985; Nos. 46 and 51, 1986; No. 62, 1987; No. 95, 1988; No. 105, 1989; No. 35, 1992; No. 181, 1994; Nos. 120 and 169, 1995; Nos. 39, 62 and 121, 1997; No. 93, 1999; No. 89, 2000; No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 46A................... | ad. No. 47, 1972 |\n|  | am. Nos. 51 and 165, 1973; No. 80, 1975; Nos. 57 and 172, 1978; No. 108, 1981; No. 49, 1985; Nos. 46 and 51, 1986; Nos. 62 and 108, 1987; No. 95, 1988; No. 105, 1989; No. 35, 1992; No. 181, 1994; Nos. 120 and 169, 1995; No. 39, 1997 (as am. by No. 57, 2002); No. 62 and 121, 1997; No. 46, 1998; No. 93, 1999; No. 89, 2000; No. 163, 2001; No. 101, 2006; No. 143, 2007 |\n|  | rep. No. 101, 2006 |\n| s. 46B................... | ad. No. 57, 1978 |\n|  | am. No. 172, 1978; No. 46, 1986; No. 108, 1987; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 46C................... | ad. No. 61, 1987 |\n|  | am. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 46D................... | ad. No. 58, 1987 |\n|  | rep. No. 163, 2001 |\n| s. 46E................... | ad. No. 108, 1987 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 46F................... | ad. No. 95, 1988 |\n|  | am. No. 95, 1997; No. 47, 1998; No. 93, 1999; No. 79, 2000; Nos. 57 and 97, 2002 |\n|  | rs. No. 117, 2002 |\n|  | am. No. 16, 2003; No. 95, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 46FA.................. | ad. No. 79, 2000 |\n|  | am. No. 57, 2002; No. 95, 2004; No. 101, 2006; No. 143, 2007 |\n| s. 46FB.................. | ad. No. 79, 2000 |\n|  | am. No. 95, 2004; No. 23, 2005; No. 101, 2006; No. 143, 2007 |\n| s. 46G................... | ad. No. 170, 1995 |\n|  | rep. No. 79, 2007 |\n| s. 46H................... | ad. No. 170, 1995 |\n|  | am. No. 63, 1998 |\n|  | rep. No. 79, 2007 |\n| s. 46I................... | ad. No. 170, 1995 |\n|  | rep. No. 79, 2007 |\n| s. 46J................... | ad. No. 170, 1995 |\n|  | am. No. 63, 1998 |\n|  | rep. No. 79, 2007 |\n| ss. 46K, 46L............... | ad. No. 170, 1995 |\n|  | rep. No. 79, 2007 |\n| s. 46M.................. | ad. No. 170, 1995 |\n|  | am. No. 171, 1995 (as am. by No. 76, 1996; No. 147, 1997); No. 93, 1999 |\n|  | rep. No. 79, 2007 |\n| s. 47.................... | am. No. 58, 1941; No. 85, 1967; No. 51, 1973; No. 108, 1981; Nos. 58 and 62, 1987; Nos. 46 and 63, 1998; No. 114, 2000; No. 41, 2005 |\n| s. 47A................... | ad. No. 5, 1991 |\n|  | am. Nos. 48 and 100, 1991; No. 224, 1992; Nos. 121 and 122, 1997; No. 70, 1999; No. 66, 2003; No. 96, 2004; Nos. 15 and 143, 2007; No. 97, 2008; No 110, 2014; No 53, 2016 |\n| Heading to Div. 2A..........  of Part III | ad. No. 172, 1978   rep. No. 101, 2006 |\n| Div. 2A of Part III........... | rep. No. 101, 2006 |\n| Heading to Subdiv. A of.......  Div. 2A (formerly Div. 3) of Part III | ad. No. 48, 1950   rep. No. 101, 2006 |\n| s. 48.................... | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s.","sortOrder":1000147},{"sectionNumber":"full-source-retrieval-0149","sectionType":"document_chunk","heading":"Document excerpt 149","content":"49.................... | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 50.................... | am. No. 46, 1938; No. 22, 1942; No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 2A.........  of Part III | ad. No. 172, 1978   rep. No. 101, 2006 |\n| s. 50A................... | ad. No. 172, 1978 |\n|  | am. No. 108, 1981; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 50B................... | ad. No. 172, 1978 |\n|  | am. No. 14, 1983; No. 98, 1992; No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 50C................... | ad. No. 172, 1978 |\n|  | am. No. 133, 1980; Nos. 108, 109, 111 and 154, 1981; No. 123, 1982; No. 14, 1983; No. 95, 1988; No. 107, 1989; No. 57, 1990; No. 18, 1993; No. 31, 1995; No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 50D................... | ad. No. 172, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 50E................... | ad. No. 172, 1978 |\n|  | am. No. 108, 1981; No. 14, 1983; No. 112, 1986; No. 95, 1988; No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 50F................... | ad. No. 172, 1978 |\n|  | am. No. 133, 1980; Nos. 109, 111 and 154, 1981; No. 123, 1982; No. 168, 1985; No. 95, 1988; No. 107, 1989; No. 57, 1990; No. 18, 1993; No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 50G................... | ad. No. 172, 1978 |\n|  | am. No. 149, 1979; Nos. 57 and 159, 1980; Nos. 108, 109, 111 and 154, 1981; No. 29, 1982; No. 14, 1983; Nos. 14 and 47, 1984; No. 168, 1985; No. 90, 1986; No. 95, 1988; No. 107, 1989; No. 57, 1990; No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 50H................... | ad. No. 172, 1978 |\n|  | am. Nos. 108 and 111, 1981; No. 57, 1990; No. 147, 1997; No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 50HA–50HC............ | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 50J................... | ad. No. 172, 1978 |\n|  | rep. No. 101, 2006 |\n| s. 50K................... | ad. No. 172, 1978 |\n|  | am. No. 108, 1981; No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 50KA................. | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 50L................... | ad. No. 172, 1978 |\n|  | am. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 50N................... | ad. No. 172, 1978 |\n|  | am. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 50P, 50Q............... | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| Division 3 |  |\n| Division 3 heading.......... | ad. No. 172, 1978 |\n| Subdivision A |  |\n| Subdivision A heading........ | ad. No. 172, 1978 |\n| s. 51AAA................ | ad. No. 52, 1986 |\n|  | am. No. 121, 1997; No. 46, 1998; No. 77, 2001; No. 101, 2004; No. 15, 2009 |\n| s. 51.................... | am. No. 171, 1978; No. 123, 1984; Nos. 41, 46 and 51, 1986; No. 78, 1988; No. 2, 1989; No. 60, 1990; Nos. 55 and 203, 1991; Nos. 35, 92, 101, 138, 223 and 224, 1992; Nos. 17, 57 and 116, 1993; No. 169, 1995; No. 76, 1996; No. 39, 1997 (as am. by No. 121, 1997); Nos. 121, 134 and 147, 1997; Nos. 16 and 23, 1998 |\n|  | rep. No. 101, 2006 |\n| Note to s. 51(6AA).......... | am. No. 45, 1998; No. 150, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 51AB.................. | ad. No. 126, 1974 |\n|  | am. No. 57, 1993; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 51AD................. | ad. No. 14, 1984 |\n|  | am. No. 169, 1995; Nos. 121 and 174, 1997; Nos. 72 and 77, 2001; No. 101, 2006; No. 164, 2007; No. 41, 2011 |\n| s. 51AE.................. | ad. No. 173, 1985 |\n|  | am. No. 41, 1986; No. 139, 1987; No. 11, 1989; No. 135, 1990; Nos. 98 and 101, 1992; No. 57, 1993; No. 82, 1994; No. 39, 1997 (as rep. by No. 121, 1997); No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 51AEA................ | ad. No. 145, 1995 |\n| s. 51AEB................. | ad. No. 145, 1995 |\n|  | am. No. 41, 1998 |\n| s. 51AEC................. | ad. No. 145, 1995 |\n| s. 51AF.................. | ad. No. 173, 1985 |\n|  | am. No. 135, 1990; No. 30, 1995; No. 39, 1997; No. 101, 2006 |\n| s. 51AG................. | ad. No. 173, 1985 |\n|  | am. No. 135, 1990; No. 57, 1993; No. 30, 1995; Nos. 39 and 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 51AGA................ | ad. No. 237, 1992 |\n| s. 51AH................. | ad. No. 41, 1986 |\n|  | am. No. 139, 1987; No. 101, 2006; Nos. 59 and 97, 2008 |\n| s. 51AJ.................. | ad. No. 139, 1987 |\n|  | am. No. 101, 2006 |\n| s. 51AK................. | ad. No. 95, 1988 |\n| s. 51AL.................. | ad. No. 227, 1992 |\n|  | am. No. 82, 1994; No. 171, 1995; No. 121, 1997; No. 146, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 52.................... | am. No. 58, 1941; No. 47, 1984; No. 52, 1986; No. 121, 1997; No. 41, 2011 |\n| s. 52A................... | ad. No. 57, 1978 |\n|  | am. No. 146, 1979; No. 108, 1981; Nos. 39 and 121, 1997; No. 63, 1998; No. 163, 2001; No. 41, 2011 |\n| s. 53.................... | am. No. 47, 1984; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 53AA................. | ad. No. 69, 1963 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 53F................... | ad. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 53G................... | ad. No. 51, 1973 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 53I................... | ad. No. 121, 1997 (as am. by No. 57, 2002) |\n|  | am. No. 147, 1997; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 54.................... | am. No. 6, 1946; No. 11, 1947; No. 28, 1952; No. 55, 1958; No. 94, 1961; No. 69, 1963; No. 50, 1966; No. 76, 1967; No. 93, 1969; No. 51, 1973; No. 126, 1974; No. 50, 1976; Nos. 58, 124 and 159, 1980; No. 108, 1981; No. 90, 1986; No. 107, 1989; No. 35, 1992; No. 57, 1993; No. 82, 1994; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 54AA................. | ad. No. 98, 1992 |\n|  | am. No. 224, 1992; No. 147, 1997; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 54AB.................. | ad. No. 147, 1997 |\n|  | am. No. 174, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 54AC.................. | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 54AD................. | ad. No. 147, 1997 |\n|  | am. No. 174, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 54AE.................. | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 54A................... | ad. No. 35, 1992 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 55.................... | am. No. 6, 1946; No. 126, 1974; No. 108, 1981 |\n|  | rs. Nos. 35 and 80, 1992 |\n|  | am. No. 17, 1993; No. 82, 1994; No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 56.................... | am. No. 11, 1947; No. 65, 1957; No. 39, 1962; No. 69, 1963; No. 51, 1973; No. 50, 1976; No. 149, 1979; Nos. 57 and 159, 1980; No. 108, 1981; No. 90, 1986; No. 95, 1988; No. 107, 1989; Nos. 35, 80 and 101, 1992; No. 18, 1993; No. 31, 1995; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 57AF.................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 14, 1983; No. 35, 1992; No. 17, 1993 (as am. by No. 147, 1997); No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 57AK................. | ad. No. 29, 1982 |\n|  | am. No. 14, 1983; No. 95, 1988; Nos. 35, 80 and 101, 1992; No. 76, 1996; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 57AM................. | ad. No. 14, 1984 |\n|  | am. No. 124, 1984; No. 51, 1986; Nos. 78, 95 and 127, 1988; No. 58, 1990; Nos. 98 and 101, 1992; No. 170, 1995; No. 76, 1996; No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 58.................... | ad. No. 35, 1992 |\n|  | am. Nos. 80 and 224, 1992; No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 59.................... | am. No. 50, 1942; No. 101, 1956; No. 65, 1957; No. 51, 1973; No. 149, 1979; No. 57, 1980; No. 108, 1981; No. 90, 1986; Nos. 35, 101 and 224, 1992; No. 17, 1993; No. 76, 1996; No. 147, 1997; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 59AAA................ | ad. No. 30, 1995 |\n|  | am. No. 76, 1996; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 59AA................. | ad. No. 90, 1952 |\n|  | am. No. 149, 1979; No. 57, 1980; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 59AB.................. | ad. No. 65, 1957 |\n|  | am. No. 110, 1964; No. 51, 1973; No. 108, 1981; No. 138, 1987; No. 7, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 60.................... | am. No. 3, 1944; No. 4, 1945; No. 65, 1957; No. 51, 1973; No. 149, 1979; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 61.................... | am. No. 6, 1946; No. 28, 1952; No. 51, 1973; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 61A................... | ad. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 62.................... | am. No. 50, 1942 |\n|  | rs. No. 4, 1945 |\n|  | am. No. 101, 1956; No. 51, 1973; No. 149, 1979; No. 57, 1980; No. 108, 1981; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 62AAA................ | ad. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| ss. 62AAB–62AAH.......... | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 62AAJ–62AAL.......... | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 62AAM, 62AAN......... | ad. No. 35, 1992 |\n|  | am. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 62AAO................ | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 62AAP................. | ad. No. 35, 1992 |\n|  | am. No. 80, 1992; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 62AAQ................ | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 62AAR................ | ad. No. 35, 1992 |\n|  | am. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 62AAS–62AAV.......... | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 63.................... | am. No. 43, 1954; No. 69, 1963; No. 49, 1986; No. 48, 1991; No. 98, 1992; No. 82, 1994; No. 76, 1996; No. 39, 1997 (as rep. by 121, 1997); Nos. 95 and 121, 1997; No. 101, 2006 |\n| s. 63A................... | ad. No. 51, 1973 |\n|  | am. Nos. 108 and 111, 1981; No. 57, 1990; No. 98, 1992; Nos. 39 and 121, 1997; No. 46, 1998; No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 63AA–63AD............ | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 63B................... | ad. No. 51, 1973 |\n|  | am. No. 108, 1981; No. 98, 1992; Nos. 121 and 147, 1997; No. 46, 1998; No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 63C................... | ad. No. 51, 1973 |\n|  | am. No. 98, 1992; No. 121, 1997; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 63CA.................. | ad. No. 39, 1997 |\n|  | am. No. 121, 1997; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 63CA (first occurring).......  Renumbered s. 63CB   and relocated.............. | ad. No. 58, 2000  am. No. 41, 2005  No. 41, 2005 |\n| s. 63CB.................. | rep. No. 101, 2006 |\n| s. 63CB..................  Renumbered s. 63CC   and relocated.............. | ad. No. 58, 2000    No. 41, 2005 |\n| Heading to s. 63CC.......... | am. No. 41, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 63CC.................. | am. No. 41, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 63D................... | ad. No. 48, 1991 |\n|  | am. No. 100, 1991; No. 98, 1992; Nos. 39 and 121, 1997; No. 46, 1998; No. 96, 2004 |\n| s. 63E................... | ad. No. 98, 1992 |\n|  | am. Nos. 39 and 121, 1997; No. 46, 1998; No. 101, 2006 |\n| s. 63F................... | ad. No. 98, 1992 |\n|  | am. Nos. 39 and 121, 1997; No. 101, 2006 |\n| s. 63G................... | ad. No. 17, 1998 |\n|  | am. No. 101, 2006 |\n| s. 64.................... | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 64A................... | ad. No. 69, 1963 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 39, 1997 (as rep. by No. 121, 1997); No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 65.................... | am. No. 110, 1964; No. 51, 1973; No. 108, 1981; No. 107, 1989; No. 135, 1990; No. 121, 1997; No. 101, 2006 |\n| s. 67.................... | rs. No. 69, 1963 |\n|  | am. No. 143, 1965; No. 108, 1981; No. 47, 1984; No. 76, 1996; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 67AAA................ | ad. No. 224, 1992 |\n|  | am. No. 181, 1994; No. 89, 2001; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 67AA................. | ad. No. 61, 1987 |\n|  | am. No. 35, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 67A................... | ad. No. 69, 1963 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 68.................... | am. No. 69, 1963 |\n|  | rs. No. 47, 1984 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 68A................... | ad. No. 101, 1956 |\n|  | rs. No. 47, 1984 |\n|  | rep. No. 101, 2006 |\n| s. 69.................... | ad. No. 69, 1963 |\n|  | am. No. 51, 1973 |\n|  | rs. No. 20, 1990 |\n|  | am. No. 216, 1991; No. 39, 1997 (as rep. by No. 121, 1997); No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 70.................... | ad. No. 69, 1963 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 76, 1996; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 70A................... | ad. No. 108, 1981 |\n|  | am. No. 95, 1988; No. 76, 1996; No. 39, 1997 (as rep. by No. 121, 1997); No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 70B................... | ad. No. 107, 1989 |\n|  | am. No. 224, 1992; No. 89, 2000; No. 133, 2003; No. 58, 2006; No. 15, 2007 |\n| s. 71.................... | rs. No. 69, 1963 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 72.................... | am. No. 88, 1936; Nos. 22 and 50, 1942; No. 48, 1950; No. 85, 1959; No. 18, 1960; No. 69, 1963; Nos. 51, 164 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); Nos. 80 and 117, 1975; No. 108, 1981; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 72A................... | ad. No. 145, 1987 |\n|  | am. No. 216, 1991; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 73.................... | am. No. 58, 1960; Nos. 103 and 143, 1965; No. 108, 1981; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 73A................... | ad. No. 6, 1946 |\n|  | am. No. 65, 1957; No. 18, 1960; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 50, 1976; No. 27, 1979; No. 108, 1981; No. 80, 1982; No. 165, 1984; No. 112, 1986; No. 11, 1988; Nos. 97 and 167, 1989; No. 35, 1992; No. 76, 1996; No. 176, 1999; No. 101, 2006; No. 97, 2008; Nos. 14 and 88, 2009; No. 79, 2010; No. 41, 2011; No 110, 2014 |\n| s. 73AA................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 46, 1998; No. 144, 2008 |\n| s. 73B................... | ad. No. 90, 1986 |\n|  | am. Nos. 11, 59 and 153, 1988; Nos. 97 and 167, 1989; Nos. 35 and 135, 1990; No. 216, 1991; Nos. 35, 80, 98 and 224, 1992; No. 181, 1994; Nos. 78 and 82, 1996; Nos. 39, 121 and 147, 1997; Nos. 16 and 41, 1998; Nos. 72, 77, 89 and 170, 2001; No. 16, 2003; No. 101, 2006; Nos. 15 and 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73BAA................ | ad. No. 117, 2002 |\n|  | am. No. 20, 2004 |\n|  | rep. No. 93, 2011 |\n| s. 73BAB................ | ad. No. 117, 2002 |\n|  | rep. No. 93, 2011 |\n| s. 73BABA............... | ad. No. 20, 2004 |\n|  | rep. No. 93, 2011 |\n| s. 73BAC................ | ad. No. 117, 2002 |\n|  | am. No. 20, 2004; No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73BACA............... | ad. No. 20, 2004 |\n|  | rep. No. 93, 2011 |\n| Heading to s. 73BAD......... | am. No. 20, 2004 |\n|  | rep. No. 93, 2011 |\n| s. 73BAD................ | ad. No. 117, 2002 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| ss. 73BAE, 73BAF.......... | ad. No. 117, 2002 |\n|  | rep. No. 93, 2011 |\n| s. 73BAG................ | ad. No. 16, 2003 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 93, 2011 |\n| s. 73BA.................. | ad. No. 170, 2001 |\n|  | am. No. 80, 2007 |\n|  | rep. No. 93, 2011 |\n| ss. 73BB, 73BC............ | ad. No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| Note to s. 73BC(2)  Renumbered Note 1.......... | No. 164, 2007 |\n| Note 1 to s. 73BC(2)......... | rep. No. 93, 2011 |\n| Note 2 to s. 73BC(2)......... | ad. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| ss. 73BD, 73BE............ | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73BF.................. | ad. No. 170, 2001 |\n|  | am. No. 16, 2003 |\n|  | rep. No. 93, 2011 |\n| Note to s. 73BF(1)  Renumbered Note 1.......... | No. 16, 2003 |\n| Note 1 to s. 73BF(1)......... | rep. No. 93, 2011 |\n| Note 2 to s. 73BF(1)......... | ad. No. 16, 2003 |\n|  | rep. No. 93, 2011 |\n| ss. 73BG–73BJ............. | ad. No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| ss. 73BK, 73BL............ | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| ss. 73BM, 73BN............ | ad. No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| s. 73C................... | ad. No. 167, 1989 |\n|  | am. No. 216, 1991; Nos. 80 and 224, 1992; No. 181, 1994; No. 169, 1995; No. 78, 1996; No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| s. 73CA.................. | ad. No. 35, 1990 |\n|  | am. No. 35, 1992; No. 170, 2001; No. 101, 2006 |\n|  | rep. No. 93, 2011 |\n| s. 73CB.................. | ad. No. 224, 1992 |\n|  | am. No. 169, 1995 |\n|  | rs. No. 171, 1995 |\n|  | am. No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| s. 73D................... | ad. No. 167, 1989 |\n|  | am. No. 35, 1990; No. 80, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 73E................... | ad. No. 224, 1992 |\n|  | am. No. 120, 1995; No. 121, 1997; No. 46, 1998; No. 169, 1999; No. 77, 2001; No. 117, 2002; No. 101, 2006 |\n|  | rep. No. 93, 2011 |\n| s. 73EA.................. | ad. No. 170, 2001 |\n|  | am. No. 117, 2002 |\n|  | rep. No. 93, 2011 |\n| s. 73EB.................. | ad. No. 170, 2001 |\n|  | am. No. 117, 2002 |\n|  | rep. No. 93, 2011 |\n| s. 73F................... | ad. No. 224, 1992 |\n|  | am. No. 39, 1997; No. 46, 1998; Nos. 77 and 170, 2001; No. 117, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 73G................... | ad. No. 224, 1992 |\n|  | am. No. 46, 1998; No. 77, 2001; No. 117, 2002 |\n|  | rep. No. 93, 2011 |\n| s. 73H................... | ad. No. 170, 2001 |\n|  | am. No. 78, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73I................... | ad. No. 170, 2001 |\n|  | am. Nos. 78 and 164, 2007; No. 42, 2009 |\n|  | rep. No. 93, 2011 |\n| s. 73IA.................. | ad. No. 78, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73J................... | ad. No. 170, 2001 |\n|  | am. Nos. 78 and 164, 2007; No. 88, 2009 |\n|  | rep. No. 93, 2011 |\n| ss. 73K–73M.............. | ad. No. 170, 2001 |\n|  | rep. No. 93, 2011 |\n| s. 73P................... |","sortOrder":1000148},{"sectionNumber":"full-source-retrieval-0150","sectionType":"document_chunk","heading":"Document excerpt 150","content":"ad. No. 170, 2001 |\n|  | am. Nos. 78 and 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73Q................... | ad. No. 170, 2001 |\n|  | am. No. 78, 2007 |\n|  | rep. No. 164, 2007 |\n| ss. 73QA, 73QB............ | ad. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73R................... | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| ss. 73RA–73RE............ | ad. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73S................... | ad. No. 170, 2001 |\n|  | am. Nos. 78 and 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73T................... | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73U................... | ad. No. 170, 2001 |\n|  | rep. No. 164, 2007 |\n| s. 73V................... | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 73W.................. | ad. No. 170, 2001 |\n|  | rep. No. 164, 2007 |\n| s. 73X................... | ad. No. 170, 2001 |\n|  | am. No. 78, 2007 |\n|  | rep. No. 164, 2007 |\n| s. 73Y................... | ad. No. 170, 2001 |\n|  | rep. No. 164, 2007 |\n| s. 73Z................... | ad. No. 170, 2001 |\n|  | am. No. 164, 2007 |\n|  | rep. No. 93, 2011 |\n| s. 74.................... | am. No. 24, 1980; No. 108, 1981; No. 167, 1989; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 74A................... | ad. No. 123, 1985 |\n|  | am. No. 167, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 74B................... | ad. No. 173, 1985 |\n|  | rep. No. 101, 2006 |\n| s. 75A................... | ad. No. 165, 1973 |\n|  | am. No. 80, 1975; No. 50, 1976; Nos. 58 and 159, 1980; No. 108, 1981; No. 103, 1983; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 75AA................. | ad. No. 118, 1993 |\n|  | am. No. 76, 1996; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 75B................... | ad. No. 58, 1980 |\n|  | am. No. 108, 1981; Nos. 173 and 174, 1985; No. 107, 1989; No. 76, 1996; No. 121, 1997; No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 75D................... | ad. No. 159, 1980 |\n|  | am. No. 108, 1981; No. 173, 1985; No. 100, 1991; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 77F................... | ad. No. 47, 1984 |\n|  | am. No. 163, 1987; No. 11, 1988; No. 167, 1989; No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 78.................... | am. No. 88, 1936; No. 46, 1938; No. 17, 1940; No. 58, 1941; Nos. 22 and 50, 1942; No. 10, 1943; No. 3, 1944; No. 4, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 48, 1950; No. 44, 1951; No. 90, 1952; No. 45, 1953; No. 43, 1954; No. 62, 1955; No. 101, 1956; No. 65, 1957; No. 70, 1959; Nos. 18 and 58, 1960; No. 94, 1961; No. 39, 1962; Nos. 34 and 69, 1963; Nos. 33 and 143, 1965; No. 50, 1966; No. 60, 1968; No. 93, 1969; No. 93, 1971; Nos. 51, 52, 164 and 165, 1973; Nos. 80 and 117, 1975; No. 57, 1977; Nos. 57, 123 and 171, 1978; Nos. 27 and 149, 1979; Nos. 19, 24, 57, 124, 133 and 159, 1980; Nos. 61, 108 and 154, 1981; Nos. 29, 76 and 106, 1982; No. 39, 1983; Nos. 47, 123 and 124, 1984; Nos. 49, 123 and 168, 1985; Nos. 46, 49 and 112, 1986; Nos. 108 and 138, 1987; Nos. 80, 95 and 153, 1988; No. 107, 1989; Nos. 20, 35, 57, 58 and 135, 1990; Nos. 4, 100, 203 and 216, 1991; Nos. 80, 224 and 227, 1992; No. 17, 1993 |\n|  | rs. No. 18, 1993 |\n|  | am. No. 118, 1993; Nos. 82 and 138, 1994; No. 120, 1995; Nos. 31 and 76, 1996; No. 39, 1997 (as rep. by 121, 1997); Nos. 121 and 147, 1997; No. 41, 1998; No. 167, 2001; No. 57, 2002; Nos. 86 and 101, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 78AA................. | ad. No. 216, 1991 |\n|  | am. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 78AB.................. | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 78A................... | ad. No. 57, 1978 |\n|  | am. No. 108, 1981; No. 124, 1984; No. 18, 1993; No. 121, 1997; No. 65, 2006 |\n| s. 78B................... | ad. No. 123, 1982 |\n|  | am. No. 48, 1986; No. 216, 1991; No. 118, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 79A................... | ad. No. 4, 1945 |\n|  | am. No. 11, 1947; No. 62, 1955; No. 101, 1956; No. 55, 1958; No. 94, 1961; No. 69, 1963; No. 68, 1964; No. 143, 1965; No. 51, 1973; No. 117, 1975; No. 56, 1976; No. 108, 1981; No. 29, 1982; No. 103, 1983; No. 124, 1984; No. 49, 1986; No. 78, 1988; Nos. 4 and 100, 1991; No. 224, 1992; Nos. 125, 138 and 184, 1994; No. 1, 1996; No. 179, 1997; No. 45, 1998; No. 82, 1999; Nos. 45 and 144, 2000; No. 75, 2007; No. 105, 2010; Nos. 41 and 62, 2011; No. 71, 2012; No 13, 2014; No 70, 2015; No 162, 2015 |\n| s 79B................... | ad No 63, 1947 |\n|  | am No 101, 1956; No 55, 1958; No 18, 1960; No 94, 1961; No 98, 1962; No 69, 1963; No 103, 1965; No 143, 1965; No 51, 1973; No 164, 1973; No 80, 1975; No 117, 1975; No 56, 1976; No 108, 1981; No 29, 1982; No 124, 1984; No 135, 1990; No 224, 1992; No 18, 1993; No 138, 1994; No 1, 1997; No 82, 1999; No 45, 2000; No 101, 2004; No 75, 2007; No 105, 2010; No 41, 2011; No 62, 2011; No 71, 2012; No 110, 2014; No 2, 2015; No 70, 2015; No 164, 2015 |\n| s. 79C................... | ad. No. 94, 1961 |\n|  | am. No. 69, 1963; Nos. 68 and 110, 1964; No. 50, 1966; No. 60, 1968; Nos. 93 and 101, 1969; No. 51, 1973 |\n|  | rs. No. 117, 1975 |\n|  | am. No. 205, 1976; No. 124, 1980; Nos. 108 and 111, 1981; No. 123, 1982; Nos. 47 and 124, 1984; No. 107, 1989; No. 57, 1990; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 79D................... | ad. No. 78, 1988 |\n|  | rs. No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 79DA................. | ad. No. 39, 1997 |\n|  | rep. No. 143, 2007 |\n| s. 79E................... | ad. No. 57, 1990 |\n|  | am. No. 5, 1991; Nos. 101 and 190, 1992; No. 170, 1995; No. 76, 1996; Nos. 39 and 147, 1997; No. 17, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 79EA.................. | ad. No. 98, 1992 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 79EB.................. | ad. No. 98, 1992 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 79F................... | ad. No. 57, 1990 |\n|  | am. No. 170, 1995; No. 76, 1996; No. 39, 1997; No. 17, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 80.................... | am. No. 22, 1942; No. 3, 1944; No. 11, 1947; No. 48, 1950; No. 43, 1954; No. 101, 1956; No. 85, 1959; No. 18, 1960; No. 69, 1963; No. 110, 1964; No. 50, 1966; No. 85, 1967; Nos. 51, 164 and 165, 1973; No. 80, 1975; No. 172, 1978; Nos. 147 and 149, 1979; No. 19, 1980; Nos. 108, 110 and 111, 1981; No. 49, 1985; No. 51, 1986; No. 62, 1987; No. 78, 1988; No. 107, 1989; No. 57, 1990; No. 5, 1991; Nos. 101 and 190, 1992; No. 170, 1995; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 80AAA................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 57, 1990; No. 5, 1991; No. 170, 1995; No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 80AA................. | ad. No. 50, 1966 |\n|  | am. No. 83, 1966; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 172, 1978; No. 147, 1979; Nos. 108 and 110, 1981; No. 107, 1989; No. 57, 1990; No. 5, 1991; No. 224, 1992; No. 170, 1995; No. 76, 1996; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 80AB, 80AC............ | ad. No. 50, 1966 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rs. No. 111, 1981; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 80A................... | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 50, 1966 |\n|  | rs. No. 51, 1973 |\n|  | am. Nos. 108 and 111, 1981; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 80B................... | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 50, 1966; No. 51, 1973; Nos. 108 and 111, 1981; No. 57, 1990; No. 147, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 80DA................. | ad. No. 51, 1973 |\n|  | am. Nos. 108 and 111, 1981; No. 57, 1990; No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 80E................... | ad. No. 103, 1965 |\n|  | am. No. 50, 1966; No. 51, 1973; No. 111, 1981; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 80F................... | ad. No. 103, 1965 |\n|  | rs. No. 51, 1973 |\n|  | am. Nos. 108 and 111, 1981; No. 57, 1990; No. 98, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 80G................... | ad. No. 124, 1984 |\n|  | am. No. 168, 1985; No. 138, 1987; No. 11, 1988; Nos. 35 and 57, 1990; No. 5, 1991; Nos. 98 and 101, 1992; Nos. 39, 95 and 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 81.................... | ad. No. 48, 1950 |\n|  | rep. No. 101, 2006 |\n| s. 82.................... | am. No. 55, 1958; No. 70, 1959; No. 60, 1968; No. 93, 1969; No. 51, 1973; No. 108, 1981; No. 107, 1989; No. 39, 1997; No. 101, 2006; No. 41, 2011 |\n| s 82A................... | ad No 117, 1975 |\n|  | am No 123, 1985; No 2, 1989; No 138, 1992; No 116, 1993; No 39, 1997; No 45, 1998; No 150, 2003; No 56, 2010; No 82, 2014; No 154, 2015; No 169, 2015; No 116, 2018 |\n|  | rep No 84, 2022 |\n| Subdivision AA............ | ad. No. 110, 1964 |\n|  | rep. No. 15, 2007 |\n| s. 82AAA................ | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; Nos. 51 and 164, 1973; No. 80, 1975; No. 138, 1987; No. 97, 1989; No. 82, 1993; No. 89, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 82AAC................ | ad. No. 110, 1964 |\n|  | am. No. 47, 1984; No. 123, 1985 |\n|  | rs. No. 97, 1989 |\n|  | am. No. 61, 1990; Nos. 80 and 208, 1992; No. 181, 1994; No. 169, 1995; No. 95, 1997; Nos. 78 and 147, 2005; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| Notes 1, 2 to s. 82AAC(1)...... | ad. No. 86, 2000 |\n|  | rep. No. 15, 2007 |\n| Note 3 to s. 82AAC(1)........ | ad. No. 51, 2002 |\n|  | rep. No. 15, 2007 |\n| s. 82AAD................ | ad. No. 181, 1994 |\n|  | am. No. 123, 2001; No. 147, 2005; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 82AADA............... | ad. No. 62, 1997 |\n|  | am. No. 147, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 82AAE................ | ad. No. 181, 1994 |\n|  | rep. No. 89, 2001 |\n| s. 82AAF................. | ad. No. 53, 1995 |\n|  | am. No. 147, 2005; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 82AAQ................ | ad. No. 110, 1964 |\n|  | am. No. 181, 1994; No. 147, 2005; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 82AAQA............... | ad. No. 53, 1995 |\n|  | rep. No. 15, 2007 |\n| s. 82AAQB............... | ad. No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 82AAR................ | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 117, 1975; No. 97, 1989; No. 181, 1994; No. 53, 1995; No. 62, 1997; No. 147, 2005 |\n|  | rep. No. 15, 2007 |\n| Subdiv. AB of Div. 3.........  of Part III | ad. No. 124, 1980  rep. No. 15, 2007 |\n| s. 82AAS................. | ad. No. 124, 1980 |\n|  | am. No. 108, 1981; No. 47, 1984; No. 49, 1985; Nos. 108 and 138, 1987; No. 97, 1989; No. 135, 1990; Nos. 80 and 208, 1992; No. 82, 1993; No. 53, 1995; No. 17, 1999; No. 51, 2002; No. 111, 2003; No. 148, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 82AAT................ | ad. No. 124, 1980 |\n|  | am. No. 123, 1985; No. 138, 1987; No. 11, 1988; Nos. 97 and 105, 1989; No. 135, 1990; No. 208, 1992; No. 7, 1993; No. 170, 1995; No. 62, 1997; No. 51, 2002; Nos. 78 and 148, 2005 |\n|  | rep. No. 15, 2007 |\n| Note to s. 82AAT(1)......... | ad. No. 51, 2002 |\n|  | rs. No. 92, 2004 |\n|  | rep. No. 15, 2007 |\n| Heading to Subdiv. B.........  of Div. 3 of Part III | am. No. 98, 1992   rep. No. 101, 2006 |\n| Subdiv. B of Div. 3 of Part III... | ad. No. 50, 1976 |\n|  | rep. No. 101, 2006 |\n| s. 82AAAA............... | ad. No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82AA................. | ad. No. 50, 1976 |\n|  | am. No. 14, 1984; No. 98, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 82AB.................. | ad. No. 50, 1976 |\n|  | am. No. 126, 1977; No. 147, 1979; Nos. 108 and 109, 1981; Nos. 14 and 124, 1984; No. 138, 1987; No. 95, 1988; Nos. 80 and 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82ABA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 82AC.................. | ad. No. 50, 1976 |\n|  | am. No. 133, 1980; No. 111, 1981; No. 107, 1989; No. 57, 1990; No. 18, 1993; No. 31, 1995; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82AD................. | ad. No. 50, 1976 |\n|  | am. No. 14, 1984; No. 98, 1992; No. 82, 1994; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82AE.................. | ad. No. 50, 1976 |\n|  | am. No. 159, 1980; No. 108, 1981; No. 98, 1992; No. 121, 1997; No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 82AF.................. | ad. No. 50, 1976 |\n|  | am. No. 159, 1980; No. 108, 1981; No. 14, 1984; No. 107, 1989; No. 98, 1992; No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 82AG................. | ad. No. 50, 1976 |\n|  | am. No. 57, 1980; No. 14, 1984; No. 98, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 82AH................. | ad. No. 50, 1976 |\n|  | am. No. 57, 1980; No. 108, 1981; No. 14, 1984; No. 98, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 82AHA................ | ad. No. 14, 1984 |\n|  | am. No. 98, 1992; No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 82AI.................. | ad. No. 50, 1976 |\n|  | am. No. 14, 1984; No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82AIA................. | ad. No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 82AJ.................. | ad. No. 50, 1976 |\n|  | am. No. 57, 1980; No. 108, 1981; No. 14, 1984; No. 98, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 82AJA................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 14, 1984; No. 98, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 82AK................. | ad. No. 50, 1976 |\n|  | rep. No. 101, 2006 |\n| s. 82AL.................. | ad. No. 50, 1976 |\n|  | am. No. 108, 1981; No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82AM................. | ad. No. 50, 1976 |\n|  | am. Nos. 57, 124 and 159, 1980; No. 108, 1981; No. 107, 1989; No. 57, 1990; No. 98, 1992; No. 82, 1994; Nos. 39 and 121, 1997; No. 164, 1999; Nos. 77 and 170, 2001; No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 82AN................. | ad. No. 50, 1976 |\n|  | rep. No. 101, 2006 |\n| s. 82AO................. | ad. No. 50, 1976 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82APA................. | ad. No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82AQ................. | ad. No. 50, 1976 |\n|  | am. No. 14, 1984; Nos. 98, 167 and 224, 1992; No. 82, 1994; Nos. 121 and 174, 1997; No. 34, 2000; Nos. 72 and 77, 2001 |\n|  | rep. No. 101, 2006 |\n| Subdiv. BA of Div. 3.........  of Part III | ad. No. 18, 1993   rep. No. 101, 2006 |\n| s. 82AR.................. | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 82ARA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 82AS–82AV............ | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 82AX................. | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| Subdivision C |  |\n| Subdivision C.............. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 82B, 82BA............. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 82BAA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 82BB.................. | ad. No. 216, 1991 |\n|  | am. No. 39, 1997; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 82BC.................. | ad. No. 216, 1991 |\n|  | am. No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 82BD.................. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 82BE.................. | ad. No. 216, 1991 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82BF.................. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 82BG.................. | ad. No. 216, 1991 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. CA of Div. 3.........  of Part III | ad. No. 224, 1992   rep. No. 101, 2006 |\n| ss. 82BH, 82BJ............. | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82BK.................. | ad. No. 224, 1992 |\n|  | am. No. 39, 1997; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 82BL–82BN............ | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82BP.................. | ad. No. 224, 1992 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82BQ.................. | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82BR.................. | ad. No. 224, 1992 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdivision CB............ | ad. No. 138, 1994 |\n|  | rep No 47, 2016 |\n| s. 82C................... | ad. No. 138, 1994 |\n|  | rep No 47, 2016 |\n| s. 82CA.................. | ad. No. 138, 1994 |\n|  | rep No 47, 2016 |\n| s. 82CB.................. | ad. No. 138, 1994 |\n|  | am. No. 77, 2001; No 110, 2014 |\n|  | rep No 47, 2016 |\n| s. 82CC.................. | ad. No. 138, 1994 |\n|  | rep No 47, 2016 |\n| s. 82CD.................. | ad. No. 138, 1994 |\n|  | am No 110, 2014 |\n|  | rep No 47, 2016 |\n| s. 82CE.................. | ad. No. 138, 1994 |\n|  | am. No. 58, 2006; No 110, 2014 |\n|  | rep No 47, 2016 |\n| Subdivision D |  |\n| Subdivision D............. | ad. No. 12, 1979 |\n| s. 82KH................. | ad. No. 12, 1979 |\n|  | am. Nos. 146 and 147, 1979; No. 19, 1980; Nos. 108 and 111, 1981; No. 76, 1982; Nos. 49, 123 and 168, 1985; Nos. 73 and 107, 1989; No. 57, 1990; No. 100, 1991; No. 98, 1992; Nos. 39 and 121, 1997; No. 46, 1998; No. 54, 1999; No. 77, 2001; No. 101, 2006; No. 79, 2007; No. 164, 2007 (as am. by No. 97, 2008) |\n| s. 82KJ.................. | ad. No. 12, 1979 |\n|  | am. No. 146, 1979 |\n| s. 82KK................. | ad. No. 12, 1979 |\n|  | am. No. 146, 1979; No. 108, 1981 |\n| s. 82KL.................. | ad. No. 146, 1979 |\n|  | am. No. 76, 1982; No. 48, 1986; No. 216, 1991; No. 121, 1997; No. 41, 2011 |\n| Heading to Subdiv. F.........  of Div. 3 of Part III | am. No. 30, 1995   rep. No. 101, 2006 |\n| Subdiv. F of Div. 3..........  of Part III | ad. No. 173, 1985   rep. No. 101, 2006 |\n| s. 82KS.................. | ad. No. 30, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82KT.................. | ad. No. 173, 1985 |\n|  | am. Nos. 62 and 139, 1987; No. 95, 1988; Nos. 11 and 167, 1989; No. 135, 1990; No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 82KTAA............... | ad. No. 139, 1987 |\n|  | rep. No. 101, 2006 |\n| ss. 82KTA, 82KTB.......... | ad. No. 62, 1987 |\n|  | rs. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 82KTBA............... | ad. No. 95, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 82KTC................. | ad. No. 62, 198","sortOrder":1000149},{"sectionNumber":"full-source-retrieval-0151","sectionType":"document_chunk","heading":"Document excerpt 151","content":"7 |\n|  | rs. No. 95, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 82KTD................ | ad. No. 62, 1987 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 82KTE, 82KTF.......... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KTG................ | ad. No. 62, 1987 |\n|  | am. No. 139, 1987; Nos. 11 and 167, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 82KTH................ | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KTJ................. | ad. No. 62, 1987 |\n|  | am. No. 95, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 82KTK................ | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KU................. | ad. No. 173, 1985 |\n|  | am. No. 49, 1986 (as am. by No. 141, 1987); No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KUA................ | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KUB................ | ad. No. 62, 1987 |\n|  | am. No. 95, 1988; No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 82KUC–82KUE.......... | ad. No. 62, 1987 |\n|  | am. No. 95, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 82KV................. | ad. No. 173, 1985 |\n|  | am. No. 62, 1987; No. 135, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 82KW................. | ad. No. 173, 1985 |\n|  | am. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KX................. | ad. No. 173, 1985 |\n|  | am. Nos. 62 and 139, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KY................. | ad. No. 173, 1985 |\n|  | am. Nos. 62 and 139, 1987; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 82KZ.................. | ad. No. 173, 1985 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 82KZA................ | ad. No. 173, 1985 |\n|  | am. No. 62, 1987; Nos. 11 and 167, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 82KZAA............... | ad. No. 4, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 82KZB................. | ad. No. 173, 1985 |\n|  | am. No. 139, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KZBA............... | ad. No. 139, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KZBB............... | ad. No. 139, 1987 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. GA.......  of Div. 3 of Part III | rs. No. 39, 1997   rep. No. 101, 2006 |\n| Subdiv. GA of Div. 3.........  of Part III | ad. No. 30, 1995   rep. No. 101, 2006 |\n| ss. 82KZBC, 82KZBD........ | ad. No. 30, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 82KZBE................ | ad. No. 30, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Note to s. 82KZBE(1)........ | ad. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 82KZBF................ | ad. No. 30, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. G of Div. 3..........  of Part III | ad. No. 46, 1986   rep. No. 101, 2006 |\n| s. 82KZC................. | ad. No. 46, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 82KZD................ | ad. No. 46, 1986 |\n|  | am. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 82KZE................. | ad. No. 46, 1986 |\n|  | rs. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 82KZF................. | ad. No. 46, 1986 |\n|  | am. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 82KZG................ | ad. No. 46, 1986 |\n|  | rs. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| ss. 82KZH, 82KZJ.......... | ad. No. 46, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 82KZK................ | ad. No. 41, 1986 |\n|  | rep. No. 101, 2006 |\n| Subdivision H |  |\n| Subdiv. H of Div. 3..........  of Part III | ad. No. 95, 1988 |\n| s. 82KZL................. | ad. No. 95, 1988 |\n|  | am. No. 169, 1999; Nos. 89 and 90, 2000; Nos. 78 and 170, 2001; No. 97, 2002; No. 80, 2007; No. 88, 2009; No. 114, 2010; No. 93, 2011 |\n| s. 82KZLA............... | ad. No. 164, 2007 |\n|  | am. No. 15, 2009 |\n| s. 82KZLB................ | ad. No. 93, 2011 |\n| s 82KZM................. | ad No 95, 1988 |\n|  | am No 76, 1996; No 39, 1997 (as am by No 16, 1998); No 169, 1999; No 89, 2000; No 78, 2001; No 170, 2001; No 101, 2006; No 80, 2007; No 164, 2007; No 79, 2010; No 93, 2011; No 92, 2020 |\n| s 82KZMA............... | ad No 169, 1999 |\n|  | am No 169, 1999; No 89, 2000; No 78, 2001; No 170, 2001; No 80, 2007; No 164, 2007; No 79, 2010; No 93, 2011; No 92, 2020 |\n| Note to s. 82KZMA(1)  Renumbered Note 1.......... | No. 90, 2000 |\n|  | rep. No. 78, 2001 |\n| Note 2 to s. 82KZMA(1)...... | ad. No. 90, 2000 |\n|  | rep. No. 78, 2001 |\n| s. 82KZMB............... | ad. No. 169, 1999 |\n|  | am. No. 89, 2000; No. 78, 2001 |\n|  | rep. No. 169, 1999 |\n| Note to s. 82KZMB(1)  Renumbered Note 1.......... | No. 90, 2000 |\n|  | rep. No. 169, 1999 |\n| Note 2 to s. 82KZMB(1)....... | ad. No. 90, 2000 |\n|  | rep. No. 169, 1999 |\n| s. 82KZMC............... | ad. No. 169, 1999 |\n|  | am. No. 89, 2000; No. 78, 2001 |\n|  | rep. No. 169, 1999 |\n| Heading to s. 82KZMD....... | rs. No. 169, 1999 (as rs. by No. 78, 2001) |\n|  | am. No. 80, 2007 |\n| s 82KZMD............... | ad No 169, 1999 |\n|  | am No 169, 1999; No 80, 2007; No 92, 2020 |\n| s. 82KZME............... | ad. No. 90, 2000 |\n|  | am. No. 90, 2000; No 78, 2001; No 170, 2001; No. 164, 2007; No. 93, 2011; No 4, 2018 |\n| s. 82KZMF............... | ad. No. 90, 2000 |\n|  | am. No. 90, 2000; No. 170, 2001; No. 164, 2007; No. 79, 2010; No. 93, 2011 |\n| s. 82KZMG............... | ad. No. 26, 2002 |\n|  | am. No. 26, 2002; No. 162, 2005 |\n| s. 82KZMGA.............. | ad. No. 79, 2007 |\n|  | am. No. 14, 2009; No. 56, 2010 |\n| s. 82KZMGB.............. | ad. No. 79, 2007 |\n| ss. 82KZN, 82KZO.......... | ad. No. 95, 1988 |\n|  | am. No. 39, 1997; No. 101, 2006 |\n| Division 3A |  |\n| Div. 3A of Part III........... | ad. No. 87, 1970 |\n| s. 82LA.................. | ad. No. 163, 2001 |\n| s 82L................... | ad No 87, 1970 |\n|  | am No 51, 1973; No 216, 1973 (as am by No 20, 1974); No 92, 1981; No 108, 1981; No 63, 1998; No 163, 2001; No 41, 2011; No 2, 2015 |\n| s. 82M.................. | ad. No. 87, 1970 |\n|  | am. No. 108, 1981; No. 41, 2011 |\n| s 82N................... | ad No 87, 1970 |\n|  | rep No 2, 2015 |\n| s. 82P................... | ad. No. 87, 1970 |\n|  | am. No. 51, 1973; No. 50, 1976; No. 108, 1981; No. 101, 2006; No. 41, 2011 |\n| s. 82Q................... | ad. No. 87, 1970 |\n|  | am. No. 108, 1981; No. 63, 1998 |\n| s. 82R................... | ad. No. 87, 1970 |\n|  | am. No. 51, 1973; No. 50, 1976; No. 108, 1981; No. 121, 1997; No. 101, 2006; No. 41, 2011 |\n| s. 82S................... | ad. No. 87, 1970 |\n|  | am. No. 51, 1973; No. 50, 1976; No. 108, 1981; No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 82SA.................. | ad. No. 50, 1976 |\n|  | am. No. 108, 1981; No. 63, 1998; No. 41, 2011; No 64, 2020 |\n| s. 82T................... | ad. No. 87, 1970 |\n|  | am. No. 50, 1976; No. 108, 1981; No. 123, 1984; No. 101, 2006 |\n| Div. 3B of Part III........... | ad. No. 61, 1987 |\n|  | rep. No. 133, 2003 |\n| s. 82U................... | ad. No. 61, 1987 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 133, 2003 |\n| s. 82V................... | ad. No. 61, 1987 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 133, 2003 |\n| ss. 82W–82Y.............. | ad. No. 61, 1987 |\n|  | rep. No. 133, 2003 |\n| s. 82Z................... | ad. No. 61, 1987 |\n|  | am. No. 35, 1992; No. 121, 1997; No. 41, 1998 |\n|  | rep. No. 133, 2003 |\n| s. 82ZA.................. | ad. No. 61, 1987 |\n|  | rep. No. 133, 2003 |\n| s. 82ZB.................. | ad. No. 61, 1987 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 133, 2003 |\n| Div. 4 of Part III............ | rep. No. 101, 2006 |\n| s. 83.................... | am. No. 46, 1938; No. 4, 1945; No. 6, 1946; Nos. 28 and 90, 1952; No. 110, 1964; No. 51, 1973; No. 108, 1981; No. 121, 1997; No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 83AA................. | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 60, 1968; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 83A................... | ad. No. 90, 1952 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 84.................... | am. No. 88, 1936 |\n|  | rs. No. 90, 1952 |\n|  | rep. No. 101, 2006 |\n| s. 85.................... | am. No. 88, 1936 |\n|  | rs. No. 90, 1952 |\n|  | am. No. 110, 1964; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 85A................... | ad. No. 90, 1952 |\n|  | rep. No. 101, 2006 |\n| s. 86.................... | am. No. 58, 1941; No. 110, 1964; No. 51, 1973; No. 108, 1981; No. 7, 1993; No. 46, 1998; No. 70, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 87.................... | am. No. 88, 1936; No. 28, 1952; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 88.................... | am. No. 88, 1936; No. 28, 1952; No. 108, 1981; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 88A................... | ad. No. 88, 1936 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 88B................... | ad. No. 43, 1954 |\n|  | am. No. 18, 1960; No. 60, 1968; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 89.................... | am. No. 6, 1946; No. 28, 1952; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| Division 5 |  |\n| s. 90.................... | am. No. 22, 1942; No. 48, 1950; No. 50, 1966; No. 51, 1973 |\n|  | rs. No. 12, 1979 |\n|  | am. No. 124, 1980; No. 107, 1989; No. 57, 1990; No. 39, 1997; No. 66, 2003; No. 15, 2007 |\n| s. 91.................... | am. No. 110, 1964 |\n| s. 92.................... | rs. No. 12, 1979 |\n|  | am. No. 89, 2000; No. 136, 2002; No. 66, 2003; No. 101, 2004; No. 58, 2006; Nos. 15 and 78, 2007 |\n| s 92A................... | ad No 136, 2002 |\n|  | am No 78, 2007; No 88, 2013; No 96, 2014; No 92, 2020 |\n| s. 93.................... | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 94.................... | am. No. 46, 1938 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 123, 1978; No. 12, 1979; No. 19, 1980; No. 108, 1981; No. 103, 1983; No. 107, 1989; No. 46, 1998; No. 41, 2011 |\n| Division 5A |  |\n| Div. 5A of Part III........... | ad. No. 227, 1992 |\n| Subdivision A |  |\n| s. 94A................... | ad. No. 227, 1992 |\n| s. 94B................... | ad. No. 227, 1992 |\n|  | am. No. 136, 2002; No. 101, 2004; No. 75, 2010 |\n| s. 94C................... | ad. No. 227, 1992 |\n| Subdivision B |  |\n| s. 94D................... | ad. No. 227, 1992 |\n|  | am. No. 136, 2002; Nos. 101 and 105, 2004; No. 58, 2006; No. 78, 2007 |\n| s. 94E................... | ad. No. 227, 1992 |\n| s. 94F................... | ad. No. 227, 1992 |\n|  | am. No. 58, 2006 |\n| s. 94G................... | ad. No. 227, 1992 |\n| Subdivision C |  |\n| s. 94H................... | ad. No. 227, 1992 |\n| s. 94J................... | ad. No. 227, 1992 |\n|  | am. No. 93, 2011 |\n| s. 94K................... | ad. No. 227, 1992 |\n| s. 94L................... | ad. No. 227, 1992 |\n|  | am. No. 138, 1994; No 21, 2015 |\n| ss. 94M, 94N.............. | ad. No. 227, 1992 |\n| Note to s. 94N............. | ad. No. 75, 2010 |\n| ss. 94P–94S............... | ad. No. 227, 1992 |\n| s. 94T................... | ad. No. 227, 1992 |\n|  | rs. No. 138, 1994 |\n|  | am No 70, 2015 |\n| ss. 94U, 94V.............. | ad. No. 227, 1992 |\n| s. 94W.................. | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 94X................... | ad. No. 227, 1992 |\n|  | am. No. 39, 1997 |\n| s. 94Y................... | ad. No. 227, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| Division 6 |  |\n| Division 6 heading.......... | rs. No. 12, 1979 |\n| ss. 95AAA–95AAC.......... | ad. No. 62, 2011 |\n| s 95AAD................. | ad No 53, 2016 |\n| s. 95.................... | am. No. 22, 1942; No. 48, 1950; No. 50, 1966; No. 51, 1973; No. 205, 1976 |\n|  | rs. No. 12, 1979 |\n|  | am. No. 111, 1981; No. 107, 1989; No. 57, 1990; No. 190, 1992; No. 39, 1997; Nos. 17 and 85, 1998; No. 139, 2002; No. 66, 2003; No. 101, 2006; Nos. 56 and 79, 2010; Nos. 41 and 62, 2011 |\n| s. 95AA................. | ad. No. 45, 2008 |\n|  | rep No 70, 2015 |\n| s. 95AB.................. | ad. No. 90, 2010 |\n| s. 95A................... | ad. No. 12, 1979 |\n|  | am. No. 19, 1980 |\n| s. 95B................... | ad. No. 29, 1982 |\n|  | am. No. 41, 2011 |\n| s. 96A................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 138, 1994; No. 93, 1999; No. 73, 2004 |\n|  | rep. No. 114, 2010 |\n| s. 96B................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 96C................... | ad. No. 190, 1992 |\n|  | am. No. 163, 2001; No. 15, 2009 |\n|  | rep. No. 114, 2010 |\n| Note to s. 96C(6)............ | ad. No. 32, 2006 |\n| s. 97.................... | rs. No. 12, 1979 |\n|  | am. No. 19, 1980; No. 108, 1981; No. 29, 1982; No. 14, 1983; Nos. 121 and 150, 1997; No. 70, 1999; No. 57, 2001; No. 66, 2003; No. 101, 2006 |\n| Note to s. 97(1)............. | ad. No. 169, 1999 |\n|  | rep. No. 62, 2011 |\n| Heading to s. 97A........... | am. No. 85, 1998; No. 143, 2007 |\n| s. 97A................... | ad. No. 205, 1976 |\n|  | am. No. 19, 1980; No. 108, 1981 |\n|  | rs. No. 56, 1989 |\n|  | am. No. 85, 1998; No. 101, 2006; No. 79, 2010 |\n| Note to s. 97A............. | ad. No. 79, 2010 |\n|  | am. No. 62, 2011 |\n| s. 98.................... | am. No. 22, 1942; No. 48, 1950 |\n|  | rs. No. 12, 1979 |\n|  | am. No. 19, 1980; No. 108, 1981; No. 29, 1982; No. 14, 1983; No. 107, 1989; No. 79, 2007 |\n| Note to s. 98(3)............. | ad. No. 169, 1999 |\n| s. 98A................... | ad. No. 14, 1983 |\n|  | am. No. 79, 2007; No. 62, 2011 |\n| Note to s. 98A(1)........... | ad. No. 169, 1999 |\n|  | rep. No. 62, 2011 |\n| Note to s. 98A(2)........... | ad. No. 91, 2000 |\n|  | am. No. 73, 2006; No 34, 2014 |\n| s. 98B................... | ad. No. 79, 2007 |\n|  | am. No. 62, 2011; No 34, 2014; No 53, 2016 |\n| s. 99.................... | am. No. 22, 1942 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 12, 1979; No. 108, 1981 |\n| s. 99A................... | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 126, 1977; No. 12, 1979; No. 19, 1980; No. 108, 1981; No. 41, 1998; No. 169, 1999; No. 41, 2011 |\n| s. 99B................... | ad. No. 12, 1979 |\n|  | am. No. 5, 1991; No. 66, 2003; No. 79, 2007 |\n| s. 99C................... | ad. No. 12, 1979 |\n|  | am. No. 41, 2011 |\n| s. 99D................... | ad. No. 12, 1979 |\n|  | am. No. 108, 1981 |\n| s. 99E................... | ad. No. 79, 2007 |\n| s. 99F................... | ad. No. 79, 2007 |\n|  | rep. No. 32, 2008 |\n| s. 99G................... | ad. No. 79, 2007 |\n|  | rs. No. 32, 2008 |\n| s 99GA.................. | ad No 34, 2019 |\n| s. 99H................... | ad. No. 79, 2007 |\n|  | am. No. 32, 2008; No. 88, 2009 |\n| s. 100................... | am. No. 12, 1979; No. 19, 1980; No. 108, 1981; No. 57, 2002; No. 79, 2007; No. 62, 2011 |\n| Note to s. 100(1)............  Renumbered Note 1.......... | ad. No. 169, 1999  No. 79, 2007 |\n| Note 1 to s. 100(1)........... | rep. No. 62, 2011 |\n| Note 2 to s. 100(1)...........  Renumbered Note........... | ad. No. 79, 2007  No. 62, 2011 |\n| Note 1 to s. 100(1B)......... | rep. No. 62, 2011 |\n| s. 100AA................. | ad. No. 62, 2011 |\n|  | am No 53, 2016 |\n| s. 100AB................. | ad. No. 62, 2011 |\n|  | am No 53, 2016 |\n| s. 100A.................. | ad. No. 12, 1979 |\n|  | am. No. 19, 1980; No. 108, 1981; No. 29, 1982; No. 121, 1997; No. 144, 2008 |\n| s. 101................... | am. No. 110, 1964; No. 41, 2011 |\n| s. 101A.................. | ad. No. 58, 1941 |\n|  | am. No. 123, 1978; No. 47, 1984; No. 85, 1998; No. 15, 2007; No. 79, 2010; No. 41, 2011 |\n| s. 102................... | am. No. 58, 1941; No. 11, 1947; No. 12, 1979; No. 108, 1981; Nos. 95 and 153, 1988; No. 135, 1990; No. 5, 1991; No. 41, 2011 |\n| Division 6AAA |  |\n| Division 6AAA............ | ad. No. 5, 1991 |\n| Subdivision A |  |\n| s. 102AAA............... | ad. No. 5, 1991 |\n| s. 102AAB................ | ad. No. 5, 1991 |\n|  | am. No. 135, 1990; No. 181, 1994; No. 155, 1997; No. 11, 1999; No. 77, 2001; No. 96, 2004; Nos. 58 and 101, 2006; Nos. 4, 15 and 143, 2007; No. 144, 2008; No. 46, 2011; No 53, 2016 |\n| s. 102AAC................ | ad. No. 5, 1991 |\n|  | am. No. 155, 1997 |\n|  | rs. No. 96, 2004 |\n| s. 102AAD............... | ad. No. 5, 1991 |\n| s. 102AAE................ | ad. No. 5, 1991 |\n|  | am. Nos. 121 and 155, 1997; No. 70, 1999; No. 57, 2001; No. 96, 2004; No. 101, 2006; Nos. 15 and 143, 2007; No 53, 2016 |\n| s. 102AAF................ | ad. No. 5, 1991 |\n|  | am No 53, 2016 |\n| s. 102AAG............... | ad. No. 5, 1991 |\n| s. 102AAH............... | ad. No. 5, 1991 |\n|  | am. No. 18, 1993; No. 121, 1997; No. 144, 2008; No. 169, 2012 |\n| s. 102AAJ................ | ad. No. 5, 1991 |\n| s. 102AAK............... | ad. No. 5, 1991 |\n|  | am. No. 101, 2006 |\n| s. 102AAL................ | ad. No. 5, 1991 |\n| Subdivision B |  |\n| s. 102AAM............... | ad. No. 5, 1991 |\n|  | am. Nos. 100 and 216, 1991; Nos. 101 and 190, 1992; No. 181, 1994; No. 155, 1997; No. 41, 1998; Nos. 11, 70 and 179, 1999; No. 67, 2003; No. 96, 2004; No. 23, 2005; Nos. 58 and 101, 2006; Nos. 15 and 143, 2007; No. 79, 2010; No 47, 2014; No 53, 2016; No 81, 2016 |\n| s. 102AAN............... | ad. No. 5, 1991 |\n|  | rep. No. 101, 2006 |\n|  | ad. No. 79, 2010 |\n| Subdivision C.............. | rep. No. 101, 2006 |\n| ss. 102AAP–102AAR........ | ad. No. 5, 1991 |\n|  | rep. No. 101, 2006 |\n| Subdivision D |  |\n| ss. 102AAS, 102AAT........ | ad. No. 5, 1991 |\n| s. 102AAU............... | ad. No. 5, 1991 |\n|  | am. No. 138, 1994; No. 155, 1997; Nos. 70 and 93, 1999; No. 96, 2004; No. 23, 2005; No. 143, 2007; No. 114, 2010; No. 62, 2011 |\n| s. 102AAV............... | ad. No. 5, 1991 |\n|  | am. No. 22, 1995 |\n| s. 102AAW............... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; No. 163, 2001; No. 133, 2003; No. 96, 2004; No. 147, 2005; No. 101, 2006; No. 136, 2010 |\n| s. 102AAX............... | ad. No. 5, 1991 |\n|  | am. No. 101, 1992 |\n|  | rep. No. 133, 2003 |\n| s. 102AAY............... | ad. No. 5, 1991 |\n|  | rs. No. 121, 1997 |\n| s. 102AAZ................ | ad. No. 5, 1991 |\n|  | am. No. 121, 1997; No. 79, 2000; No. 77, 2001; No. 101, 2006 |\n| s. 102AAZA.............. | ad. No. 5, 1991 |\n|  | am. No. 15, 2007 |\n|  | rep. No. 101, 2013 |\n| s. 10","sortOrder":1000150},{"sectionNumber":"full-source-retrieval-0152","sectionType":"document_chunk","heading":"Document excerpt 152","content":"2AAZB............... | ad. No. 5, 1991 |\n|  | rs. No. 46, 1998 |\n|  | am. No. 66, 2003; No. 168, 2006 |\n| s. 102AAZBA............. | ad. No. 48, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998; No. 101, 2006 |\n| s. 102AAZC............... | ad. No. 5, 1991 |\n|  | am. No. 39, 1997; No. 143, 2007 |\n| s. 102AAZD.............. | ad. No. 5, 1991 |\n| s. 102AAZE............... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004 |\n| s. 102AAZF............... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004 |\n| s. 102AAZG.............. | ad. No. 5, 1991 |\n|  | am. No. 91, 2000; No. 146, 2001; No 4, 2016 |\n| Division 6AA |  |\n| Division 6AA.............. | ad. No. 19, 1980 |\n| ss. 102AA, 102AB.......... | ad. No. 19, 1980 |\n| s. 102AC................. | ad. No. 19, 1980 |\n|  | am. No. 108, 1981; No. 106, 1982; No. 78, 1988; No. 107, 1989; No. 135, 1990; Nos. 100 and 216, 1991; No. 13, 1999; Nos. 33 and 90, 2010 |\n| s. 102AD................. | ad. No. 19, 1980 |\n| s. 102AE................. | ad. No. 19, 1980 |\n|  | am. No. 108, 1981; No. 181, 1994; No. 83, 2004 |\n| s. 102AF................. | ad. No. 19, 1980 |\n|  | am. No. 108, 1981; No. 29, 1982; No. 179, 1999; No. 101, 2006 |\n| s. 102AG................. | ad. No. 19, 1980 |\n|  | am. No. 108, 1981; No. 29, 1982; No. 181, 1994; No 64, 2020 |\n| s. 102AGA............... | ad. No. 181, 1994 |\n|  | am. No. 144, 2008 |\n| s. 102AH................. | ad. No. 19, 1980 |\n|  | am. No. 67, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 102AJ................. | ad. No. 19, 1980 |\n|  | rep. No. 67, 2003 |\n| Division 6A |  |\n| Heading to Div. 6A of Part III... | am. No. 46, 1986 |\n| Div. 6A of Part III........... | ad. No. 110, 1964 |\n| s. 102A.................. | ad. No. 110, 1964 |\n|  | am. No. 108, 1981; No. 46, 1986; No. 101, 2006; No. 41, 2011 |\n| s. 102B.................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 46, 1986; No. 121, 1997 |\n| s. 102C.................. | ad. No. 110, 1964 |\n|  | am. No. 108, 1981 |\n| s. 102CA................. | ad. No. 46, 1986 |\n|  | am. No. 121, 1997; No. 15, 2009 |\n| Div. 6B of Part III........... | ad. No. 154, 1981 |\n|  | rep No 53, 2016 |\n| s. 102D.................. | ad. No. 154, 1981 |\n|  | am. No. 17, 1998; No. 41, 2011 |\n|  | rep No 53, 2016 |\n| s. 102E.................. | ad. No. 154, 1981 |\n|  | rep No 53, 2016 |\n| s. 102F.................. | ad. No. 154, 1981 |\n|  | am. No. 164, 2007 |\n|  | rep No 53, 2016 |\n| s. 102G.................. | ad. No. 154, 1981 |\n|  | am. No. 41, 2011 |\n|  | rep No 53, 2016 |\n| s. 102H.................. | ad. No. 154, 1981 |\n|  | rep No 53, 2016 |\n| s. 102J.................. | ad. No. 154, 1981 |\n|  | rep No 53, 2016 |\n| s. 102K.................. | ad. No. 154, 1981 |\n|  | rep No 53, 2016 |\n| s. 102L.................. | ad. No. 154, 1981 |\n|  | am. No. 173, 1985; Nos. 58, 61, 62 and 108, 1987; No. 35, 1992; No. 179, 1999; No. 163, 2001; No. 83, 2004; No. 64, 2005; No. 101, 2006; No. 143, 2007; No. 32, 2008 |\n|  | rep No 53, 2016 |\n| Division 6C |  |\n| Div. 6C of Part III........... | ad. No. 173, 1985 |\n| s. 102M.................. | ad. No. 173, 1985 |\n|  | am. No. 138, 1987; Nos. 78, 95 and 153, 1988; Nos. 97 and 105, 1989; No. 56, 1994; No. 169, 1995; Nos. 121 and 150, 1997; Nos. 17 and 41, 1998; No. 44, 1999; No. 101, 2004; No. 63, 2005; No. 15, 2007; Nos. 45 and 145, 2008; No. 75, 2010; No. 41, 2011 |\n| s. 102MA................ | ad. No. 145, 2008 |\n|  | am. No. 12, 2012 |\n| ss. 102MB, 102MC.......... | ad. No. 145, 2008 |\n| s. 102MD................ | ad. No. 75, 2010 |\n|  | am No 70, 2015 |\n|  | rs No 53, 2016 |\n| s. 102N.................. | ad. No. 173, 1985 |\n|  | am. No. 164, 2007 |\n| s. 102NA................. | ad. No. 164, 2007 |\n|  | am No 53, 2016 |\n| s. 102P.................. | ad. No. 173, 1985 |\n|  | am. No. 164, 2007; No 53, 2016 |\n| s. 102Q.................. | ad. No. 173, 1985 |\n| s. 102R.................. | ad. No. 173, 1985 |\n|  | am No 53, 2016; No 8, 2020 |\n| s. 102S.................. | ad. No. 173, 1985 |\n| s. 102T.................. | ad. No. 173, 1985 |\n|  | am. Nos. 58, 61, 62 and 108, 1987; No. 35, 1992; No. 179, 1999; No. 163, 2001; No. 83, 2004; No. 64, 2005; No. 101, 2006; No. 143, 2007; No. 32, 2008; No. 14, 2009; No. 93, 2011; No 53, 2016 |\n| Division 6D |  |\n| Division 6D............... | ad. No. 70, 1999 |\n| Subdivision A |  |\n| s. 102UA................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| Subdivision B |  |\n| s. 102UB................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| s. 102UC................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007; No. 97, 2008; No. 41, 2011; No 95, 2019 |\n| s. 102UD................. | ad. No. 70, 1999 |\n| s. 102UE................. | ad. No. 70, 1999 |\n|  | am. No. 43, 2000 |\n|  | rs. No. 143, 2007 |\n| s. 102UF................. | ad. No. 70, 1999 |\n|  | rep. No. 143, 2007 |\n| s. 102UG................. | ad. No. 70, 1999 |\n|  | rs. No. 143, 2007 |\n| s. 102UH................. | ad. No. 70, 1999 |\n|  | rs. No. 43, 2000; No. 143, 2007 |\n| s. 102UI................. | ad. No. 70, 1999 |\n| s. 102UJ................. | ad. No. 70, 1999 |\n|  | rs. No. 143, 2007 |\n| Subdivision C |  |\n| Subdivision C heading........ | rs. No. 143, 2007 |\n| s. 102UK................. | ad. No. 70, 1999 |\n|  | am. No. 43, 2000; No. 143, 2007; No 95, 2019 |\n| s. 102UL................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| s. 102UM................ | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| Subdivision D |  |\n| Subdivision D heading........ | rs. No. 143, 2007 |\n| s. 102UN................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| s. 102UO................. | ad. No. 70, 1999 |\n|  | am. Nos. 178 and 179, 1999; No. 143, 2007 |\n| s. 102UP................. | ad. No. 70, 1999 |\n|  | rs. No. 178, 1999 |\n|  | am. No. 101, 2006; No. 143, 2007 |\n| s. 102UQ................. | ad. No. 70, 1999 |\n|  | rs. No. 178, 1999 |\n| s. 102UR................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007 |\n| s. 102URA................ | ad. No. 43, 2000 |\n|  | am. No. 143, 2007 |\n| s 102US................. | ad No 70, 1999 |\n|  | am No 143, 2007 |\n|  | rep No 2, 2015 |\n| s. 102USA................ | ad. No. 43, 2000 |\n|  | rs. No. 143, 2007 |\n| Subdivision E |  |\n| Subdivision E heading........ | rs. No. 143, 2007 |\n| s. 102UT................. | ad. No. 70, 1999 |\n|  | am. No. 143, 2007; No 4, 2016; No 95, 2019 |\n| ss. 102UU, 102UV.......... | ad. No. 70, 1999 |\n|  | rs. No. 143, 2007 |\n| Division 6E |  |\n| Division 6E............... | ad. No. 62, 2011 |\n| ss. 102UW–102UY.......... | ad. No. 62, 2011 |\n| Division 7 |  |\n| Division 7................ | ad. No. 90, 1952 |\n| s. 102V.................. | ad. No. 163, 2001 |\n| s. 103................... | am. No. 46, 1938; Nos. 17 and 65, 1940; No. 58, 1941; Nos. 22 and 50, 1942; No. 10, 1943; No. 3, 1944; No. 37, 1945 |\n|  | rs. No. 44, 1948 |\n|  | am. No. 48, 1950 |\n|  | rs. No. 44, 1951; No. 90, 1952 |\n|  | am. No. 45, 1953; No. 101, 1956; No. 85, 1959; No. 18, 1960; No. 110, 1964; No. 103, 1965; No. 4, 1968; No. 47, 1972; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 126, 1977; No. 108, 1981; Nos. 49 and 51, 1986; No. 62, 1987; No. 224, 1992; No. 96, 2004; No. 101, 2006; No. 41, 2011 |\n| s. 103A.................. | ad. No. 110, 1964 |\n|  | am. No. 47, 1972; Nos. 51 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1977; Nos. 92, 108 and 154, 1981; No. 47, 1984; No. 121, 1997; No. 63, 1998; No. 57, 2002; No. 101, 2004; No. 101, 2006; No. 41, 2011 |\n| s. 103AA................. | ad. No. 164, 1973 |\n|  | am. No. 165, 1973; No. 80, 1975; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 104................... | am. No. 17, 1940; No. 58, 1941; No. 10, 1943 |\n|  | rs. No. 44, 1948; No. 90, 1952 |\n|  | am. No. 50, 1966; No. 51, 1973; No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 105................... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 105A.................. | ad. No. 44, 1948 |\n|  | rs. No. 90, 1952 |\n|  | am. No. 47, 1972; Nos. 51 and 164, 1973; No. 57, 1978; Nos. 108 and 111, 1981; No. 76, 1982; No. 62, 1987; No. 57, 1990; No. 39, 1997; No. 23, 2005 |\n|  | rep. No. 101, 2006 |\n| ss. 105AAA–105AAC........ | ad. No. 51, 1973 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 105AA................. | ad. No. 69, 1963 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 51, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 105AB................. | ad. No. 172, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 105B.................. | ad. No. 44, 1948 |\n|  | am. No. 48, 1950 |\n|  | rs. No. 90, 1952 |\n|  | am. No. 45, 1953; No. 70, 1959; No. 69, 1963; No. 143, 1965 |\n|  | rs. No. 165, 1973 |\n|  | am. No. 205, 1976; No. 149, 1979; No. 108, 1981; No. 106, 1982; No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 105C.................. | ad. No. 90, 1952 |\n|  | am. No. 85, 1959; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 107................... | rs. No. 44, 1948; No. 90, 1952 |\n|  | am. No. 45, 1953; No. 101, 1956; No. 34, 1963; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 107A.................. | ad. No. 90, 1952 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 108................... | rs. No. 90, 1952 |\n|  | am. No. 85, 1959; No. 108, 1981 |\n|  | rs. No. 108, 1987 |\n|  | am. No. 135, 1990; No. 5, 1991; No. 47, 1998; No. 23, 2005; No. 101, 2006 |\n|  | rep. No. 79, 2007 |\n| s. 109................... | rs. No. 90, 1952 |\n|  | am. No. 85, 1959 |\n|  | rs. No. 108, 1987 |\n|  | am. No. 135, 1990; No. 101, 2006; No. 42, 2009 |\n| Division 7A |  |\n| Division 7A of Part III........ | ad. No. 47, 1998 |\n| Subdivision A |  |\n| Subdivision A............. | ad. No. 47, 1998 |\n| s. 109B.................. | ad. No. 47, 1998 |\n|  | am. No. 163, 2001; No. 90, 2002; No. 23, 2005; No. 79, 2007; No. 75, 2010 |\n| Subdivision AA |  |\n| Subdivision AA heading....... | rs. No. 75, 2010 |\n| Subdivision AA............ | ad. No. 163, 2001 |\n| s. 109BA................. | ad. No. 163, 2001 |\n| ss. 109BB, 109BC........... | ad. No. 75, 2010 |\n| Subdivision B |  |\n| Subdivision B.............. | ad. No. 47, 1998 |\n| s 109C.................. | ad No 47, 1998 |\n|  | am No 79, 2007; No 42, 2009; No 75, 2010 |\n| s 109CA................. | ad No 75, 2010 |\n|  | am No 46, 2011; No 12, 2012; No 84, 2022 |\n| s. 109D.................. | ad. No. 47, 1998 |\n|  | am. No. 41, 2005; No. 79, 2007; No. 75, 2010 |\n| s. 109E.................. | ad. No. 47, 1998 |\n|  | am. No. 41, 2005; No. 79, 2007 |\n| s. 109F.................. | ad. No. 47, 1998 |\n|  | am. No. 79, 2010 |\n| Subdivision C |  |\n| Subdivision C.............. | ad. No. 47, 1998 |\n| s. 109G.................. | ad. No. 47, 1998 |\n|  | am. No. 79, 2007 |\n| Subdivision D |  |\n| Subdivision D............. | ad. No. 47, 1998 |\n| s. 109H.................. | ad. No. 47, 1998 |\n|  | am. No. 56, 2007; No. 133, 2009 |\n| ss. 109J–109M............. | ad. No. 47, 1998 |\n| s. 109N.................. | ad. No. 47, 1998 |\n|  | am. No. 140, 2003; No. 41, 2005; No. 79, 2007 |\n| s. 109NA................. | ad. No. 47, 1998 |\n| s. 109NB................. | ad. No. 47, 1998 |\n|  | am. No. 56, 2007 |\n|  | rs. No. 133, 2009 |\n|  | am No 105, 2015 |\n| s. 109P.................. | ad. No. 47, 1998 |\n|  | am. No. 79, 2007 |\n| s. 109Q.................. | ad. No. 47, 1998 |\n| s. 109R.................. | ad. No. 47, 1998 |\n|  | am. No. 179, 1999; No. 79, 2007; No. 75, 2010 |\n| Subdivision DA |  |\n| Subdivision DA............ | ad. No. 90, 2002 |\n| s. 109RA................. | ad. No. 90, 2002 |\n| Subdivision DB |  |\n| Subdivision DB............ | ad. No. 79, 2007 |\n| ss. 109RB–109RD........... | ad. No. 79, 2007 |\n| Subdivision E |  |\n| Subdivision E.............. | ad. No. 47, 1998 |\n| s. 109S.................. | ad. No. 47, 1998 |\n|  | am. No. 95, 2004 |\n| ss. 109T, 109U............. | ad. No. 47, 1998 |\n| s. 109UA................. | ad. No. 47, 1998 |\n|  | am. No. 79, 2007 |\n| s. 109UB................. | ad. No. 47, 1998 |\n|  | rep. No. 95, 2004 |\n| ss. 109V, 109W............ | ad. No. 47, 1998 |\n| s. 109X.................. | ad. No. 47, 1998 |\n|  | am. No. 79, 2007 |\n| Subdivision EA |  |\n| Subdivision EA............ | ad. No. 95, 2004 |\n| s. 109XA................. | ad. No. 95, 2004 |\n|  | am. No. 95, 2004; No. 75, 2010 |\n| s. 109XB................. | ad. No. 95, 2004 |\n|  | am. No. 75, 2010 |\n| s. 109XC................. | ad. No. 95, 2004 |\n|  | am. No. 41, 2005; No. 75, 2010 |\n| s. 109XD................. | ad. No. 75, 2010 |\n| Subdivision EB |  |\n| Subdivision EB............. | ad. No. 75, 2010 |\n| ss. 109XE–109XI........... | ad. No. 75, 2010 |\n| Subdivision F |  |\n| Subdivision F.............. | ad. No. 47, 1998 |\n| s. 109Y.................. | ad. No. 47, 1998 |\n|  | am. No. 63, 1998; No. 23, 2005; No. 79, 2007; No. 97, 2008; No. 75, 2010; No 31, 2014 |\n| s. 109Z.................. | ad. No. 47, 1998 |\n| s. 109ZA................. | ad. No. 47, 1998 |\n|  | am. No. 179, 1999; No. 101, 2006 |\n| s. 109ZB................. | ad. No. 47, 1998 |\n| s. 109ZC................. | ad. No. 47, 1998 |\n|  | am. No. 93, 1999; No. 66, 2003; No. 23, 2005; No. 79, 2007 |\n| s. 109ZCA................ | ad. No. 75, 2010 |\n| Subdivision G |  |\n| Subdivision G............. | ad. No. 47, 1998 |\n| s. 109ZD................. | ad. No. 47, 1998 |\n|  | am. No. 179, 1999; No. 41, 2005; No. 101, 2006; No. 79, 2007; No. 144, 2008; No. 75, 2010 |\n| s. 109ZE................. | ad. No. 47, 1998 |\n| Division 9 |  |\n| s. 117................... | am. No. 126, 1974; No. 154, 1981; No. 57, 1993 |\n| s. 118................... | am. No. 108, 1981 |\n| s. 119................... | am. No. 57, 1993 |\n| s. 120................... | am. No. 51, 1973; No. 108, 1981; No. 78, 1996; No. 63, 1998; No. 176, 1999; No. 101, 2003; No. 41, 2011 |\n| s. 121................... | rs. No. 89, 2000 |\n| Division 9AA |  |\n| Division 9AA.............. | ad. No. 171, 1995 |\n| Subdivision A |  |\n| Subdivision A............. | ad. No. 171, 1995 |\n| s. 121AA................. | ad. No. 171, 1995 |\n| Subdivision B |  |\n| Subdivision B.............. | ad. No. 171, 1995 |\n| s 121AB................. | ad. No. 171, 1995 |\n|  | am No 20, 2004; No 75, 2009; No 37, 2019 |\n| s 121AC................. | ad No 171, 1995 |\n|  | am No 37, 2019 |\n| s 121AE................. | ad No 171, 1995 |\n| s. 121AEA................ | ad. No. 171, 1995 |\n| ss. 121AF–121AN........... | ad. No. 171, 1995 |\n| s. 121AO................. | ad. No. 171, 1995 |\n|  | am. No. 44, 1999; No. 154, 2007 |\n| s. 121AP................. | ad. No. 171, 1995 |\n| s. 121AQ................. | ad. No. 171, 1995 |\n|  | am. No. 15, 2007; No. 97, 2008 |\n| s. 121AR................. | ad. No. 171, 1995 |\n|  | am. No. 15, 2007 |\n| Subdivision C |  |\n| Subdivision C.............. | ad. No. 171, 1995 |\n| s. 121AS................. | ad. No. 171, 1995 |\n|  | am. No. 46, 1998; No. 169, 1999; No. 57, 2002; No 58, 2006; No 101, 2006; No 133, 2014 |\n| s. 121AT................. | ad. No. 171, 1995 |\n|  | am. Nos. 41 and 46, 1998; No. 23, 2005; No. 15, 2007 |\n| s. 121AU................. | ad. No. 88, 2009 |\n| Division 9A |  |\n| Division 9A............... | ad. No. 191, 1992 |\n| Subdivision A |  |\n| s 121A.................. | ad No 191, 1992 |\n|  | rep No 110, 2021 |\n| s 121B.................. | ad No 191, 1992 |\n|  | am No 93, 1999; No 143, 2007; No 70, 2015; No 110, 2021 |\n| Subdivision B |  |\n| s. 121C.................. | ad. No. 191, 1992 |\n|  | am. No. 76, 1996; No. 93, 1999; No. 16, 2003; No. 21, 2005; No 70, 2015 |\n| s. 121D.................. | ad. No. 191, 1992 |\n|  | am. No. 82, 1994; No. 76, 1996; No. 93, 1999; No. 15, 2009; No 70, 2015 |\n| s. 121DA................. | ad. No. 76, 1996 |\n|  | am. No. 93, 1999 |\n| s 121DB................. | ad No 70, 2015 |\n| s 121DC................. | ad No 70, 2015 |\n| s 121DD................. | ad No 70, 2015 |\n| s. 121E.................. | ad. No. 191, 1992 |\n|  | am No 70, 2015 |\n| s. 121EA................. | ad. No. 191, 1992 |\n| s 121EAA................ | ad No 70, 2015 |\n|  | am No 110, 2021 |\n| s. 121EB................. | ad. No. 191, 1992 |\n|  | am. No. 15, 2009; No 70, 2015 |\n| s. 121EC................. | ad. No. 191, 1992 |\n|  | am. No. 63, 1998 |\n| s. 121ED................. | ad. No. 191, 1992 |\n| s 121EDA................ | ad No 70, 2015 |\n| s. 121EE................. | ad. No. 191, 1992 |\n|  | am. No. 76, 1996; No. 46, 1998; No. 93, 1999; No 70, 2015 |\n| s. 121EF................. | ad. No. 191, 1992 |\n|  | am. No. 39, 1997; No 70, 2015 |\n| Subdivision C |  |\n| s 121EG................. | ad No 191, 1992 |\n|  | am No 23, 2005; No 143, 2007 |\n|  | rep No 110, 2021 |\n| s 121EH................. | ad No 191, 1992 |\n|  | am No 143, 2007; No 70, 2015 |\n|  | rep No 110, 2021 |\n| s. 121EI................. | ad. No. 191, 1992 |\n|  | am. No. 76, 1996 |\n|  | rep. No. 143, 2007 |\n| s 121EJ.................. | ad No 191, 1992 |\n|  | am No 93, 1999; No 143, 2007; No 8, 2019 |\n| s. 121EK................. | ad. No. 191, 1992 |\n| s. 121EL................. | ad. No. 191, 1992 |\n|  | am. No. 76, 1996; No. 46, 1998; No. 93, 1999 |\n| ss. 121ELA, 121ELB......... | ad. No. 93, 1999 |\n| Division 9B............... | ad. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 121EM................. | ad. No. 120, 1995 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 121EN–121EQ........... | ad. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| Division 9C |  |\n| Division 9C............... | ad. No. 108, 1981 |\n| s. 121F.................. | ad. No. 108, 1981 |\n|  | am. No. 154, 1981; No. 47, 1984; No. 52, 1986; No. 138, 1987; Nos. 78 and 153, 1988; No. 97, 1989; No. 56, 1994; No. 169, 1995; Nos. 121 and 150, 1997; No. 46, 1998; No. 101, 2004; No. 63, 2005; No. 101, 2006; No 96, 2013 |\n| s. 121G.................. | ad. No. 108, 1981 |\n|  | am. No. 29, 1982; Nos. 49 and 123, 1985; No. 97, 1989; No. 121, 1997; No. 147, 2005; No. 101, 2006 |\n| s. 121H.................. | ad. No. 108, 1981 |\n|","sortOrder":1000151},{"sectionNumber":"full-source-retrieval-0153","sectionType":"document_chunk","heading":"Document excerpt 153","content":"| am. No. 97, 1989 |\n| s. 121J.................. | ad. No. 108, 1981 |\n| s. 121K.................. | ad. No. 108, 1981 |\n|  | am. No. 22, 1995; No. 143, 2007 |\n| s. 121L.................. | ad. No. 108, 1981 |\n| Heading to Div. 10 of Part III... | rs. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| Div. 10 of Part III........... | ad. No. 60, 1968 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 10 of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 122................... | rs. No. 65, 1940; No. 11, 1947; No. 44, 1951 |\n|  | am. No. 70, 1959; No. 18, 1960 |\n|  | rs. No. 60, 1968 |\n|  | am. Nos. 51 and 164, 1973; No. 126, 1974; No. 80, 1975; No. 108, 1981; No. 57, 1990; No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 122AA................. | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 122AB................. | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 122A.................. | ad. No. 44, 1951 |\n|  | rs. No. 60, 1968 |\n|  | am. No. 93, 1969; No. 51, 1973; No. 126, 1974; No. 108, 1981; No. 95, 1988; No. 107, 1989; No. 57, 1990; No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 122B.................. | ad. No. 44, 1951 |\n|  | am. No. 18, 1960 |\n|  | rs. No. 60, 1968 |\n|  | am. No. 93, 1969; No. 51, 1973; No. 205, 1976; No. 108, 1981; No. 14, 1983; No. 107, 1989; No. 57, 1990; No. 101, 1992; No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 122BA................. | ad. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 122C.................. | ad. No. 60, 1968 |\n|  | am. Nos. 51 and 165, 1973; No. 126, 1974; No. 205, 1976; No. 127, 1977; No. 108, 1981; No. 107, 1989; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122D.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 126, 1974; No. 205, 1976; Nos. 108, 109 and 154, 1981; No. 14, 1983; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122DA................. | ad. No. 205, 1976 |\n|  | am. No. 108, 1981 |\n|  | rs. No. 109, 1981 |\n|  | am. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122DB................. | ad. No. 205, 1976 |\n|  | am. Nos. 109 and 154, 1981; No. 14, 1983; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122DC................. | ad. No. 109, 1981 |\n|  | am. No. 154, 1981; No. 14, 1983; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122DD................. | ad. No. 109, 1981 |\n|  | am. No. 154, 1981; No. 14, 1983; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122DE................. | ad. No. 154, 1981 |\n|  | am. No. 14, 1983; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122DF................. | ad. No. 154, 1981 |\n|  | am. No. 14, 1983; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122DG................. | ad. No. 14, 1983 |\n|  | am. No. 168, 1985; No. 57, 1990; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122H.................. | ad. No. 60, 1968 |\n|  | am. No. 108, 1981; No. 57, 1990; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 122J.................. | ad. No. 60, 1968 |\n|  | am. Nos. 51 and 165, 1973; No. 126, 1974; No. 127, 1977; No. 108, 1981; No. 124, 1984; No. 168, 1985; No. 107, 1989; No. 57, 1990; Nos. 48 and 216, 1991; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122JA................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 107, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 122JAA................ | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 181, 1994; No. 120, 1995; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 10.........  of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 122JB................. | ad. No. 57, 1990 |\n|  | am. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 122JBA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 122JC, 122JD........... | ad. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122JE................. | ad. No. 57, 1990 |\n|  | am. No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122JF................. | ad. No. 57, 1990 |\n|  | am. Nos. 4 and 48, 1991; No. 101, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122JG................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 120, 1995; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 10 of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 122KAA............... | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 122K.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 57, 1990; No. 100, 1991; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 122KA................. | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 122L.................. | ad. No. 60, 1968 |\n|  | am. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122M.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 205, 1976; Nos. 109 and 154, 1981; No. 168, 1985; No. 107, 1989; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 122N.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 205, 1976; Nos. 108, 109 and 154, 1981; No. 14, 1983; No. 124, 1984; No. 107, 1989; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122NB................. | ad. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 122P  Renumbered s. 122JA........ | No. 57, 1990 |\n| s. 122R.................. | ad. No. 60, 1968 |\n|  | am. No. 149, 1979; No. 108, 1981; No. 57, 1990; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 122S.................. | ad. No. 60, 1968 |\n|  | rep. No. 101, 2006 |\n| s. 122T.................. | ad. No. 126, 1974 |\n|  | am. No. 50, 1976; No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 122U.................. | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 10AAA.......  of Part III | rs. No. 57, 1990   rep. No. 101, 2006 |\n| Div. 10AAA of Part III....... | ad. No. 60, 1968 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 10AAA of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 123................... | rs. No. 60, 1968 |\n|  | am. No. 148, 1968; No. 51, 1973; No. 205, 1976; No. 47, 1984; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 123AAA............... | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 123A.................. | ad. No. 60, 1968 |\n|  | am. No. 148, 1968; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 80, 1975; Nos. 50 and 205, 1976; No. 108, 1981; No. 47, 1984; No. 57, 1990; No. 48, 1991; No. 39, 1997; No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 123AA................. | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 123B.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 126, 1974; No. 205, 1976; No. 108, 1981; No. 57, 1990; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 123BA................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 123BB................. | ad. No. 205, 1976 |\n|  | am. No. 108, 1981; No. 14, 1983; No. 57, 1990; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 123BBA................ | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 10AAA......  of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 123BC................. | ad. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 123BCA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 123BD................. | ad. No. 57, 1990 |\n|  | am. No. 48, 1991; No. 39, 1997; No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 123BE................. | ad. No. 57, 1990 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 123BF................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 10AAA of Part III | ad. No. 57, 1990   rep. No. 101, 2006 |\n| s. 123CA................. | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 123C.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 57, 1990; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 123D.................. | ad. No. 60, 1968 |\n|  | am. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 123E.................. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 107, 1989; No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 123EA................. | ad. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 123F.................. | ad. No. 60, 1968 |\n|  | am. No. 50, 1976; No. 149, 1979; No. 108, 1981; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 123G.................. | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Div. 10AA of Part III......... | ad. No. 126, 1974 |\n|  | rep. No. 101, 2006 |\n| s. 124................... | ad. No. 126, 1974 |\n|  | am. No. 80, 1975; No. 108, 1981; No. 48, 1991; No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 124AAA............... | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 124AA................. | ad. No. 126, 1974 |\n|  | am. No. 126, 1977; No. 108, 1981; No. 112, 1986; Nos. 78 and 95, 1988; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124AB................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; No. 57, 1978; No. 24, 1980; No. 108, 1981; No. 14, 1983; No. 112, 1986; No. 107, 1989; No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ABA................ | ad. No. 112, 1986 |\n|  | am. No. 78, 1988; No. 48, 1991; No. 101, 1992 (as am. by No. 43, 1996); No. 118, 1993; No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 124AC................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976 |\n|  | rep. No. 101, 2006 |\n| s. 124AD................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; Nos. 108, 109 and 154, 1981; No. 14, 1983; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ADA............... | ad. No. 205, 1976 |\n|  | am. No. 109, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124ADB................ | ad. No. 205, 1976 |\n|  | am. Nos. 109 and 154, 1981; No. 14, 1983; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ADC................ | ad. No. 109, 1981 |\n|  | am. No. 154, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124ADD............... | ad. No. 109, 1981 |\n|  | am. No. 154, 1981; No. 14, 1983; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ADE................ | ad. No. 154, 1981 |\n|  | am. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 124ADF................ | ad. No. 154, 1981 |\n|  | am. No. 14, 1983; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ADG............... | ad. No. 14, 1983 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ADH............... | ad. No. 168, 1985 |\n|  | am. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124AE................. | ad. No. 126, 1974 |\n|  | am. No. 111, 1981; No. 107, 1989; No. 57, 1990; No. 39, 1997 (as rep. by No. 121, 1997) |\n|  | rep. No. 101, 2006 |\n| s. 124AF................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; Nos. 109 and 154, 1981; No. 14, 1983; No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 124AG................. | ad. No. 126, 1974 |\n|  | am. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124AH................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; Nos. 109 and 154, 1981; No. 14, 1983; No. 168, 1985; No. 48, 1991; No. 101, 1992; No. 118, 1993; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124AJ................. | ad. No. 126, 1974 |\n|  | am. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 124AK, 124AL.......... | ad. No. 126, 1974 |\n|  | rep. No. 101, 2006 |\n| Note to s. 124AL(1A)........ | am. No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 124AM................ | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; No. 100, 1991; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124AMAA.............. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 17, 1993; No. 120, 1995; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124AMA............... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 124AN................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; Nos. 108, 109 and 154, 1981; No. 14, 1983; No. 107, 1989; No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 124AO................. | ad. No. 126, 1974 |\n|  | am. No. 149, 1979; No. 108, 1981; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124AP................. | ad. No. 126, 1974 |\n|  | rep. No. 101, 2006 |\n| s. 124AQ................. | ad. No. 126, 1974 |\n|  | am. No. 50, 1976; No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 124AR................. | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Div. 10AB of Part III......... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 124B.................. | ad. No. 100, 1991 |\n|  | am. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124BA................. | ad. No. 100, 1991 |\n|  | am. No. 216, 1991; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 124BB, 124BC........... | ad. No. 100, 1991 |\n|  | am. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 124BD–124BF........... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 10A.........  of Part III | rs. No. 69, 1963   rep. No. 101, 2006 |\n| Div. 10A of Part III.......... | ad. No. 101, 1956 |\n|  | rep. No. 101, 2006 |\n| Subdiv. AA of Div. 10A.......  of Part III | ad. No. 121, 1997   rep. No. 101, 2006 |\n| s. 124EAA................ | ad. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 10A of Part III | ad. No. 69, 1963   rep. No. 101, 2006 |\n| s. 124E.................. | ad. No. 101, 1956 |\n|  | am. No. 69, 1963 |\n|  | rep. No. 101, 2006 |\n| s. 124EA................. | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 124F.................. | ad. No. 101, 1956 |\n|  | am. No. 69, 1963; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124G.................. | ad. No. 101, 1956 |\n|  | am. No. 110, 1964; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124GA................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124H.................. | ad. No. 101, 1956 |\n|  | am. No. 69, 1963; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124J.................. | ad. No. 101, 1956 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 10A........  of Part III | ad. No. 69, 1963   rep. No. 101, 2006 |\n| s. 124JAA................ | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 124JA................. | ad. No. 69, 1963 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124JB................. | ad. No. 69, 1963 |\n|  | am. No. 110, 1964; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124JC................. | ad. No. 69, 1963 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 124JD................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 10A of Part III | am. No. 17, 1993   rep. No. 101, 2006 |\n| Subdiv. C of Div. 10A........  of Part III | ad. No. 35, 1992   rep. No. 101, 2006 |\n| s. 124JE................. | ad. No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124JF................. | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Div. 10B of Part III.......... | ad. No. 101, 1956 |\n|  | rep. No. 164, 2007 |\n| s. 124K.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978; No. 111, 1981; No. 14, 1983; No. 123, 1984; No. 49, 1985; No. 153, 1988; No. 48, 1991; No. 39, 1999; No. 146, 1999; No. 72, 2001; No. 101, 2006; No. 4, 2007; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124KAA............... | ad. No. 76, 1996 |\n|  | rep. No. 164, 2007 |\n| s. 124KA................. | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124L.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978; No. 46, 1998; No. 77, 2001; No. 27, 2002; No. 101, 2006; No. 164, 2007 |\n|  | rep. No. 164, 2007 |\n| s. 124M.................. | ad. No. 101, 1956 |\n|  | am. No. 143, 1965; No. 172, 1978; No. 108, 1981 |\n|  | rep. No. 164, 2007 |\n| s. 124N.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124P.................. | ad. No. 101, 1956 |\n|  | am. No. 51, 1973; No. 172, 1978 |\n|  | rep. No. 164, 2007 |\n| s. 124PA................. | ad. No. 35, 1992 |\n|  | am. No. 224, 1992; No. 46, 1998; No. 169, 1999; No. 147, 2005; No. 144, 2008 |\n|  | rep. No. 164, 2007 |\n| s. 124Q.................. | ad. No. 101, 1956 |\n|  | rep. No. 164, 2007 |\n| s. 124R.................. | ad. No. 101, 1956 |\n|  | am. No. 51, 1973 |\n|  | rs. No. 172, 1978 |\n|  | am. No. 108, 1981; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124S.................. | ad. No. 101, 1956 |\n|  | am. No. 51, 1973; No. 172, 1978; No. 108, 1981; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124T.................. | ad. No. 101, 1956 |\n|  | rs. No. 172, 1978 |\n|  | rep. No. 164, 2007 |\n| s. 124U.................. | ad. No. 101, 1956 |\n|  | am. No. 51, 1973; No. 172, 1978; No. 108, 1981 |\n|  | rep. No. 147, 2005 |\n| s. 124UA................. | ad. No. 172, 1978 |\n|  | am. No. 101, 1992; No. 147, 2005 |\n|  | rep. No. 164, 2007 |\n| s. 124V.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978; No. 108, 1981; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124W................. | ad. No. 101, 1956 |\n|  | rs. No. 172, 1978 |\n|  | am. No. 108, 1981; No. 35, 1992 |\n|  | rep. No. 164, 2007 |\n| s. 124WA................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124X.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978 |\n|  | rep. No. 101, 2006 |\n| s. 124Y.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124Z.................. | ad. No. 101, 1956 |\n|  | am. No. 172, 1978 |\n|  | rep. No. 164, 2007 |\n| Div. 10BA of Part III......... | ad. No. 111, 1981 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAA................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 49, 1985; No. 62, 1987; No. 153, 1988; No. 101, 2006; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAB................ | ad. No. 111, 1981 |\n|  | am. No. 62, 1987; No. 153, 1988; No. 41, 2005; No. 164, 2007; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAC................ | ad. No","sortOrder":1000152},{"sectionNumber":"full-source-retrieval-0154","sectionType":"document_chunk","heading":"Document excerpt 154","content":". 111, 1981 |\n|  | am. No. 153, 1988; No. 27, 2002; No. 164, 2007; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAD................ | ad. No. 111, 1981 |\n|  | am. No. 62, 1987; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZADAA............. | ad. No. 153, 1988 |\n|  | am. No. 146, 1999; No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZADAB............. | ad. No. 153, 1988 |\n|  | am. No. 88, 2009 |\n|  | rep. No. 164, 2007 |\n| s. 124ZADA.............. | ad. No. 14, 1983 |\n|  | am. No. 57, 1990; No. 216, 1991; No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 164, 2007 |\n| s. 124ZADB............... | ad. No. 14, 1983 |\n|  | am. No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAE................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 101, 1992; No. 101, 2003; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAEA............... | ad. No. 72, 2001 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAFAA.............. | ad. No. 76, 1996 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAF................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 14, 1984; No. 168, 1985 |\n|  | rep. No. 101, 2006 |\n| s. 124ZAFA............... | ad. No. 14, 1983 |\n|  | am. No. 14, 1984; No. 168, 1985; No. 153, 1988; No. 57, 1990; No. 164, 2007 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAG................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAGA.............. | ad. No. 14, 1983 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAH................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983 |\n|  | rep. No. 164, 2007 |\n| ss. 124ZAJ–124ZAM......... | ad. No. 111, 1981 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAN................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 124ZAO................ | ad. No. 111, 1981 |\n|  | am. No. 14, 1983; No. 101, 2006 |\n|  | rep. No. 164, 2007 |\n| s. 124ZAP................ | ad. No. 111, 1981 |\n|  | rep. No. 164, 2007 |\n| Div. 10C of Part III.......... | ad. No. 57, 1980 |\n|  | rep. No. 101, 2006 |\n| s. 124ZAPA............... | ad. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ZA................. | ad. No. 57, 1980 |\n|  | am. No. 133, 1980; No. 108, 1981; No. 47, 1984; No. 138, 1987; No. 153, 1988; Nos. 97 and 167, 1989; No. 98, 1992; No. 56, 1994; No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 124ZAAA.............. | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| s. 124ZB................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 123, 1984; No. 46, 1986; No. 98, 1992; No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 124ZC................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 124, 1984; No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZD................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZE................. | ad. No. 57, 1980 |\n|  | am. No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZEA................ | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 10D.........  of Part III | am. No. 167, 1989; No. 98, 1992   rep. No. 101, 2006 |\n| Div. 10D of Part III.......... | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 124ZEB................ | ad. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 124ZF................. | ad. No. 14, 1983 |\n|  | am. No. 46, 1986; No. 167, 1989; No. 135, 1990; No. 48, 1991; Nos. 98 and 224, 1992; Nos. 138 and 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 124ZFAA............... | ad. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 124ZFA, 124ZFB......... | ad. No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZFC................ | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZG................. | ad. No. 14, 1983 |\n|  | am. No. 46, 1986; No. 95, 1988; No. 167, 1989; No. 48, 1991; No. 98, 1992; No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 124ZH................. | ad. No. 14, 1983 |\n|  | am. No. 124, 1984; No. 138, 1987; No. 167, 1989; No. 98, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 124ZJ................. | ad. No. 14, 1983 |\n|  | am. No. 167, 1989; No. 98, 1992; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 124ZK................. | ad. No. 14, 1983 |\n|  | am. No. 167, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 124ZL................. | ad. No. 167, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 124ZLA................ | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| Division 10E |  |\n| Division 10E heading......... | am. No. 181, 1994 |\n| Division 10E.............. | ad. No. 98, 1992 |\n| Subdivision A |  |\n| Subdivision A heading........ | ad. No. 181, 1994 |\n| s. 124ZM................. | ad. No. 98, 1992 |\n|  | am. No. 79, 2000 |\n|  | rs. No. 101, 2006 |\n|  | am. No. 15, 2007; No. 45, 2008; No 70, 2015; No 53, 2016 |\n| s. 124ZN................. | ad. No. 98, 1992 |\n|  | am. No. 46, 1998 |\n| s. 124ZO................. | ad. No. 98, 1992 |\n| s. 124ZQ................. | ad. No. 98, 1992 |\n| s. 124ZR................. | ad. No. 98, 1992 |\n|  | am. No. 46, 1998 |\n| Subdivision B |  |\n| Heading to Subdiv. B.........  of Div. 10E of Part III | rs. No. 39, 1997 |\n| Subdiv. B of Div. 10E........  of Part III | ad. No. 181, 1994 |\n| s. 124ZS................. | ad. No. 181, 1994 |\n|  | am. No. 46, 1998 |\n| s. 124ZTA................ | ad. No. 39, 1997 |\n| ss. 124ZT–124ZV........... | ad. No. 181, 1994 |\n| Subdivision C |  |\n| Subdiv. C of Div. 10E........  of Part III | ad. No. 181, 1994 |\n| s. 124ZW................ | ad. No. 181, 1994 |\n|  | am. No. 46, 1998 |\n| ss. 124ZX, 124ZY........... | ad. No. 181, 1994 |\n| s. 124ZZ................. | ad. No. 181, 1994 |\n|  | am. No. 46, 1998 |\n| s. 124ZZA................ | ad. No. 181, 1994 |\n|  | am. No. 46, 1998 |\n| s. 124ZZB................ | ad. No. 181, 1994 |\n|  | am. No. 46, 1998 |\n| s. 124ZZD................ | ad. No. 181, 1994 |\n|  | rs. No. 46, 1998 |\n| Div. 10F of Part III.......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. AA of Div. 10F.......  of Part III | ad. No. 46, 1998   rep. No. 101, 2006 |\n| s. 124ZZEA............... | ad. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. A of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZE................ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZF................ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| ss. 124ZZG–124ZZI......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZJ................ | ad. No. 171, 1995 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. E of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| ss. 124ZZK, 124ZZL......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. F of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZM................ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. G of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZN................ | ad. No. 171, 1995 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. H of Div. 10F........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 124ZZO................ | ad. No. 171, 1995 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 124ZZP................ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. I of Div. 10F.........  of Part III | ad. No. 171, 1995   rep. No. 101, 2006 |\n| ss. 124ZZQ, 124ZZR......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Division 11 |  |\n| Heading to Div. 11 of Part III... | rs. No. 85, 1967 |\n| s. 126................... | am. No. 6, 1946; No. 45, 1953; No. 143, 1965; No. 85, 1967; No. 54, 1971; No. 51, 1973; No. 108, 1981; No. 95, 1997; No. 93, 1999; No. 101, 2006; No. 41, 2011; No 4, 2018 |\n| s. 127................... | am. No. 85, 1967; No. 51, 1973; No. 108, 1981; No. 95, 1997 |\n| s. 128................... | rs. No. 54, 1971 |\n| Division 11A |  |\n| Heading to Div. 11A.........  of Part III | am. No. 26, 1974; No. 224, 1992 |\n| Div. 11A of Part III.......... | ad. No. 85, 1967 |\n| Subdivision A |  |\n| Heading to Subdiv. A.........  of Div. 11A of Part III | ad. No. 138, 1994 |\n| s. 128AAA............... | ad. No. 163, 2001 |\n|  | am. No. 73, 2004; No. 101, 2006 |\n| s. 128A.................. | ad. No. 85, 1959 |\n|  | am. No. 18, 1960; No. 38, 1967 |\n|  | rs. No. 85, 1967 |\n|  | am. No. 4, 1968; No. 54, 1971; Nos. 51 and 165, 1973; No. 80, 1975; No. 108, 1981; No. 123, 1984; No. 49, 1986; No. 224, 1992; No. 181, 1994; No. 95, 1997; No. 163, 2001; Nos. 12 and 67, 2003; No. 21, 2005; No. 101, 2006; No. 15, 2007; No. 41, 2011; No 47, 2016 |\n| s. 128AA................. | ad. No. 49, 1986 |\n| s. 128AB................. | ad. No. 49, 1986 |\n|  | am. No. 95, 1997; No 64, 2020 |\n| ss. 128AC, 128AD.......... | ad. No. 49, 1986 |\n| s 128AE................. | ad No 11, 1988 |\n|  | am No 129, 1989; No 191, 1992; No 82, 1994; No 76, 1996; No 48, 1998; No 93, 1999; No 55, 2001; No 121, 2001; No 123, 2001; No 146, 2001; No 21, 2005; No 58, 2006; No 75, 2009; No 110, 2014; No 61, 2018; No 64, 2020; No 110, 2021; No 76, 2023 |\n| s. 128AF................. | ad. No. 95, 1997 |\n|  | am No 53, 2016 |\n| s 128B.................. | ad No 85, 1959 |\n|  | am No. 17, 1961; No 110, 1964; No 103, 1965 |\n|  | rs No 85, 1967 |\n|  | am No 54, 1971; No 51, 1973; No 26, 1974; No 80, 1975; No 50, 1976; No 108, 1981; No 25, 1983; No 58, 1987; No 62, 1987; No 11, 1988; No 78, 1988; No 105, 1989; No 98, 1992; No 224, 1992; No 56, 1994; No 138, 1994; No 181, 1994; No 95, 1997; No 121, 1997; No 17, 1998; No 47, 1998; No 70, 1999; No 93, 1999; No 179, 1999; No 163, 2001; No 90, 2002; No 12, 2003; No 16, 2003; No 65, 2003; No 73, 2004; No 101, 2004; No 105, 2004; No 23, 2005; No 64, 2005; No 147, 2005; No 32, 2006; No 101, 2006; No 15, 2007; No 78, 2007; No 79, 2007; No 143, 2007; No 97, 2008; No 41, 2011; No 57, 2012; No 169, 2012; No 4, 2018; No 84, 2018; No 15, 2019; No 34, 2019; No 35, 2022 |\n| s 128C.................. | ad No. 85, 1959 |\n|  | rs No. 85, 1967 |\n|  | am No. 108, 1981; No 123, 1982; No 123, 1984; No 49, 1986; No 191, 1992; No 11, 1999; No 179, 1999; No 44, 2000; No 101, 2006; No 61, 2016 |\n| s 128D.................. | ad No 85, 1959 |\n|  | rs No 38, 1967; No 85, 1967 |\n|  | am No 54, 1971; No 51, 1973; No 26, 1974; No 80, 1975; No 108, 1981; No 25, 1983; No 58, 1987; No 11, 1988; No 138, 1994; No 95, 1997; No 66, 2003; No 73, 2004; No 147, 2005; No 32, 2006; No 101, 2006; No 57, 2012 |\n| s. 128E.................. | ad. No. 85, 1967 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 128EA................. | ad. No. 80, 1975 |\n|  | am. No. 25, 1983; No. 112, 1986 |\n|  | rep. No. 101, 2006 |\n| s 128F................... | ad No 54, 1971 |\n|  | am No 51, 1973; No 108, 1981; No 14, 1984; No 112, 1986 |\n|  | rs No 95, 1997 |\n|  | am No 93, 1999; No 162, 2001; No 12, 2003; No 73, 2004; No 21, 2005; No 79, 2007; No 145, 2008; No 118, 2009; No 96, 2013; No 2, 2015 |\n| s. 128FA................. | ad. No. 73, 2004 |\n|  | am. No. 21, 2005; Nos. 15 and 79, 2007; No 53, 2016 |\n| s. 128G.................. | ad. No. 54, 1971 |\n|  | am. No. 108, 1981; No. 25, 1983; No. 112, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 128GA................. | ad. No. 25, 1983 |\n|  | am. No. 112, 1986 |\n|  | rep. No. 101, 2006 |\n| s 128GB................. | ad No 11, 1988 |\n|  | am No 82, 1994; No 76, 1996; No 93, 1999; No 110, 2021 |\n| s. 128H.................. | ad. No. 54, 1971 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| ss. 128J, 128K............. | ad. No. 54, 1971 |\n|  | am. No. 108, 1981; No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 128L.................. | ad. No. 54, 1971 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 128N.................. | ad. No. 54, 1971 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 128NA................. | ad. No. 49, 1986 |\n| s. 128NB................. | ad. No. 11, 1988 |\n|  | am. No. 191, 1992; No. 76, 1996; No. 44, 2000 |\n| s. 128NBA................ | ad. No. 101, 2006 |\n|  | am. No. 15, 2009 |\n| s. 128P.................. | ad. No. 54, 1971 |\n|  | am. Nos. 48 and 49, 1986 |\n|  | rs. No. 216, 1991 |\n| s 128Q.................. | ad No 54, 1971 |\n|  | am No 108, 1981 |\n|  | rep No 2, 2015 |\n| s. 128R.................. | ad. No. 54, 1971 |\n|  | am. No. 164, 1973 |\n| Subdiv. B of Div. 11A........  of Part III | ad. No. 138, 1994  rep. No. 147, 2005 |\n| s. 128S.................. | ad. No. 138, 1994 |\n|  | rep. No. 147, 2005 |\n| s. 128SA................. | ad. No. 138, 1994 |\n|  | rs. No. 96, 2004 |\n|  | rep. No. 147, 2005 |\n| s. 128T.................. | ad. No. 138, 1994 |\n|  | rep. No. 147, 2005 |\n| s. 128TA................. | ad. No. 138, 1994 |\n|  | am. Nos. 16 and 66, 2003; No. 96, 2004 |\n|  | rep. No. 147, 2005 |\n| s. 128TB................. | ad. No. 138, 1994 |\n|  | am. Nos. 16 and 142, 2003; No. 96, 2004; No. 168, 2006 |\n|  | rep. No. 147, 2005 |\n| s. 128TC................. | ad. No. 138, 1994 |\n|  | am. No. 63, 1998; No. 16, 2003 |\n|  | rep. No. 147, 2005 |\n| s. 128TD................. | ad. No. 138, 1994 |\n|  | am. No. 179, 1999; No. 23, 2005 |\n|  | rep. No. 147, 2005 |\n| s. 128TE................. | ad. No. 138, 1994 |\n|  | am. Nos. 11 and 93, 1999; Nos. 23 and 161, 2005 |\n|  | rep. No. 147, 2005 |\n| s. 128TF................. | ad. No. 138, 1994 |\n|  | rep. No. 147, 2005 |\n| Division 11B |  |\n| Division 11B.............. | ad. No. 78, 1996 |\n|  | rep No 23, 2018 |\n| s. 128TG................. | ad. No. 78, 1996 |\n|  | am. Nos. 16, 46 and 63, 1998 |\n|  | rep No 23, 2018 |\n| s. 128TH................. | ad. No. 78, 1996 |\n|  | am. No. 122, 1997; No. 16, 1998 |\n|  | rep No 23, 2018 |\n| s. 128TI................. | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 46, 1998 |\n|  | rep No 23, 2018 |\n| s. 128TJ................. | ad. No. 78, 1996 |\n|  | am. No. 122, 1997; No. 63, 1998 |\n|  | rep No 23, 2018 |\n| s. 128TK................. | ad. No. 78, 1996 |\n|  | am. No. 55, 2001 |\n|  | rep No 23, 2018 |\n| s. 128TL................. | ad. No. 122, 1997 |\n|  | rep No 23, 2018 |\n| Division 11C |  |\n| Division 11C heading........ | rs No 84, 2013 |\n| Division 11C.............. | ad No 27, 1979 |\n| s. 128U.................. | ad. No. 27, 1979 |\n|  | am. No. 108, 1981; No. 123, 1984; No. 152, 1997; No. 179, 1999; No. 67, 2003; No. 8, 2005; Nos. 101 and 125, 2006; No. 84, 2013 |\n| s. 128V.................. | ad. No. 27, 1979 |\n| s. 128W................. | ad. No. 27, 1979 |\n|  | am. No. 179, 1999; No. 88, 2009; No 61, 2016 |\n| s 128X.................. | ad No 27, 1979 |\n|  | am No 108, 1981 |\n|  | rep No 2, 2015 |\n| Division 12 |  |\n| s. 129................... | am. No. 108, 1981; No. 41, 2011 |\n| s 130................... | am. No. 41, 2011 |\n|  | rs No 64, 2020 |\n| s 131................... | am No 41, 2011 |\n| s. 134................... | am. No. 41, 2011 |\n| s. 135................... | am. No. 216, 1973 (as am. by No. 20, 1974); No. 41, 2011 |\n| s. 135A.................. | ad. No. 46, 1938 |\n|  | am. No. 51, 1973 |\n| Division 13............... | ad. No. 29, 1982 |\n|  | rep. No. 101, 2013 |\n| s. 136AA................. | ad. No. 29, 1982 |\n|  | am. No. 10, 2003; No. 58, 2006 |\n|  | rep. No. 101, 2013 |\n| s. 136AB................. | ad. No. 29, 1982 |\n|  | am. No. 121, 1997; Nos. 93 and 132, 2011; No. 115, 2012 |\n|  | rep. No. 101, 2013 |\n| s. 136AC................. | ad. No. 29, 1982 |\n|  | am. No. 10, 2003 |\n|  | rep. No. 101, 2013 |\n| s. 136AD................. | ad. No. 29, 1982 |\n|  | rep. No. 101, 2013 |\n| s. 136AE................. | ad. No. 29, 1982 |\n|  | am. No. 10, 2003; No. 101, 2006 |\n|  | rep. No. 101, 2013 |\n| s. 136AF................. | ad. No. 29, 1982 |\n|  | am. No. 48, 1986; Nos. 5 and 216, 1991; No. 73, 2004; No. 41, 2011 |\n|  | rep. No. 101, 2013 |\n| s. 136AG................. | ad. No. 29, 1982 |\n|  | rep. No. 101, 2006 |\n| Div. 13A of Part III.......... | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| Subdiv. A of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139................... | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139A.................. | ad. No. 169, 1995 |\n|  | am. No. 41, 2005; No. 56, 2007 |\n|  | rep. No. 133, 2009 |\n| Subdiv. B of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139B.................. | ad. No. 169, 1995 |\n|  | am. No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139BA................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 133, 2009 |\n| Subdiv. C of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139C.................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997; No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| ss. 139CA, 139CB........... | ad. No. 169, 1995 |\n|  | am. No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139CC................. | ad. No. 169, 1995 |\n|  | am. No. 41, 2005; No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139CD................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997 (as am. by No. 57, 2002); No. 147, 1997; No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139CDA................ | ad. No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139CE................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997; No. 147, 2005 |\n|  | rep. No. 133, 2009 |\n| Subdiv. D of Div. 13A of......  Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139D.................. | ad. No. 169, 1995 |\n|  | am. No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| ss. 139DA, 139DB.......... | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139DC................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 133, 2009 |\n| s. 139DD................. | ad. No. 169, 1995 |\n|  | am. Nos. 41 and 147, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139DE................. | ad.","sortOrder":1000153},{"sectionNumber":"full-source-retrieval-0155","sectionType":"document_chunk","heading":"Document excerpt 155","content":"No. 169, 1995 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 133, 2009 |\n| s. 139DF................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139DG................. | ad. No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| Subdiv. DA of Div. 13A of.....  Part III | ad. No. 41, 2005  rep. No. 133, 2009 |\n| s. 139DP................. | ad. No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139DQ................. | ad. No. 41, 2005 |\n|  | am. No. 32, 2006 |\n|  | rep. No. 133, 2009 |\n| s. 139DR................. | ad. No. 41, 2005 |\n|  | am. No. 147, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139DS................. | ad. No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| Subdiv. DB of Div. 13A of.....  Part III | ad. No. 56, 2007  rep. No. 133, 2009 |\n| s. 139DSA................ | ad. No. 56, 2007 |\n|  | am. No. 97, 2008 |\n|  | rep. No. 133, 2009 |\n| ss. 139DSB–139DSG......... | ad. No. 56, 2007 |\n|  | rep. No. 133, 2009 |\n| s. 139DSH................ | ad. No. 56, 2007 |\n|  | am. No. 97, 2008 |\n|  | rep. No. 133, 2009 |\n| s. 139DSI................ | ad. No. 56, 2007 |\n|  | rep. No. 133, 2009 |\n| Subdiv. E of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139E.................. | ad. No. 169, 1995 |\n|  | am. No. 64, 2005; No. 143, 2007; No. 59, 2008 |\n|  | rep. No. 133, 2009 |\n| Subdiv. F of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139F.................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FA................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997; No. 43, 2000; No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139FAA................ | ad. No. 43, 2000 |\n|  | rep. No. 133, 2009 |\n| s. 139FB................. | ad. No. 169, 1995 |\n|  | am. No. 63, 1998 |\n|  | rep. No. 133, 2009 |\n| s. 139FC................. | ad. No. 169, 1995 |\n|  | am. No. 43, 2000 |\n|  | rep. No. 133, 2009 |\n| s. 139FD................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FE................. | ad. No. 169, 1995 |\n|  | am. No. 43, 2000 |\n|  | rep. No. 133, 2009 |\n| s. 139FF................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FG................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FI.................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 133, 2009 |\n| s. 139FJ................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FK................. | ad. No. 169, 1995 |\n|  | am. No. 43, 2000 |\n|  | rep. No. 133, 2009 |\n| ss. 139FL, 139FM........... | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139FN................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 133, 2009 |\n| Subdiv. G of Div. 13A........  of Part III | ad. No. 169, 1995  rep. No. 133, 2009 |\n| s. 139G.................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139GA................. | ad. No. 169, 1995 |\n|  | rs. No. 64, 2005 |\n|  | am. No. 101, 2006; No. 143, 2007 |\n|  | rep. No. 133, 2009 |\n| s. 139GB................. | ad. No. 169, 1995 |\n|  | am. No. 64, 2005; No. 32, 2006; No. 56, 2007 |\n|  | rep. No. 133, 2009 |\n| s. 139GBA................ | ad. No. 64, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139GC................. | ad. No. 169, 1995 |\n|  | am. No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| ss. 139GCA–139GCC........ | ad. No. 41, 2005 |\n|  | rep. No. 133, 2009 |\n| s. 139GCD................ | ad. No. 56, 2007 |\n|  | am. No. 97, 2008 |\n|  | rep. No. 133, 2009 |\n| s. 139GD................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139GE................. | ad. No. 169, 1995 |\n|  | rs. No. 101, 2006 |\n|  | rep. No. 133, 2009 |\n| s. 139GF................. | ad. No. 169, 1995 |\n|  | am. Nos. 122 and 147, 1997 |\n|  | rep. No. 133, 2009 |\n| s. 139GG................. | ad. No. 169, 1995 |\n|  | rep. No. 133, 2009 |\n| s. 139GH................. | ad. No. 169, 1995 |\n|  | am. No. 122, 1997; Nos. 41 and 64, 2005; No. 56, 2007 |\n|  | rep. No. 133, 2009 |\n| Div. 14 of Part III........... | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140................... | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| ss. 140A, 140B............. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140C.................. | ad. No. 208, 1992 |\n|  | am. No. 82, 1993; Nos. 62 and 147, 1997; Nos. 94 and 165, 1999; No. 114, 2001; No. 101, 2004; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 140CA................. | ad. No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| ss. 140D–140F............. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140G.................. | ad. No. 208, 1992 |\n|  | am. No. 53, 1995 |\n|  | rep. No. 15, 2007 |\n| s. 140H.................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| ss. 140J–140L............. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140M.................. | ad. No. 208, 1992 |\n|  | am. No. 138, 1994; No. 53, 1995; No. 147, 1997; Nos. 94, 128 and 165, 1999; No. 114, 2001; No. 78, 2005; No. 101, 2006; No 55, 2007 |\n|  | rep. No. 15, 2007 |\n| ss. 140N, 140P............. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997; Nos. 94 and 165, 1999; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 140Q.................. | ad. No. 208, 1992 |\n|  | am. No. 114, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 140RA................. | ad. No. 76, 1996 |\n|  | rep. No. 15, 2007 |\n| s. 140R.................. | ad. No. 208, 1992 |\n|  | am. No. 138, 1994; No. 76, 1996; No. 114, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 140S.................. | ad. No. 208, 1992 |\n|  | am. No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 140T.................. | ad. No. 208, 1992 |\n|  | am. No. 138, 1994; No. 76, 1996; No. 114, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 140U.................. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140UA................. | ad. No. 114, 2001 |\n|  | am. No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| ss. 140V–140Z............. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| ss. 140ZA, 140ZB........... | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140ZC................. | ad. No. 208, 1992 |\n|  | am. No. 7, 1993; No. 138, 1994 |\n|  | rep. No. 15, 2007 |\n| ss. 140ZD, 140ZE........... | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140ZF................. | ad. No. 208, 1992; No. 138, 1994 |\n|  | am. No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 140ZFA................ | ad. No. 114, 2001 |\n|  | am. No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 140ZG................. | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140ZH................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 140ZI................. | ad. No. 208, 1992 |\n|  | am. No. 138, 1994; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 140ZJ................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 140ZJA................ | ad. No. 147, 1997 |\n|  | am. Nos. 94 and 165, 1999; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| ss. 140ZK, 140ZL........... | ad. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| s. 140ZM................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 140ZN................. | ad. No. 208, 1992 |\n|  | am. No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 140ZO................. | ad. No. 208, 1992 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 140ZP................. | ad. No. 208, 1992 |\n|  | am. No. 114, 2001; No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 140ZQ................. | ad. No. 208, 1992 |\n|  | am. No. 101, 2003 |\n|  | rep. No. 15, 2007 |\n| Division 15 |  |\n| s. 142................... | am. No. 18, 1960; No. 164, 1973; No. 80, 1975; No. 41, 2011 |\n| s. 143................... | am. No. 108, 1981; No. 41, 2011 |\n| s. 147................... | am. No. 41, 2011 |\n| s. 148................... | rs. No. 46, 1938; No. 11, 1947 |\n|  | am. No. 51, 1973; Nos. 108 and 110, 1981; No. 101, 1992; No. 83, 2004; No. 41, 2011 |\n| Division 16 |  |\n| s. 149................... | rs. No. 57, 1977 |\n|  | am. No. 126, 1977 |\n| s. 149A.................. | ad. No. 52, 1986 |\n|  | am. No. 138, 1987; No. 7, 1993; No. 46, 1998; No. 101, 2006; No. 15, 2007 |\n| s. 151................... | am. No. 123, 1978 |\n| s. 152................... | am. No. 41, 2011 |\n| s. 155................... | am. Nos. 57 and 126, 1977; No. 41, 2011 |\n| s. 156................... | rs. No. 123, 1978 |\n|  | am. No. 149, 1979; No. 19, 1980; Nos. 14 and 103, 1983; No. 63, 1996; No. 46, 1998; No. 83, 1999; No. 101, 2006; No. 41, 2011 |\n| s. 157................... | am. No. 50, 1942; No. 18, 1960; Nos. 51 and 164, 1973; No. 80, 1975; No. 57, 1978; No. 108, 1981; No. 101, 2006; No. 41, 2011 |\n| s. 158................... | am. No. 110, 1964; No. 51, 1973; No. 108, 1981 |\n| s. 158A.................. | ad. No. 44, 1951 |\n|  | am. No. 50, 1966; No. 51, 1973; No. 126, 1977; No. 108, 1981 |\n|  | rs. No. 103, 1983 |\n| Div. 16A of Part III.......... | ad. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 158BA................. | ad. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 158B.................. | ad. No. 45, 1953 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rs. No. 138, 1987 |\n|  | am. No. 135, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 158C.................. | ad. No. 45, 1953 |\n|  | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 158D.................. | ad. No. 45, 1953 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 158E.................. | ad. No. 45, 1953 |\n|  | am. No. 108, 1981 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| ss. 158F, 158G............. | ad. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 158H.................. | ad. No. 138, 1987 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 158J–158L............. | ad. No. 138, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 16C of Part III.......... | ad. No. 205, 1976 |\n|  | rep. No. 101, 2006 |\n| s. 159GA................. | ad. No. 205, 1976 |\n|  | am. No. 174, 1984; Nos. 56 and 107, 1989; No. 238, 1992; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 159GC................. | ad. No. 205, 1976 |\n|  | am. No. 147, 1979; No. 174, 1984; No. 107, 1989 |\n|  | rs. No. 56, 1989 |\n|  | am. No. 238, 1992; No. 85, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 159GD................. | ad. No. 205, 1976 |\n|  | am. No. 174, 1984; Nos. 56 and 107, 1989; No. 238, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 159GDA............... | ad. No. 56, 1989 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| Division 16D |  |\n| Div. 16D of Part III.......... | ad. No. 123, 1985 |\n| s. 159GE................. | ad. No. 123, 1985 |\n|  | am. No. 169, 1995; Nos. 39, 121 and 174, 1997; No. 54, 1999; Nos. 72 and 77, 2001; No. 101, 2006 |\n| s. 159GEA................ | ad. No. 169, 1995 |\n| s. 159GF................. | ad. No. 123, 1985 |\n|  | am. No. 80, 1992; Nos. 39 and 121, 1997; No. 54, 1999; No. 77, 2001; No. 101, 2006 |\n| s. 159GG................. | ad. No. 123, 1985 |\n| s. 159GH................. | ad. No. 123, 1985 |\n|  | am. No. 164, 2007 |\n| s. 159GJ................. | ad. No. 123, 1985 |\n|  | am. No. 18, 1993; No. 31, 1995; Nos. 39 and 121, 1997; No. 54, 1999; No. 77, 2001; No. 101, 2006 |\n| s. 159GK................. | ad. No. 123, 1985 |\n| s. 159GL................. | ad. No. 123, 1985 |\n|  | am. No. 39, 1997; No. 101, 2006 |\n| s. 159GM................ | ad. No. 123, 1985 |\n|  | am. No. 121, 1997; No. 77, 2001; No. 101, 2006 |\n| ss. 159GN, 159GO.......... | ad. No. 123, 1985 |\n| Division 16E |  |\n| Div. 16E of Part III.......... | ad. No. 49, 1986 |\n| s 159GP................. | ad No 49, 1986 |\n|  | am No 138, 1987; No 7, 1993; No 82, 1993; No 82, 1994; No 44, 1999; No 101, 2004; No 47, 2016; No 8, 2019 |\n| s. 159GQ................. | ad. No. 49, 1986 |\n|  | rs. No. 82, 1994 |\n| ss. 159GQA–159GQD........ | ad. No. 82, 1994 |\n| ss. 159GR, 159GS........... | ad. No. 49, 1986 |\n|  | am. No. 82, 1994 |\n| s. 159GT................. | ad. No. 49, 1986 |\n|  | am. No. 138, 1987; No. 82, 1994; Nos. 39 and 95, 1997 |\n| ss. 159GU, 159GV.......... | ad. No. 49, 1986 |\n| ss. 159GW–159GY.......... | ad. No. 49, 1986 |\n|  | am. No. 82, 1994 |\n| s. 159GZ................. | ad. No. 49, 1986 |\n|  | am. No. 11, 1988 |\n| Div. 16F of Part III.......... | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZA................ | ad. No. 138, 1987 |\n|  | am. No. 58, 1990; No. 4, 1991; Nos. 95 and 174, 1997; Nos. 48 and 63, 1998; No. 121, 2001 |\n|  | rep. No. 162, 2001 |\n| s. 159GZAA.............. | ad. No. 121, 2001 |\n| s. 159GZB................ | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZC................ | ad. No. 138, 1987 |\n|  | am. No. 78, 1988; No. 135, 1990 |\n|  | rep. No. 162, 2001 |\n| s. 159GZE................ | ad. No. 138, 1987 |\n|  | am. No. 58, 1990; No. 95, 1997 |\n|  | rep. No. 162, 2001 |\n| s. 159GZF................ | ad. No. 138, 1987 |\n|  | am. No. 78, 1988; Nos. 4 and 100, 1991; No. 174, 1997 |\n|  | rep. No. 162, 2001 |\n| s. 159GZG................ | ad. No. 138, 1987 |\n|  | am. No. 78, 1988; Nos. 4 and 100, 1991; No. 174, 1997; No. 63, 1998; No. 93, 1999; No. 58, 2000 |\n|  | rep. No. 162, 2001 |\n| ss. 159GZH–159GZJ......... | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZJA............... | ad. No. 4, 1991 |\n|  | am. No. 100, 1991 |\n|  | rep. No. 162, 2001 |\n| s. 159GZJB............... | ad. No. 4, 1991 |\n|  | rep. No. 162, 2001 |\n| s. 159GZK................ | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZL................ | ad. No. 138, 1987 |\n|  | am. No. 95, 1997 |\n|  | rep. No. 162, 2001 |\n| s. 159GZLA............... | ad. No. 4, 1991 |\n|  | am. No. 100, 1991; No. 48, 1998 |\n|  | rep. No. 162, 2001 |\n| s. 159GZLB............... | ad. No. 100, 1991 |\n|  | rep. No. 162, 2001 |\n| s. 159GZM............... | ad. No. 138, 1987 |\n|  | am. No. 174, 1997 |\n|  | rep. No. 162, 2001 |\n| s. 159GZN................ | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZQ................ | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| s. 159GZR................ | ad. No. 138, 1987 |\n|  | am. No. 78, 1988 |\n|  | rep. No. 162, 2001 |\n| ss. 159GZS–159GZW........ | ad. No. 138, 1987 |\n|  | am. No. 4, 1991; No. 101, 1992 |\n|  | rep. No. 162, 2001 |\n| s. 159GZX................ | ad. No. 138, 1987 |\n|  | rep. No. 162, 2001 |\n| Div. 16G of Part III.......... | ad. No. 95, 1988 |\n|  | rep. No. 162, 2001 |\n| s. 159GZY................ | ad. No. 95, 1988 |\n|  | am. No. 95, 1997 |\n|  | rep. No. 162, 2001 |\n| s. 159GZZ................ | ad. No. 95, 1988 |\n|  | rep. No. 162, 2001 |\n| s. 159GZZA............... | ad. No. 95, 1988 |\n|  | am. No. 95, 1997 |\n|  | rep. No. 162, 2001 |\n| ss. 159GZZB, 159GZZC...... | ad. No. 95, 1988 |\n|  | rep. No. 162, 2001 |\n| s. 159GZZD............... | ad. No. 95, 1988 |\n|  | rep. No. 162, 2001 |\n| s. 159GZZE............... | ad. No. 95, 1988 |\n|  | rep. No. 162, 2001 |\n| s. 159GZZF............... | ad. No. 95, 1988 |\n|  | am. No. 153, 1988 |\n|  | rep. No. 162, 2001 |\n| Div. 16H of Part III.......... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| ss. 159GZZG–159GZZI....... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZJ............... | ad. No. 153, 1988 |\n|  | am. No. 57, 1990; No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZK............... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZKA............. | ad. No. 4, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 159GZZL–159GZZO...... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| ss. 159GZZQ–159GZZS....... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZT............... | ad. No. 153, 1988 |\n|  | am. No. 57, 1990; No. 39, 1997; No. 41, 2005 |\n|  | rep. No. 101, 2006 |\n| ss. 159GZZU, 159GZZV...... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 16H of Part III | am. No. 4, 1991   rep. No. 101, 2006 |\n| ss. 159GZZW–159GZZZ...... | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZZB.............. | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 16H........  of Part III | ad. No. 4, 1991   rep. No. 101, 2006 |\n| s. 159GZZZBA............. | ad. No. 4, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZZBB............. | ad. No. 4, 1991 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 159GZZZBC,............  159GZZZBD | ad. No. 4, 1991   rs. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 159GZZZBE............. | ad. No. 4, 1991 |\n|  | am. No. 46, 1998 (as am. by No. 57, 2002) |\n|  | rep. No. 101, 2006 |\n| Subdiv. E of Div. 16H........  of Part III | ad. No. 4, 1991   rep. No. 101, 2006 |\n| ss. 159GZZZBF–...........  159GZZZBI | ad. No. 4, 1991   rep. No. 101, 2006 |\n| Division 16J |  |\n| Div. 16J of Part III.......... | ad. No. 97, 1989 |\n| s. 159GZZZC.............. | ad. No. 97, 1989 |\n|  | am. No. 135, 1990; No. 55, 2001; No. 101, 2006 |\n| ss. 159GZZZD, 159GZZZE.... | ad. No. 97, 1989 |\n| ss. 159GZZZF, 159GZZZG.... | ad. No. 97, 1989 |\n|  | am. No. 46, 1998 |\n| s. 159GZZZH.............. | ad. No. 97, 1989 |\n|  | am. No. 46, 1998; No. 94, 1999 |\n| s. 159GZZZI.............. | ad. No. 97, 1989 |\n| Division 16K |  |\n| Div. 16K of Part III.......... | ad. No. 58, 1990 |\n| Subdivision AA |  |\n| Subdiv. AA of Div. 16K.......  of Part III | ad. No. 163, 2001 |\n| s. 159GZZZIA............. | ad. No. 163, 2001 |\n| Subdivision A |  |\n| ss. 159GZZZJ–159GZZZM.... | ad. No. 58, 1990 |\n| Subdivision B |  |\n| s. 159GZZZN.............. | ad. No. 58, 1990 |\n|  | rs. No. 46, 1998 |\n| Subdivision C |  |\n| s 159GZZZP.............. | ad No 58, 1990 |\n|  | am No 82, 1994; No 170, 1995; No 31, 1996; No 46, 1998; No 63, 1998; No 163, 2001; No 101, 2023 |\n| s 159GZZZPA............. | ad No 101, 2023 |\n| s 159GZZZQ.............. | ad No 58, 1990 |\n|  | am No 82, 1994; No 170, 1995; No 31, 1996; No 46, 1998; No 63, 1998; No 23, 2005; No 147, 2005; No 101, 2023 |\n| Subdivision D |  |\n| s. 159GZZZR.............. | ad. No. 58, 1990 |\n| s. 159GZZZS.............. | ad. No. 58, 1990 |\n|  | am. No. 46, 1998 |\n| Division 16L..........","sortOrder":1000154},{"sectionNumber":"full-source-retrieval-0156","sectionType":"document_chunk","heading":"Document excerpt 156","content":".... | ad. No. 98, 1992 |\n|  | rep No 4, 2018 |\n| Note to Division 16L......... | ad. No. 104, 1997 |\n|  | rep No 4, 2018 |\n| s. 159GZZZZD............. | ad. No. 163, 1994 |\n|  | rep No 4, 2018 |\n| s. 159GZZZZE............. | ad. No. 98, 1992 |\n|  | am. Nos. 82 and 163, 1994 |\n|  | rep No 4, 2018 |\n| s. 159GZZZZF............. | ad. No. 98, 1992 |\n|  | rep No 4, 2018 |\n| s. 159GZZZZG............. | ad. No. 163, 1994 |\n|  | am. No. 170, 1995; No. 79, 2000; No. 15, 2007; No 66, 2015; No 53, 2016 |\n|  | rep No 4, 2018 |\n| s. 159GZZZZH............. | ad. No. 163, 1994 |\n|  | am. No. 11, 1999; No. 67, 2003; No. 161, 2005; No. 101, 2006; No. 79, 2010; No 81, 2016 |\n|  | rep No 4, 2018 |\n| Division 17 |  |\n| Division 17 heading.......... | am. No. 58, 1941 |\n| Subdivision A |  |\n| Subdivision A............. | ad. No. 117, 1975 |\n| s. 159H.................. | ad. No. 117, 1975 |\n|  | am. No. 124, 1984; No. 135, 1990; No. 97, 2008; Nos. 41 and 62, 2011 |\n| s. 159HA................. | ad. No. 70, 1989 |\n|  | am. No. 138, 1994; Nos. 82 and 102, 1999; No. 101, 2006; No. 75, 2007; No. 136, 2010; No. 62, 2011; No. 84, 2013; No 70, 2015; No 145, 2015 |\n|  | rep No 11, 2014 (as am by No 70, 2015) |\n| s. 159J.................. | ad. No. 117, 1975 |\n|  | am. Nos. 50 and 56, 1976; Nos. 57 and 123, 1978; No. 57, 1980; Nos. 108 and 109, 1981; No. 106, 1982; No. 103, 1983; Nos. 123, 124 and 165, 1984; No. 49, 1985; No. 52, 1986; No. 108, 1987; No. 78, 1988; No. 70, 1989; No. 135, 1990; Nos. 100 and 216, 1991; No. 101, 1992; Nos. 138 and 174, 1994; No. 106, 1995; No. 63, 1996; Nos. 121, 196, 1997; No. 197, 1997 (as am. by No. 11, 1999); No. 202, 1997; Nos. 41, 46 and 128, 1998; Nos. 13 and 82, 1999; No. 83, 1999 (as am. by No. 58, 2006); No. 45, 2000; No. 167, 2001; No. 101, 2003; Nos. 59 and 60, 2004; Nos. 55 and 63, 2005; Nos. 41 and 101, 2006; Nos. 32, 66, 75, 82, 113 and 182, 2007; Nos. 19, 63, 92, 97, 131 and 144, 2008; Nos. 4, 6, 14, 25, 27 and 88, 2009; Nos. 19, 33 and 105, 2010; Nos. 41 and 62, 2011; No. 71, 2012; Nos. 84 and 85, 2013 |\n|  | rep No 70, 2015 |\n| s. 159JA................. | ad. No. 105, 2010 |\n|  | am. No. 62, 2011 |\n|  | rep No 70, 2015 |\n| s. 159K.................. | ad. No. 117, 1975 |\n|  | am. No. 56, 1976; No. 57, 1980; Nos. 108 and 109, 1981; No. 106, 1982; No. 124, 1984; No. 70, 1989; No. 135, 1990; No. 82, 1999; No. 75, 2007 |\n|  | rep No 70, 2015 |\n| s. 159L.................. | ad. No. 117, 1975 |\n|  | am. No. 56, 1976; No. 57, 1980; Nos. 108 and 109, 1981; No. 106, 1982; No. 70, 1989; No. 135, 1990; Nos. 100 and 216, 1991; No. 82, 1999; No. 45, 2000; No. 63, 2005; Nos. 75 and 82, 2007; No. 63, 2008; No. 27, 2009; Nos. 33 and 105, 2010; Nos. 41 and 62, 2011; No. 85, 2013 |\n|  | rep No 70, 2015 |\n| s. 159LA................. | ad. No. 105, 2010 |\n|  | rep No 70, 2015 |\n| s. 159M.................. | ad. No. 117, 1975 |\n|  | am. No. 41, 2011 |\n|  | rep No 70, 2015 |\n| s 159N.................. | ad No 58, 1993 |\n|  | am No 45, 2003; No 55, 2006; No 76, 2007; No 29, 2008; No 43, 2011; No 159, 2011; No 58, 2012; No 47, 2018 |\n|  | rep No 92, 2020 |\n| s. 159P.................. | ad. No. 117, 1975 |\n|  | am. No. 56, 1976; No. 108, 1981; No. 29, 1982; No. 123, 1984; No. 123, 1985; No. 109, 1986; No. 87, 1990; No. 48, 1991; No. 56, 1997; No. 13, 1999; No. 65, 2003; No. 95, 2004; No. 13, 2006; No. 63, 2008; No. 136, 2010; Nos. 41 and 62, 2011; Nos. 84, 85 and 88, 2013; No 11, 2014; No 70, 2015 |\n|  | rep No 11, 2014 |\n| s. 159Q.................. | ad. No. 84, 2013 |\n|  | rep No 11, 2014 |\n| Subdivision AAA........... | ad. No. 105, 1989  rep. No. 15, 2007 |\n| s. 159S.................. | ad. No. 105, 1989 |\n|  | am. Nos. 7 and 57, 1993; No. 46, 1998; No. 41, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 159SA................. | ad. No. 105, 1989 |\n|  | rs. No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 159SF................. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 159SG................. | ad. No. 105, 1989 |\n|  | am. No. 7, 1993 |\n|  | rep. No. 15, 2007 |\n| Subdivision AAB........... | ad. No. 105, 1989  rep. No. 15, 2007 |\n| s. 159SJ................. | ad. No. 105, 1989 |\n|  | am. No. 208, 1992; No. 169, 1995; No. 62, 1997; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 159SL  Renumbered s. 275C......... | No. 208, 1992 |\n| s. 159SM................. | ad. No. 105, 1989 |\n|  | am. No. 208, 1992; No. 168, 2001 |\n|  | rep. No. 15, 2007 |\n| ss. 159SS, 159ST........... | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 159SU................. | ad. No. 105, 1989 |\n|  | am. No. 208, 1992 |\n|  | rep. No. 15, 2007 |\n| Subdivision AAC........... | ad. No. 208, 1992  rep. No. 111, 2003 |\n| s. 159SZ................. | ad. No. 208, 1992 |\n|  | am. No. 82, 1993; No. 62, 1997; No. 17, 1999 |\n|  | rep. No. 111, 2003 |\n| Subdivision AACA.......... | ad. No. 147, 1997  rep. No. 15, 2007 |\n| s. 159T.................. | ad. No. 147, 1997 |\n|  | am. No. 17, 1999; No. 78, 2005 |\n|  | rep. No. 15, 2007 |\n| ss. 159TA, 159TB........... | ad. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 159TC................. | ad. No. 147, 1997 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 15, 2007 |\n| Subdivision AAD........... | ad. No. 56, 1994   rep. No. 101, 2006 |\n| s. 159U.................. | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 159UA................. | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 159UB................. | ad. No. 56, 1994 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 159UC................. | ad. No. 56, 1994 |\n|  | am. No. 121, 1997; No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 159UD................. | ad. No. 56, 1994 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 159UE................. | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 159UF................. | ad. No. 56, 1994 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 101, 2006 |\n| ss. 159UG–159UW.......... | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 159UX................. | ad. No. 56, 1994 |\n|  | am. No. 146, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 159UY................. | ad. No. 56, 1994 |\n|  | rep. No. 58, 2006 |\n| Subdivision AB |  |\n| Subdiv. AB of Div. 17........  of Part III | ad. No. 153, 1988 |\n| s. 159ZR................. | ad. No. 153, 1988 |\n|  | am. No. 135, 1990; No 100, 1991; No 216, 1991; No 121, 1997; No 122, 1997; No 152, 1997; No 41, 1998; No 46, 1998; No 54, 1999; No 94, 1999; No 179, 1999; No. 101, 2006; No 4, 2007; No 15, 2007; No 36, 2015; No 112, 2015 |\n| ss. 159ZRA–159ZRD........ | ad. No. 153, 1988 |\n| Subdivision B |  |\n| Subdivision B heading........ | ad No 117, 1975 |\n| s 160AAAA............... | ad No 78, 1996 |\n|  | am No 44, 2001; No 57, 2002; No 27, 2009; No 62, 2011; No 159, 2011; No 142, 2021; No 17, 2025 |\n| s 160AAAB............... | ad No 78, 1996 |\n|  | am No 44, 2001; No 57, 2002; No 27, 2009; No 62, 2011; No 159, 2011; No 142, 2021 |\n| s 160AAA................ | ad No 106, 1982 |\n|  | am No 124, 1984; No 123, 1985; No 173, 1985 (as am by No 49, 1986); No 109, 1986; No 154, 1986; No 108, 1987; No 78, 1988; No 95, 1988; No 107, 1989 |\n|  | rs No 57, 1990 |\n|  | am No 100, 1991; No 216, 1991; No 191, 1992; No 125, 1994; No 138, 1994; No 174, 1994; No 184, 1994; No 169, 1995; No 1, 1996; No 122, 1997; No 179, 1997; No 197, 1997; No 45, 1998; No 102, 1998; No 94, 1999; No 76, 2000; No 144, 2000; No 44, 2001; No 80, 2006; No 130, 2007; No 38, 2008; No 97, 2008; No 159, 2011; No 62, 2013; No 13, 2014; No 36, 2015; No 25, 2017; No 26, 2018; No 107, 2020; No 67, 2024 |\n| s. 160AAB................ | ad. No. 14, 1984 |\n|  | am. No. 47, 1984; No. 173, 1985; Nos. 109 and 154, 1986; No. 11, 1988; Nos. 97 and 105, 1989; No. 55, 1993; No. 89, 2000; No. 101, 2004; No. 15, 2007; No. 41, 2011 |\n| s. 160AB................. | ad. No. 22, 1942 |\n|  | am. No. 143, 1965; No. 70, 1968; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 160ABB................ | ad. No. 76, 1984 |\n|  | rep. No. 101, 2006 |\n| s. 160ACE................ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160AD................. | ad. No. 22, 1942 |\n|  | am. No. 37, 1945; No. 48, 1950 |\n|  | rs. No. 143, 1965 |\n| s 160ADA................ | ad No 47, 1998 |\n|  | am No 143, 2007 |\n| Division 18 heading.......... | am No 164, 1973 |\n|  | rep No 143, 2007 |\n| Division 18............... | ad No 51, 1986 |\n|  | rep No 143, 2007 |\n| s. 160ADB................ | ad. No. 163, 2001 |\n|  | rep. No. 143, 2007 |\n| s. 160AE................. | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; No. 110, 1964; No. 143, 1965; No. 50, 1966; Nos. 76 and 85, 1967; Nos. 51 and 164, 1973; No. 126, 1974 |\n|  | rs. No. 80, 1975 |\n|  | am. No. 117, 1975; No. 87, 1978; No. 108, 1981 |\n|  | rs. No. 51, 1986 |\n|  | am. No. 11, 1988; No. 5, 1991; No. 190, 1992; Nos. 162 and 163, 2001; No. 96, 2004; No. 101, 2006 |\n|  | rep. No. 143, 2007 |\n| s. 160AEA................ | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; No. 190, 1992; No. 47, 1998; No. 96, 2004; No. 64, 2005; No. 79, 2007 |\n|  | rep. No. 143, 2007 |\n| s. 160AF................. | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; No. 110, 1964; No. 50, 1966; No. 47, 1972; Nos. 51 and 164, 1973; No. 126, 1974 |\n|  | rs. No. 80, 1975 |\n|  | am. No. 117, 1975; No. 108, 1981 |\n|  | rs. No. 51, 1986 |\n|  | am. Nos. 11 and 78, 1988; No. 57, 1990; Nos. 5 and 100, 1991; No. 224, 1992; No. 181, 1994; No. 39, 1997; No. 162, 2001; No. 53, 2002; No. 10, 2003; Nos. 58 and 101, 2006; No. 15, 2007 |\n|  | rep. No. 143, 2007 |\n| s. 160AFA................ | ad. No. 51, 1986 |\n|  | am. No. 78, 1988; No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 160AFAA............... | ad. No. 11, 1988 |\n|  | rep. No. 143, 2007 |\n| s. 160AFB................ | ad. No. 51, 1986 |\n|  | am. No. 76, 1996; No. 174, 1997 |\n|  | rep. No. 143, 2007 |\n| s. 160AFC................ | ad. No. 51, 1986 |\n|  | am. No. 78, 1988; No. 5, 1991 |\n|  | rep. No. 96, 2004 |\n| s. 160AFCA............... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997 |\n|  | rep. No. 143, 2007 |\n| s. 160AFCB............... | ad. No. 5, 1991 |\n|  | rs. No. 96, 2004 |\n|  | rep. No. 143, 2007 |\n| s. 160AFCC............... | ad. No. 5, 1991 |\n|  | rep. No. 96, 2004 |\n| s. 160AFCD............... | ad. No. 5, 1991 |\n|  | rs. No. 66, 2003 |\n|  | am. Nos. 96 and 105, 2004 |\n|  | rep. No. 143, 2007 |\n| ss. 160AFCE–160AFCH...... | ad. No. 190, 1992 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 143, 2007 |\n| s. 160AFCJ............... | ad. No. 190, 1992 |\n|  | rs. No. 66, 2003 |\n|  | am. Nos. 96 and 105, 2004 |\n|  | rep. No. 143, 2007 |\n| s. 160AFCK............... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 143, 2007 |\n| s. 160AFD................ | ad. No. 51, 1986 |\n|  | am. Nos. 11 and 78, 1988; No. 57, 1990 |\n|  | rs. No. 5, 1991 |\n|  | am. No. 138, 1994; No. 76, 1996; Nos. 17 and 46, 1998; No. 162, 2001; No. 83, 2004; No. 101, 2006 |\n|  | rep. No. 143, 2007 |\n| s. 160AFE................ | ad. No. 51, 1986 |\n|  | am. No. 138, 1987; Nos. 11 and 78, 1988; No. 5, 1991; No. 101, 1992 |\n|  | rs. No. 90, 2002 |\n|  | am. No. 83, 2004 |\n|  | rep. No. 143, 2007 |\n| s. 160AFF................ | ad. No. 51, 1986 |\n|  | am. No. 107, 1989 |\n|  | rep. No. 143, 2007 |\n| Division 18A.............. | ad No 111, 1981 |\n|  | rep No 143, 2007 |\n| s. 160AGA............... | ad. No. 111, 1981 |\n|  | am. No. 51, 1986; No. 101, 2006 |\n|  | rep. No. 143, 2007 |\n| Division 18B heading........ | rep No 143, 2007 |\n| Division 18B.............. | ad No 14, 1984 |\n|  | rep No 143, 2007 |\n| s. 160AGB................ | ad. No. 14, 1984 |\n|  | am. No. 51, 1986 |\n|  | rep. No. 101, 2006 |\n| Division 19............... | ad No 18, 1960 |\n|  | rep No 143, 2007 |\n| s. 160AH................. | ad. No. 18, 1960 |\n|  | am. No. 4, 1968; Nos. 51 and 164, 1973; No. 80, 1975; No. 111, 1981; No. 14, 1984; No. 51, 1986; No. 11, 1999 |\n|  | rep. No. 143, 2007 |\n| s. 160AHA............... | ad. No. 47, 1998 |\n|  | rep. No. 143, 2007 |\n| s. 160AI................. | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; Nos. 51 and 164, 1973; No. 80, 1975; No. 87, 1978; No. 108, 1981; No. 73, 1989 |\n|  | rep. No. 143, 2007 |\n| ss. 160AIA, 160AIB......... | ad. No. 20, 1990 |\n|  | rep. No. 143, 2007 |\n| s. 160AJ................. | ad. No. 18, 1960 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 160AJA................ | ad. No. 20, 1990 |\n|  | rep. No. 143, 2007 |\n| s. 160AK................. | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; No. 87, 1978; No. 108, 1981; No. 51, 1986; No. 78, 1988; No. 73, 1989; No. 20, 1990 |\n|  | rep. No. 143, 2007 |\n| s. 160AL................. | ad. No. 18, 1960 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 48, 1986 |\n|  | rs. No. 216, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 160AM................ | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; No. 4, 1968; No. 108, 1981; No. 51, 1986; No. 20, 1990; No. 101, 1992 |\n|  | rep. No. 143, 2007 |\n| s. 160AN................. | ad. No. 18, 1960 |\n|  | am. No. 94, 1961; Nos. 51 and 164, 1973; No. 80, 1975; No. 87, 1978; No. 108, 1981; No. 123, 1984; No. 73, 1989; No. 216, 1991; Nos. 11 and 178, 1999; No. 23, 2005; No. 101, 2006 |\n|  | rep. No. 143, 2007 |\n| s. 160AO................. | ad. No. 18, 1960 |\n|  | am. No. 51, 1973; No. 87, 1978; No. 51, 1986; No. 73, 1989; No. 174, 1997; No. 107, 2003; No. 96, 2004; No. 4, 2007 |\n|  | rep. No. 143, 2007 |\n| Part IIIAA................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 1AAAA of Part IIIAA..... | ad. No. 48, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160AOAA.............. | ad. No. 48, 2002 |\n|  | rep. No. 101, 2006 |\n| Div. 1AAA of Part IIIAA...... | ad. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AOA............... | ad. No. 163, 2001 |\n|  | am. No. 162, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 160APA................ | ad. No. 58, 1987 |\n|  | am. Nos. 62 and 108, 1987; Nos. 105 and 167, 1989; Nos. 20, 57 and 58, 1990; Nos. 48, 100 and 216, 1991; Nos. 35 and 98, 1992; Nos. 17 and 118, 1993; No. 181, 1994; Nos. 170 and 171, 1995 (as am. by No. 41, 1998); No. 31, 1996; No. 62, 1997; Nos. 47 and 63, 1998; Nos. 16 and 93, 1999; Nos. 58, 66, 79, 89 and 156, 2000; Nos. 73 and 163, 2001; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160APAAAA............ | ad. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APAAAB............ | ad. No. 163, 2001 |\n|  | am. No. 107, 2003; No. 162, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 160APAAA............. | ad. No. 171, 1995 |\n|  | am. No. 62, 1997; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APAA............... | ad. No. 57, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160APB................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160APBA............... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APBB............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APBC............... | ad. No. 89, 2000 |\n|  | rs. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APBD............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APBE............... | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160APC, 160APD......... | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160APE................ | ad. No. 58, 1987 |\n|  | rs. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160APF, 160APG......... | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160APH................ | ad. No. 58, 1987 |\n|  | am. No. 136, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160APHA............... | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160APHB............... | ad. No. 48, 1991 |\n|  | am. No. 62, 1997; No. 16, 1999 |\n|  | rs. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| Note to s. 160APHB(2)(b)..... | ad. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| Div. 1AA of Part IIIAA....... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHBA, 160APHBB.... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHBC.............. | ad. No. 93, 1999 |\n|  | am. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHBD, 160APHBE.... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHBF, 160APHBG.... | ad. No. 93, 1999 |\n|  | am. No. 83, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 160APHBH............. | ad. No. 93, 1999 |\n|  | am. Nos. 55 and 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APHBI.............. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHBJ.............. | ad. No. 93, 1999 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 101, 2006 |\n| Div. 1A of Part IIIAA........ | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHC–160APHG...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHH............... | ad. No. 93, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APHI............... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHJ............... | ad. No. 93, 1999 |\n|  | am. No. 77, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHK–160APHN...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHNA............. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160APHO–160APHQ...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHR............... | ad. No. 93, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APHS............... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APHT............... | ad. No. 93, 1999 |\n|  | rs. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APHU............... | ad. No. 93, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APJ................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 2 of Part IIIAA | rs. No. 89, 2000   rep. No. 101, 2006 |\n| s. 160APK................ | ad. No. 58, 1987 |\n|  | am. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160APKA............... | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160APL................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APM............... | ad. No. 181, 1994 |\n|  | rs.","sortOrder":1000155},{"sectionNumber":"full-source-retrieval-0157","sectionType":"document_chunk","heading":"Document excerpt 157","content":"No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Note to s. 160APM.......... | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APMAA............. | ad. No. 181, 1994 |\n|  | rs. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APMAB............. | ad. No. 181, 1994 |\n|  | am. No. 171, 1995; No. 89, 2000; No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APMA.............. | ad. No. 20, 1990 |\n|  | rs. No. 4, 1991 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APMB.............. | ad. No. 20, 1990 |\n|  | am. No. 216, 1991; No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APMC.............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APMD.............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APME.............. | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 160APMF....... | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APMF............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APMG.............. | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APP................ | ad. No. 58, 1987 |\n|  | am. Nos. 62 and 108, 1987; No. 105, 1989; Nos. 48 and 216, 1991; No. 98, 1992; No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APPA............... | ad. No. 93, 1999 |\n|  | am. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APQ................ | ad. No. 58, 1987 |\n|  | am. No. 62, 1987; No. 105, 1989; Nos. 48 and 216, 1991; No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160APQA, 160APQB...... | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160APU, 160APV........ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APVA............... | ad. No. 181, 1994 |\n|  | am. No. 171, 1995; No. 62, 1997; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APVB............... | ad. No. 181, 1994 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APVBA............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 62, 1997; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APVBB.............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 62, 1997; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APVC............... | ad. No. 48, 1991 |\n|  | am. No. 216, 1991; No. 118, 1993; No. 62, 1997; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APVD............... | ad. No. 48, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 62, 1997; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160APVF, 160APVG...... | ad. No. 216, 1991 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APVH............... | ad. No. 118, 1993 |\n|  | am. No. 181, 1994; No. 171, 1995; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. BB of Div. 2.........  of Part IIIAA | ad. No. 89, 2000   rep. No. 101, 2006 |\n| s. 160APVI............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APVJ............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 160APVK–160APVM...... | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APVN............... | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APVO............... | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APVI...............  (second occurring)  Renumbered s. 160APVP...... | ad. No. 79, 2000    No. 156, 2000 |\n| s. 160APVP............... | rep. No. 101, 2006 |\n| Subdiv. BA of Div. 2 of.......  Part IIIAA | ad. No. 89, 2000   rep. No. 101, 2006 |\n| s. 160APVAA............. | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 2 of Part IIIAA | rs. No. 89, 2000   rep. No. 101, 2006 |\n| s. 160APW............... | ad. No. 58, 1987 |\n|  | am. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160APWA.............. | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160APWB.............. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160APX................ | ad. No. 58, 1987 |\n|  | am. No. 62, 1987; No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APXA............... | ad. No. 62, 1987 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APY................ | ad. No. 181, 1994 |\n|  | rs. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APYA............... | ad. No. 181, 1994 |\n|  | rs. No. 171, 1995 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160APYB............... | ad. No. 20, 1990 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APYBA............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160APYBAA............ | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APYBAB............ | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160APYBB.............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995; Nos. 11 and 178, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160APYC............... | ad. No. 4, 1991 |\n|  | am. No. 48, 1991; No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160APZ................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQB, 160AQC........ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCA.............. | ad. No. 62, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCB.............. | ad. No. 57, 1990 |\n|  | am. Nos. 17 and 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCBA............. | ad. No. 47, 1998 |\n|  | am. No. 63, 1998; No. 93, 1999; No. 79, 2000; No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCC.............. | ad. No. 58, 1990 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. CA.......  of Div. 2 of Part IIIAA | ad. No. 89, 2000   rep. No. 101, 2006 |\n| s. 160AQCCAA............ | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCCA............. | ad. No. 181, 1994 |\n|  | am. No. 171, 1995; No. 62, 1997; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCCB............. | ad. No. 181, 1994 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQCD, 160AQCE...... | ad. No. 48, 1991 |\n|  | am. No. 216, 1991; No. 118, 1993; No. 62, 1997; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCJ............... | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 62, 1997; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQCK, 160AQCL...... | ad. No. 216, 1991 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 62, 1997; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCM.............. | ad. No. 216, 1991 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCN.............. | ad. No. 118, 1993 |\n|  | am. No. 181, 1994; No. 171, 1995; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQCNA, 160AQCNB... | ad. No. 47, 1998 |\n|  | am. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNC............. | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. CA of Div. 2.........  of Part IIIAA  Renumbered Subdiv. CB of Div. 2 of Part IIIAA | ad. No. 89, 2000     No. 101, 2003 |\n| Subdiv. CB of Div. 2 of.......  Part IIIAA | rep. No. 101, 2006 |\n| s. 160AQCNCA............ | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNCB............ | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNCC............ | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNCD............ | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 160AQCNCE.... | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNCE............ | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| Subdiv. CB of Div. 2.........  of Part IIIAA  Renumbered Subdiv. CC of Div. 2 of Part IIIAA | ad. No. 89, 2000     No. 101, 2003 |\n| Subdiv. CC of Div. 2 of.......  Part IIIAA | rep. No. 101, 2006 |\n| ss. 160AQCNCF–...........  160AQCNCI | ad. No. 89, 2000  rep. No. 101, 2006 |\n| s. 160AQCNCJ............. | ad. No. 89, 2000 |\n|  | am. No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 2..........  of Part IIIA | ad. No. 147, 1997   rep. No. 101, 2006 |\n| s. 160AQCO..............  Renumbered   s. 160AQCNCK............ | ad. No. 147, 1997    No. 101, 2003 |\n| s. 160AQCNCK............ | rep. No. 101, 2006 |\n| Div. 2A of Part IIIAA........ | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCND............. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNDA............ | ad. No. 101, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNE............. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQCNF............. | ad. No. 93, 1999 |\n|  | am. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQCNG–160AQCNP.... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQCNQ, 160AQCNR... | ad. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160AQD............... | ad. No. 58, 1987 |\n|  | am. No. 20, 1990; No. 216, 1991; No. 118, 1993; No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160AQDA.............. | ad. No. 118, 1993 |\n|  | am. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160AQDAA............. | ad. No. 171, 1995 |\n|  | am. No. 89, 2000; No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQDB.............. | ad. No. 118, 1993 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQE................ | ad. No. 58, 1987 |\n|  | am. No. 58, 1990; No. 227, 1992; No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQF................ | ad. No. 58, 1987 |\n|  | am. No. 62, 1987; No. 118, 1993; No. 171, 1995; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| Notes to s. 160AQF(1), (1AA)... | ad. No 170, 1995 |\n|  | rep. No 101, 2006 |\n| s. 160AQFA............... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQG............... | ad. No. 58, 1987 |\n|  | am. No. 57, 1990; No. 93, 1999; No. 79, 2000; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| Note to s. 160AQG.......... | ad. No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQH............... | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 93, 1999; No. 179, 1999 (as am. by No. 57, 2002); No. 79, 2000; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160AQJ................ | ad. No. 58, 1987 |\n|  | am. No. 20, 1990; No. 48, 1991; No. 118, 1993; No. 171, 1995; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| Subdiv. BA of Div. 5.........  of Part IIIAA | ad. No. 181, 1994   rep. No. 101, 2006 |\n| s. 160AQJA............... | ad. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160AQJB............... | ad. No. 181, 1994 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160AQJC............... | ad. No. 171, 1995 |\n|  | am. Nos. 79 and 89, 2000; No. 73, 2001; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C of.......  of Div. 5 of Part IIIAA | am. No. 181, 1994   rep. No. 101, 2006 |\n| s. 160AQK............... | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995; No. 167, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQKA.............. | ad. No. 20, 1990 |\n|  | am. No. 167, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQKAA–160AQKAE... | ad. No. 167, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQKB.............. | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQL–160AQN........ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160AQP................ | ad. No. 58, 1987 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160AQQ............... | ad. No. 58, 1987 |\n|  | rs. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQR, 160AQS........ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160AQT................ | ad. No. 58, 1987 |\n|  | am. No. 108, 1987; Nos. 97 and 105, 1989; No. 98, 1992; No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999; Nos. 79 and 89, 2000; No. 167, 2001; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 160AQTA.............. | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQTB............... | ad. No. 93, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQTC............... | ad. No. 93, 1999 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160AQU............... | ad. No. 58, 1987 |\n|  | am. Nos. 97 and 105, 1989; Nos. 79 and 89, 2000; No. 167, 2001; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| Div. 6A of Part IIIAA........ | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160AQUA.............. | ad. No. 100, 1991 |\n|  | am. No. 98, 1992; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQUB–160AQUD...... | ad. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160AQV............... | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160AQW............... | ad. No. 58, 1987 |\n|  | am. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160AQWA.............. | ad. No. 41, 1998 |\n|  | am. No. 79, 2000 |\n|  | rs. No. 89, 2000; No. 167, 2001 |\n|  | am. No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 160AQX............... | ad. No. 58, 1987 |\n|  | am. No. 105, 1989; No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999; No. 79, 2000; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160AQY............... | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQYA.............. | ad. No. 97, 1989 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQZ................ | ad. No. 58, 1987 |\n|  | am. No. 105, 1989; No. 118, 1993; No. 171, 1995; No. 47, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQZA.............. | ad. No. 105, 1989 |\n|  | am. No. 118, 1993 |\n|  | rs. No. 171, 1995 |\n|  | am. No. 47, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQZB, 160AQZC...... | ad. No. 93, 1999 |\n|  | am. No. 89, 2000; No. 66, 2003 |\n|  | rep. No. 101, 2006 |\n| Subdiv. BA of Div. 7.........  of Part IIIAA | ad. No. 93, 1999   rep. No. 101, 2006 |\n| ss. 160AQZD, 160AQZE...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AQZF............... | ad. No. 93, 1999 |\n|  | am. No. 58, 2000; No. 101, 2003 |\n|  | rep. No. 101, 2006 |\n| ss. 160AQZG, 160AQZH...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. C.........  of Div. 7 of Part IIIAA | rs. No. 47, 1998   rep. No. 101, 2006 |\n| s. 160AR................. | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995; No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARAA.............. | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARAB, 160ARAC...... | ad. No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ARA................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ARB................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 (as am. by No. 147, 1997) |\n|  | rep. No. 101, 2006 |\n| s. 160ARC................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ARD................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 (as am. by No. 147, 1997) |\n|  | rep. No. 101, 2006 |\n| Div. 7AA of Part IIIAA....... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDAA–160ARDAF.... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| Div. 7A of Part IIIAA........ | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDA.............. | ad. No. 62, 1987 |\n|  | am. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDB, 160ARDC...... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDCA............. | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDD.............. | ad. No. 62, 1987 |\n|  | am. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDE–160ARDH...... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| Subdiv. CA of Div. 7A........  of Part IIIAA | ad. No. 163, 2001  rep. No. 101, 2006 |\n| ss. 160ARDHA–160ARDHC... | ad. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDJ–160ARDL...... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 7B of Part IIIAA........ | ad. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDM.............. | ad. No. 63, 1998 |\n|  | am. Nos. 103 and 117, 1999; No. 167, 2001; No. 101, 2003; No. 80, 2006 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDN–160ARDP...... | ad. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDQ.............. | ad. No. 63, 1998 |\n|  | am. No. 103, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDR–160ARDV...... | ad. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDW.............. | ad. No. 63, 1998 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDX, 160ARDY...... | ad. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 7B.........  of Part IIIAA | ad. No. 58, 2000   rep. No. 101, 2006 |\n| s. 160ARDZ............... | ad. No. 58, 2000 |\n|  | am. No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDZA............. | ad. No. 58, 2000 |\n|  | rs. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARDZB............. | ad. No. 58, 2000 |\n|  | rs. No. 58, 2000 |\n|  | am. No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARDZC, 160ARDZD.... | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARE................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160AREA............... | ad. No. 181, 1994 |\n|  | am. No. 171, 1995; No. 89, 2000; No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160ARF................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARG................ | ad. No. 58, 1987 |\n|  | rs. No. 91, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARH................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ARHA.............. | ad. No. 181, 1994 |\n|  | rep. No. 101","sortOrder":1000156},{"sectionNumber":"full-source-retrieval-0158","sectionType":"document_chunk","heading":"Document excerpt 158","content":", 2006 |\n| s. 160ARJ................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ARK................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARL, 160ARM........ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARN................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ARQ................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ARR................ | ad. No. 58, 1987 |\n|  | am. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ARS................ | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 9 of Part IIIAA.......... | ad. No. 58, 1987 |\n|  | rs. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160ART................ | ad. No. 58, 1987 |\n|  | rs. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160ARU................ | ad. No. 58, 1987 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ARUA.............. | ad. No. 181, 1994 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ARV................ | ad. No. 58, 1987 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ARW............... | ad. No. 58, 1987 |\n|  | am. No. 101, 1992; No. 181, 1994; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ARWA.............. | ad. No. 91, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARXA.............. | ad. No. 101, 1992 |\n|  | am. No. 118, 1993; No. 181, 1994; Nos. 169 and 171, 1995; No. 174, 1997; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARXB.............. | ad. No. 101, 1992 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARXC.............. | ad. No. 101, 1992 |\n|  | am. No. 181, 1994; No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ARX................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 56, 1994; No. 171, 1995; No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARYA, 160ARYB...... | ad. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ARYC.............. | ad. No. 171, 1995 |\n|  | am. No. 89, 2000; No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160ARY................ | ad. No. 58, 1987 |\n|  | am. No. 100, 1991; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ARZ................ | ad. No. 58, 1987 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARZA–160ARZC...... | ad. No. 101, 1992 |\n|  | am. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ARZD............... | ad. No. 101, 1992 |\n|  | am. No. 118, 1993; No. 181, 1994; No. 171, 1995; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARZE–160ARZG...... | ad. No. 101, 1992 |\n|  | am. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ARZH............... | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 160ARZI–160ARZL....... | ad. No. 101, 1992 |\n|  | am. No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASA, 160ASB......... | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ASC................ | ad. No. 58, 1987 |\n|  | am. No. 20, 1990; No. 118, 1993; No. 171, 1995; No. 93, 1999; No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASD, 160ASE......... | ad. No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 12A of Part IIIAA....... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASEB–160ASEO....... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ASEP............... | ad. No. 79, 2000 |\n|  | am. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| Div. 13 of Part IIIAA......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ASEA............... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASF–160ASJ......... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASK, 160ASL......... | ad. No. 171, 1995 |\n|  | am. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 160ASM, 160ASN........ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Div. 14 of Part IIIAA......... | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ATA................ | ad. No. 79, 2000 |\n|  | am. No. 89, 2000; No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160ATB................ | ad. No. 79, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ATC................ | ad. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ATD................ | ad. No. 79, 2000 |\n|  | am. No. 89, 2000; Nos. 48 and 57, 2002 |\n|  | rep. No. 101, 2006 |\n| s. 160ATDA.............. | ad. No. 89, 2000 |\n|  | am. No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| ss. 160ATF–160ATH......... | ad. No. 79, 2000 |\n|  | am. No. 89, 2000 |\n|  | rep. No. 101, 2006 |\n| Div. 15 of Part IIIAA......... | ad. No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| ss. 160AUA–160AUG........ | ad. No. 57, 2002 |\n|  | rep. No. 101, 2006 |\n| Heading to Part IIIA......... | am. No. 48, 1950 |\n|  | rep. No. 101, 2006 |\n| Part IIIA................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 1 of Part IIIA... | am. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| Subdiv. A of Div. 1..........  of Part IIIA | ad. No. 224, 1992   rep. No. 101, 2006 |\n| s. 160AX................. | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160AY................. | ad. No. 224, 1992 |\n|  | am. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160AZ................. | ad. No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160AZA................ | ad. No. 224, 1992 |\n|  | am. Nos. 169 and 171, 1995; No. 147, 1997; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 1 of Part IIIA | ad. No. 224, 1992   rep. No. 101, 2006 |\n| s. 160A.................. | ad. No. 52, 1986 |\n|  | am. No. 48, 1991; Nos. 80 and 191, 1992; No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160B.................. | ad. No. 52, 1986 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160C.................. | ad. No. 52, 1986 |\n|  | am. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160D.................. | ad. No. 52, 1986 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160E.................. | ad. No. 52, 1986 |\n|  | am. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| ss. 160F, 160G............. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160H.................. | ad. No. 52, 1986 |\n|  | am. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160J.................. | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160JA................. | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160K.................. | ad. No. 52, 1986 |\n|  | am. No. 138, 1987; Nos. 78 and 153, 1988; Nos. 11 and 105, 1989; No. 135, 1990; No. 56, 1994; No. 169, 1995; Nos. 121 and 150, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160L.................. | ad. No. 52, 1986 |\n|  | am. No. 35, 1990; No. 48, 1991; Nos. 80 and 191, 1992; Nos. 82 and 138, 1994; Nos. 39 and 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160M.................. | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 108, 1987; No. 35, 1990; Nos. 5 and 48, 1991; Nos. 101 and 191, 1992; No. 82, 1994; Nos. 120 and 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160MA................ | ad. No. 191, 1992 |\n|  | am. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160N.................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160P.................. | ad. No. 52, 1986 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160Q.................. | ad. No. 52, 1986 |\n|  | am. No. 11, 1989; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 160R, 160S............. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160T.................. | ad. No. 52, 1986 |\n|  | am. No. 11, 1989; No. 48, 1991; No. 191, 1992; No. 120, 1995; No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160U.................. | ad. No. 52, 1986 |\n|  | am. No. 191, 1992; No. 82, 1994; No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160V.................. | ad. No. 52, 1986 |\n|  | am. No. 35, 1990; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160W................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160WA................ | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160X.................. | ad. No. 52, 1986 |\n|  | am. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160Y.................. | ad. No. 52, 1986 |\n|  | am. No. 105, 1989; No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160Z.................. | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 108, 1987; Nos. 5 and 48, 1991; No. 80, 1992; Nos. 17 and 18, 1993; No. 171, 1995; No. 76, 1996; Nos. 39, 1997 (as rep. by No. 147, 1997), 122 and 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZA................. | ad. No. 52, 1986 |\n|  | am. No. 35, 1990; No. 48, 1991; No. 17, 1993; Nos. 82 and 181, 1994; Nos. 170 and 171, 1995; No. 63, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZAA................ | ad. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ZB................. | ad. No. 52, 1986 |\n|  | am. No. 61, 1987; No. 107, 1989; No. 35, 1990; Nos. 191 and 224, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZC................. | ad. No. 52, 1986 |\n|  | am. No. 57, 1990; No. 98, 1992; No. 170, 1995; No. 76, 1996; No. 39, 1997 (as am. by No. 95, 1997); Nos. 95 and 147, 1997; No. 46, 1998; No. 93, 1999 |\n|  | rep. No. 101, 2006 |\n| Note to s. 160ZC(4).......... | ad. No. 122, 1997 (as rep. by No. 95, 1997) |\n|  | rep. No. 101, 2006 |\n| ss. 160ZCA–160ZCF......... | ad. No. 58, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 160ZD................. | ad. No. 52, 1986 |\n|  | am. No. 97, 1989; No. 35, 1990; No. 48, 1991; No. 80, 1992; No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160ZE................. | ad. No. 52, 1986 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZF................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZFA................ | ad. No. 5, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160ZFB................ | ad. No. 48, 1991 |\n|  | am. No. 155, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZG................. | ad. No. 52, 1986 |\n|  | am. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZH................. | ad. No. 52, 1986 |\n|  | am. Nos. 20 and 35, 1990; No. 216, 1991; No. 191, 1992; No. 120, 1995; No. 76, 1996; No. 121, 1997; No 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZI................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZJ................. | ad. No. 52, 1986 |\n|  | am. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZJA, 160ZJB......... | ad. No. 16, 1999 |\n|  | am. No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 160ZK................. | ad. No. 52, 1986 |\n|  | am. No. 48, 1991; Nos. 56 and 82, 1994; Nos. 39 and 121, 1997; Nos. 16 and 91, 1998; Nos. 54 and 93, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZL................. | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 35, 1990; No. 82, 1994; No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZM................. | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 108, 1987; No. 35, 1990; No. 5, 1991; Nos. 98 and 190, 1992; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZN................. | ad. No. 52, 1986 |\n|  | am. No. 154, 1986 |\n|  | rep. No. 101, 2006 |\n| Div. 3A of Part IIIA.......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNA................ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNBA............... | ad. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNB–160ZNG........ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| Div. 3B of Part IIIA.......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNH–160ZNR........ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNRA............... | ad. No. 147, 2005 |\n|  | rep. No. 101, 2006 |\n| Div. 3C of Part IIIA.......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNS................ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| Div. 3CA of Part IIIA........ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNSA–160ZNSE....... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| Div. 3CB of Part IIIA......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNSF–160ZNSJ....... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNSK............... | ad. No. 147, 1997 |\n|  | am. No. 147, 2005 |\n|  | rep. No. 101, 2006 |\n| Div. 3CC of Part IIIA......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNSL–160ZNSS....... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| Div. 3CD of Part IIIA........ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNST–160ZNSV....... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| Div. 3D of Part IIIA.......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZNTA............... | ad. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZNT–160ZNX........ | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZO................. | ad. No. 52, 1986 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZP................. | ad. No. 52, 1986 |\n|  | am. No. 138, 1987; No. 11, 1988; No. 35, 1990; Nos. 80, 98 and 101, 1992; No. 17, 1993; No. 82, 1994; No. 39, 1997 (as rep. by No. 147, 1997); No. 95, 1997 (as am. by No. 147, 1997; No. 41, 1998); No. 147, 1997; No. 46, 1998; No. 169, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZPAA............... | ad. No. 94, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZPA................ | ad. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZQ................. | ad. No. 52, 1986 |\n|  | am. No. 76, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZR, 160ZS........... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZSA................ | ad. No. 167, 1989 |\n|  | am. Nos. 80 and 101, 1992; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZT................. | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZU................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZV................. | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZW................ | ad. No. 52, 1986 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| Div. 5A of Part IIIA.......... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZWA............... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| Div. 5B of Part IIIA.......... | ad. No. 17, 1993 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZWB–160ZWD........ | ad. No. 17, 1993 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZX, 160ZY........... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYA, 160ZYB........ | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYC................ | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYD................ | ad. No. 52, 1986 |\n|  | rs. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYE................ | ad. No. 52, 1986 |\n|  | am. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYEA............... | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 7A of Part IIIA.......... | ad. No. 105, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYEB............... | ad. No. 105, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYF................ | ad. No. 52, 1986 |\n|  | am. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYG................ | ad. No. 52, 1986 |\n|  | rs. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYH................ | ad. No. 52, 1986 |\n|  | am. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYHA.............. | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| Div. 8A of Part IIIA.......... | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYHB, 160ZYHC...... | ad. No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 9 of Part IIIA... | am. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYHD.............. | ad. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYI, 160ZYJ......... | ad. No. 52, 1986 |\n|  | am. No. 153, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYJA............... | ad. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| Div. 9A of Part IIIA.......... | ad. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYJB–160ZYJE....... | ad. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYK................ | ad. No. 52, 1986 |\n|  | am. No. 35, 1990; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYL–160ZYN........ | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYO................ | ad. No. 52, 1986 |\n|  | am. No. 109, 1986 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYP, 160ZYQ......... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| Div. 10A of Part IIIA......... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYQA–160ZYQF...... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYR................ | ad. No. 52, 1986 |\n|  | am. No. 35, 1990; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYS–160ZYX......... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| Div. 11A of Part IIIA......... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZYXA–160ZYXF...... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 12..........  of Part IIIA | am. No. 11, 1989   rep. No. 101, 2006 |\n| s. 160ZYY................ | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYYA.............. | ad. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160ZYZ................ | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZ................. | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZA, 160ZZB......... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| Div. 12A of Part IIIA......... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZBA............... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZBAA.............. | ad. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZBB............... | ad. No. 11, 1989 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZBC, 160ZZBD....... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| Div. 12B of Part IIIA......... | ad. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZBE, 160ZZBF....... | ad. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZC................ | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 11, 1989; No. 35, 1990; No. 122, 1997 |","sortOrder":1000157},{"sectionNumber":"full-source-retrieval-0159","sectionType":"document_chunk","heading":"Document excerpt 159","content":"|  | rep. No. 101, 2006 |\n| s. 160ZZD................ | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZE................ | ad. No. 52, 1986 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZF................ | ad. No. 52, 1986 |\n|  | am. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZG, 160ZZH......... | ad. No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZI................ | ad. No. 52, 1986 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZJ................ | ad. No. 52, 1986 |\n|  | am. No. 105, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZJA............... | ad. No. 62, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZK................ | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 11, 1989; No. 135, 1990; No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZL................ | ad. No. 52, 1986 |\n|  | am. No. 11, 1989; No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZM................ | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZMA.............. | ad. No. 11, 1989 |\n|  | am. Nos. 5 and 48, 1991; No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZN................ | ad. No. 52, 1986 |\n|  | am. No. 11, 1988; No. 11, 1989; No. 35, 1990; No. 48, 1991; No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZNA............... | ad. No. 48, 1991 |\n|  | am. Nos. 35 and 80, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZO................ | ad. No. 52, 1986 |\n|  | am. No. 138, 1987; No. 11, 1988; No. 11, 1989; No. 35, 1990; Nos. 5 and 48, 1991; No. 80, 1992; No. 17, 1993; No. 82, 1994; No. 171, 1995; No. 76, 1996; No. 95, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZOA............... | ad. No. 17, 1993 |\n|  | am. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZOB, 160ZZOC...... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZP................ | ad. No. 52, 1986 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPAA–160ZZPAC.... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPA, 160ZZPB....... | ad. No. 11, 1988 |\n|  | am. No. 63, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPC–160ZZPF....... | ad. No. 11, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPG............... | ad. No. 35, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPH............... | ad. No. 35, 1990 |\n|  | am. No. 103, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPI................ | ad. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPIA.............. | ad. No. 169, 1995 |\n|  | am. No. 121, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPJ............... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 17A.........  of Part IIIA | rs. No. 16, 1998   rep. No. 101, 2006 |\n| Div. 17A of Part IIIA......... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPK............... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPL............... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPM............... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPN............... | ad. No. 122, 1997 |\n|  | am. Nos. 16 and 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPNA.............. | ad. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 17A of Part IIIA | rs. No. 16, 1998   rep. No. 101, 2006 |\n| s. 160ZZPO............... | ad. No. 122, 1997 |\n|  | rs. No. 16, 1998 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPP............... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPQ............... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPQA.............. | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPR–160ZZPX....... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPXA.............. | ad. No. 16, 1998 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPY, 160ZZPZ....... | ad. No. 122, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| Div. 17B of Part IIIA......... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPZA–160ZZPZC..... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZPZD.............. | ad. No. 147, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPZE–160ZZPZG..... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPZH, 160ZZPZI..... | ad. No. 147, 1997 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZPZJ–160ZZPZQ..... | ad. No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZQ................ | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; Nos. 11 and 107, 1989; Nos. 35 and 135, 1990; Nos. 80 and 101, 1992; No. 17, 1993; No. 147, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZR................ | ad. No. 52, 1986 |\n|  | am. No. 80, 1992; No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRAA.............. | ad. No. 80, 1992 |\n|  | rep. No. 101, 2006 |\n| Div. 19A of Part IIIA......... | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| Subdiv. A of Div. 19A........  of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 160ZZRAAA............ | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRA............... | ad. No. 48, 1991 |\n|  | am. No. 80, 1992; No. 82, 1994; No. 171, 1995; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRB............... | ad. No. 48, 1991 |\n|  | am. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRBA, 160ZZRBB.... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRC............... | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 19A of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 160ZZRD............... | ad. No. 48, 1991 |\n|  | am. No. 48, 1991; No. 82, 1994; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRDA–160ZZRDD.... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 19A........  of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| ss. 160ZZRDE–160ZZRDI..... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 19A of......  of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| ss. 160ZZRDJ–160ZZRDN..... | ad. No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. E.........  of Div. 19A of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 160ZZRE............... | ad. No. 48, 1991 |\n|  | am. No. 48, 1991; No. 80, 1992; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRF............... | ad. No. 48, 1991 |\n|  | am. No. 48, 1991; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRFA.............. | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. F.........  of Div. 19A of Part IIIA | ad. No. 171, 1995   rep. No. 101, 2006 |\n| s. 160ZZRG............... | ad. No. 48, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRH............... | ad. No. 48, 1991 |\n|  | am. No. 48, 1991; No. 80, 1992; No. 171, 1995 |\n|  | rep. No. 101, 2006 |\n| Div. 19B of Part IIIA......... | ad. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRI–160ZZRL....... | ad. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZRM.............. | ad. No. 82, 1994 |\n|  | am. No. 31, 1996 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRN–160ZZRQ...... | ad. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 20..........  of Part IIIA | rs. No. 122, 1997   rep. No. 101, 2006 |\n| Subdiv. A of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| s. 160ZZRR............... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRRA, 160ZZRRB.... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZRS–160ZZRU....... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 20 of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| Heading to s. 160ZZS........ | rs. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 160ZZS................ | ad. No. 52, 1986 |\n|  | am. No. 80, 1992; No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| ss. 160ZZSA–160ZZSD....... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| ss. 160ZZSE–160ZZSI........ | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. E of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| s. 160ZZSJ............... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 160ZZSK–160ZZSP....... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. F of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| ss. 160ZZSR, 160ZZSS....... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. G of Div. 20.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| s. 160ZZST............... | ad. No. 122, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 20A.........  of Part IIIA | ad. No. 122, 1997   rep. No. 101, 2006 |\n| s. 160ZZT................ | ad. No. 52, 1986 |\n|  | am. No. 154, 1986; No. 35, 1990; No. 48, 1991; Nos. 82 and 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s 160ZZU................ | ad No 52, 1986 |\n|  | am No 48, 1991; No 80, 1992; No 17, 1993; No 82, 1994; No 169, 1995; No 47, 1998 |\n|  | rep No 101, 2006 |\n| Part IIIB |  |\n| Part IIIB................. | ad No 138, 1994 |\n| Division 1 |  |\n| Division 1................ | ad No. 138, 1994 |\n| s 160ZZVA............... | ad No 138, 1994 |\n|  | am No 64, 2005 |\n| s 160ZZVB............... | ad No 138, 1994 |\n|  | am No 21, 2015; No 84, 2018 |\n| s 160ZZV................ | ad No 138, 1994 |\n|  | am No 95, 1997; No 48, 1998; No 15, 2009 |\n| s 160ZZW................ | ad No 138, 1994 |\n|  | am No 162, 2001; No 15, 2009; No 101, 2013 |\n| Division 2 |  |\n| Division 2................ | ad. No. 138, 1994 |\n| s. 160ZZX................ | ad. No. 138, 1994 |\n|  | am. No. 15, 2009 |\n| s. 160ZZY................ | ad. No. 138, 1994 |\n|  | rep. No. 143, 2007 |\n| s. 160ZZZ................ | ad. No. 138, 1994 |\n| s. 160ZZZA............... | ad. No. 138, 1994 |\n|  | am. No. 95, 1997 |\n| s. 160ZZZB............... | ad. No. 138, 1994 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 162, 2001 |\n| s 160ZZZC............... | ad No 138, 1994 |\n|  | am No 64, 2020 |\n| s. 160ZZZD............... | ad. No. 138, 1994 |\n|  | rep. No. 162, 2001 |\n| s 160ZZZE............... | ad No 138, 1994 |\n| s 160ZZZF................ | ad No 138, 1994 |\n| s. 160ZZZG............... | ad. No. 138, 1994 |\n|  | am. No. 39, 1997 |\n| s. 160ZZZH............... | ad. No. 138, 1994 |\n|  | rs. No. 46, 1998 |\n| s. 160ZZZI............... | ad. No. 138, 1994 |\n| Division 3 |  |\n| Division 3................ | ad. No. 138, 1994 |\n| s. 160ZZZJ............... | ad. No. 138, 1994 |\n|  | am. No. 179, 1999; No. 162, 2001; No. 101, 2006 |\n| Division 4 |  |\n| Division 4................ | ad. No. 64, 2005 |\n| s. 160ZZZK............... | ad. No. 64, 2005 |\n| Division 5 |  |\n| Division 5................ | ad No 84, 2018 |\n| s 160ZZZL............... | ad No 84, 2018 |\n| s 160ZZZN............... | ad No 84, 2018 |\n| s 160ZZZP................ | ad No 84, 2018 |\n| s 160ZZZR............... | ad No 84, 2018 |\n| Part IV |  |\n| s. 161................... | am. No. 85, 1959; No. 85, 1967; No. 87, 1978; No. 52, 1986; No. 73, 1989; No. 20, 1990; No. 174, 1997; No. 121, 1999; Nos. 24 and 91, 2000; No. 154, 2007; No 64, 2020 |\n| s. 161A.................. | ad. No. 174, 1997 |\n|  | am. No. 91, 2000 |\n| s. 161AA................. | ad. No. 179, 1999 |\n|  | am. No. 161, 2005; No. 9, 2007; No. 88, 2009; No 88, 2013 |\n| s. 161G.................. | ad. No. 174, 1997 |\n| s. 162................... | am. No. 52, 1986; No. 17, 1999 |\n|  | rs. No. 91, 2000 |\n| s. 163................... | am. No. 87, 1978; No. 73, 1989; No. 91, 2000; No. 41, 2011 |\n| s 163A.................. | ad No 169, 1995 |\n|  | am No 11, 1999; No 179, 1999; No 91, 2000; No 67, 2003; No 101, 2006 |\n|  | rep No 8, 2019 |\n| s 163AA................. | ad No 11, 1999 |\n|  | am No 101, 2006 |\n|  | rep No 8, 2019 |\n| s 163B.................. | ad No 169, 1995 |\n|  | am No 45, 1998; No 85, 1998; No 11, 1999; No 178, 1999; No 179, 1999; No 91, 2000; No 106, 2000; No 67, 2003; No 150, 2003; No 79, 2010 |\n|  | rep No 8, 2019 |\n| s 164................... | am No 41, 2011 |\n|  | rep No 2, 2015 |\n| s. 166................... | am. No. 161, 2005; No. 41, 2011 |\n|  | rs No 88, 2013 |\n| s. 166A.................. | ad. No. 20, 1990 |\n|  | am. No. 100, 1991; No. 18, 1993; No. 56, 1994; No. 120, 1995; No. 174, 1997; No. 179, 1999; No. 161, 2005; No. 101, 2006; No 88, 2013 |\n| s. 167................... | am. No. 108, 1981; No. 41, 2011 |\n| s 168................... | am. No. 161, 2005; No 88, 2013 |\n| s 169................... | am. No. 161, 2005 |\n| s. 169AA................. | ad. No. 79, 2010 |\n| s. 169A.................. | ad. No. 46, 1986 |\n|  | am. No. 101, 1992; No. 161, 2005 |\n| s 170................... | am No 88, 1936; No 22, 1942; No 50, 1942; No 28, 1944; No 11, 1947; No 45, 1953; No 101, 1956; No 65, 1957; No 55, 1958; No 70, 1959; No 85, 1959; No 27, 1961; No 94, 1961; No 39, 1962; No 69, 1963; No 46, 1964; No 68, 1964; No 110, 1964; No 38, 1967; No 85, 1967; No 60, 1968; No 87, 1968; No 93, 1969; No 87, 1970; No 51, 1973; No 52, 1973; No 216, 1973 (as am by No 20, 1974); No 126, 1974; No 117, 1975; No 50, 1976; No 205, 1976; No 57, 1977; No 57, 1978; No 172, 1978; No 12, 1979; No 146, 1979; No 19, 1980; No 57, 1980; No 58, 1980; No 124, 1980; No 133, 1980; No 159, 1980; No 108, 1981; No 111, 1981; No 29, 1982; No 38, 1982; No 106, 1982; No 123, 1982; No 49, 1983; No 14, 1984; No 47, 1984; No 76, 1984; No 123, 1984; No 123, 1985; No 173, 1985; No 41, 1986; No 46, 1986; No 52, 1986; No 90, 1986 (as am by No 141, 1987); No 112, 1986; No 61, 1987; No 59, 1988; No 153, 1988; No 97, 1989; No 107, 1989; No 167, 1989; No 20, 1990; No 57, 1990; No 101, 1992; No 224, 1992; No 18, 1993; No 82, 1994; No 138, 1994; No 181, 1994; No 22, 1995; No 30, 1995; No 31, 1995 (as am by No 170, 1995); No 171, 1995; No 78, 1996; No 39, 1997 (as am by No 147, 1997); No 121, 1997; No 147, 1997; No 174, 1997; No 17, 1998; No 41, 1998; No 46, 1998; No 85, 1998; No 70, 1999; No 94, 1999; No 179, 1999; No 89, 2000; No 91, 2000; No 77, 2001; No 167, 2001; No 170, 2001; No 32, 2002; No 57, 2002; No 10, 2003; No 65, 2003; No 66, 2003; No 123, 2003; No 133, 2003; No 20, 2004; No 161, 2005; No 58, 2006; No 101, 2006; No 15, 2007; No 32, 2007; No 80, 2007; No 143, 2007; No 164, 2007; No 133, 2009; No 75, 2010; No 79, 2010; No 41, 2011; No 93, 2011; No 58, 2012; No 115, 2012; No 101, 2013; No 68, 2014; No 109, 2014; No 53, 2016; No 27, 2017; No 49, 2019 |\n|  | ed C163 |\n|  | am No 92, 2020; No 127, 2021; No 75, 2022; No 135, 2024; No 138, 2024 |\n| s. 170A.................. | ad. No. 103, 1965 |\n|  | rep. No. 161, 2005 |\n|  | ad. No. 12, 2012 |\n| s. 170AA................. | ad. No. 46, 1986 |\n|  | am. Nos. 20 and 35, 1990; No. 216, 1991; No. 101, 1992; No. 18, 1993; No. 120, 1995; Nos. 11 and 179, 1999; No. 91, 2000; No. 67, 2003 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| s 170B.................. | ad No 68, 2014 |\n| s. 170BA................. | ad. No. 101, 1992 |\n|  | am. No. 179, 1999; No. 23, 2005 |\n|  | rep. No. 161, 2005 |\n| s. 170BB................. | ad. No. 101, 1992 |\n|  | rep. No. 161, 2005 |\n| s. 170BCA................ | ad. No. 179, 1999 |\n|  | rep. No. 161, 2005 |\n| s. 170BC................. | ad. No. 101, 1992 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 161, 2005 |\n| ss. 170BDA–170BDC........ | ad. No. 179, 1999 |\n|  | rep. No. 161, 2005 |\n| ss. 170BD–170BI........... | ad. No. 101, 1992 |\n|  | rep. No. 161, 2005 |\n| s. 170C.................. | ad. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n| s. 171................... | am. No. 108, 1981; No. 52, 1986; No. 41, 2011 |\n| s. 171A.................. | ad. No. 161, 2005 |\n| s. 172................... | rs. No. 87, 1978; No. 123, 1984 |\n|  | am. No. 46, 1986; No. 101, 1992; No. 11, 1999; No. 91, 2000; No. 75, 2005; No. 101, 2006 |\n| s 172A.................. | am No 88, 2013; No 9, 2025 |\n| s. 174................... | am. No. 87, 1978; No. 123, 1984; No. 73, 1989 |\n| s 175A.................. | ad No 216, 1991 |\n|  | am No 161, 2005; No 88, 2013; No 92, 2020 |\n| s 176................... | am No 216, 1973 (as am by No 20, 1974) |\n|  | rep No 2, 2015 |\n| s 177................... | am No 216, 1973 (as am by No 20, 1974); No 23, 1987; No 216, 1991; No 174, 1997 |\n|  | rep No 2, 2015 |\n| Part IVA |  |\n| Part IVA................. | ad. No. 110, 1981 |\n| s 177A.................. | ad No 110, 1981 |\n|  | am No 135, 1990; No 208, 1992; No 46, 1998; No 11, 1999; No 16, 1999; No 173, 2000; No 143, 2007; No 170, 2015; No 54, 2016; No 27, 2017; No 124, 2018; No 92, 2020; No 9, 2025 |\n| s 177B.................. | ad. No. 110, 1981 |\n|  | am No 37, 1990; No 135, 1990; No 208, 1992; No 22, 1995; No 85, 1998; No 25, 2000; No 10, 2003; No 101, 2006; No 79, 2010; No 59, 2019 |\n| s 177C.................. | ad No 110, 1981 |\n|  | am No 135, 1990; No 208, 1992; No 16, 1998; No 41, 1998; No 46, 1998; No 11, 1999; No 16, 1999; No 169, 1999; No 173, 2000; No 133, 2003; No 101, 2006; No 143, 2007; No 88, 2013; No 101, 2013; No 96, 2014; No 21, 2015; No 54, 2016; No 8, 2019; No 92, 2020; No 9, 2025 |\n| s. 177CA................. | ad. No. 95, 1997 |\n|  | rep. No. 101, 2013 |\n| s 177CB................. | ad No 101, 2013 |\n|  | am No 88, 2013; No 96, 2014; No 21, 2015; No 170, 2015; No 54, 2016; No 27, 2017; No 92, 2020; No 9, 2025 |\n| s. 177D.................. | ad. No. 110, 1981 |\n|  | am. No. 144, 2008 |\n|  | rs. No. 101, 2013 |\n| s 177DA................. | ad No 170, 2015 |\n|  | am No 124, 2018 |\n| s. 177E.................. | ad. No. 110, 1981 |\n|  | am. No. 163, 2001; No. 41, 2011 |\n| s 177EA................. | ad No 47, 1998 |\n|  | am No 93, 1999; No 163, 2001 |\n|  | rs No 16, 2003 |\n|  | am No 66, 2003; No 58, 2006; No 15, 2007; No 79, 2007; No 101, 2013; No 2, 2015; N","sortOrder":1000158},{"sectionNumber":"full-source-retrieval-0160","sectionType":"document_chunk","heading":"Document excerpt 160","content":"o 81, 2016; No 69, 2023 |\n| s 177EB................. | ad No 68, 2002 |\n|  | am No 16, 2003; No 101, 2013; No 2, 2015; No 81, 2016 |\n| s 177F................... | ad No 110, 1981 |\n|  | am No 48, 1986; No 135, 1990; No 216, 1991; No 208, 1992; No 95, 1997; No 11, 1999; No 16, 1999; No 143, 2007; No 41, 2011; No 88, 2013; No 101, 2013; No 96, 2014; No 21, 2015; No 54, 2016; No 81, 2016; No 27, 2017; No 15, 2018; No 92, 2020; No 9, 2025 |\n| s. 177G.................. | ad. No. 110, 1981 |\n|  | am. No. 161, 2005 |\n| s 177H.................. | ad No 11, 1999 |\n|  | rep No 143, 2007 |\n|  | ad No 27, 2017 |\n| s 177J................... | ad No 27, 2017 |\n| s 177K.................. | ad No 27, 2017 |\n| s 177L.................. | ad No 27, 2017 |\n| s 177M.................. | ad No 27, 2017 |\n| s 177N.................. | ad No 27, 2017 |\n| s 177P................... | ad No 27, 2017 |\n| s 177Q.................. | ad No 27, 2017 |\n| s 177R.................. | ad No 27, 2017 |\n| Part VA |  |\n| Part VA.................. | ad. No. 97, 1988 |\n| Division 1 |  |\n| s 202................... | ad No 97, 1988 |\n|  | am No 60, 1990; No 6, 1991; No 81, 1992; No 92, 1992; No 138, 1992; No 82, 1993; No 116, 1993; No 53, 1995; No 63, 1996; No 76, 1996; No 62, 1997; No 71, 1997; No 191, 1997; No 45, 1998; No 83, 1999 (as am by 172, 1999); No 128, 1999; No 94, 2000; No 106, 2000; No 132, 2000; No 75, 2001; No 73, 2006; No 45, 2008; No 105, 2008; No 105, 2010; No 145, 2010; No 130, 2011; No 141, 2011; No 82, 2014; No 21, 2015; No 70, 2015; No 143, 2015; No 169, 2015; No 10, 2016; No 74, 2016; No 23, 2018; No 90, 2018; No 38, 2020; No 69, 2020; No 61, 2023 |\n| s 202A.................. | ad No 97, 1988 |\n|  | am No 57, 1990; No 227, 1992; No 62, 1997; No 48, 1998; No 44, 1999; No 179, 1999; No 86, 2000; No 55, 2001: No 169, 2001; No 150, 2003; No 101, 2006; No 92, 2008; No 12, 2012; No 70, 2015; No 122, 2015; No 15, 2017; No 64, 2020 |\n| s. 202AA................. | ad. No. 179, 1999 |\n| s 202AB................. | ad No 64, 2020 |\n| Division 2 |  |\n| s. 202B.................. | ad. No. 97, 1988 |\n|  | am. No. 12, 2012; No 64, 2020 |\n| ss. 202BA–202BB........... | ad. No. 97, 1988 |\n| s. 202BC................. | ad. No. 97, 1988 |\n|  | am. No. 179, 1999 |\n| s. 202BD................. | ad. No. 97, 1988 |\n|  | am. No. 227, 1992; No. 179, 1999; No. 101, 2006 |\n| ss. 202BE, 202BF........... | ad. No. 97, 1988 |\n| Division 3 |  |\n| Division 3 heading.......... | rs. No. 179, 1999 |\n| s 202C.................. | ad. No. 97, 1988 |\n|  | rs. No. 179, 1999 |\n|  | am No 55, 2016 |\n| s 202CA................. | ad. No. 97, 1988 |\n|  | am. No. 179, 1999; No 64, 2020 |\n| s 202CB................. | ad No 97, 1988 |\n|  | am No 163, 1989; No 119, 1990; No 100, 1991; No 216, 1991; No 184, 1994; No 1, 1996; No 29, 1997; No 197, 1997; No 45, 1998; No 179, 1999; No 76, 2000; No 52, 2004; No 88, 2009; No 32, 2011; No 15, 2017; No 17, 2018; No 26, 2018; No 67, 2024; No 17, 2025 |\n| s 202CC................. | ad. No. 97, 1988 |\n|  | rs. No. 179, 1999 |\n| s. 202CD................. | ad. No. 97, 1988 |\n|  | am. No. 167, 1989; No. 179, 1999; No. 143, 2007 |\n| s 202CE................. | ad No 97, 1988 |\n|  | am No 163, 1989; No 119, 1990; No 100, 1991; No 216, 1991; No 184, 1994; No 1, 1996; No 29, 1997; No 197, 1997; No 45, 1998; No 179, 1999; No 76, 2000; No 52, 2004; No 88, 2009; No 32, 2011; No 17, 2018; No 26, 2018; No 67, 2024; No 17, 2025 |\n| s 202CEA................ | ad No 55, 2016 |\n| s 202CF................. | ad. No. 179, 1999 |\n|  | am No 55, 2016 |\n| s 202CG................. | ad No 55, 2016 |\n|  | am No 8, 2019 |\n| Division 4 |  |\n| s. 202D.................. | ad. No. 97, 1988 |\n|  | am. No. 57, 1990; Nos. 100 and 216, 1991; No. 35, 1992; No. 179, 1999; No. 163, 2001; No. 101, 2006 |\n| s 202DA................. | ad No 97, 1988 |\n|  | rep No 2, 2015 |\n| s 202DB................. | ad No 97, 1988 |\n|  | am No 57, 1990; No 2, 2015 |\n| s 202DC................. | ad No 97, 1988 |\n|  | am No 2, 2015 |\n| s. 202DD................. | ad. No. 97, 1988 |\n|  | rs. No. 57, 1990 |\n| s. 202DDA............... | ad. No. 100, 1991 |\n|  | rep. No. 143, 2007 |\n| s 202DDB................ | ad No 100, 1991 |\n|  | am No 179, 1999; No 101, 2006; No 2, 2015; No 53, 2015 |\n| s 202DE................. | ad No 97, 1988 |\n|  | am No 57, 1990; No 2, 2015 |\n| s. 202DF................. | ad. No. 97, 1988 |\n|  | am. No. 48, 1991 |\n| s. 202DG................. | ad. No. 97, 1988 |\n|  | am. No. 57, 1990; No. 100, 1991 |\n| s. 202DH................. | ad. No. 76, 1996 |\n|  | am. Nos. 71 and 191, 1997; No. 128, 1999; No. 44, 2000; No. 9, 2007; No. 158, 2012; No 23, 2018 |\n| s. 202DHA............... | ad. No. 9, 2007 |\n|  | am. No. 15, 2007 |\n| s. 202DI................. | ad. No. 62, 1997 |\n|  | am. No. 44, 2000; No. 15, 2007 |\n| s. 202DJ................. | ad. No. 71, 1997 |\n|  | am. No. 191, 1997; No. 44, 2000; Nos. 8 and 15, 2007; No. 158, 2012; No 23, 2018 |\n| Division 4A |  |\n| Division 4A............... | ad No 85, 1998 |\n| s 202DK................. | ad No 85, 1998 |\n|  | rep No 79, 2010 |\n| s 202DL................. | ad No 85, 1998 |\n|  | am No 79, 2010; No 62, 2011 |\n| s 202DM................. | ad No 85, 1998 |\n|  | am No 101, 2006; No 79, 2010 |\n| Division 4B |  |\n| Division 4B............... | ad No 75, 2010 |\n| ss. 202DN–202DP........... | ad. No. 75, 2010 |\n| s. 202DR................. | ad. No. 75, 2010 |\n|  | am. No. 41, 2011 |\n| Division 5 |  |\n| s 202EA................. | ad No 97, 1988 |\n|  | am No 100, 1991; No 216, 1991; No 197, 1997; No 13, 1999; No 179, 1999; No 100, 2004; No 89, 2007; No 26, 2018; No 142, 2021 |\n| s 202EB................. | ad No 97, 1988 |\n|  | am No 58, 1990; No 100, 1991; No 216, 1991; No 197, 1997; No 13, 1999; No 89, 2007; No 26, 2018 |\n| s. 202EC................. | ad. No. 97, 1988 |\n|  | am. No. 58, 1990; No. 55, 2001; No 4, 2016; No 61, 2016 |\n| s. 202EE................. | ad. No. 97, 1988 |\n|  | rs. No. 57, 1990 |\n|  | am. No. 100, 1991; No. 95, 1997; No. 179, 1999; No. 147, 2005; No. 101, 2006; Nos. 79 and 143, 2007; No. 97, 2008; No 4, 2016; No 53, 2016 |\n| s. 202EF................. | ad. No. 97, 1988 |\n|  | am. No. 179, 1999; No. 143, 2007 |\n|  | rep No 53, 2015 |\n| s. 202EG................. | ad. No. 97, 1988 |\n| s. 202EH................. | ad. No. 97, 1988 |\n|  | rs. No. 57, 1990 |\n|  | am No 64, 2020 |\n| Division 6 |  |\n| s 202F................... | ad No 97, 1988 |\n|  | am No 85, 1998; No 150, 2003; No 114, 2004; No 75, 2010; No 82, 2014; No 169, 2015; No 64, 2020; No 61, 2023; No 38, 2024 |\n| s 202FA................. | ad No 97, 1988; No 38, 2024 |\n| Division 7................ | rep No 64, 2020 |\n| s. 202G.................. | ad. No. 97, 1988 |\n|  | rep No 64, 2020 |\n| Part VI.................. | rep. No. 79, 2010 |\n| Heading to Div. 1 of Part VI.... | ad. No. 65, 1940 |\n|  | rep. No. 79, 2010 |\n| Division 8 |  |\n| Division 8................ | ad No 8, 2019 |\n| s 203................... | ad No 8, 2019 |\n| s 204................... | am No 17, 1940 |\n|  | rs No 65, 1940 |\n|  | am No 43, 1954; No 108, 1981; No 123, 1984; No 1, 1999; No 179, 1999; No 44, 2000; No 91, 2000; No 101, 2004; No 75, 2005; No 101, 2006 |\n|  | rep No 79, 2010 |\n|  | ad No 141, 2020 |\n|  | am No 8, 2022 |\n| s. 205................... | am. No. 65, 1940; No. 123, 1984; No. 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 206................... | am. No. 123, 1984; No. 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 208................... | am. No. 108, 1981; No. 123, 1984; No. 101, 1992; Nos. 11 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 209................... | am. No. 123, 1984; No. 101, 1992; Nos. 11 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 213................... | am. No. 143, 1965; No. 108, 1981; No. 123, 1984; No. 143, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 214................... | am. No. 123, 1984; No. 101, 1992; Nos. 11 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 214A.................. | ad. No. 101, 1992 |\n|  | am. No. 181, 1994; No. 71 and 191, 1997; No. 11, 1999; Nos. 73 and 146, 2001; No. 41, 2005 |\n|  | rep. No. 101, 2006 |\n| s. 215................... | am. No. 58, 1941; No. 143, 1965; No. 134, 1980; No. 108, 1981; No. 123, 1984; No. 47, 1985; No. 41, 1986; No. 145, 1987; No. 60, 1990; Nos. 92, 101 and 118, 1992; No. 32, 1993; No. 138, 1994; No. 47, 1998; Nos. 11 and 179, 1999; No. 44, 2000; No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 216................... | am. No. 87, 1978; No. 123, 1984; No. 52, 1986; No. 73, 1989; Nos. 11 and 179, 1999; No. 44, 2000; No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| s. 218................... | am. No. 88, 1936; No. 143, 1965; No. 87, 1978; No. 108, 1981; No. 123, 1984; No. 46, 1986; No. 20, 1990; Nos. 5 and 216, 1991; No. 101, 1992; Nos. 18 and 32, 1993; No. 138, 1994; No. 47, 1998; Nos. 11, 44 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 219................... | am. No. 52, 1986 |\n|  | rep. No. 79, 2010 |\n| s. 220................... | am. No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 108, 1981; No. 123, 1984; Nos. 48 and 52, 1986; Nos. 5 and 216, 1991; No. 101, 1992; Nos. 11 and 179, 1999; No. 44, 2000; No. 101, 2006 |\n|  | rep. No. 101, 2006 |\n| Div. 1AAA of Part VI........ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. A of Div. 1AAA......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| s. 220AAA............... | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 1AAA......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| ss. 220AAB–220AAD........ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AAE................ | ad. No. 47, 1998 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAF................ | ad. No. 47, 1998 |\n|  | am. Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Note to s. 220AAF.......... | ad. No. 11, 1999 |\n|  | rep. No. 178, 1999 |\n| s. 220AAG............... | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AAGA.............. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAH............... | ad. No. 47, 1998 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAI................ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 1AAA......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| s. 220AAJ................ | ad. No. 47, 1998 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 220AAK, 220AAL........ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AAM............... | ad. No. 47, 1998 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| Note to s. 220AAM(1)........ | ad. No. 11, 1999 |\n| ss. 220AAN, 220AAO........ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AAOA.............. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAP................ | ad. No. 47, 1998 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 1AAA......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| s. 220AAQ............... | ad. No. 47, 1998 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAR................ | ad. No. 47, 1998 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 220AAS, 220AAT........ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AATA.............. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAU............... | ad. No. 47, 1998 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. E of Div. 1AAA.......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| s. 220AAW............... | ad. No. 47, 1998 |\n|  | rs. No. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAZ................ | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. F of Div. 1AAA.......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| s. 220AAZA.............. | ad. No. 47, 1998 |\n|  | am. Nos. 11 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. G of Div. 1AAA......  of Part VI | ad. No. 47, 1998   rep. No. 101, 2006 |\n| ss. 220AAZB–220AAZE...... | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AAZF............... | ad. No. 47, 1998 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AAZG.............. | ad. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Div. 1AA of Part VI......... | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdiv. A of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AA................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 220AB................. | ad. No. 138, 1994 |\n|  | am. Nos. 41 and 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AC................. | ad. No. 138, 1994 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AD................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 220ADA............... | ad. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AE................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AF................. | ad. No. 138, 1994 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. D of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AH................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 220AJ................. | ad. No. 138, 1994 |\n|  | am. Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 220AK......... | am. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 220AK................. | ad. No. 138, 1994 |\n|  | am. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Subdiv. E of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| ss. 220AL–220AO.......... | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdiv. F of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AP................. | ad. No. 138, 1994 |\n|  | am. No. 197, 1997 |\n|  | rep. No. 101, 2006 |\n| Subdiv. G of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AQ................. | ad. No. 138, 1994 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. H of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AR................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdiv. I of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AS................. | ad. No. 138, 1994 |\n|  | rs. No. 11, 1999 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 220AU................. | ad. No. 138, 1994 |\n|  | am. No. 47, 1998 |\n|  | rs. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. J of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AX................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Subdiv. K of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AY................. | ad. No. 138, 1994 |\n|  | am. No. 47, 1998; Nos. 11 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. L of Div. 1AA........  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| s. 220AZ................. | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| ss. 220AZA, 220AZB........ | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 220AZC................ | ad. No. 138, 1994 |\n|  | am. Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. M of Div. 1AA.......  of Part VI | ad. No. 138, 1994   rep. No. 101, 2006 |\n| ss. 220AZD–22OAZH........ | ad. No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 1A..........  of Part VI | am. No. 20, 1990   rep. No. 101, 2006 |\n| Div. 1A of Part VI........... | ad. No. 165, 1973 |\n|  | rep. No. 101, 2006 |\n| s. 221AAA............... | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AA................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 108, 1981; No. 123, 1984; No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 221AB................. | ad. No. 154, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 221AC................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 80, 1975; No. 50, 1976; No. 57, 1977; No. 109, 1986; No. 108, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 221AD................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 108, 1981; No. 52, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 221AE................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 108, 1981; No. 14, 1983; No. 123, 1984; No. 51, 1986; No. 58, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 221AF................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 80, 1975; No. 57, 1977 |\n|  | rep. No. 101, 2006 |\n| s. 221AG................. | ad. No. 165, 1973 |\n|  | rs. No. 26, 1974 |\n|  | am. No. 108, 1981; No. 123, 1982; No. 14, 1983; No. 123, 1984; Nos. 51 and 52, 1986; Nos. 58 and 108, 1987; No. 22, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221AH................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 101, 2006 |\n| s. 221AI................. | ad. No. 165, 1973 |\n|  | am. No. 26, 1974; No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 221AJ................. | ad. No. 165, 1973 |\n|  | rep. No. 101, 2006 |\n| Div. 1B of Part VI........... | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AK................. | ad. No. 20, 1990 |\n|  | am. No. 101, 1992; No. 62, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 221AKA............... | ad. No. 18, 1993 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AL................. | ad. No. 20, 1990 |\n|  | am. No. 62, 1997; No. 44, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AM................ | ad. No. 20, 1990 |\n|  | am. No. 100, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221AN................. | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AO................. | ad. No. 20, 1990 |\n|  | am. No. 58, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AP................. | ad. No. 20, 1990 |\n|  | am. No. 4, 1991 |\n|  | rep. No. 101, 2006 |","sortOrder":1000159},{"sectionNumber":"full-source-retrieval-0161","sectionType":"document_chunk","heading":"Document excerpt 161","content":"| ss. 221AQ–221AU.......... | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AV................. | ad. No. 20, 1990 |\n|  | am. No. 138, 1994; No. 22, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 221AW, 221AX.......... | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AY................. | ad. No. 20, 1990 |\n|  | am. No. 191, 1992; No. 138, 1994; No. 22, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221AZ................. | ad. No. 20, 1990 |\n|  | am. No. 4, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221AZA................ | ad. No. 20, 1990 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221AZB................ | ad. No. 20, 1990 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 221AZC, 221AZD........ | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221AZE................ | ad. No. 20, 1990 |\n|  | am. No. 191, 1992; No. 138, 1994; No. 22, 1995; No. 62, 1997; No. 44, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZF................ | ad. No. 20, 1990 |\n|  | rep. No. 101, 2006 |\n| Div. 1C of Part VI........... | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221AZH................ | ad. No. 18, 1993 |\n|  | am. No. 56, 1994; No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZI................ | ad. No. 18, 1993 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221AZJA............... | ad. No. 178, 1999 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZJ................ | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221AZK................ | ad. No. 18, 1993 |\n|  | am. No. 56, 1994; No. 120, 1995; No. 41, 1998; Nos. 11, 16 and 178, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKA.............. | ad. No. 120, 1995 |\n|  | am. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKB............... | ad. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKC............... | ad. No. 178, 1999 |\n|  | am. No. 44, 2000; No. 73, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKD.............. | ad. No. 179, 1999 |\n|  | am. No. 91, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKEA............. | ad. No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221AZKE............... | ad. No. 178, 1999 |\n|  | am. No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221AZL................ | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221AZM............... | ad. No. 18, 1993 |\n|  | rs. No. 11, 1999 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZMAA............. | ad. No. 11, 1999 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Subdiv. BA of Div. 1C........  of Part VI | ad. No. 56, 1994   rep. No. 101, 2006 |\n| s. 221AZMA.............. | ad. No. 56, 1994 |\n|  | am. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221AZMB.............. | ad. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 221AZMC.............. | ad. No. 56, 1994 |\n|  | am. No. 16, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZN................ | ad. No. 18, 1993 |\n|  | am. No. 120, 1995; No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221AZO................ | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221AZP................ | ad. No. 18, 1993 |\n|  | am. No. 56, 1994; No. 138, 1994; No. 22, 1995; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221AZQ................ | ad. No. 18, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221AZR................ | ad. No. 18, 1993 |\n|  | am. No. 120, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221AZS................ | ad. No. 18, 1993 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221AZT................ | ad. No. 18, 1993 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 221AZU................ | ad. No. 18, 1993 |\n|  | rs. No. 120, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 2 of Part VI.... | am. No. 103, 1965 |\n|  | rs. No. 165, 1973 |\n|  | rep. No. 101, 2006 |\n| Div. 2 of Part VI............ | ad. No. 63, 1947 |\n|  | rep. No. 101, 2006 |\n| s. 221A.................. | ad. No. 65, 1940 |\n|  | am. No. 58, 1941; No. 10, 1943; No. 3, 1944; No. 6, 1946 |\n|  | rs. No. 63, 1947 |\n|  | am. Nos. 51 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 56, 1976; No. 57, 1977; Nos. 57, 87 and 123, 1978; Nos. 108 and 175, 1981; No. 14, 1983; Nos. 47 and 123, 1984; Nos. 129 and 168, 1985; Nos. 41, 49 and 154, 1986; No. 108, 1987; Nos. 78 and 97, 1988; No. 73, 1989; No. 45, 1990; Nos. 100 and 216, 1991; No. 208, 1992; Nos. 17 and 82, 1993; No. 170, 1995; No. 1, 1996; Nos. 62, 121 and 122, 1997; No. 45, 1998; No. 54, 1999; Nos. 118 and 179, 1999; Nos. 76 and 86, 2000; No. 52, 2004 |\n|  | rep. No. 101, 2006 |\n| s. 221B.................. | ad. No. 17, 1993 |\n|  | am. No. 30, 1995; No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 221C.................. | ad. No. 65, 1940 |\n|  | am. No. 50, 1942; No. 10, 1943; No. 28, 1944; No. 4, 1945; No. 11, 1947 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 44, 1948; No. 48, 1950; No. 44, 1951; No. 69, 1963; No. 143, 1965; No. 51, 1973; Nos. 87 and 123, 1978; Nos. 108 and 175, 1981; Nos. 47 and 123, 1984; No. 41, 1986; No. 153, 1988; No. 73, 1989; No. 170, 1995; No. 121, 1997; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221D.................. | ad. No. 65, 1940 |\n|  | am. No. 50, 1942; No. 10, 1943; No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 108, 1981; No. 123, 1984; No. 17, 1993; No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221DA................. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221E.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221EAA................ | ad. No. 123, 1984 |\n|  | am. No. 191, 1992; No. 170, 1995 |\n|  | rs. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221F.................. | ad. No. 65, 1940 |\n|  | am. No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 87, 1978; No. 108, 1981; No. 123, 1982; Nos. 47 and 123, 1984; No. 97, 1988 (as am. by No. 43, 1996); Nos. 73 and 167, 1989; No. 45, 1990; No. 191, 1992; No. 17, 1993; No. 170, 1995; No. 174, 1997; No. 47, 1998; Nos. 11 and 17, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221H.................. | ad. No. 65, 1940 |\n|  | am. No. 10, 1943 |\n|  | rs. No. 3, 1944 |\n|  | am. No. 11, 1947 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 47, 1984; No. 97, 1988; Nos. 2, 73 and 105, 1989; No. 170, 1995; No. 174, 1997; Nos. 11 and 17, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221K.................. | ad. No. 65, 1940 |\n|  | am. No. 50, 1942; No. 10, 1943 |\n|  | rs. No. 3, 1944; No. 63, 1947 |\n|  | am. No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 73, 1989 |\n|  | rs. No. 170, 1995 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221N.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 51, 1973; No. 87, 1978 |\n|  | rs. No. 123, 1984 |\n|  | am. No. 49, 1985; No. 216, 1991; No. 170, 1995; No. 47, 1998 |\n|  | rs. No. 11, 1999 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221R.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 108, 1981; No. 73, 1989; No. 32, 1993; No. 47, 1998; Nos. 11 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221S.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 87, 1978; No. 108, 1981; No. 123, 1984; No. 73, 1989; No. 170, 1995; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221V.................. | ad. No. 65, 1940 |\n|  | am. No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 28, 1952; No. 143, 1965; No. 87, 1978; No. 108, 1981; No. 123, 1984; No. 73, 1989; No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221W................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 170, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221X.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | rep. No. 101, 2006 |\n| s. 221YAA............... | ad. No. 62, 1987 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 3 of Part VI.... | am. No. 48, 1950; No. 44, 1951; No. 85, 1959; No. 103, 1965 |\n|  | rep. No. 101, 2006 |\n| Div. 3 of Part VI............ | ad. No. 3, 1944 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 3 of Part VI | ad. No. 154, 1986   rep. No. 101, 2006 |\n| s. 221YA................. | ad. No. 3, 1944 |\n|  | am. No. 48, 1950; No. 44, 1951; No. 28, 1952; No. 85, 1959; No. 110, 1964; Nos. 103 and 143, 1965; No. 51, 1973; No. 205, 1976; No. 126, 1977; No. 87, 1978; Nos. 111 and 154, 1981; No. 14, 1983; Nos. 123 and 124, 1984; No. 52, 1986; No. 61, 1987; No. 73, 1989; Nos. 87 and 135, 1990; No. 216, 1991; No. 224, 1992; No. 118, 1993; Nos. 138 and 174, 1994; No. 94, 1995; No. 31, 1996; Nos. 46 and 85, 1998; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YAAA.............. | ad. No. 31, 1996 |\n|  | am. No. 54, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YAB................ | ad. No. 87, 1990 |\n|  | am. No. 135, 1990; No. 100, 1991; No. 216, 1991(as am. by No. 43, 1996); No. 208, 1992; No. 138, 1994; No. 170, 1995; No. 78, 1996; Nos. 47 and 85, 1998; Nos. 11 and 60, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YB................. | ad. No. 3, 1944 |\n|  | rs. No. 48, 1950 |\n|  | am. No. 44, 1951 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 56, 1976; No. 108, 1981; No. 103, 1983; Nos. 61 and 108, 1987; Nos. 20 and 135, 1990; No. 18, 1993; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YBA................ | ad. No. 61, 1987 |\n|  | am. No. 138, 1987; No. 135, 1990; No. 101, 1992; No. 46, 1998; Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YC................. | ad. No. 3, 1944 |\n|  | am. No. 48, 1950; No. 28, 1952; No. 45, 1953; No. 85, 1959; No. 69, 1963; No. 143, 1965; No. 50, 1966; No. 38, 1967; No. 85, 1972; No. 126, 1974; No. 117, 1975; Nos. 50 and 56, 1976; No. 126, 1977; No. 87, 1978; No. 149, 1979; No. 108, 1981; No. 14, 1983; No. 52, 1986; No. 61, 1987; No. 73, 1989; No. 87, 1990; No. 138, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 221YCAA.............. | ad. No. 87, 1990 |\n|  | am. Nos. 100 and 216, 1991; No. 224, 1992; Nos. 56, 82, 138 and 174, 1994; Nos. 56, 121, 147 and 197, 1997; Nos. 41, 46, 47, 85 and 128, 1998; No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YCA................ | ad. No. 61, 1987 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YCB................ | ad. No. 70, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 221YD................. | ad. No. 3, 1944 |\n|  | am. No. 44, 1951; No. 28, 1952; No. 85, 1959; No. 87, 1978; No. 108, 1981; No. 61, 1987; No. 73, 1989; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YDAA.............. | ad. No. 61, 1987 |\n|  | am. No. 11, 1988; No. 58, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221YDA............... | ad. No. 28, 1952 |\n|  | rs. No. 28, 1953 |\n|  | am. No. 45, 1953; No. 51, 1973; No. 126, 1974; No. 117, 1975; Nos. 87 and 123, 1978; No. 19, 1980; No. 108, 1981; No. 106, 1982; Nos. 14 and 103, 1983; Nos. 52, 112 and 154, 1986; Nos. 61, 62 and 138, 1987; No. 153, 1988; Nos. 73, 97 and 107, 1989; No. 135, 1990; Nos. 100 and 216, 1991; No. 101, 1992; Nos. 56, 82 and 138, 1994; Nos. 63 and 78, 1996; Nos. 46 and 47, 1998; Nos. 11, 60 and 69, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YDB................ | ad. No. 28, 1952 |\n|  | am. Nos. 28 and 45, 1953; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 117, 1975; Nos. 87 and 123, 1978; No. 108, 1981; No. 14, 1983; No. 123, 1984; Nos. 61 and 62, 1987; No. 73, 1989; No. 135, 1990; Nos. 191 and 224, 1992; No. 138, 1994; No. 11, 1999 (as am. by No. 57, 2002); No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YDC................ | ad. No. 81, 1953 |\n|  | am. No. 18, 1960; No. 51, 1973; No. 124, 1980; No. 108, 1981; No. 14, 1983; No. 51, 1986; No. 61, 1987; No. 22, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221YE................. | ad. No. 3, 1944 |\n|  | rs. No. 44, 1951 |\n|  | am. No. 90, 1952 |\n|  | rs. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 87, 1978; No. 61, 1987; Nos. 2 and 73, 1989; No. 58, 1990; No. 41, 1998 |\n|  | rs. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YF................. | ad. No. 3, 1944 |\n|  | am. No. 44, 1951; No. 85, 1959; No. 61, 1987 |\n|  | rep. No. 101, 2006 |\n| s. 221YG................. | ad. No. 3, 1944 |\n|  | am. No. 44, 1951; No. 85, 1959; No. 87, 1978; No. 108, 1981; No. 61, 1987; No. 73, 1989; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YH................. | ad. No. 3, 1944 |\n|  | am. No. 44, 1951; No. 85, 1959; No. 216, 1973 (as am. by No. 20, 1974); No. 61, 1987 |\n|  | rep. No. 101, 2006 |\n| Subdiv. B of Div. 3..........  of Part VI | ad. No. 154, 1986   rep. No. 101, 2006 |\n| s. 221YHAAA............. | ad. No. 154, 1986 |\n|  | am. No. 135, 1990; No. 46, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221YHAAB............. | ad. No. 154, 1986 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHAAC, 221YHAAD... | ad. No. 154, 1986 |\n|  | am. No. 61, 1987; No. 87, 1990 |\n|  | rep. No. 101, 2006 |\n| s. 221YHAAE............. | ad. No. 154, 1986 |\n|  | am. No. 61, 1987; No. 216, 1991; No. 101, 1992; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| Div. 3A of Part VI........... | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 3A of Part VI | ad. No. 227, 1992   rep. No. 101, 2006 |\n| s. 221YHAAF............. | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHAAG............. | ad. No. 227, 1992 |\n|  | am. No. 47, 1998 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 3A of Part VI | ad. No. 227, 1992   rep. No. 101, 2006 |\n| s. 221YHAAH............. | ad. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHA............... | ad. No. 14, 1983 |\n|  | am. No. 103, 1983; Nos. 123 and 124, 1984; No. 168, 1985; No. 20, 1990; No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHB................ | ad. No. 14, 1983 |\n|  | am. No. 124, 1984 |\n|  | rs. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHC................ | ad. No. 14, 1983 |\n|  | am. No. 103, 1983 |\n|  | rs. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHD............... | ad. No. 14, 1983 |\n|  | am. No. 103, 1983; Nos. 123 and 124, 1984; No. 97, 1988 |\n|  | rs. No. 227, 1992 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221YHDA.............. | ad. No. 227, 1992 |\n|  | am. No. 118, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221YHDB.............. | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHDC.............. | ad. No. 227, 1992 |\n|  | am. No. 47, 1998; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHDD.............. | ad. No. 227, 1992 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHDE.............. | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHE................ | ad. No. 124, 1984 |\n|  | rep. No. 101, 2006 |\n| s. 221YHF................ | ad. No. 14, 1983 |\n|  | am. No. 124, 1984; No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHG............... | ad. No. 14, 1983 |\n|  | am. No. 124, 1984; No. 2, 1989; Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHH............... | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 191, 1992 |\n|  | rs. No. 11, 1999 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHL................ | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 227, 1992; No. 47, 1998; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHM............... | ad. No. 14, 1983 |\n|  | am. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHN............... | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 32, 1993; No. 47, 1998; Nos. 11 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHP................ | ad. No. 14, 1983 |\n|  | am. No. 124, 1984 |\n|  | rs. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHQ............... | ad. No. 14, 1983 |\n|  | am. No. 103, 1983; No. 124, 1984; No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHR................ | ad. No. 14, 1983 |\n|  | rs. No. 103, 1983 |\n|  | am. Nos. 123 and 124, 1984 |\n|  | rs. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHS................ | ad. No. 14, 1983 |\n|  | am. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHSA............... | ad. No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHT................ | ad. No. 14, 1983 |\n|  | am. No. 49, 1985; No. 48, 1986; No. 216, 1991; No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHU............... | ad. No. 14, 1983 |\n|  | am. No. 103, 1983; No. 227, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHW–221YHZ........ | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 3B..........  of Part VI | rs. No. 97, 1988   rep. No. 101, 2006 |\n| Div. 3B of Part VI........... | ad. No. 154, 1986 |\n|  | rep. No. 101, 2006 |\n| Subdiv. AA of Div. 3B........  of Part VI | ad. No. 163, 2001   rep. No. 101, 2006 |\n| s. 221YHZAA............. | ad. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. A.........  of Div. 3B of Part VI | ad. No. 216, 1991   rep. No. 101, 2006 |\n| s. 221YHZA.............. | ad. No. 154, 1986 |\n|  | am. No. 97, 1988; Nos. 100 and 216, 1991; Nos. 35 and 224, 1992; No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| Heading to Subdiv. B.........  of Div. 3B of Part VI | ad. No. 216, 1991   rep. No. 101, 2006 |\n| s. 221YHZB............... | ad. No. 154, 1986 |\n|  | am. No. 224, 1992; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZC............... | ad. No. 154, 1986 |\n|  | am. No. 97, 1988; No. 57, 1990; Nos. 191 and 224, 1992; No. 118, 1993; No. 169, 1995; Nos. 11, 93 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZCA............. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZD.............. | ad. No. 154, 1986 |\n|  | am. No. 97, 1988; No. 100, 1991; No. 191, 1992; No. 32, 1993; Nos. 169 and 170, 1995; No. 47, 1998; Nos. 11, 178 and 179, 1999; No. 101, 2003 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZDA............. | ad. No. 97, 1988 |\n|  | am. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHZDAA,...........","sortOrder":1000160},{"sectionNumber":"full-source-retrieval-0162","sectionType":"document_chunk","heading":"Document excerpt 162","content":"221YHZDAB | ad. No. 169, 1995   rep. No. 101, 2006 |\n| s. 221YHZDAC............ | ad. No. 169, 1995 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 221YHZDB...... | rs. No. 169, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZDB............. | ad. No. 97, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZE............... | ad. No. 154, 1986 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZH.............. | ad. No. 154, 1986 |\n|  | am. No. 97, 1988 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZJ............... | ad. No. 154, 1986 |\n|  | am. No. 32, 1993; Nos. 11 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZK.............. | ad. No. 154, 1986 |\n|  | am. No. 97, 1988; No. 100, 1991; No. 35, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZL............... | ad. No. 154, 1986 |\n|  | am. Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZM.............. | ad. No. 154, 1986 |\n|  | rs. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZN.............. | ad. No. 154, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZO.............. | ad. No. 97, 1988 |\n|  | rep. No. 101, 2006 |\n| Subdiv. C of Div. 3B.........  of Part VI | ad. No. 216, 1991   rep. No. 101, 2006 |\n| s. 221YHZP............... | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZQ.............. | ad. No. 216, 1991 |\n|  | am. Nos. 178 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHZR– 221YHZV...... | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZW.............. | ad. No. 216, 1991 |\n|  | am. No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZX.............. | ad. No. 216, 1991 |\n|  | am. No. 32, 1993 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHZXA, 221YHZXB.... | ad. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZY.............. | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 221YHZZ............... | ad. No. 216, 1991 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221YHZZA– 221YHZZC.... | ad. No. 216, 1991 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 4 of Part VI.... | rs. No. 85, 1967 |\n|  | rep. No. 101, 2006 |\n| Div. 4 of Part VI............ | ad. No. 85, 1959 |\n|  | rep. No. 101, 2006 |\n| s. 221YJ................. | ad. No. 85, 1959 |\n|  | am. No. 85, 1967 |\n|  | rep. No. 101, 2006 |\n| s. 221YJA................ | ad. No. 163, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 221YK................. | ad. No. 85, 1959 |\n|  | am. Nos. 38 and 85, 1967; Nos. 51 and 165, 1973; No. 80, 1975; No. 108, 1981; No. 49, 1986; No. 224, 1992; No. 181, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 221YL................. | ad. No. 85, 1959 |\n|  | am. No. 18, 1960; No. 27, 1961; No. 143, 1965; Nos. 38 and 85, 1967; No. 26, 1974; No. 50, 1976; No. 108, 1981; No. 123, 1984; No. 49, 1986; No. 57, 1990; No. 224, 1992; Nos. 93 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YM................ | ad. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 108, 1981; No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YMA............... | ad. No. 49, 1986 |\n|  | rep. No. 101, 2006 |\n| s. 221YN................. | ad. No. 85, 1959 |\n|  | am. No. 143, 1965; No. 85, 1967; No. 51, 1973; No. 108, 1981; No. 123, 1982; No. 123, 1984; No. 57, 1990; Nos. 191 and 224, 1992; No. 120, 1995; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YP................. | ad. No. 85, 1959 |\n|  | am. No. 143, 1965; No. 85, 1967; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 49, 1986; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YQ................. | ad. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 49, 1986; No. 224, 1992; No. 95, 1997; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YQA............... | ad. No. 95, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 221YR................. | ad. No. 85, 1959 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 32, 1993; No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YRA................ | ad. No. 85, 1967 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 224, 1992; No. 95, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 221YS................. | ad. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 51, 1973; No. 49, 1986; No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YSA................ | ad. No. 49, 1986 |\n|  | am. No. 82, 1994 |\n|  | rep. No. 101, 2006 |\n| s. 221YT................. | ad. No. 85, 1959 |\n|  | am. No. 108, 1981; Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221YU................. | ad. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 108, 1981; No. 224, 1992; No. 32, 1993 |\n|  | rep. No. 101, 2006 |\n| s. 221YV................. | ad. No. 85, 1959 |\n|  | am. No. 85, 1967; No. 51, 1973; No. 224, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 221YY................. | ad. No. 85, 1959 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| Div. 5 of Part VI............ | ad. No. 27, 1979 |\n|  | rep. No. 101, 2006 |\n| ss. 221Z, 221ZA............ | ad. No. 27, 1979 |\n|  | rep. No. 101, 2006 |\n| s. 221ZB................. | ad. No. 27, 1979 |\n|  | am. No. 106, 1982; No. 123, 1984; No. 109, 1986; No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| Note to s. 221ZB(2).......... | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZC................. | ad. No. 27, 1979 |\n|  | am. No. 108, 1981; No. 123, 1982; No. 39, 1983; No. 123, 1984; No. 191, 1992; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZD................. | ad. No. 27, 1979 |\n|  | am. No. 108, 1981; No. 123, 1984; No. 191, 1992; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZE................. | ad. No. 27, 1979 |\n|  | am. No. 108, 1981; No. 123, 1984; No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZF................. | ad. No. 27, 1979 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| s. 221ZG................. | ad. No. 27, 1979 |\n|  | am. Nos. 11 and 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZH................. | ad. No. 27, 1979 |\n|  | rep. No. 101, 2006 |\n| s. 221ZL................. | ad. No. 27, 1979 |\n|  | rep. No. 101, 2006 |\n| Div. 6 of Part VI............ | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 221ZMA............... | ad. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZM................. | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 221ZN................. | ad. No. 14, 1983 |\n|  | am. Nos. 14 and 123, 1984; No. 168, 1985; No. 153, 1988; No. 20, 1990; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZNA................ | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZO................. | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 191, 1992; No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZP................. | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 191, 1992 |\n|  | rs. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZR................. | ad. No. 14, 1983 |\n|  | am. No. 123, 1984; No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221ZS, 221ZT........... | ad. No. 14, 1983 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 221ZU................. | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| s. 221ZX................. | ad. No. 14, 1983 |\n|  | rep. No. 101, 2006 |\n| Div. 6A of Part VI........... | ad. No. 85, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221ZXA................ | ad. No. 85, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221ZXB................ | ad. No. 85, 1998 |\n|  | am. No. 178, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221ZXC, 221ZXD........ | ad. No. 85, 1998 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221ZXE, 221ZXF......... | ad. No. 85, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 221ZXG................ | ad. No. 85, 1998 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 221ZXK, 221ZXL........ | ad. No. 85, 1998 |\n|  | rep. No. 101, 2006 |\n| Heading to Div. 8 of Part VI.... | am. No. 138, 1994 |\n|  | rs. No. 47, 1998; No. 179, 1999 |\n|  | rep. No. 79, 2010 |\n| Div. 8 of Part VI............ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AFA................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994 (as am. by No. 147, 1997); No. 47, 1998; No. 179, 1999; No. 44, 2000; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 222AFB................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 170, 1995; No. 47, 1998; No. 179, 1999; No. 55, 2001; No. 119, 2002; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 222AFC................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AGA............... | ad. No. 32, 1993 |\n|  | am. No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AGB................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AGC................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AGD............... | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AGE................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AGF................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 170, 1995; No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AGG............... | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| ss. 222AHA–222AHD........ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| Note to s. 222AHD(3)........ | am. No. 41, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 222AHE................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 86, 2000 |\n|  | rep. No. 79, 2010 |\n| s. 222AIA................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AIB................ | ad. No. 32, 1993 |\n|  | am. No. 55, 2001; No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AIC................ | ad. No. 32, 1993 |\n|  | am. No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AID................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 86, 2000 |\n|  | rep. No. 79, 2010 |\n| s. 222AIE................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AIF................ | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AIG................ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AIH................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 86, 2000 |\n|  | rep. No. 79, 2010 |\n| s. 222AII................. | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| Heading to Subdiv. E.........  of Div. 8 of Part VI | rs. No. 11, 1999  rep. No. 79, 2010 |\n| s. 222AJA................ | ad. No. 32, 1993 |\n|  | am. No. 11, 1999; No. 91, 2000; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 222AJB................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; Nos. 11 and 179, 1999; No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| ss. 222AKA, 222AKB........ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222ALA................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999 |\n|  | rep. No. 79, 2010 |\n| s. 222ALB................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 11, 1999 |\n|  | rep. No. 79, 2010 |\n| ss. 222AMA, 222AMB....... | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| Div. 9 of Part VI............ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222ANA............... | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 44, 2000; No. 55, 2001; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 222ANB................ | ad. No. 32, 1993 |\n|  | am. No. 119, 2002 |\n|  | rep. No. 79, 2010 |\n| Heading to Subdiv. B.........  of Div. 9 of Part VI | am. No. 138, 1994   rs. No. 47, 1998; No. 179, 1999 |\n|  | rep. No. 79, 2010 |\n| s. 222AOA............... | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 179, 1999; No. 86, 2000; No. 55, 2001; No. 57, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 222AOB................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOBAA............. | ad. No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOBA.............. | ad. No. 179, 1999 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOC................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998; No. 179, 1999; No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOD............... | ad. No. 32, 1993 |\n|  | am. No. 179, 1999; No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOE................ | ad. No. 32, 1993 |\n|  | am. No. 179, 1999; Nos. 55 and 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOF................ | ad. No. 32, 1993 |\n|  | am. No. 55, 2001; No. 119, 2002; No. 101, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 222AOG............... | ad. No. 32, 1993 |\n|  | am. No. 179, 1999; No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOH............... | ad. No. 32, 1993 |\n|  | am. No. 179, 1999; No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 222AOI................ | ad. No. 32, 1993 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 79, 2010 |\n| s. 222AOJ................ | ad. No. 32, 1993 |\n|  | am. No. 179, 1999; No. 169, 2001 |\n|  | rep. No. 79, 2010 |\n| ss. 222APA, 222APB......... | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| ss. 222APC, 222APD......... | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222APE................ | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| ss. 222APF–222API......... | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222AQA............... | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| ss. 222AQB–222AQD........ | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| Div. 10 of Part VI........... | ad. No. 32, 1993 |\n|  | rep. No. 79, 2010 |\n| s. 222ARA................ | ad. No. 32, 1993 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 79, 2010 |\n| Part VII.................. | ad. No. 123, 1984 |\n|  | rep. No. 101, 2006 |\n| s. 222AA................. | ad. No. 91, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 222A.................. | ad. No. 101, 1992 |\n|  | am. No. 18, 1993; No. 174, 1997; Nos. 11 and 179, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 222B–222F............. | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 222................... | rs. No. 123, 1984 |\n|  | am. No. 20, 1990; No. 18, 1993; No. 169, 1995; No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 224................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 123, 1984 |\n|  | am. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 225................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 123, 1984 |\n|  | am. No. 101, 1992; No. 22, 1995; No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 226........... | am. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 226................... | am. No. 143, 1965; No. 117, 1975; No. 87, 1978; No. 149, 1979; Nos. 108 and 110, 1981; Nos. 29 and 76, 1982 |\n|  | rs. No. 123, 1984 |\n|  | am. No. 101, 1992; No. 95, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 226AA................. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| ss. 226B–226H............. | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 226J–226N............. | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 226P–226Y............. | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 226Z.................. | ad. No. 101, 1992 |\n|  | am. No. 91, 2000 |\n|  | rep. No. 101, 2006 |\n| ss. 226ZA, 226ZB........... | ad. No. 101, 1992 |\n|  | rep. No. 101, 2006 |\n| s. 227................... | am. No. 143, 1965; No. 87, 1978; No. 108, 1981 |\n|  | rs. No. 123, 1984 |\n|  | rep. No. 101, 2006 |\n| Note to s. 227.............. | ad. No. 11, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 228................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 123, 1984 |\n|  | rep. No. 101, 2006 |\n| Part VIIA................ | ad. No. 10, 1943 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 1...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251A.................. | ad. No. 10, 1943 |\n|  | am. No. 78, 1988; Nos. 91 and 137, 2000; No. 146, 2001; No. 54, 2003; No. 143, 2007 |\n|  | rep. No. 114, 2009 |\n| s. 251B.................. | ad. No. 10, 1943 |\n|  | am. No. 18, 1960 |\n|  | rs. No. 164, 1973 |\n|  | am. No. 80, 1975 |\n|  | rep. No. 114, 2009 |\n| ss. 251BA–251BC........... | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 2...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251C.................. | ad. No. 10, 1943 |\n|  | rep. No. 114, 2009 |\n| s. 251D.................. | ad. No. 10, 1943 |\n|  | am. No. 33, 1965; No. 108, 1981; No. 39, 1983; No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| s. 251DA................. | ad. No. 78, 1988 |\n|  | am. No. 43, 1996 |\n|  | rep. No. 114, 2009 |\n| s. 251E.................. | ad. No. 10, 1943 |\n|  | am. No. 108, 1981; No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| ss. 251F, 251G............. | ad. No. 10, 1943 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 3...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| Heading to Subdiv. A.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251J.................. | ad. No. 10, 1943 |\n|  | am. No. 28, 1944; No. 11, 1947; No. 143, 1965; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 123, 1984; No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| s. 251JA................. | ad. No. 11, 1947 |\n|  | am. No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rs. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. B.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| ss. 251JB, 251JC............ | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. C.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251JD................. | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. D.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| ss. 251JE, 251JF............ | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. E.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251JG................. | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. F.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251JH.............","sortOrder":1000161},{"sectionNumber":"full-source-retrieval-0163","sectionType":"document_chunk","heading":"Document excerpt 163","content":".... | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. G.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| ss. 251JK, 251JM........... | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Subdiv. H.........  of Div. 3 of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251K.................. | ad. No. 10, 1943 |\n|  | am. No. 11, 1947; No. 143, 1965; Nos. 51 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 57, 1977; No. 172, 1978; No. 108, 1981; No. 123, 1984 (as am. by No. 65, 1985); No. 48, 1986; No. 78, 1988; No. 146, 2001 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 4...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| ss. 251KA–251KE.......... | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 5...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251KF................. | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 6...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| ss. 251KG, 251KH.......... | ad. No. 78, 1988 |\n|  | am. No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 114, 2009 |\n| s. 251KJ................. | ad. No. 78, 1988 |\n|  | am. No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 114, 2009 |\n| s. 251KK................. | ad. No. 78, 1988 |\n|  | am. No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 7...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251L.................. | ad. No. 10, 1943 |\n|  | am. No. 28, 1944; No. 11, 1947; No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 48, 1986; No. 91, 2000; No. 73, 2006 |\n|  | rep. No. 114, 2009 |\n| s. 251LA................. | ad. No. 91, 2000 |\n|  | rep. No. 114, 2009 |\n| s. 251M.................. | ad. No. 10, 1943 |\n|  | am. No. 108, 1981; No. 101, 1992; No. 11, 1999; No. 75, 2005; No. 101, 2006 |\n|  | rep. No. 114, 2009 |\n| s. 251N.................. | ad. No. 10, 1943 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 48, 1986; No. 78, 1988; No. 146, 2001; No. 143, 2007 |\n|  | rep. No. 114, 2009 |\n| s. 251O.................. | ad. No. 10, 1943 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984; No. 78, 1988; No.143, 2007 |\n|  | rep. No. 114, 2009 |\n| Heading to Div. 8...........  of Part VIIA | ad. No. 78, 1988  rep. No. 114, 2009 |\n| s. 251P.................. | ad. No. 10, 1943 |\n|  | am. No. 123, 1984 |\n|  | rep. No. 114, 2009 |\n| s. 251Q.................. | ad. No. 11, 1947 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 114, 2009 |\n| ss. 251QA, 251QB.......... | ad. No. 78, 1988 |\n|  | rep. No. 114, 2009 |\n| Part VIIB |  |\n| Part VIIB heading........... | rs No 17, 1999 |\n| Part VIIB................. | ad. No. 51, 1983 |\n| s 251R.................. | ad No 53, 1976 |\n|  | am No 98, 1976; No 90, 1978; No 123, 1978; No 108, 1981; No 106, 1982 |\n|  | rs No 51, 1983 |\n|  | am No 173, 1985; No 58, 1987; No 78, 1988; No 57, 1990; No 135, 1990; No 5, 1991; No 100, 1991; No 80, 1992; No 17, 1996; No 17, 1999; No 83, 1999; No 179, 1999; No 45, 2000; No 63, 2005; No 161, 2005; No 101, 2006; No 82, 2007; No 144, 2008; No 88, 2009; No 65, 2010; No 41, 2011; No 46, 2011; No 12, 2012; No 68, 2014; No 70, 2015; No 26, 2018 |\n|  | ed C160 |\n| s 251S................... | ad No 53, 1976 |\n|  | am No 126, 1977; No 123, 1978; No 108, 1981 |\n|  | rs No 51, 1983 |\n|  | am No 49, 1985; No 105, 1989; No 100, 1991; No 56, 1997; No 80, 2006; No 15, 2007; No 41, 2011; No 12, 2012; No 2, 2015; No 53, 2015; No 53, 2016 |\n| s. 251T.................. | ad. No. 53, 1976 |\n|  | rs. No. 51, 1983 |\n|  | am. No. 56, 1997; No. 12, 2012; No 53, 2015 |\n| s 251U.................. | ad No 53, 1976 |\n|  | am No 90, 1978; No 123, 1978; No 108, 1981; No 49, 1985; No 173, 1985 (as am by No 49, 1986) |\n|  | rs No 51, 1983 |\n|  | am No 100, 1991; No 216, 1991; No 80, 1992; No 146, 1995; No 17, 1996; No 39, 2002; No 52, 2004; No 97, 2008; No 144, 2008; No 88, 2009; No 12, 2012; No 2, 2015; No 53, 2015; No 59, 2017; No 26, 2018; No 42, 2019 |\n| s. 251V.................. | ad. No. 56, 1997 |\n|  | am. No. 12, 2012 |\n| s. 251VA................. | ad. No. 56, 1997 |\n|  | am. No. 12, 2012 |\n| s. 251W................. | ad. No. 53, 1976 |\n|  | rs. No. 98, 1976 |\n|  | am. No. 108, 1981 |\n|  | rs. No. 51, 1983 |\n|  | am. No. 17, 1999; No. 12, 2012 |\n| s. 251X.................. | ad. No. 53, 1976 |\n|  | rs. No. 98, 1976; No. 51, 1983; No. 17, 1999 |\n|  | am. No. 12, 2012 |\n| s. 251Y.................. | ad. No. 51, 1983 |\n|  | rep. No. 101, 2006 |\n| Heading to s. 251Z.......... | rs. No. 12, 2012 |\n| s. 251Z.................. | ad. No. 17, 1999 |\n| Part VIII |  |\n| s 252................... | am No 143, 1965; No 108, 1981; No 123, 1984; No 146, 2001; No 4, 2007; No 143, 2007; No 41, 2011; No 180, 2012; No 2, 2015; No 4, 2016 |\n| s 252A.................. | ad No 12, 1979 |\n|  | am No 123, 1984; No 146, 2001; No 143, 2007; No 41, 2011; No 2, 2015 |\n| s. 253................... | ad. No. 180, 2012 |\n| s 254................... | am No 87, 1978; No 108, 1981; No 123, 1984; No 52, 1986; No 101, 1992; No 11, 1999; No 178, 1999; No 43, 2000; No 75, 2005; No 101, 2006; No 143, 2007; No 79, 2010; No 41, 2011; No 8, 2019 |\n| s 255................... | am No 50, 1942; No 4, 1968; No 108, 1981; No 123, 1984; No 52, 1986 (as am by No 141, 1987); No 154, 1986; No 101, 1992; No 224, 1992; No 11, 1999; No 178, 1999; No 179, 1999; No 163, 2001; No 75, 2005; No 101, 2006; No 79, 2007; No 79, 2010; No 41, 2011; No 53, 2016; No 8, 2019 |\n| s. 257................... | am. No. 52, 1986; No. 41, 2011 |\n| s. 258................... | am. No. 87, 1978; No. 123, 1984; No. 101, 1992; Nos. 11, 178 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 259................... | am. No. 87, 1978; No. 108, 1981; No. 123, 1984; No. 101, 1992; Nos. 11, 178 and 179, 1999; No. 44, 2000 |\n|  | rep. No. 101, 2006 |\n| s. 260................... | am. No. 110, 1981 |\n| s. 262................... | am. No. 41, 2011 |\n| s. 262A.................. | ad. No. 10, 1943 |\n|  | am. No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984 |\n|  | rs. No. 20, 1990 |\n|  | am. No. 135, 1990; No. 216, 1991; Nos. 35, 98, 191, 208 and 224, 1992; No. 57, 1993; No. 138, 1994; No. 145, 1995; No. 39 (as am. by No. 121, 1997); Nos. 121 and 174, 1997; Nos. 16, 17 and 48, 1998; Nos. 16, 93 and 178, 1999; Nos. 58, 86 and 91, 2000; Nos. 77, 146 and 162, 2001; Nos. 53 and 57, 2002; No. 142, 2003; Nos. 41, 64 and 161, 2005; No. 101, 2006; Nos. 15, 79 and 164, 2007; No. 15, 2009; No 93, 2011 (as am by No 110, 2014); No 65, 2019; No 23, 2024 |\n| s 263................... | am No 62, 1987; No 91, 2000; No 41, 2011 |\n|  | rep No 2, 2015 |\n| s 264................... | am No 41, 1998; No 41, 2011 |\n|  | rep No 2, 2015 |\n| s. 264AA................. | ad. No. 85, 1998 |\n|  | am. No. 146, 2001; No. 88, 2009 |\n|  | rep. No. 79, 2010 |\n| s 264A.................. | ad No 5, 1991 |\n|  | am No 46, 2011; No 2, 2015 |\n|  | rep No 8, 2019 |\n| s. 264BB................. | ad. No. 128, 1998 |\n|  | am. No. 32, 2007; No. 26, 2012; No 105, 2013 |\n| s. 264BA.................  Renumbered s. 264CA........ | ad. No. 56, 1997 (as am. by No. 11, 1999)  No. 57, 2002 |\n| s. 264CA................. | rep. No. 101, 2006 |\n| s. 265................... | am. No. 50, 1942; No. 44, 1951; No. 1, 1953; No. 143, 1965; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 117, 1975 (as am. by No. 50, 1976); No. 50, 1976; Nos. 57 and 87, 1978; No. 62, 1979; No. 133, 1980; Nos. 63 and 123, 1984; No. 123, 1985; No. 48, 1986; No. 101, 1992; No. 175, 1995; Nos. 11 and 178, 1999 |\n|  | rep. No. 67, 2003 |\n| s. 265A.................. | ad. No. 3, 1944 |\n|  | am. Nos. 4 and 37, 1945; No. 101, 1956; No. 98, 1962; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 108, 1981; No. 173, 1985 (as am. by No. 49, 1986); No. 73, 1989; No. 179, 1999; No. 52, 2004; No. 101, 2006; No 17, 2025 |\n| s. 265B.................. | ad. No. 49, 1986 |\n|  | am No 47, 2016 |\n| s. 266................... | am. No. 143, 1965; No. 53, 1973; No. 165, 1976; No. 108, 1981; No. 123, 1984; No. 23, 1987; No. 39, 1997; No. 143, 2007 |\n| Part IX.................. | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 267................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; Nos. 35, 58 and 61, 1990; No. 208, 1992; Nos. 7 and 82, 1993; Nos. 82 and 181, 1994; No. 62, 1997; No. 89, 2000; Nos. 83 and 101, 2004; No. 56, 2010 |\n|  | rep. No. 15, 2007 |\n| s. 268................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 269................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 82, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 269A.................. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 269B.................. | ad. No. 105, 1989 |\n|  | am. No. 56, 1994; No. 169, 1995; No. 121, 1997; No. 101, 2004; No. 63, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 270................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 271................... | ad. No. 97, 1989 |\n|  | am. No. 82, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 271A.................. | ad. No. 82, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 272................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 273................... | ad. No. 97, 1989 |\n|  | am. No. 63, 1998; No. 96, 1999; No. 163, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 273A.................. | ad. No. 105, 1989 |\n|  | am. No. 58, 1990; No. 93, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 273B.................. | ad. No. 105, 1989 |\n|  | am. No. 58, 1990 |\n|  | rep. No. 15, 2007 |\n| s. 274................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; Nos. 20, 61 and 135, 1990; Nos. 92 and 101, 1992; Nos. 7 and 118, 1993; No. 181, 1994; No. 53, 1995; Nos. 62 and 147, 1997; No. 179, 1999; No. 51, 2002; No. 111, 2003; No. 83, 2004; No. 78, 2005; Nos. 32 and 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 275................... | ad. No. 97, 1989 |\n|  | rs. No. 105, 1989 |\n|  | am. No. 101, 1992; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 275A.................. | ad. No. 105, 1989 |\n|  | am. No. 82, 1993; No. 48, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 275B.................. | ad. No. 105, 1989 |\n|  | am. Nos. 101 and 208, 1992; No. 181, 1994; No. 80, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 275C.................. | ad. No. 105, 1989 |\n|  | am. No. 208, 1992 |\n|  | rep. No. 80, 2006 |\n| s. 276................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 7, 1993; No. 62, 1997; No. 23, 2005 |\n|  | rep. No. 15, 2007 |\n| s. 277................... | ad. No. 97, 1989 |\n|  | rs. No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 277AA................. | ad. No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 277A.................. | ad. No. 181, 1994 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 278................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 279................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 58, 1990; No. 101, 1992 |\n|  | rep. No. 15, 2007 |\n| ss. 279A, 279B............. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 279D.................. | ad. No. 105, 1989 |\n|  | am. No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 279E.................. | ad. No. 76, 1996 |\n|  | am. No. 89, 2000; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 280................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 61, 1990 |\n|  | rep. No. 15, 2007 |\n| s. 281................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 281A.................. | ad. No. 168, 2001 |\n|  | rep. No. 15, 2007 |\n| s. 282................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 282A.................. | ad. No. 105, 1989 |\n|  | am. No. 83, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 282B.................. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 283................... | ad. No. 97, 1989 |\n|  | rs. No. 105, 1989 |\n|  | am. No. 58, 1990; No. 93, 2004 |\n|  | rep. No. 15, 2007 |\n| ss. 284, 285............... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 286................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 286A.................. | ad. No. 105, 1989 |\n|  | am. No. 61, 1990 |\n|  | rep. No. 15, 2007 |\n| s. 287................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 288................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 288A.................. | ad. No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| Div. 4A of Part IX........... | ad. No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 288B.................. | ad. No. 181, 1994 |\n|  | rep. No. 15, 2007 |\n| s. 289................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 289A.................. | ad. No. 76, 1996 |\n|  | am. No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 290................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 290A.................. | ad. No. 105, 1989 |\n|  | am. No. 20, 1990; No. 101, 1992; No. 7, 1993; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 291................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 291A.................. | ad. No. 105, 1989 |\n|  | am. No. 83, 2004 |\n|  | rep. No. 15, 2007 |\n| ss. 292, 293............... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| ss. 294, 295............... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 296................... | ad. No. 97, 1989 |\n|  | am. No. 105, 1989; No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 297................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 297A.................. | ad. No. 105, 1989 |\n|  | am. No. 83, 2004 |\n|  | rep. No. 15, 2007 |\n| s. 297B.................. | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 297C.................. | ad. No. 82, 1994 |\n|  | rep. No. 15, 2007 |\n| ss. 298, 299............... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| Div. 7A of Part IX........... | ad. No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 299A.................. | ad. No. 62, 1997 |\n|  | am. No. 44, 1999; No. 89, 2000 |\n|  | rep. No. 15, 2007 |\n| s. 299B.................. | ad. No. 62, 1997 |\n|  | am. No. 44, 1999; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| ss. 299C, 299CA............ | ad. No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| s. 299D.................. | ad. No. 62, 1997 |\n|  | am. No. 44, 1999; No. 101, 2004 |\n|  | rep. No. 15, 2007 |\n| ss. 299E–299G............. | ad. No. 62, 1997 |\n|  | rep. No. 15, 2007 |\n| Heading to Div. 8 of Part IX.... | rs. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 300................... | ad. No. 97, 1989 |\n|  | am. No. 20, 1990 |\n|  | rs. No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| Heading to Div. 9 of Part IX.... | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| ss. 300A, 300B............. | ad. No. 105, 1989 |\n|  | am. No. 82, 1993; No. 48, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 301................... | ad. No. 97, 1989 |\n|  | rep. No. 15, 2007 |\n| Div. 10 of Part IX........... | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 302................... | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 303................... | ad. No. 105, 1989 |\n|  | am. No. 46, 1998; No. 44, 1999 |\n|  | rep. No. 15, 2007 |\n| s. 304................... | ad. No. 105, 1989 |\n|  | am. No. 17, 1993; Nos. 39 and 121, 1997 |\n|  | rs. No. 46, 1998; No. 94, 1999 |\n|  | am. No. 58, 2000 |\n|  | rep. No. 15, 2007 |\n| s. 305................... | ad. No. 105, 1989 |\n|  | rep. No. 101, 2006 |\n| s. 306................... | ad. No. 105, 1989 |\n|  | rs. No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 308................... | ad. No. 105, 1989 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 309................... | ad. No. 105, 1989 |\n|  | rep. No. 15, 2007 |\n| s. 310................... | ad. No. 105, 1989 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 15, 2007 |\n| s. 311................... | ad. No. 105, 1989 |\n|  | rs. No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| s. 315................... | ad. No. 105, 1989 |\n|  | rs. No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| Div. 11 of Part IX........... | ad. No. 82, 1993 |\n|  | rep. No. 15, 2007 |\n| ss. 315A–315E............. | ad. No. 82, 1993 |\n|  | rep. No. 15, 2007 |\n| s. 315F.................. | ad. No. 82, 1993 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 15, 2007 |\n| Part X |  |\n| Part X................... | ad. No. 5, 1991 |\n| Division 1 |  |\n| s. 316................... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004; No. 143, 2007 |\n| s. 317................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; Nos. 35 and 80, 1992; Nos. 17 and 18, 1993; No. 22, 1995; No. 39, 1996; Nos. 39, 121, 155 and 174, 1997; Nos. 46 and 48, 1998; Nos. 58, 79 and 89, 2000; Nos. 77 and 121, 2001; No. 96, 2004; No. 101, 2006; Nos. 15 and 143, 2007; No. 144, 2008; No. 15, 2009; No. 114, 2010; No. 46, 2011 |\n|  | ed C162 |\n| s. 318................... | ad. No. 5, 1991 |\n|  | am. No. 135, 1990; No. 41, 1998; No. 144, 2008 |\n| s. 319................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 155, 1997 |\n| s. 320................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004; No 110, 2014 |\n| ss. 321–323............... | ad. No. 5, 1991 |\n| s 324................... | ad No 5, 1991 |\n|  | am No 48, 1991; No 101, 2004; No 143, 2007; No 134, 2024 |\n| s 325................... | ad No 5, 1991 |\n|  | am No 155, 1997; No 134, 2024 |\n| ss. 326, 327............... | ad. No. 5, 1991 |\n| s. 327A.................. | ad. No. 35, 1992 |\n|  | am. No. 80, 1992 |\n| s. 327B.................. | ad. No. 80, 1992 |\n| s. 328................... | ad. No. 5, 1991 |\n|  | am. No. 18, 1993; No. 121, 1997; No. 144, 2008; No. 169, 2012 |\n| ss. 329, 330............... | ad. No. 5, 1991 |\n| s. 331................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997 |\n| s. 332................... | ad. No. 5, 1991 |\n|  | rs. No. 155, 1997 |\n|  | am. No. 96, 2004 |\n| s. 332A.................. | ad. No. 155, 1997 |\n|  | am. No. 96, 2004 |\n|  | rep No 110, 2014 |\n| s. 333................... | ad.","sortOrder":1000162},{"sectionNumber":"full-source-retrieval-0164","sectionType":"document_chunk","heading":"Document excerpt 164","content":"No. 5, 1991 |\n| s. 334................... | ad. No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 334A.................. | ad. No. 143, 2007 |\n| s. 335................... | ad. No. 5, 1991 |\n| Division 2 |  |\n| Subdivision A |  |\n| s. 336................... | ad. No. 5, 1991 |\n| s. 337................... | ad. No. 5, 1991 |\n| s. 338................... | ad. No. 5, 1991 |\n|  | am No 53, 2016 |\n| Subdivision B |  |\n| ss. 339–342............... | ad. No. 5, 1991 |\n| Subdivision C |  |\n| ss. 343–348............... | ad. No. 5, 1991 |\n| Division 3 |  |\n| Subdivision A |  |\n| ss. 349–355............... | ad. No. 5, 1991 |\n| Subdivision B |  |\n| s. 356................... | ad. No. 5, 1991 |\n|  | am. Nos. 35 and 80, 1992; No. 93, 1999; No. 96, 2004; No. 114, 2010 |\n| ss. 357–360............... | ad. No. 5, 1991 |\n| Subdivision C |  |\n| s. 361................... | ad. No. 5, 1991 |\n|  | am. No. 32, 2006 |\n| s. 362................... | ad. No. 5, 1991 |\n| Division 4 |  |\n| s. 363................... | ad. No. 5, 1991 |\n|  | am. No. 216, 1991 |\n| s. 364................... | ad. No. 5, 1991 |\n| s. 365................... | ad. No. 5, 1991 |\n|  | am. No. 93, 1999; No. 23, 2005; No. 62, 2011 |\n| s. 366................... | ad. No. 5, 1991 |\n|  | am. Nos. 35 and 80, 1992 |\n| ss. 367–370............... | ad. No. 5, 1991 |\n| s. 371................... | ad. No. 5, 1991 |\n|  | am. No. 216, 1991; No. 190, 1992; No. 170, 1995; No. 41, 1998; No. 96, 2004; No. 15, 2007; No. 114, 2010; No 53, 2016 |\n| s. 372................... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004; No. 58, 2006 |\n| s. 373................... | ad. No. 5, 1991 |\n| Div. 5 of Part X............ | rep. No. 143, 2007 |\n| s. 374................... | ad. No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 375................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992; No. 170, 1995; No. 96, 2004 |\n|  | rep. No. 143, 2007 |\n| s. 376................... | ad. No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| Div. 6 of Part X............ | rep. No. 96, 2004 |\n| s. 377................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; No. 155, 1997; No. 46, 1998; No. 93, 1999 |\n|  | rep. No. 96, 2004 |\n| s. 378................... | ad. No. 5, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 96, 2004 |\n| s. 379................... | ad. No. 5, 1991 |\n|  | rep. No. 96, 2004 |\n| s. 380................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992 |\n|  | rep. No. 96, 2004 |\n| Division 7 |  |\n| Subdivision A |  |\n| ss. 381, 382............... | ad. No. 5, 1991 |\n| s. 383................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992 |\n| s. 384................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992; No. 155, 1997; No. 96, 2004; No. 64, 2005; No. 114, 2010 |\n| s. 385................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992; Nos. 122 and 155, 1997; Nos. 73 and 96, 2004; No. 64, 2005; No. 114, 2010 |\n| ss. 386, 387............... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004 |\n| Subdivision B |  |\n| s. 388................... | ad. No. 5, 1991 |\n|  | am. No. 22, 1995 |\n| s 389................... | ad No 5, 1991 |\n|  | am No 48, 1991; No 190, 1992; No 224, 1992; No 138, 1994; No 155, 1997; No 162, 2001; No 133, 2003; No 96, 2004; No 23, 2005; No 101, 2006; No 143, 2007; No 15, 2009; No 114, 2010; No 101, 2013; No 84, 2018 |\n| s. 389A.................. | ad. No. 163, 2001 |\n| s. 390................... | ad. No. 5, 1991 |\n|  | am. No. 16, 1998 |\n| s. 391................... | ad. No. 5, 1991 |\n|  | rep. No. 133, 2003 |\n| s. 392................... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004 |\n| s 393................... | ad No 5, 1991 |\n|  | am No 48, 1991; No 96, 2004; No 134, 2024 |\n| s. 394................... | ad. No. 5, 1991 |\n|  | am. Nos. 35 and 80, 1992 |\n| s. 395................... | ad. No. 5, 1991 |\n| s. 396................... | ad. No. 5, 1991 |\n|  | am. No. 121, 1997; No. 46, 1998; No. 89, 2000; Nos. 101 and 168, 2006 |\n| s. 397................... | ad. No. 5, 1991 |\n|  | rs. No. 121, 1997 |\n| s. 398................... | ad. No. 5, 1991 |\n|  | am. No. 121, 1997; No. 79, 2000; No. 77, 2001; No. 101, 2006 |\n| s. 398A.................. | ad. No. 48, 1991 |\n|  | rs. No. 163, 2001 |\n| s. 399................... | ad. No. 5, 1991 |\n|  | am. No. 190, 1992; No. 46, 1998; No. 96, 2004; Nos. 101 and 168, 2006; No 110, 2014 |\n| s. 399A.................. | ad. No. 100, 1991 |\n|  | am. No. 98, 1992; No. 39, 1997; No. 46, 1998; No. 54, 1999; No. 101, 2006 |\n| s. 400................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004 |\n|  | rs. No. 101, 2013 |\n| s. 401................... | ad. No. 5, 1991 |\n|  | am. No. 101, 1992; No. 46, 1998; No. 58, 2000; No. 101, 2006; No. 143, 2007; No. 114, 2010 |\n| s. 402................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; Nos. 35, 80 and 190, 1992; No. 18, 1993; No. 5, 1995; No. 174, 1997; No. 93, 1999; No. 96, 2004; No. 23, 2005; No. 114, 2010 |\n| s. 403................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997 |\n|  | rs. No. 96, 2004 |\n| s 404................... | ad No 5, 1991 |\n|  | am No 96, 2004 |\n|  | rs No 110, 2014 |\n|  | am No 84, 2018 |\n| Subdivision C |  |\n| s. 405................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998; No. 101, 2006 |\n| s. 406................... | ad. No. 5, 1991 |\n|  | rs. No. 170, 1995 |\n|  | am. No. 46, 1998; No. 89, 2000; No. 64, 2005; No. 168, 2006 |\n| s. 407................... | ad. No. 5, 1991 |\n|  | rep. No. 101, 2006 |\n| s. 408................... | ad. No. 5, 1991 |\n|  | rs. No. 46, 1998 |\n|  | am. No. 168, 2006 |\n| s. 408A.................. | ad. No. 170, 1995 |\n|  | rs. No. 46, 1998; No. 101, 2006 |\n| s. 409................... | ad. No. 5, 1991 |\n|  | rs. No. 46, 1998 |\n| s. 410................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991 |\n|  | rs. No. 46, 1998 |\n|  | am. No. 41, 2005; No. 168, 2006 |\n| s. 411................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998 |\n| s. 412................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998 |\n| s. 413................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998; No. 54, 1999; No. 101, 2006 |\n| s. 414................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995 |\n|  | rs. No. 46, 1998 |\n| s. 418................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 46, 1998 |\n| s. 418A.................. | ad. No. 48, 1991 |\n|  | am. No. 170, 1995; No. 155, 1997; No. 46, 1998; No. 96, 2004; No. 101, 2006 |\n| s. 419................... | ad. No. 5, 1991 |\n|  | am. No. 76, 1996; No. 155, 1997 |\n|  | rs. No. 46, 1998 |\n|  | am. No. 96, 2004 |\n| s. 421................... | ad. No. 5, 1991 |\n|  | am. No. 80, 1992; No. 155, 1997; Nos. 41 and 46, 1998 |\n| s. 422................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 46, 1998; No. 64, 2005 |\n| s. 423................... | ad. No. 5, 1991 |\n|  | am. No. 46, 1998; No. 96, 2004; No. 101, 2006 |\n| Subdivision D |  |\n| s. 424................... | ad. No. 5, 1991 |\n|  | am. No. 46, 1998; No. 101, 2006 |\n|  | rep. No. 143, 2007 |\n| s. 425................... | ad. No. 5, 1991 |\n|  | am. No. 143, 2007 |\n| s. 426................... | ad. No. 5, 1991 |\n|  | am. No. 143, 2007 |\n| s. 427................... | ad. No. 5, 1991 |\n|  | rs. No. 39, 1997 |\n|  | am. No. 46, 1998; No. 89, 2000; No. 162, 2005; No. 101, 2006; No. 143, 2007 |\n| s. 428................... | ad. No. 5, 1991 |\n| s. 429................... | ad. No. 5, 1991 |\n|  | am. No. 143, 2007 |\n| s. 430................... | ad. No. 5, 1991 |\n|  | rep. No. 143, 2007 |\n| s. 431................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004; No. 101, 2006; No. 143, 2007 |\n| Subdiv. E of Div. 7 of Part X.... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 431A.................. | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| Division 8 |  |\n| Subdivision A |  |\n| s. 432................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004; No. 41, 2005 |\n| Subdivision B |  |\n| s. 433................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997 |\n| s. 434................... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995; No. 58, 2000 ; No. 101, 2013 |\n| s. 435................... | ad. No. 5, 1991 |\n| s. 436................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; No. 155, 1997; No. 93, 1999; No. 96, 2004; No. 23, 2005 |\n| Subdivision C |  |\n| s. 437................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004; No. 41, 2005 |\n| Subdivision D |  |\n| s. 438................... | ad. No. 5, 1991 |\n|  | am. No. 80, 1992; No. 155, 1997; Nos. 41 and 46, 1998; Nos. 101 and 168, 2006 |\n| s. 439................... | ad. No. 5, 1991 |\n|  | am. No. 121, 1997; No. 77, 2001; No. 101, 2006 |\n| ss. 440–444............... | ad. No. 5, 1991 |\n| s. 445................... | ad. No. 5, 1991 |\n|  | am. No. 58, 2000 |\n| Subdivision E |  |\n| s. 446................... | ad. No. 5, 1991 |\n|  | am. No. 120, 1995; No. 16, 1999; No. 89, 2000; No 53, 2016 |\n| s. 447................... | ad. No. 5, 1991 |\n|  | am. No. 80, 1992 |\n| s. 448................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004 |\n| Subdivision F |  |\n| s. 449................... | ad. No. 5, 1991 |\n| s. 450................... | ad. No. 5, 1991 |\n|  | am. No. 96, 2004 |\n| Subdivision G |  |\n| ss. 451–453............... | ad. No. 5, 1991 |\n| s. 454................... | ad. No. 5, 1991 |\n|  | am. No. 75, 2010 |\n| s. 455................... | ad. No. 5, 1991 |\n| Division 9 |  |\n| s. 456................... | ad. No. 5, 1991 |\n| s. 456A.................. | ad. No. 48, 1991 |\n|  | am. No. 100, 1991; No. 155, 1997; No. 96, 2004 |\n| s. 457................... | ad. No. 5, 1991 |\n|  | am. No. 155, 1997; No. 96, 2004; No. 64, 2005 |\n| s. 458................... | ad. No. 5, 1991 |\n|  | am. No. 100, 1991; No. 138, 1994 |\n|  | rep. No. 96, 2004 |\n| s. 459................... | ad. No. 5, 1991 |\n|  | am. No. 80, 1992 |\n|  | rep. No. 96, 2004 |\n| s. 459A.................. | ad. No. 48, 1991 |\n|  | am. No. 96, 2004; No. 15, 2007; No 53, 2016 |\n| s. 460................... | ad. No. 5, 1991 |\n|  | am. No. 48, 1991; No. 96, 2004; No. 15, 2007; No. 62, 2011; No 53, 2016 |\n| s. 460A.................. | ad. No. 58, 2000 |\n|  | am. No. 58, 2000 |\n| Division 10 |  |\n| s. 461................... | ad. No. 5, 1991 |\n|  | am. No. 101, 1992; No. 46, 1998; No. 58, 2000; No. 101, 2006; No. 143, 2007; No. 114, 2010 |\n| Division 11 |  |\n| s. 462................... | ad. No. 5, 1991 |\n|  | am. No. 91, 2000 |\n| s. 462A.................. | ad. No. 100, 1991 |\n| ss. 463, 464............... | ad. No. 5, 1991 |\n|  | rep. No. 96, 2004 |\n| s. 464A.................. | ad. No. 100, 1991 |\n| s. 465................... | ad. No. 5, 1991 |\n|  | am. No. 100, 1991; No. 91, 2000; No. 146, 2001; No. 96, 2004; No 4, 2016 |\n| s. 466................... | ad. No. 5, 1991 |\n| s. 467................... | ad. No. 5, 1991 |\n|  | am. No. 100, 1991; No. 96, 2004 |\n| s. 468................... | ad. No. 5, 1991 |\n| Part XI.................. | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 469................... | ad. No. 190, 1992 |\n|  | am. No. 32, 2006; No. 143, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 470................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 5, 1995; No. 73, 2004; No. 15, 2007; No. 45, 2008 |\n|  | rep. No. 114, 2010 |\n| ss. 471–476............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 477................... | ad. No. 190, 1992 |\n|  | rs. No. 181, 1994; No. 15, 2007 |\n|  | rep. No. 114, 2010 |\n| ss. 478, 479............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 480................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 481................... | ad. No. 190, 1992 |\n|  | am. No. 15, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 482................... | ad. No. 190, 1992 |\n|  | am. No. 5, 1995; No. 101, 2004 |\n|  | rep. No. 114, 2010 |\n| ss. 483, 484............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 485................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 15, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 485AA................. | ad. No. 101, 2004 |\n|  | am. No. 58, 2006; No. 75, 2010 |\n|  | rep. No. 114, 2010 |\n| s. 485A.................. | ad. No. 18, 1993 |\n|  | am. No. 155, 1997 |\n|  | rep. No. 114, 2010 |\n| ss. 486, 487............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 488–490............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 491................... | ad. No. 190, 1992 |\n|  | am. No. 15, 2007; No. 144, 2008 |\n|  | rep. No. 114, 2010 |\n| ss. 492–494............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 495................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 496................... | ad. No. 190, 1992 |\n|  | am. No. 82, 1994 |\n|  | rep. No. 114, 2010 |\n| ss. 497–499............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 500................... | ad. No. 190, 1992 |\n|  | am. No. 55, 2001 |\n|  | rep. No. 114, 2010 |\n| s. 501................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 502–504............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 505, 506............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 507................... | ad. No. 190, 1992 |\n|  | am. No. 5, 1995; No. 55, 2001 |\n|  | rep. No. 114, 2010 |\n| s. 507A.................. | ad. No. 82, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 508................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 509................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| s. 509A.................. | ad. No. 82, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 510................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 511................... | ad. No. 190, 1992 |\n|  | am. No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 511A.................. | ad. No. 82, 1994 |\n|  | rep. No. 114, 2010 |\n| Div. 8 of Part XI............ | ad. No. 93, 1999 |\n|  | rep. No. 114, 2010 |\n| s. 512................... | ad. No. 93, 1999 |\n|  | rep. No. 114, 2010 |\n| s. 512A.................. | ad. No. 93, 1999 |\n|  | rep. No. 114, 2010 |\n| s. 513................... | ad. No. 93, 1999 |\n|  | rep. No. 114, 2010 |\n| ss. 514, 515............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| Div. 10 of Part XI........... | rep. No. 32, 2006 |\n| s. 516................... | ad. No. 190, 1992 |\n|  | rep. No. 32, 2006 |\n| s. 517................... | ad. No. 190, 1992 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 32, 2006 |\n| ss. 518, 519............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| Heading to Div. 11A.........  of Part XI | rs. No. 45, 2008  rep. No. 114, 2010 |\n| Div. 11A of Part XI.......... | ad. No. 73, 2004 |\n|  | rep. No. 114, 2010 |\n| s. 519A.................. | ad. No. 73, 2004 |\n|  | am. No. 45, 2008 |\n|  | rep. No. 114, 2010 |\n| s. 519B.................. | ad. No. 73, 2004 |\n|  | am. No. 45, 2008 |\n|  | rep. No. 114, 2010 |\n| ss. 520, 521............... | ad. No. 190, 1992 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 114, 2010 |\n| s. 522................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 523................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 523A.................. | ad. No. 82, 1994 |\n|  | rep. No. 114, 2010 |\n| Heading to Div. 14 of Part XI... | rs. No. 73, 2004 |\n|  | rep. No. 114, 2010 |\n| ss. 524, 525............... | ad. No. 190, 1992 |\n|  | am. No. 73, 2004 |\n|  | rep. No. 114, 2010 |\n| ss. 526, 527............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 528................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 529................... | ad. No. 190, 1992 |\n|  | am. No. 76, 1996 |\n|  | rep. No. 114, 2010 |\n| s. 530................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 76, 1996; No. 66, 2003; No. 96, 2004 |\n|  | rep. No. 114, 2010 |\n| s. 530A.................. | ad. No. 169, 1995 |\n|  | am. No. 64, 2005; No. 56, 2007 |\n|  | rs. No. 133, 2009 |\n|  | rep. No. 114, 2010 |\n| ss. 531–533............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 533A.................. | ad. No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| Div. 17A of Part XI.......... | ad. No. 83, 2004 |\n|  | rep. No. 114, 2010 |\n| s. 533B.................. | ad. No. 83, 2004 |\n|  | am. No. 15, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 534................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 535................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 143, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 536................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 537................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 538, 539............... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| ss. 540, 541............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 542................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 543................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 544................... | ad. No. 190, 1992 |\n|  | am. No. 58, 2006 |\n|  | rep. No. 114, 2010 |\n| s. 545................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 546–549............... | ad. No. 190, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 550–554............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 555................... | ad. No. 190, 1992 |\n|  | am. No. 181, 1994; No. 11, 1999; No. 101, 2006 |\n|  | rep. No. 114, 2010 |\n| ss. 556, 557............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 557A.................. | ad. No. 163, 2001 |\n|  | am. No. 15, 2009 |\n|  | rep. No. 114, 2010 |\n| ss. 558, 559............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 559A.................. | ad. No. 143, 2007 |\n|  | rep. No. 114, 2010 |\n| ss. 560–563............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 564................... | ad. No. 190, 1992 |\n|  | am. No. 93","sortOrder":1000163},{"sectionNumber":"full-source-retrieval-0165","sectionType":"document_chunk","heading":"Document excerpt 165","content":", 1999 |\n|  | rep. No. 114, 2010 |\n| ss. 565–567............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 567A.................. | ad. No. 122, 1997 |\n|  | rep. No. 114, 2010 |\n| s. 568................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 55, 2001 |\n|  | rep. No. 114, 2010 |\n| s. 569................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 570................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 121, 1997; No. 46, 1998; No. 77, 2001; No. 101, 2006; No. 164, 2007 |\n|  | rep. No. 114, 2010 |\n| ss. 571–573............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 574................... | ad. No. 190, 1992 |\n|  | am. No. 77, 2001 |\n|  | rep. No. 114, 2010 |\n| s. 575................... | ad. No. 190, 1992 |\n|  | am. No. 93, 1999 |\n|  | rep. No. 114, 2010 |\n| s. 576................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 577................... | ad. No. 190, 1992 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 114, 2010 |\n| s. 578................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 579................... | ad. No. 190, 1992 |\n|  | am. No. 16, 1998 |\n|  | rep. No. 114, 2010 |\n| s. 580................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| s. 581................... | ad. No. 190, 1992 |\n|  | am. No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 582................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993; No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| s. 583................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 584–586............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 587, 588............... | ad. No. 190, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 589–591............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 592................... | ad. No. 190, 1992 |\n|  | am. No. 181, 1994; No. 11, 1999; No. 101, 2006 |\n|  | rep. No. 114, 2010 |\n| ss. 593, 594............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 595................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 596................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| s. 597................... | ad. No. 190, 1992 |\n|  | rep. No. 101, 2006 |\n| ss. 598, 599............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 600................... | ad. No. 190, 1992 |\n|  | am. No. 138, 1994 |\n|  | rep. No. 114, 2010 |\n| ss. 601, 602............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 603................... | ad. No. 190, 1992 |\n|  | am. No. 181, 1994; No. 15, 2007; No. 12, 2012 |\n|  | rep. No. 114, 2010 |\n| s. 604................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 605................... | ad. No. 190, 1992 |\n|  | am. No. 15, 2007 |\n|  | rep. No. 114, 2010 |\n| s. 606................... | ad. No. 190, 1992 |\n|  | am. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| s. 607................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 607AA................. | ad. No. 83, 2004 |\n|  | rep. No. 114, 2010 |\n| s. 607A.................. | ad. No. 18, 1993 |\n|  | rep. No. 114, 2010 |\n| Div. 20 of Part XI........... | rep. No. 143, 2007 |\n| ss. 608–612............... | ad. No. 190, 1992 |\n|  | rep. No. 143, 2007 |\n| s. 613................... | ad. No. 190, 1992 |\n|  | am. No. 46, 1998; No. 101, 2006 |\n|  | rs. No. 114, 2010 |\n|  | rep. No. 114, 2010 |\n| s. 614................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 615................... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| ss. 616–620............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| s. 621................... | ad. No. 190, 1992 |\n|  | am. No. 91, 2000; No. 146, 2001 |\n|  | rep. No. 114, 2010 |\n| ss. 622–624............... | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |\n| Part XII.................. | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 625–631............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 632................... | ad. No. 31, 1995 |\n|  | am. Nos. 39 and 121, 1997; No. 164, 1999; No. 170, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 633, 634............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 635................... | ad. No. 31, 1995 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 636, 637............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 638................... | ad. No. 31, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 639................... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| ss. 640, 641............... | ad. No. 31, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 642................... | ad. No. 31, 1995 |\n|  | am. Nos. 39 and 121, 1997; No. 164, 1999; No. 170, 2001 |\n|  | rep. No. 101, 2006 |\n| ss. 643–645............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 646................... | ad. No. 31, 1995 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 101, 2006 |\n| s. 647................... | ad. No. 31, 1995 |\n|  | am. No. 39, 1997 |\n|  | rep. No. 101, 2006 |\n| ss. 648–671............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| s. 672................... | ad. No. 31, 1995 |\n|  | am. No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 673................... | ad. No. 31, 1995 |\n|  | rs. No. 121, 1997 |\n|  | am. No. 174, 1997; No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 674................... | ad. No. 31, 1995 |\n|  | rs. No. 72, 2001 |\n|  | rep. No. 101, 2006 |\n| s. 675................... | ad. No. 31, 1995 |\n|  | rep. No. 72, 2001 |\n| ss. 676–684............... | ad. No. 31, 1995 |\n|  | rep. No. 101, 2006 |\n| Heading to Schedule 1........ | ad. No. 51, 1973 |\n|  | rep. No. 101, 2006 |\n| Schedule 1................ | am. No. 108, 1981 |\n|  | rep. No. 101, 2006 |\n| Schedule 2 |  |\n| Heading to Schedule 2........ | ad. No. 51, 1973 |\n| The Second Schedule......... | ad. No. 4, 1945 |\n|  | am. No. 62, 1955; No. 101, 1956; No. 51, 1973 |\n| Schedule 2................ | am. No. 80, 1975; No. 49, 1985; No. 4, 1991 |\n| Schedule 2A.............. | ad. No. 30, 1995 |\n|  | rep. No. 101, 2006 |\n| Schedule 2B............... | ad. No. 30, 1995 |\n|  | rep. No. 101, 2006 |\n| Schedule 2C............... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑1........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑2........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑3........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑5........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑6........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑10........... | ad. No. 76, 1996 |\n|  | am. No. 77, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 245‑15........... | ad. No. 76, 1996 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 245‑20........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑25........... | ad. No. 76, 1996 |\n|  | am. Nos. 121 and 122, 1997; No. 163, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 245‑26........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑30........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑31........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑35........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑40........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑45........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑46........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑47........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑50........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑55........... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997; No. 46, 1998; No. 168, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 245‑60........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑61........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑65........... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997; No. 46, 1998; No. 168, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 245‑70........... | ad. No. 76, 1996 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 245‑75........... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 245‑80........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑81........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑85........... | ad. No. 76, 1996 |\n|  | am. No. 46, 1998; No. 169, 1999; No. 90, 2002 |\n|  | rep. No. 79, 2010 |\n| Note to s. 245‑85(1)... | ad. No. 90, 2002 |\n|  | rep. No. 79, 2010 |\n| Heading to s. 245‑90... | am. No. 121, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 245‑90........... | ad. No. 76, 1996 |\n|  | am. No. 121, 1997; No. 46, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 245‑95........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑96........... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑100.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑105.......... | ad. No. 76, 1996 |\n|  | am. No. 93, 1999 |\n|  | rep. No. 79, 2010 |\n| Note to s. 245‑105(1)... | ad. No. 88, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 245‑110.......... | ad. No. 76, 1996 |\n|  | am. No. 121, 1997; No. 142, 2003; No. 143, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 245‑115.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑120.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑125.......... | ad. No. 76, 1996 |\n|  | am. No. 95, 1997; No. 46, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 245‑130.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑135.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑140.......... | ad. No. 76, 1996 |\n|  | am. Nos. 121 and 122, 1997; No. 46, 1998; Nos. 39, 54 and 169, 1999; Nos. 77 and 170, 2001; No. 101, 2006; No. 164, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 245‑145.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑150.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑155.......... | ad. No. 76, 1996 |\n|  | am. No. 121, 1997; No. 77, 2001 |\n|  | rep. No. 79, 2010 |\n| s. 245‑160.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑165.......... | ad. No. 76, 1996 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 245‑170.......... | ad. No. 76, 1996 |\n|  | am. No. 46, 1998; No. 57, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 245‑175.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑180.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑185.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑190.......... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997; No. 46, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 245‑195.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑200.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑201.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑205.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑210.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑215.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑220.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑221.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑225.......... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 245‑230.......... | ad. No. 76, 1996 |\n|  | am. No. 122, 1997; No. 16, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 245‑235.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑240.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑245.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑250.......... | ad. No. 76, 1996 |\n|  | am. No. 94, 1999; No. 90, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 245‑255.......... | ad. No. 76, 1996 |\n|  | am. No. 46, 1998 (as am. by No. 57, 2002) |\n|  | rep. No. 79, 2010 |\n| s. 245‑260.......... | ad. No. 76, 1996 |\n|  | rep. No. 79, 2010 |\n| s. 245‑265.......... | ad. No. 76, 1996 |\n|  | am. No. 146, 2001; No. 161, 2005 |\n|  | rep. No. 79, 2010 |\n| Note to s. 245‑265(1)... | ad. No. 91, 2000 |\n|  | rep. No. 79, 2010 |\n| Schedule 2D |  |\n| Schedule 2D.............. | ad. No. 78, 1996 |\n| Division 57 |  |\n| s. 57‑1............ | ad. No. 78, 1996 |\n| Subdivision 57‑A |  |\n| s. 57‑5............ | ad. No. 78, 1996 |\n| Subdivision 57‑B |  |\n| s. 57‑10........... | ad. No. 78, 1996 |\n|  | am. No. 77, 2001 |\n| Note to s. 57‑10(1).... | am. No. 16, 1998 |\n| Subdivision 57‑C |  |\n| s. 57‑15........... | ad. No. 78, 1996 |\n| Subdivision 57‑D |  |\n| s. 57‑20........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998 |\n| Subdivision 57‑E |  |\n| s. 57‑25........... | ad. No. 78, 1996 |\n|  | am. Nos. 16 and 46, 1998; No. 77, 2001; No. 133, 2003; No. 101, 2006; No. 164, 2007; No. 97, 2008; No. 15, 2009; No 47, 2016; No 95, 2019 |\n| s. 57‑30........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 133, 2003; No 95, 2019 |\n| s 57‑32............ | ad No 95, 2019 |\n| s 57‑33............ | ad No 95, 2019 |\n| s. 57‑35........... | ad. No. 78, 1996 |\n|  | am. No. 46, 1998; No. 101, 2006 |\n| Subdivision 57‑F |  |\n| s. 57‑40........... | ad. No. 78, 1996 |\n|  | am. No. 174, 1997; No. 15, 2007 |\n| Heading to s. 57‑45.... | am. No. 174, 1997 |\n| s. 57‑45........... | ad. No. 78, 1996 |\n|  | am. No. 174, 1997 |\n| s 57‑50............ | ad No 78, 1996 |\n|  | am No 174, 1997; No 51, 2002; No 15, 2007; No 57, 2025 |\n| s. 57‑52........... | ad. No. 174, 1997 |\n| s. 57‑55........... | ad. No. 78, 1996 |\n| Subdivision 57‑G |  |\n| s. 57‑60........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998 |\n| s. 57‑65........... | ad. No. 78, 1996 |\n|  | am. No. 174, 1997 |\n| Heading to s. 57‑70.... | rs. No. 15, 2007 |\n| s. 57‑70........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 15, 2007 |\n| Subdivision 57‑H |  |\n| s. 57‑75........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 142, 2003 |\n| Subdivision 57‑I...... | rep. No. 101, 2006 |\n| s. 57‑80........... | ad. No. 78, 1996 |\n|  | rep. No. 101, 2006 |\n| Subdivision 57‑J |  |\n| s. 57‑85........... | ad. No. 78, 1996 |\n|  | rs. No. 16, 1998 |\n|  | am. No. 46, 1998; Nos. 39 and 54, 1999; Nos. 77 and 170, 2001; No. 119, 2002; No. 101, 2006; No. 164, 2007; No. 93, 2011 |\n| s. 57‑90........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 101, 2006 |\n| s. 57‑95........... | ad. No. 78, 1996 |\n| s. 57‑100........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 101, 2006; No. 164, 2007 |\n| s. 57‑105........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998; No. 77, 2001 |\n| Subdivision 57‑K |  |\n| s. 57‑110........... | ad. No. 78, 1996 |\n|  | am. Nos. 16 and 46, 1998; No. 54, 1999; Nos. 77 and 170, 2001; No. 101, 2006; No. 164, 2007; No. 93, 2011 |\n| Subdivision 57‑L |  |\n| s. 57‑115........... | ad. No. 78, 1996 |\n|  | am. No. 16, 1998 |\n| Subdivision 57‑M |  |\n| s. 57‑120........... | ad. No. 147, 1997 |\n|  | am. No. 23, 2005 |\n| s. 57‑125........... | ad. No. 147, 1997 |\n| Subdivision 57‑N |  |\n| Subdivision 57‑N..... | rs. No. 77, 2001 |\n| s. 57‑130........... | ad. No. 93, 1999 |\n|  | rs. No. 77, 2001 |\n|  | am. No. 119, 2002; No. 101, 2006 |\n| Subdivision 57‑P |  |\n| Subdivision 57‑P..... | ad No 95, 2019 |\n| s 57‑135........... | ad No 95, 2019 |\n| Schedule 2E............... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑1........... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑5........... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑10.......... | ad. No. 95, 1997 |\n|  | am. No. 174, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑15.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑20.......... | ad. No. 95, 1997 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑25.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑30.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑35.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑40.......... | ad. No. 95, 1997 |\n|  | rs. No. 174, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑45.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑50.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑55.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑60.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑65.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑70.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑75.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑80.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑85.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑90.......... | ad. No. 95, 1997 |\n|  | am. No. 174, 1997; No. 77, 2001; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑95.......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑100......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑105......... | ad. No. 95, 1997 |\n|  | am. No. 174, 1997; No. 77, 2001; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑110......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑115......... | ad. No. 95, 1997 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑120......... | ad. No. 95, 1997 |\n|  | am. No. 174, 1997; No. 77, 2001; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑125......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑130......... | ad. No. 95, 1997 |\n|  | am. No. 174, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑135......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑140......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑145......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| s. 42A‑150......... | ad. No. 95, 1997 |\n|  | rep. No. 79, 2010 |\n| Schedule 2F |  |\n| Schedule 2F............... | ad. No. 17, 1998 |\n| Division 265 |  |\n| s. 265‑5........... | ad. No. 17, 1998 |\n| s. 265‑10........... | ad. No. 17, 1998 |\n| Division 266 |  |\n| Subdivision 266‑A |  |\n| s. 266‑5........... | ad. No. 17, 1998 |\n| s. 266‑10........... | ad. No. 17, 1998 |\n| Subdivision 266‑B |  |\n| s. 266‑15........... | ad. No. 17, 1998 |\n|  | am N","sortOrder":1000164},{"sectionNumber":"full-source-retrieval-0166","sectionType":"document_chunk","heading":"Document excerpt 166","content":"o 124, 2013 |\n| s. 266‑20........... | ad. No. 17, 1998 |\n| s. 266‑25........... | ad. No. 17, 1998 |\n| s. 266‑30........... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑35........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s. 266‑40........... | ad. No. 17, 1998 |\n| s. 266‑45........... | ad. No. 17, 1998 |\n| s. 266‑50........... | ad. No. 17, 1998 |\n| s. 266‑55........... | ad. No. 17, 1998 |\n| s. 266‑60........... | ad. No. 17, 1998 |\n|  | am. No. 101, 2006 |\n| Subdivision 266‑C |  |\n| s. 266‑65........... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑70........... | ad. No. 17, 1998 |\n| s. 266‑75........... | ad. No. 17, 1998 |\n| s. 266‑80........... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑85........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s. 266‑90........... | ad. No. 17, 1998 |\n| s. 266‑95........... | ad. No. 17, 1998 |\n| Subdivision 266‑D |  |\n| s. 266‑100.......... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑105.......... | ad. No. 17, 1998 |\n| s. 266‑110.......... | ad. No. 17, 1998 |\n| s. 266‑115.......... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑120.......... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s 266‑125.......... | ad No 17, 1998 |\n|  | am No 7, 2019 |\n| s. 266‑130.......... | ad. No. 17, 1998 |\n| s 266‑135.......... | ad No 17, 1998 |\n|  | am No 7, 2019 |\n| Subdivision 266‑E |  |\n| s. 266‑140.......... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑145.......... | ad. No. 17, 1998 |\n| s. 266‑150.......... | ad. No. 17, 1998 |\n| s. 266‑155.......... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 266‑160.......... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s. 266‑165.......... | ad. No. 17, 1998 |\n| s. 266‑170.......... | ad. No. 17, 1998 |\n| Subdivision 266‑F |  |\n| s. 266‑175.......... | ad. No. 17, 1998 |\n| s. 266‑180.......... | ad. No. 17, 1998 |\n| s. 266‑185.......... | ad. No. 17, 1998 |\n|  | am. No. 101, 2006; No 124, 2013 |\n| Division 267 |  |\n| Subdivision 267‑A |  |\n| s. 267‑5........... | ad. No. 17, 1998 |\n| s. 267‑10........... | ad. No. 17, 1998 |\n| Subdivision 267‑B |  |\n| s. 267‑15........... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 267‑20........... | ad. No. 17, 1998 |\n| s. 267‑25........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s. 267‑30........... | ad. No. 17, 1998 |\n| s. 267‑35........... | ad. No. 17, 1998 |\n| s. 267‑40........... | ad. No. 17, 1998 |\n| s. 267‑45........... | ad. No. 17, 1998 |\n| s. 267‑50........... | ad. No. 17, 1998 |\n| Subdivision 267‑C |  |\n| s. 267‑55........... | ad. No. 17, 1998 |\n| s. 267‑60........... | ad. No. 17, 1998 |\n|  | am No 124, 2013 |\n| s. 267‑65........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 162, 2005 |\n| s. 267‑70........... | ad. No. 17, 1998 |\n| s. 267‑75........... | ad. No. 17, 1998 |\n| Subdivision 267‑D |  |\n| s. 267‑80........... | ad. No. 17, 1998 |\n| s. 267‑85........... | ad. No. 17, 1998 |\n| s. 267‑90........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| Division 268 |  |\n| Subdivision 268‑A |  |\n| s. 268‑5........... | ad. No. 17, 1998 |\n| Subdivision 268‑B |  |\n| s. 268‑10........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| s. 268‑15........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| s 268‑20........... | ad No 17, 1998 |\n|  | am No 124, 2013; No 7, 2019 |\n| s. 268‑25........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| Subdivision 268‑C |  |\n| s. 268‑30........... | ad. No. 17, 1998 |\n| s. 268‑35........... | ad. No. 17, 1998 |\n|  | am. No. 85, 1998; No. 169, 1999; No. 77, 2001; No. 101, 2006; No. 164, 2007; No. 79, 2010 |\n| s. 268‑40........... | ad. No. 17, 1998 |\n|  | am. No. 47, 1998; No. 77, 2001; No. 101, 2006; No. 79, 2007 |\n| s. 268‑45........... | ad. No. 17, 1998 |\n|  | am. No. 101, 2006 |\n| s. 268‑50........... | ad. No. 17, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 268‑55........... | ad. No. 17, 1998 |\n|  | rep. No. 101, 2006 |\n| s. 268‑60........... | ad. No. 17, 1998 |\n|  | am. No. 142, 2003 |\n| s. 268‑65........... | ad. No. 17, 1998 |\n|  | rep. No. 41, 1998 |\n| Subdivision 268‑D |  |\n| s. 268‑70........... | ad. No. 17, 1998 |\n|  | am. No. 101, 2006 |\n| s. 268‑75........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| s. 268‑80........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| s. 268‑85........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| Division 269 |  |\n| Subdivision 269‑A |  |\n| s 269‑5............ | ad No 17, 1998 |\n|  | am No 7, 2019 |\n| Subdivision 269‑B |  |\n| s. 269‑10........... | ad. No. 17, 1998 |\n| s. 269‑15........... | ad. No. 17, 1998 |\n| s. 269‑20........... | ad. No. 17, 1998 |\n| s. 269‑25........... | ad. No. 17, 1998 |\n| s. 269‑30........... | ad. No. 17, 1998 |\n| s. 269‑35........... | ad. No. 17, 1998 |\n| s. 269‑40........... | ad. No. 17, 1998 |\n| s. 269‑45........... | ad. No. 17, 1998 |\n| s. 269‑47........... | ad. No. 17, 1998 |\n| s. 269‑49........... | ad. No. 17, 1998 |\n| Subdivision 269‑C |  |\n| s. 269‑50........... | ad. No. 17, 1998 |\n| s. 269‑55........... | ad. No. 17, 1998 |\n| Subdivision 269‑D |  |\n| s. 269‑60........... | ad. No. 17, 1998 |\n| s. 269‑65........... | ad. No. 17, 1998 |\n|  | am. No 124, 2013 |\n| s. 269‑70........... | ad. No. 17, 1998 |\n| s. 269‑75........... | ad. No. 17, 1998 |\n| s. 269‑80........... | ad. No. 17, 1998 |\n|  | am. No. 144, 2008 |\n| s. 269‑85........... | ad. No. 17, 1998 |\n| Subdivision 269‑E |  |\n| s. 269‑95........... | ad. No. 17, 1998 |\n|  | am. No. 144, 2008 |\n| Subdivision 269‑F |  |\n| Subdivision 269‑F heading | rs No 7, 2019 |\n| s 269‑100.......... | ad No 17, 1998 |\n|  | am No 124, 2013; No 7, 2019 |\n| s 269‑105.......... | ad No 7, 2019 |\n| Division 270 |  |\n| s. 270‑5........... | ad. No. 17, 1998 |\n| s. 270‑10........... | ad. No. 17, 1998 |\n| s. 270‑15........... | ad. No. 17, 1998 |\n| s. 270‑20........... | ad. No. 17, 1998 |\n| s. 270‑25........... | ad. No. 17, 1998 |\n|  | am. No. 143, 2007 |\n| Division 271 |  |\n| s. 271‑5........... | ad. No. 17, 1998 |\n| s. 271‑10........... | ad. No. 17, 1998 |\n| s. 271‑15........... | ad. No. 17, 1998 |\n| s. 271‑20........... | ad. No. 17, 1998 |\n| s. 271‑25........... | ad. No. 17, 1998 |\n| s. 271‑30........... | ad. No. 17, 1998 |\n| s. 271‑35........... | ad. No. 17, 1998 |\n| s. 271‑40........... | ad. No. 17, 1998 |\n| s. 271‑45........... | ad. No. 17, 1998 |\n| s. 271‑50........... | ad. No. 17, 1998 |\n| s. 271‑55........... | ad. No. 17, 1998 |\n| s. 271‑60........... | ad. No. 17, 1998 |\n|  | am. No. 58, 2000; No. 162, 2005; No. 101, 2006 |\n| s. 271‑65........... | ad. No. 17, 1998 |\n| s. 271‑70........... | ad. No. 17, 1998 |\n| s. 271‑75........... | ad. No. 17, 1998 |\n|  | am. No. 179, 1999 |\n| s. 271‑80........... | ad. No. 17, 1998 |\n|  | rs. No. 178, 1999 |\n|  | am. No. 101, 2006; No 124, 2013 |\n| s. 271‑85........... | ad. No. 17, 1998 |\n|  | am. No. 178, 1999 (as am. by No. 57, 2002); No. 179, 1999 |\n|  | rep. No. 101, 2006 |\n| s. 271‑90........... | ad. No. 17, 1998 |\n| s. 271‑95........... | ad. No. 17, 1998 |\n| s 271‑100.......... | ad No 17, 1998 |\n|  | rep No 15, 2017 |\n| s. 271‑105.......... | ad. No. 17, 1998 |\n|  | am. No. 66, 2003 |\n| Division 272 |  |\n| Subdivision 272‑A |  |\n| s. 272‑5........... | ad. No. 17, 1998 |\n| s. 272‑10........... | ad. No. 17, 1998 |\n|  | am. No. 63, 1998 |\n| s. 272‑15........... | ad. No. 17, 1998 |\n| s. 272‑20........... | ad. No. 17, 1998 |\n| s. 272‑25........... | ad. No. 17, 1998 |\n|  | am. No. 15, 2007 |\n| s. 272‑30........... | ad. No. 17, 1998 |\n| s. 272‑35........... | ad. No. 17, 1998 |\n| s. 272‑40........... | ad. No. 17, 1998 |\n| Subdivision 272‑B |  |\n| s. 272‑45........... | ad. No. 17, 1998 |\n| s. 272‑50........... | ad. No. 17, 1998 |\n|  | am. No. 63, 1998; No. 163, 2001 |\n| s. 272‑55........... | ad. No. 17, 1998 |\n| s. 272‑60........... | ad. No. 17, 1998 |\n| s. 272‑63........... | ad. No. 17, 1998 |\n| Subdivision 272‑C |  |\n| s. 272‑65........... | ad. No. 17, 1998 |\n| s. 272‑70........... | ad. No. 17, 1998 |\n| Subdivision 272‑D |  |\n| s. 272‑75........... | ad. No. 17, 1998 |\n| s. 272‑80........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 143, 2007; No 124, 2013 |\n| s. 272‑85........... | ad. No. 17, 1998 |\n|  | am. No. 41, 2005; No. 143, 2007; No 124, 2013 |\n| s. 272‑87........... | ad. No. 17, 1998 |\n|  | am. No. 93, 1999; No 21, 2015 |\n| s. 272‑90........... | ad. No. 17, 1998 |\n|  | am. No. 63, 1998; No. 101, 2004; No. 63, 2005; No. 101, 2006; No. 143, 2007; No. 144, 2008; No. 169, 2012; No 96, 2013; No 23, 2018 |\n| s. 272‑95........... | ad. No. 17, 1998 |\n|  | rs. No. 143, 2007 |\n|  | am. No. 144, 2008 |\n| Subdivision 272‑E |  |\n| s. 272‑100.......... | ad. No. 17, 1998 |\n|  | am. No. 78, 2007; No. 45, 2008; No 124, 2013; No 70, 2015 |\n| Subdivision 272‑F |  |\n| s. 272‑105.......... | ad. No. 17, 1998 |\n|  | am No 53, 2016 |\n| Subdivision 272‑G |  |\n| s. 272‑110.......... | ad. No. 17, 1998 |\n| s. 272‑115.......... | ad. No. 17, 1998 |\n| Subdivision 272‑H |  |\n| s. 272‑120.......... | ad. No. 17, 1998 |\n| Subdivision 272‑I |  |\n| s. 272‑125.......... | ad. No. 17, 1998 |\n|  | am. No. 101, 2004 |\n| Subdivision 272‑J |  |\n| s. 272‑127.......... | ad. No. 17, 1998 |\n| Subdivision 272‑K |  |\n| s. 272‑130.......... | ad. No. 17, 1998 |\n| Subdivision 272‑L |  |\n| s. 272‑135.......... | ad. No. 17, 1998 |\n| Subdivision 272‑M |  |\n| s 272‑140.......... | ad No 17, 1998 |\n|  | am No 55, 2001; No 101, 2006; No 143, 2007; No 164, 2007; No 144, 2008; No 114, 2010; No 124, 2013; No 7, 2019 |\n| Schedule 2G.............. | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 393‑1........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 393‑5........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| s. 393‑7........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 393‑10........... | ad. No. 85, 1998 |\n|  | am. No. 55, 2007 |\n|  | rep. No. 79, 2010 |\n| Note 4 to s. 393‑10(1).. | ad. No. 138, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 393‑15........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| Note 3 to s. 393‑15(1).. | ad. No. 138, 2002 |\n|  | rep. No. 79, 2010 |\n| Note to s. 393‑15(2)  Renumbered Note 1.......... | No. 138, 2002 |\n| Note 1 to s. 393‑15(2).. | rep. No. 79, 2010 |\n| Note 2 to s. 393‑15(2).. | ad. No. 138, 2002 |\n|  | rep. No. 79, 2010 |\n| Note to s. 393‑15(3)... | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| Note 2 to s. 393‑15(4).. | rs. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| Note 3 to s. 393‑15(4).. | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 393‑20........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 393‑25........... | ad. No. 85, 1998 |\n|  | am. No. 138, 2002; No. 107, 2003; No. 101, 2006; No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 393‑30........... | ad. No. 85, 1998 |\n|  | am. No. 146, 2001; No. 138, 2002; No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 393‑35........... | ad. No. 85, 1998 |\n|  | am. No. 138, 2002; No. 55, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 393‑37........... | ad. No. 138, 2002 |\n|  | rs. No. 138, 2002 |\n|  | am. No. 38, 2008 |\n|  | rep. No. 79, 2010 |\n| s. 393‑40........... | ad. No. 85, 1998 |\n|  | am. No. 138, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 393‑45........... | ad. No. 85, 1998 |\n|  | am. No. 138, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 393‑50........... | ad. No. 85, 1998 |\n|  | am. No. 101, 2006 |\n|  | rep. No. 79, 2010 |\n| s. 393‑52........... | ad. No. 107, 2003 |\n|  | rep. No. 79, 2010 |\n| s. 393‑55........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 393‑60........... | ad. No. 85, 1998 |\n|  | am. No. 101, 2006; No. 15, 2007 |\n|  | rep. No. 79, 2010 |\n| s. 393‑65........... | ad. No. 85, 1998 |\n|  | rep. No. 79, 2010 |\n| Subdiv. 393‑D....... | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 393‑75........... | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 393‑80........... | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| s. 393‑85........... | ad. No. 42, 2009 |\n|  | rep. No. 79, 2010 |\n| Schedule 2H |  |\n| Heading to Schedule 2H....... | rs. No. 97, 2008 |\n| Schedule 2H.............. | ad. No. 103, 1999 |\n| Division 326 |  |\n| s. 326‑1........... | ad. No. 103, 1999 |\n|  | am. No. 97, 2008 |\n| Subdivision 326‑A |  |\n| s. 326‑5........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002; No. 101, 2006 |\n| s 326‑10........... | ad. No. 103, 1999 |\n|  | am No 97, 2008; No 88, 2009; No 37, 2019 |\n| s. 326‑15........... | ad. No. 103, 1999 |\n|  | am. No. 97, 2008 |\n| s. 326‑20........... | ad. No. 103, 1999 |\n| s. 326‑25........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| s. 326‑30........... | ad. No. 103, 1999 |\n| s. 326‑35........... | ad. No. 103, 1999 |\n| Subdivision 326‑B |  |\n| s. 326‑40........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| s. 326‑45........... | ad. No. 103, 1999 |\n| s. 326‑50........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| s. 326‑52........... | ad. No. 57, 2002 |\n| s. 326‑55........... | ad. No. 103, 1999 |\n| s. 326‑60........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| Subdivision 326‑C |  |\n| s. 326‑65........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| Subdivision 326‑D |  |\n| s. 326‑70........... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002; No. 101, 2006 |\n| s. 326‑75........... | ad. No. 103, 1999 |\n| s. 326‑80........... | ad. No. 103, 1999 |\n| s. 326‑85........... | ad. No. 103, 1999 |\n| s. 326‑90........... | ad. No. 103, 1999 |\n| s. 326‑95........... | ad. No. 103, 1999 |\n| s. 326‑100.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑105.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑110.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑115.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑120.......... | ad. No. 103, 1999 |\n|  | am. No. 23, 2005 |\n| s. 326‑125.......... | ad. No. 103, 1999 |\n| s. 326‑130.......... | ad. No. 103, 1999 |\n|  | am. No. 23, 2005; No. 97, 2008 |\n| Subdivision 326‑E |  |\n| s. 326‑135.......... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002; No. 101, 2006 |\n| s. 326‑140.......... | ad. No. 103, 1999 |\n| s. 326‑145.......... | ad. No. 103, 1999 |\n| s. 326‑150.......... | ad. No. 103, 1999 |\n| s. 326‑155.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑160.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑165.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| s. 326‑170.......... | ad. No. 103, 1999 |\n|  | am. No. 23, 2005 |\n| s. 326‑175.......... | ad. No. 103, 1999 |\n| Subdivision 326‑F |  |\n| s. 326‑180.......... | ad. No. 103, 1999 |\n| Subdivision 326‑G |  |\n| s. 326‑185.......... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| s. 326‑190.......... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n|  | rs. No. 101, 2006 |\n| s. 326‑195.......... | ad. No. 103, 1999 |\n|  | am. No. 57, 2002 |\n| s. 326‑200.......... | ad. No. 103, 1999 |\n| Subdivision 326‑H |  |\n| s. 326‑205.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| Subdivision 326‑I |  |\n| s. 326‑210.......... | ad. No. 103, 1999 |\n| Subdivision 326‑J |  |\n| s. 326‑215.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| Subdivision 326‑K |  |\n| s. 326‑220.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006; No. 97, 2008 |\n| Subdivision 326‑L |  |\n| s. 326‑225.......... | ad. No. 103, 1999 |\n|  | am. No. 101, 2006 |\n| Subdivision 326‑M |  |\n| s. 326‑230.......... | ad. No. 103, 1999 |\n| s. 326‑235.......... | ad. No. 103, 1999 |\n| s. 326‑240.......... | ad. No. 103, 1999 |\n|  | am No 145, 2015 |\n| Subdivision 326‑N |  |\n| s. 326‑245.......... | ad. No. 103, 1999 |\n| Schedule 2J............... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑1........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑5........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 321‑10........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑15........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑20........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑25........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑30........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑35........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑40........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 321‑45........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑50........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑55........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑60........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 321‑65........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 323‑1........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| Link note to Guide.......... | rep. No. 41, 2005 |\n| s. 323‑5........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 323‑10........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 323‑15........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 323‑20........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| s. 323‑25........... | ad. No. 97, 2002 |\n|  | rep. No. 79, 2010 |\n| Schedule 3................ | ad. No. 190, 1992 |\n|  | am. No. 97, 2008 |\n|  | rep. No. 114, 2010 |\n| Schedule 4................ | ad. No. 190, 1992 |\n|  | am. No. 82, 1994; No. 73, 2004 |\n|  | rep. No. 114, 2010 |\n| Schedule 5................ | ad. No. 190, 1992 |\n|  | rep. No. 114, 2010 |","sortOrder":1000165},{"sectionNumber":"full-source-retrieval-0167","sectionType":"document_chunk","heading":"Document excerpt 167","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nIncome Tax Assessment Act 1936\n\nNo. 27, 1936\n\nCompilation No. 190\n\nCompilation date: 1 January 2026\n\nIncludes amendments: Act No. 9, 2025\n\nThis compilation is in 7 volumes\n\nVolume 1: sections 1-78A\n\nVolume 2: sections 79A-121L\n\nVolume 3: sections 124ZM-204\n\nVolume 4: sections 251R-468\n\nVolume 5: Schedules\n\nVolume 6: Endnotes 1-4\n\nVolume 7: Endnote 5\n\nEach volume has its own contents\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nEndnote 5—Repeal table\n\nEndnote 5—Repeal table\n\nThe amendment history of the repealed provisions of the Income Tax Assessment Act 1936 up to and including the Social Security and Veterans’ Entitlements Legislation Amendment (Private Trusts and Private Companies—Integrity of Means Testing) Act 2000 (No. 132, 2000) appears in the table below.","sortOrder":1000166},{"sectionNumber":"full-source-retrieval-0168","sectionType":"document_chunk","heading":"Document excerpt 168","content":"| Provision affected | How affected |\n| --- | --- |\n| s. 5..................... | am. Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; No. 22, 1942; No. 10, 1943; No. 3, 1944; No. 6, 1946; Nos. 11 and 63, 1947; No. 48, 1950; No. 44, 1951; Nos. 45 and 81, 1953 |\n|  | rs. No. 101, 1956 |\n|  | am. No. 65, 1957; Nos. 12 and 85, 1959; No. 18, 1960; No. 17, 1961; No. 39, 1962; No. 69, 1963; No. 110, 1964; No. 103, 1965; No. 50, 1966; Nos. 38 and 85, 1967; No. 60, 1968; No. 101, 1969; No. 87, 1970; No. 54, 1971 |\n|  | rep. No. 164, 1973 |\n| s. 6D.................... | ad. No. 46, 1972 |\n|  | am. Nos. 51 and 165, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 6E.................... | ad. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 7..................... | am. No. 62, 1955; No. 65, 1957; No. 70, 1959; No. 18, 1960; No. 87, 1968; No. 51, 1973 |\n|  | rs. No. 164, 1973 |\n|  | rep. No. 80, 1975 |\n| s. 9..................... | rep. No. 1, 1953 |\n| s. 10.................... | am. No. 1, 1953; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 123, 1984 |\n| ss. 11, 12................. | rep. No. 1, 1953 |\n| s. 13.................... | am. No. 1, 1953; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 123, 1984 |\n| s. 15.................... | rep. No. 87, 1978 |\n| s. 23A................... | ad. No. 50, 1942 |\n|  | am. No. 10, 1943 |\n|  | rs. No. 45, 1953 |\n|  | am. Nos. 18 and 58, 1960; No. 39, 1962; No. 60, 1968; Nos. 51 and 164, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 23AAA................ | ad. No. 19, 1967 |\n|  | rep. No. 65, 1972 |\n| s. 23AD................. | ad. No. 165, 1973 |\n|  | am. No. 56, 1976; No. 57, 1977; No. 108, 1981; No. 106, 1982; No. 103, 1983; Nos. 14 and 123, 1984; No. 49, 1985; No. 173, 1985 (as am. by No. 49, 1986); No. 154, 1986; Nos. 78 and 95, 1988; Nos. 20 and 35, 1990; Nos. 48 and 216, 1991 |\n|  | rep. No. 100, 1991 |\n| s. 23B................... | ad. No. 44, 1951 |\n|  | rep. No. 101, 1956 |\n| s. 23F................... | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 47, 1984 |\n|  | rep. No. 138, 1987 |\n| ss. 23FA, 23FB............. | ad. No. 47, 1984 |\n|  | rep. No. 138, 1987 |\n| ss. 23FC, 23FD............. | ad. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 23M.................. | ad. No. 11, 1989 |\n|  | rep. No. 223, 1992 |\n| s. 24.................... | rep. No. 121, 1997 |\n| s. 24AA................. | ad. No. 52, 1973 |\n|  | rs. No. 205, 1976 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 24A................... | ad. No. 12, 1959 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 76, 1984 |\n| s. 24ABDAA.............. | ad. No. 191, 1992 |\n|  | rep. No. 120, 1995 |\n| s. 24ABDA............... | ad. No. 216, 1991 |\n|  | rep. No. 169, 1995 |\n| s. 24ABK................ | ad. No. 100, 1991 |\n|  | rep. No. 69, 1992 |\n| s. 24ABL................. | ad. No. 100, 1991 |\n|  | rs. No. 216, 1991 |\n|  | am. No. 69, 1992; Nos. 56 and 174, 1994 |\n|  | rep. No. 1, 1996 |\n| s. 24ABRA............... | ad. No. 191, 1992 |\n|  | rep. No. 120, 1995 |\n| s. 24ABX................ | ad. No. 100, 1991 |\n|  | am. No. 216, 1991 |\n|  | rep. No. 69, 1992 |\n| s. 24ACX................ | ad. No. 100, 1991 |\n|  | am. No. 191, 1992 |\n|  | rep. No. 146, 1995 |\n| ss. 24AD, 24ADA........... | ad. No. 100, 1991 |\n|  | rep. No. 146, 1995 |\n| s. 26AAAA............... | ad. No. 19, 1980 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 41, 1986 |\n| s. 26AAAB............... | ad. No. 175, 1981 |\n|  | rep. No. 41, 1986 |\n| s. 26AAA................ | ad. No. 165, 1973 |\n|  | am. No. 57, 1978; No. 108, 1981; No. 29, 1982; No. 95, 1988 |\n|  | rep. No. 138, 1994 |\n| s. 26AAB................ | ad. No. 126, 1974 |\n|  | rep. No. 80, 1975 |\n| s. 26AA................. | ad. No. 43, 1954 |\n|  | am. No. 126, 1977; No. 108, 1981 |\n|  | rep. No. 47, 1984 |\n| s. 26AE.................. | ad. No. 124, 1980 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 47, 1984 |\n| s. 30.................... | rep. No. 44, 1951 |\n| s. 31A................... | ad. No. 28, 1953 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 165, 1973 |\n| s. 31B................... | ad. No. 50, 1976 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 35.................... | rep. No. 44, 1951 |\n| s. 44A................... | ad. No. 103, 1965 |\n|  | am. Nos. 51 and 164, 1973 |\n|  | rep. No. 80, 1975 |\n| s. 45.................... | rep. No. 58, 1941 |\n|  | ad. No. 11, 1947 |\n|  | am. No. 44, 1948; No. 44, 1951; No. 81, 1953; No. 18, 1960; No. 85, 1967; No. 4, 1968; Nos. 51 and 164, 1973; No. 80, 1975; No. 108, 1981 |\n|  | rep. No. 51, 1986 |\n| s. 46C................... | ad. No. 106, 1982 |\n|  | rep. No. 103, 1983 |\n| s. 50M.................. | ad. No. 172, 1978 |\n|  | rep. No. 107, 1989 |\n| Heading to Div. 3 of Part III.... | rep. No. 172, 1978 |\n| s. 51AA................. | ad. No. 108, 1960 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 51AB.................. | ad. No. 108, 1960 |\n|  | am. No. 85, 1967 |\n|  | rep. No. 87, 1970 |\n| s. 51AC.................. | ad. No. 27, 1961 |\n|  | am. No. 34, 1963; No. 50, 1966; No. 51, 1973; No. 126, 1974; No. 117, 1975; Nos. 108 and 111, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 51AGB................ | ad. No. 57, 1993 |\n|  | am. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| s. 51A................... | ad. No. 4, 1945 |\n|  | am. No. 63, 1947; No. 44, 1948; No. 44, 1951; No. 108, 1960; No. 94, 1961; No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 29, 1982 |\n|  | rep. No. 41, 1986 |\n| ss. 53A–53E............... | ad. No. 28, 1944 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 216, 1973 (as am. by No. 20, 1974) |\n| s. 53H................... | ad. No. 57, 1980 |\n|  | am. Nos. 108 and 109, 1981; No. 25, 1983 |\n|  | rep. No. 107, 1989 |\n| s. 56A................... | ad. No. 65, 1957 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 95, 1988 |\n| s. 57.................... | am. No. 65, 1957; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 95, 1988 |\n| s. 57AA................. | ad. No. 28, 1952 |\n|  | am. No. 62, 1955; No. 25, 1956; No. 65, 1957; No. 55, 1958; No. 58, 1960; No. 39, 1962; No. 69, 1963; No. 143, 1965; No. 76, 1967; Nos. 51 and 165, 1973; No. 108, 1981; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| s. 57AB.................. | ad. No. 90, 1952 |\n|  | am. No. 65, 1957; Nos. 51 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| s. 57AC.................. | ad. No. 80, 1975 |\n|  | am. No. 108, 1981; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| s. 57AD................. | ad. No. 117, 1975 |\n|  | am. No. 50, 1976; No. 108, 1981; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| s. 57AE.................. | ad. No. 149, 1979 |\n|  | am. No. 108, 1981; Nos. 14 and 25, 1983 |\n|  | rep. No. 95, 1988 |\n| s. 57AG................. | ad. No. 124, 1980 |\n|  | am. No. 159, 1980; Nos. 108 and 109, 1981; No. 29, 1982; No. 14, 1983; No. 14, 1984; No. 95, 1988; No. 107, 1989 |\n|  | rep. No. 35, 1992 |\n| s. 57AH................. | ad. No. 159, 1980 |\n|  | am. No. 108, 1981; Nos. 14 and 25, 1983 |\n|  | rep. No. 95, 1988 |\n| s. 57AJ.................. | ad. No. 108, 1981 |\n|  | am. No. 25, 1983; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| s. 57AL.................. | ad. No. 14, 1983 |\n|  | rep. No. 95, 1988 |\n| s. 57A................... | ad. No. 6, 1946 |\n|  | am. No. 66, 1949 |\n|  | rep. No. 28, 1952 |\n| s. 58.................... | rep. No. 65, 1957 |\n|  | ad. No. 69, 1963 |\n|  | am. Nos. 51 and 164, 1973; No. 108, 1981; No. 95, 1988 |\n|  | rep. No. 107, 1989 |\n| ss. 59A–59C.............. | ad. No. 50, 1942 |\n|  | rep. No. 65, 1957 |\n| s. 59D................... | ad. No. 50, 1942 |\n|  | am. No. 45, 1953 |\n|  | rep. No. 65, 1957 |\n| s. 59E................... | ad. No. 50, 1942 |\n|  | rep. No. 65, 1957 |\n| s. 62AA................. | ad. No. 39, 1962 |\n|  | am. No. 69, 1963; No. 60, 1968; No. 6, 1971; No. 5, 1972; Nos. 51 and 165, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 62AB.................. | ad. No. 69, 1963 |\n|  | am. Nos. 51 and 165, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 62A................... | ad. No. 46, 1938 |\n|  | am. No. 57, 1978; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 66.................... | am. No. 58, 1941 |\n|  | rs. No. 3, 1944 |\n|  | am. No. 90, 1952 |\n|  | rep. No. 110, 1964 |\n| s. 69.................... | rep. No. 101, 1956 |\n| s. 70.................... | rep. No. 101, 1956 |\n| s. 72A................... | ad. No. 50, 1942 |\n|  | am. No. 4, 1945 |\n|  | rep. No. 11, 1947 |\n| s. 72B................... | ad. No. 50, 1942 |\n|  | am. No. 10, 1943; No. 28, 1944 |\n|  | rep. No. 85, 1959 |\n| s. 75.................... | am. No. 11, 1947; No. 55, 1958; No. 18, 1960; No. 94, 1961; No. 50, 1966; No. 76, 1967; No. 93, 1969; Nos. 164 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 80, 1975; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 75C................... | ad. No. 124, 1980 |\n|  | am. No. 108, 1981; No. 124, 1984 |\n|  | rep. No. 107, 1989 |\n| s. 76.................... | am. No. 69, 1963; No. 165, 1973 |\n|  | rep. No. 107, 1989 |\n| s. 77.................... | am. No. 18, 1960; No. 164, 1973; No. 80, 1975; No. 108, 1981; No. 103, 1983 |\n|  | rep. No. 107, 1989 |\n| s. 77A................... | ad. No. 55, 1958 |\n|  | rs. No. 70, 1959 |\n|  | am. No. 18, 1960; No. 94, 1961; No. 69, 1963; No. 46, 1964; No. 38, 1967; No. 60, 1968 |\n|  | rep. No. 93, 1969 |\n| s. 77AA................. | ad. No. 39, 1962 |\n|  | am. No. 46, 1964; No. 38, 1967; No. 60, 1968 |\n|  | rep. No. 93, 1969 |\n| s. 77B................... | ad. No. 94, 1961 |\n|  | am. No. 60, 1968; No. 51, 1973; No. 108, 1981; No. 168, 1985 |\n|  | rep. No. 107, 1989 |\n| s. 77C................... | ad. No. 60, 1968 |\n|  | am. No. 93, 1969; Nos. 51, 52 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 77D................... | ad. No. 93, 1969 |\n|  | am. Nos. 51, 52 and 164, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 108, 1981 (as am. by No. 29, 1982); No. 168, 1985; No. 108, 1987 |\n|  | rep. No. 107, 1989 |\n| s. 77E................... | ad. No. 52, 1973 |\n|  | am. No. 164, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 79.................... | am. No. 46, 1938; No. 65, 1940; No. 58, 1941 |\n|  | rep. No. 22, 1942 |\n|  | ad. No. 3, 1944 |\n|  | am. No. 90, 1952; No. 18, 1960; No. 94, 1961 |\n|  | rs. No. 110, 1964; No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 47, 1984 |\n| ss. 80C, 80D.............. | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 50, 1966 |\n|  | rep. No. 51, 1973 |\n| s. 81.................... | am. No. 88, 1936; Nos. 17 and 65, 1940 |\n|  | rep. No. 22, 1942 |\n|  | ad. No. 50, 1942 |\n|  | rs. No. 10, 1943 |\n|  | am. No. 3, 1944; No. 6, 1946 |\n|  | rep. No. 63, 1947 |\n| s. 81A................... | ad. No. 4, 1952 |\n|  | rep. No. 30, 1956 |\n| Subdiv. B of Div. 3..........  of Part III (ss. 82A–82H) | ad. No. 48, 1950 |\n| Subdiv. B of Div. 3..........  of Part III (ss. 82A, 82B, 82D–82H, 82HA, 82J, 82JAA, 82JA, 82K) | rep. No. 117, 1975 |\n| s. 82A................... | ad. No. 48, 1950 |\n|  | rep. No. 117, 1975 |\n| s. 82AAB................ | ad. No. 110, 1964 |\n|  | rep. No. 97, 1989 |\n| s. 82AAD................ | ad. No. 110, 1964 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAE................ | ad. No. 110, 1964 |\n|  | am. No. 143, 1965; No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAF................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAG................ | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 (as am. by No. 29, 1982) |\n|  | rep. No. 97, 1989 |\n| ss. 82AAH–82AAJ.......... | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAK................ | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAL................ | ad. No. 110, 1964 |\n|  | rs. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 97, 1989 |\n| s. 82AAM................ | ad. No. 110, 1964 |\n|  | rep. No. 97, 1989 |\n| s. 82AAN................ | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 51, 1973 |\n|  | rep. No. 97, 1989 |\n| s. 82AAO................ | ad. No. 110, 1964 |\n|  | rep. No. 103, 1965 |\n| s. 82AAP................. | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 51, 1973 |\n|  | rep. No. 97, 1989 |\n| s. 82AA................. | ad. No. 18, 1960 |\n|  | am. No. 87, 1968 |\n|  | rs. No. 164, 1973 |\n|  | rep. No. 80, 1975 |\n| s. 82AP.................. | ad. No. 50, 1976 |\n|  | rep. No. 98, 1992 |\n| s. 82AW................. | ad. No. 18, 1993 |\n|  | rep. No. 82, 1994 |\n| Subdiv. BA of Div. 3.........  of Part III (ss. 82B–82D) | ad. No. 57, 1977   rep. No. 107, 1989 |\n| s. 82B................... | ad. No. 48, 1950 |\n|  | am. No. 45, 1953; No. 65, 1957; No. 69, 1963; No. 143, 1965; No. 76, 1967; No. 93, 1971; No. 85, 1972; Nos. 51 and 52, 1973; No. 126, 1974 |\n|  | rep. No. 117, 1975 |\n|  | ad. No. 57, 1977 |\n|  | rep. No. 107, 1989 |\n| s. 82C................... | ad. No. 48, 1950 |\n|  | am. No. 45, 1953; No. 65, 1957 |\n|  | rep. No. 69, 1963 |\n|  | ad. No. 57, 1977 |\n|  | am. No. 43, 1979 |\n|  | rep. No. 107, 1989 |\n| s. 82D................... | ad. No. 48, 1950 |\n|  | am. No. 45, 1953; No. 65, 1957; No. 18, 1960; No. 69, 1963; No. 143, 1965; No. 76, 1967; No. 87, 1968; No. 85, 1972; Nos. 51 and 164, 1973; No. 80, 1975 |\n|  | rep. No. 117, 1975 |\n|  | ad. No. 57, 1977 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 82E................... | ad. No. 48, 1950 |\n|  | am. No. 69, 1963; No. 51, 1973 |\n|  | rep. No. 117, 1975 |\n| Subdiv. BB of Div. 3.........  of Part III (ss.   82EA–82EH,   82EJ–82EM) | ad. No. 57, 1980   rep. No. 107, 1989 |\n| s. 82EA.................. | ad. No. 57, 1980 |\n|  | rep. No. 107, 1989 |\n| s. 82EB.................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981; No. 25, 1983 |\n|  | rep. No. 107, 1989 |\n| s. 82EC.................. | ad. No. 57, 1980 |\n|  | am. No. 111, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 82ED.................. | ad. No. 57, 1980 |\n|  | rep. No. 107, 1989 |\n| s. 82EE.................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| ss. 82EF, 82EG............. | ad. No. 57, 1980 |\n|  | rep. No. 107, 1989 |\n| ss. 82EH, 82EJ............. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| ss. 82EK, 82EL............. | ad. No. 57, 1980 |\n|  | rep. No. 107, 1989 |\n| s. 82EM................. | ad. No. 57, 1980 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 82F................... | ad. No. 48, 1950 |\n|  | am. No. 45, 1953; No. 70, 1959; No. 94, 1961 |\n|  | rs. No. 69, 1963 |\n|  | am. Nos. 51 and 52, 1973; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 117, 1975 |\n| s. 82G................... | ad. No. 48, 1950 |\n|  | am. No. 69, 1963; No. 143, 1965 |\n|  | rep. No. 117, 1975 |\n| s. 82H................... | ad. No. 48, 1950 |\n|  | am. No. 101, 1956; No. 70, 1959; No. 143, 1965; No. 76, 1967; No. 51, 1973; No. 26, 1974 |\n|  | rep. No. 117, 1975 |\n| s. 82HA................. | ad. No. 101, 1956 |\n|  | rep. No. 117, 1975 |\n| s. 82J................... | ad. No. 90, 1952 |\n|  | rs. No. 45, 1953 |\n|  | am. No. 101, 1956; No. 69, 1963 |\n|  | rs. No. 33, 1965 |\n|  | am. No. 143, 1965; No. 93, 1971; Nos. 51 and 52, 1973; No. 126, 1974 |\n|  | rep. No. 117, 1975 |\n| s. 82JAA................. | ad. No. 85, 1972 |\n|  | am. No. 51, 1973; No. 126, 1974 |\n|  | rep. No. 117, 1975 |\n| s. 82JA.................. | ad. No. 93, 1971 |\n|  | am. No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 117, 1975 |\n| s. 82K................... | ad. No. 69, 1963 |\n|  | am. No. 93, 1971; No. 85, 1972; No. 51, 1973 |\n|  | rep. No. 117, 1975 |\n| Subdiv. C of Div. 3..........  of Part III (ss. 82KA, 82KB, 82KBA, 82KBB, 82KC–82KG) | ad. No. 126, 1974  rep. No. 107, 1989 |\n| s. 82KA................. | ad. No. 126, 1974 |\n|  | am. No. 108, 1981; No. 106, 1982; No. 123, 1984; No. 41, 1986 |\n|  | rep. No. 107, 1989 |\n| s. 82KB.................. | ad. No. 126, 1974 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 82KBA................ | ad. No. 50, 1976 |\n|  | rep. No. 107, 1989 |\n| s. 82KBB................ | ad. No. 123, 1978 |\n|  | rep. No. 107, 1989 |\n| s. 82KC.................. | ad. No. 126, 1974 |\n|  | rep. No. 107, 1989 |\n| s. 82KD................. | ad. No. 126, 1974 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| ss. 82KE–82KG............ | ad. No. 126, 1974 |\n|  | rep. No. 107, 1989 |\n| Subdiv. E of Div. 3..........  of Part III (ss.   82KM–82KS) | ad. No. 108, 1981  rep. No. 107, 1989 |\n| s. 82KM................. | ad. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 82KN................. | ad. No. 108, 1981 |\n|  | am. No. 103, 1983 |\n|  | rep. No. 107, 1989 |\n| ss. 82KO–82KS............ | ad. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| Note 3 to s. 82KZME(1)....... | rep. No. 90, 2000 |\n| Div. 4A of Part III...........  (ss. 89A, 89AA–89AC, 89B, 89C, 89CA, 89D, 89DA, 89DB, 89E, 89EA, 89EB, 89F, 89FA–89FD, 89G, 89GA–89GH, 89H, 89HA, 89J, 89JA–89JC) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| Subdiv. A of Div. 4A.........  of Part III (ss. 89A,   89AA–89AC) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| ss. 89A, 89AA–89AC........ | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. B of Div. 4A of.......  Part III (s. 89B) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| s. 89B................... | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. C of Div. 4A of.......  Part III (ss. 89C, 89CA) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| ss. 89C, 89CA............. | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. D of Div. 4A of.......  Part III (ss. 89D, 89DA, 89DB) | ad. No. 145, 1995  rep. No. 16, 1999 |\n| ss. 89D, 89DA, 89DB........","sortOrder":1000167},{"sectionNumber":"full-source-retrieval-0169","sectionType":"document_chunk","heading":"Document excerpt 169","content":"| ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. E of Div. 4A of.......  Part III (ss. 89E, 89EA, 89EB) | ad. No. 145, 1995  rep. No. 16, 1999 |\n| ss. 89E, 89EA, 89EB......... | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. F of Div. 4A of.......  Part III (ss. 89F,   89FA–89FD) | ad. No. 145, 1995  rep. No. 16, 1999 |\n| s. 89F................... | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| s. 89FA.................. | ad. No. 145, 1995 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 16, 1999 |\n| Heading to s. 89FB(2)........ | am. No. 41, 1998 |\n|  | rep. No. 16, 1999 |\n| ss. 89FB, 89FC............. | ad. No. 145, 1995 |\n|  | am. No. 41, 1998 |\n|  | rep. No. 16, 1999 |\n| s. 89FD.................. | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. G of Div. 4A of.......  Part III (ss. 89G, 89GA–89GH) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| ss. 89G, 89GA–89GH........ | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. H of Div. 4A of.......  Part III (ss. 89H, 89HA) | ad. No. 145, 1995  rep. No. 16, 1999 |\n| ss. 89H, 89HA............. | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| Subdiv. J of Div. 4A of.......  Part III (ss. 89J,   89JA–89JC) | ad. No. 145, 1995   rep. No. 16, 1999 |\n| ss. 89J, 89JA–89JC.......... | ad. No. 145, 1995 |\n|  | rep. No. 16, 1999 |\n| s. 93A................... | ad. No. 22, 1942 |\n|  | rep. No. 48, 1950 |\n| s. 95A................... | ad. No. 11, 1947 |\n|  | rep. No. 45, 1953 |\n|  | ad. No. 126, 1974 |\n|  | rep. No. 117, 1975 |\n| s. 100A.................. | ad. No. 22, 1942 |\n|  | rs. No. 11, 1947 |\n|  | rep. No. 48, 1950 |\n| s. 102AA................. | ad. No. 50, 1942 |\n|  | am. No. 4, 1945 |\n|  | rep. No. 85, 1959 |\n| Div. 6A of Part III...........  (ss. 102A, 102B) | ad. No. 58, 1941  rep. No. 48, 1950 |\n| ss. 102A, 102B............. | ad. No. 58, 1941 |\n|  | rep. No. 48, 1950 |\n| Div. 7 of Part III............  (ss. 103–109) | rep. No. 90, 1952 |\n| s. 103................... | rep. No. 90, 1952 |\n| s. 103A.................. | ad. No. 44, 1951 |\n|  | rep. No. 90, 1952 |\n| ss. 103B–103D............. | ad. No. 44, 1951 |\n|  | rep. No. 90, 1952 |\n| s. 104................... | rep. No. 90, 1952 |\n| s. 105................... | am. No. 44, 1948; No. 48, 1950 |\n|  | rs. No. 90, 1952 |\n|  | am. No. 85, 1959 |\n|  | rep. No. 110, 1964 |\n| s. 106................... | rep. No. 90, 1952 |\n| ss. 106A–106D............. | ad. No. 51, 1973 |\n|  | rep. No. 205, 1976 |\n| ss. 107–109............... | rep. No. 90, 1952 |\n| s. 109A.................. | ad. No. 58, 1941 |\n|  | am. No. 3, 1944 |\n|  | rep. No. 90, 1952 |\n| Div. 8 (ss. 110–116DK)....... | rep. No 89, 2000 |\n| Heading to Subdiv. A of.......  Div. 8 of Part III | ad. No. 216, 1991  rep. No. 89, 2000 |\n| s. 110................... | am. No. 22, 1942; No. 17, 1961; No. 110, 1964; No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 47, 1984; No. 49, 1985; No. 138, 1987; No. 11, 1988; No. 97, 1989 (as am. by No. 105, 1989); No. 105, 1989; Nos. 20 and 57, 1990; No. 5, 1991; No. 80, 1992; No. 208, 1992 (as am. by No. 7, 1993); Nos. 7, 17 and 82, 1993; No. 5, 1995; Nos. 39, 62 and 121, 1997; No. 46, 1998; Nos. 16 and 44, 1999; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| s. 110A.................. | ad. No. 17, 1961 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 49, 1985 |\n|  | ad. No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| ss. 110B, 110C............. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 110CA................. | ad. No. 82, 1994 |\n|  | rep. No. 89, 2000 |\n| s. 111................... | rs. No. 47, 1984 |\n|  | am. No. 62, 1987; No. 105, 1989; No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111A.................. | ad. No. 105, 1989 |\n|  | am. No. 5, 1991; No. 56, 1994 |\n|  | rep. No. 56, 1994 |\n| s. 111AA................. | ad. No. 20, 1990 |\n|  | am. No. 5, 1991; No. 56, 1994 |\n|  | rep. No. 56, 1994 |\n| s. 111AB................. | ad. No. 56, 1994 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 111AC......... | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111AC................. | ad. No. 56, 1994 |\n|  | am. Nos. 39 and 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111AD................. | ad. No. 56, 1994 |\n|  | am. Nos. 39 and 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111B.................. | ad. No. 105, 1989 |\n|  | am. Nos. 39 and 121, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111C.................. | ad. No. 105, 1989 |\n|  | am. No. 118, 1993; No. 56, 1994; Nos. 39 and 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 111D.................. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 111E.................. | ad. No. 105, 1989 |\n|  | am. No. 121, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 112................... | am. No. 47, 1984 |\n|  | rs. No. 105, 1989 (as am. by No. 56, 1994) |\n|  | am. No. 20, 1990; No. 56, 1994 |\n|  | rs. No. 56, 1994 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 112A.................. | ad. No. 17, 1961 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 47, 1984; No. 49, 1985; No. 52, 1986; No. 105, 1989; No. 5, 1991; No. 80, 1992; No. 62, 1997; No. 16, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 112BA................. | ad. No. 56, 1994 |\n|  | rep. No. 89, 2000 |\n| s. 112B.................. | ad. No. 51, 1986 |\n|  | rep. No. 5, 1991 |\n| s. 112C.................. | ad. No. 80, 1992 |\n|  | am. No. 16, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 113................... | rs. No. 17, 1961 |\n|  | am. No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 105, 1989; No. 216, 1991; No. 118, 1993; No. 56, 1994; Nos. 39 and 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 113A.................. | ad. No. 56, 1994 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 114................... | am. No. 108, 1981; No. 16, 1999 |\n|  | rep. No. 89, 2000 |\n| ss. 114A, 114B............. | ad. No. 16, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 115................... | am. No. 22, 1942 |\n|  | rs. No. 17, 1961 |\n|  | am. Nos. 51 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 108, 1981; No. 47, 1984 |\n|  | rs. No. 49, 1985 |\n|  | am. No. 51, 1986 |\n|  | rep. No. 97, 1989 |\n| s. 115A.................. | ad. No. 17, 1961 |\n|  | am. No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981; No. 47, 1984 |\n|  | rep. No. 49, 1985 |\n| s. 116................... | am. No. 47, 1984 |\n|  | rep. No. 97, 1989 |\n| s. 116AA................. | ad. No. 165, 1973 |\n|  | am. No. 108, 1981; No. 51, 1986 |\n|  | rep. No. 62, 1987 |\n| s. 116A.................. | ad. No. 17, 1961 |\n|  | am. No. 47, 1972; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 49, 1985 |\n| ss. 116B, 116C............. | ad. No. 17, 1961 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 49, 1985 |\n| s. 116CA................. | ad. No. 105, 1989 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116CB......... | rs. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116CB................. | ad. No. 105, 1989 |\n|  | am. No. 5, 1991; No. 46, 1998; No. 16, 1999; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116CC......... | rs. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116CC................. | ad. No. 105, 1989 |\n|  | am. No. 62, 1997; No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116CD......... | rs. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116CD................. | ad. No. 105, 1989 |\n|  | am. No. 62, 1997; No. 46, 1998; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| s. 116CE................. | ad. No. 105, 1989 |\n|  | am. No. 5, 1991; Nos. 62 and 121, 1997; No. 46, 1998; No. 16, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 116CF................. | ad. No. 105, 1989 |\n|  | am. No. 118, 1993; No. 56, 1994; No. 62, 1997; No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116CG................. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 116CH................. | ad. No. 105, 1989 |\n|  | am. Nos. 39 and 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116CJ................. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 116D.................. | ad. No. 17, 1961 |\n|  | am. No. 108, 1981; No. 101, 1992 |\n|  | rep. No. 89, 2000 |\n| Subdiv. AA of Div. 8 of.......  Part III (ss.   116DAA–116DAD, 116DADA, 116DAE, 116DAF) | ad. No. 62, 1997  rep. No. 89, 2000 |\n| s. 116DAA............... | ad. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| Note to s. 116DAA.......... | rep. No. 44, 1999 |\n| Notes 1, 2 to s. 116DAA....... | ad. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116DAB........ | rs. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| ss. 116DAB–116DAD,........  116DADA, 116DAE,   116DAF | ad. No. 62, 1997  rep. No. 89, 2000 |\n| Subdiv. B of Div. 8..........  of Part III (ss. 116DA–116DK) | ad. No. 216, 1991  rep. No. 89, 2000 |\n| ss. 116DA, 116DB.......... | ad. No. 216, 1991 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116DC......... | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116DC................. | ad. No. 216, 1991 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116DD................. | ad. No. 216, 1991 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116DE......... | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116DE................. | ad. No. 216, 1991 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116DF................. | ad. No. 216, 1991 |\n|  | am. No. 62, 1997 |\n|  | rep. No. 89, 2000 |\n| ss. 116DG–116DJ........... | ad. No. 216, 1991 |\n|  | rep. No. 89, 2000 |\n| s. 116DK................. | ad. No. 216, 1991 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| Div. 8A of Part III...........  (ss. 116E–116J) | ad. No. 47, 1984   rep. No. 89, 2000 |\n| Heading to Subdiv. A of.......  Div. 8A of Part III | ad. No. 44, 1999  rep. No. 89, 2000 |\n| s. 116E.................. | ad. No. 47, 1984 |\n|  | am. Nos. 11 and 87, 1988; No. 105, 1989; No. 57, 1990; Nos. 7, 17, 55 and 82, 1993; No. 120, 1995; No. 60, 1996; Nos. 39 and 121, 1997; No. 46, 1998; No. 44, 1999; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| s. 116F.................. | ad. No. 47, 1984 |\n|  | rep. No. 89, 2000 |\n| ss. 116FA, 116FB........... | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 116FC................. | ad. No. 82, 1994 |\n|  | rep. No. 89, 2000 |\n| s. 116G.................. | ad. No. 47, 1984 |\n|  | am. No. 11, 1988 |\n|  | rs. No. 105, 1989 |\n|  | am. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116GA......... | rs. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116GA................. | ad. No. 105, 1989 |\n|  | am. No. 120, 1995; No. 46, 1998; No. 44, 1999; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| Heading to s. 116GB......... | rs. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116GB................. | ad. No. 105, 1989 |\n|  | am. No. 46, 1998; No. 44, 1999; No. 89, 2000 |\n|  | rep. No. 89, 2000 |\n| s. 116GC................. | ad. No. 105, 1989 |\n|  | am. Nos. 39 and 121, 1997 |\n|  | rep. No. 89, 2000 |\n| s. 116GD................. | ad. No. 105, 1989 |\n|  | am. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 116GE................. | ad. No. 56, 1994 |\n|  | rep. No. 89, 2000 |\n| s. 116H.................. | ad. No. 47, 1984 |\n|  | am. No. 56, 1994; No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 116HA................. | ad. No. 105, 1989 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 56, 1994 |\n| s. 116HAA............... | ad. No. 55, 1993 |\n|  | rep. No. 56, 1994 |\n| Heading to s. 116HAB........ | am. No. 44, 1999 |\n| ss. 116HAB, 116HAC........ | ad. No. 56, 1994 |\n|  | am. No. 39, 1997; No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 116HAD............... | ad. No. 56, 1994 |\n|  | rep. No. 89, 2000 |\n| s. 116HB................. | ad. No. 105, 1989 |\n|  | am. No. 46, 1998 |\n|  | rep. No. 89, 2000 |\n| s. 116HC................. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 116HD................. | ad. No. 105, 1989 |\n|  | am. No. 39, 1997; No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 116HE................. | ad. No. 105, 1989 |\n|  | rep. No. 89, 2000 |\n| s. 116J.................. | ad. No. 47, 1984 |\n|  | am. No. 35, 1992 |\n|  | rep. No. 89, 2000 |\n| Subdiv. B of Div. 8A.........  of Part III (ss. 116K–116Q) | ad. No. 44, 1999  rep. No. 89, 2000 |\n| ss. 116K–116Q............. | ad. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| Div. 9A of Part III...........  (ss. 121A–121C) | ad. No. 63, 1947  rep. No. 62, 1955 |\n| Div. 9A of Part III...........  (ss. 121A, 121B) | ad. No. 62, 1955 |\n| Div. 9A of Part III (s. 121A).... | rep. No. 154, 1981 |\n| s. 121A.................. | ad. No. 63, 1947 |\n|  | rs. No. 62, 1955 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 154, 1981 |\n| s. 121B.................. | ad. No. 63, 1947 |\n|  | rs. No. 62, 1955 |\n|  | rep. No. 65, 1957 |\n| s. 121C.................. | ad. No. 63, 1947 |\n|  | rep. No. 62, 1955 |\n| Heading to Div. 9B of Part III... | am. No. 47, 1984  rep. No. 97, 1989 |\n| Div. 9B of Part III...........  (ss. 121B–121E) | ad. No. 17, 1961 |\n| Div. 9B of Part III...........  (ss. 121B, 121BA, 121CC, 121D, 121DA, 121DAA, 121DAAA, 121DAB, 121DB–121DD, 121E) | rep. No. 97, 1989 |\n| s. 121B.................. | ad. No. 17, 1961 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981; No. 47, 1984; Nos. 49 and 123, 1985; No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121BA................. | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 47, 1984 |\n|  | ad. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121C.................. | ad. No. 17, 1961 |\n|  | am. No. 110, 1964; No. 51, 1973; No. 108, 1981; No. 54, 1983 |\n|  | rep. No. 49, 1985 |\n|  | ad. No. 123, 1985 |\n|  | rep. No. 138, 1987 |\n| s. 121CA................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; Nos. 49 and 123, 1985 |\n|  | rep. No. 138, 1987 |\n| s. 121CB................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rs. No. 47, 1984 |\n|  | am. No. 123, 1985 |\n|  | rep. No. 138, 1987 |\n| s. 121CC................. | ad. No. 123, 1985 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121D.................. | ad. No. 17, 1961 |\n|  | rs. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 49, 1985 |\n|  | ad. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DA................. | ad. No. 110, 1964 |\n|  | am. No. 108, 1981; No. 47, 1984; Nos. 49 and 123, 1985; No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DAA............... | ad. No. 47, 1984 |\n|  | am. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DAAA.............. | ad. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DAB................ | ad. No. 47, 1984 |\n|  | am. Nos. 49 and 123, 1985 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DB................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 47, 1984; No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DC................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 47, 1984 |\n|  | rs. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DD................. | ad. No. 110, 1964 |\n|  | am. No. 103, 1965; No. 47, 1972; No. 51, 1973; No. 126, 1977; No. 106, 1982 |\n|  | rs. No. 47, 1984 |\n|  | am. No. 138, 1987 |\n|  | rep. No. 97, 1989 |\n| s. 121DE................. | ad. No. 110, 1964 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 49, 1985 |\n| s. 121E.................. | ad. No. 17, 1961 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 97, 1989 |\n| Div. 10 of Part III...........  (ss. 122–124) | rep. No. 60, 1968 |\n| s. 122................... | rep. No. 60, 1968 |\n| s. 122AA................. | ad. No. 69, 1963 |\n|  | rep. No. 60, 1968 |\n| s. 122AB................. | ad. No. 70, 1959 |\n|  | rep. No. 60, 1968 |\n| s. 122E.................. | ad. No. 60, 1968 |\n|  | am. No. 126, 1974; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| ss. 122F, 122G............. | ad. No. 60, 1968 |\n|  | am. No. 51, 1973; No. 126, 1974; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 122NA................. | ad. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 122Q.................. | ad. No. 60, 1968 |\n|  | am. No. 93, 1969; No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 123................... | rs. No. 44, 1951 |\n|  | rep. No. 60, 1968 |\n| s. 123AA................. | ad. No. 11, 1947 |\n|  | am. No. 44, 1951; No. 18, 1960; No. 69, 1963 |\n|  | rep. No. 60, 1968 |\n| s. 123A.................. | ad. No. 30, 1939 |\n|  | am. No. 17, 1940; No. 11, 1947; No. 44, 1951; No. 55, 1958; No. 70, 1959; No. 18, 1960 |\n|  | rep. No. 69, 1963 |\n| s. 124................... | rs. No. 44, 1951 |\n|  | am. No. 110, 1964 |\n|  | rep. No. 60, 1968 |\n| s. 124A.................. | ad. No. 44, 1951 |\n|  | am. No. 18, 1960 |\n|  | rep. No. 60, 1968 |\n| s. 124AA................. | ad. No. 103, 1965 |\n|  | rep. No. 60, 1968 |\n| s. 124B.................. | ad. No. 44, 1951 |\n|  | am. No. 70, 1959 |\n|  | rep. No. 60, 1968 |\n| s. 124C.................. | ad. No. 44, 1951 |\n|  | am. No. 69, 1963 |\n|  | rep. No. 60, 1968 |\n| s. 124D.................. | ad. No. 28, 1952 |\n|  | rep. No. 60, 1968 |\n| s. 124DA................. | ad. No. 39, 1962 |\n|  | am. No. 69, 1963; No. 46, 1964 |\n|  | rep. No. 60, 1968 |\n| Div. 10AA of Part III.........  (ss. 124DB–124DH, 124J–124DN) | ad. No. 69, 1963   rep. No. 126, 1974 |\n| s. 124AEA................ | ad. No. 57, 1978 |\n|  | rep. No. 107, 1989 |\n| s. 124ANA............... | ad. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 124AR................. | ad. No. 126, 1974 |\n|  | am. No. 205, 1976; No. 57, 1978; No. 24, 1980; Nos. 108, 109 and 154, 1981; No. 14, 1983 |\n|  | rep. No. 107, 1989 |\n| s. 124DB................. | ad. No. 69, 1963 |\n|  | am. No. 164, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124DC................. | ad. No. 69, 1963 |\n|  | rep. No. 126, 1974 |\n| s. 124DD................. | ad. No. 69, 1963 |\n|  | am. No. 148, 1968; No. 93, 1969; No. 51, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124DE................. | ad. No. 69, 1963 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124DF................. | ad. No. 69, 1963 |\n|  | am. No. 103, 1965; No. 50, 1966; No. 93, 1969; No. 51, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124DG................. | ad. No. 69, 1963 |\n|  |","sortOrder":1000168},{"sectionNumber":"full-source-retrieval-0170","sectionType":"document_chunk","heading":"Document excerpt 170","content":"rep. No. 126, 1974 |\n| s. 124DH................. | ad. No. 69, 1963 |\n|  | am. Nos. 51 and 164, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124DJ................. | ad. No. 69, 1963 |\n|  | am. No. 164, 1973 |\n|  | rep. No. 126, 1974 |\n| ss. 124DK, 124DL.......... | ad. No. 69, 1963 |\n|  | rep. No. 126, 1974 |\n| ss. 124DM, 124DN.......... | ad. No. 69, 1963 |\n|  | am. No. 60, 1968; No. 51, 1973 |\n|  | rep. No. 126, 1974 |\n| s. 124ZP................. | ad. No. 98, 1992 |\n|  | rep. No. 46, 1998 |\n| Subheads. to s. 124ZZB(1)–(3).. | rep. No. 46, 1998 |\n| s. 124ZZC................ | ad. No. 181, 1994 |\n|  | rep. No. 46, 1998 |\n| s. 125................... | am. No. 65, 1940; No. 22, 1942; No. 10, 1943; No. 48, 1950; No. 18, 1960; No. 69, 1963; Nos. 103 and 143, 1965 |\n|  | rep. No. 85, 1967 |\n|  | ad. No. 54, 1971 |\n|  | am. No. 51, 1973; No. 80, 1975; No. 25, 1983; No. 98, 1992 |\n|  | rep. No. 95, 1997 |\n| Div. 11A of Part III..........  (ss. 128A–128D) | ad. No. 85, 1959  rep. No. 85, 1967 |\n| s. 128E.................. | ad. No. 85, 1959 |\n|  | rep. No. 38, 1967 |\n| s. 128M.................. | ad. No. 54, 1971 |\n|  | am. No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 138, 1994 |\n| Div. 11B of Part III..........  (ss. 128S, 128T) | ad. No. 172, 1978  rep. No. 58, 1987 |\n| s. 128S.................. | ad. No. 172, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 58, 1987 |\n| s. 128T.................. | ad. No. 172, 1978 |\n|  | rep. No. 58, 1987 |\n| Div. 13 of Part III (s. 136)...... | rep. No. 29, 1982 |\n| s. 136................... | rep. No. 29, 1982 |\n| Div. 13A of Part III (s. 136A)... | ad. No. 126, 1977  rep. No. 224, 1992 |\n| s. 136A.................. | ad. No. 126, 1977 |\n|  | am. No. 123, 1984 |\n|  | rep. No. 224, 1992 |\n| Div. 14 of Part III...........  (ss. 137–140) | rep. No. 126, 1977 |\n| s. 137................... | rep. No. 126, 1977 |\n| s. 138................... | am. No. 50, 1942 |\n|  | rep. No. 126, 1977 |\n| s. 139................... | rep. No. 126, 1977 |\n| s. 139FH................. | ad. No. 169, 1995 |\n|  | rep. No. 122, 1997 |\n| s. 140................... | am. No. 143, 1965 |\n|  | rep. No. 126, 1977 |\n| s. 158AA................. | ad. No. 50, 1966 |\n|  | am. No. 51, 1973; No. 126, 1977; No. 57, 1978; No. 108, 1981 |\n|  | rep. No. 103, 1983 |\n| ss. 158AB, 158AC.......... | ad. No. 50, 1966 |\n|  | am. No. 51, 1973 |\n|  | rep. No. 126, 1977 |\n| Div. 16A of Part III..........  (ss. 158B–158E) | ad. No. 45, 1953  rep. No. 138, 1987 |\n| ss. 158B–158E............. | ad. No. 45, 1953  rep. No. 138, 1987 |\n| Div. 16B of Part III..........  (ss. 159, 159A–159G) | ad. No. 101, 1969   rep. No. 107, 1989 |\n| s. 159................... | am. No. 88, 1936; No. 65, 1940; No. 58, 1941; No. 22, 1942; No. 11, 1947; No. 38, 1950 |\n|  | rep. No. 81, 1953 |\n|  | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 205, 1976; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159A.................. | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 205, 1976; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159B.................. | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159C.................. | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 205, 1976; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159D.................. | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159E.................. | ad. No. 101, 1969 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159F.................. | ad. No. 101, 1969 |\n|  | rep. No. 107, 1989 |\n| s. 159G.................. | ad. No. 101, 1969 |\n|  | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 159GB................. | ad. No. 205, 1976 |\n|  | rep. No. 56, 1989 |\n| s. 159GZD................ | ad. No. 138, 1987 |\n|  | am. No. 78, 1988 |\n|  | rep. No. 58, 1990 |\n| ss. 159GZO, 159GZP......... | ad. No. 138, 1987 |\n|  | rep. No. 174, 1997 |\n| s. 159GZZP............... | ad. No. 153, 1988 |\n|  | rep. No. 4, 1991 |\n| s. 159GZZZA.............. | ad. No. 153, 1988 |\n|  | rep. No. 4, 1991 |\n| s. 159GZZZMA............ | ad. No. 82, 1994 |\n|  | rep. No. 170, 1995 |\n| Subdiv. E of Div. 16K of......  Part III (s. 159GZZZT) | ad. No. 58, 1990  rep. No. 46, 1998 |\n| s. 159GZZZT.............. | ad. No. 58, 1990 |\n|  | rep. No. 46, 1998 |\n| Subdiv. A of Div. 16L of......  Part III | rep. No 163, 1994 |\n| s. 159GZZZU.............. | ad. No. 98, 1992 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 163, 1994 |\n| ss. 159GZZZV–159GZZZZ.... | ad. No. 98, 1992 |\n|  | rep. No. 163, 1994 |\n| ss. 159GZZZZA, 159GZZZZB.. | ad. No. 98, 1992 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 163, 1994 |\n| s. 159GZZZZC............. | ad. No. 98, 1992 |\n|  | rep. No. 163, 1994 |\n| s. 159GZZZZD............. | ad. No. 98, 1992 |\n|  | rep. No. 163, 1994 |\n| Heading to Subdiv. B of.......  Div. 16L of Part III | rep. No. 163, 1994 |\n| s. 159N.................. | ad. No. 117, 1975 |\n|  | am. No. 56, 1976; No. 126, 1977; No. 108, 1981; No. 106, 1982; No. 103, 1983 |\n|  | rep. No. 123, 1985 |\n| s. 159Q.................. | ad. No. 117, 1975 |\n|  | rep. No. 123, 1985 |\n| s. 159R.................. | ad. No. 117, 1975 |\n|  | am. Nos. 50 and 53, 1976; No. 124, 1980; No. 108, 1981; No. 54, 1983; No. 47, 1984; No. 49, 1985 |\n|  | rep. No. 123, 1985 |\n| s. 159S.................. | ad. No. 117, 1975 |\n|  | rep. No. 53, 1976 |\n| ss. 159SB–159SE........... | ad. No. 105, 1989 |\n|  | rep. No. 7, 1993 |\n| s. 159SH................. | ad. No. 105, 1989 |\n|  | rep. No. 7, 1993 |\n| s. 159SK................. | ad. No. 105, 1989 |\n|  | rep. No. 208, 1992 |\n| s. 159SN................. | ad. No. 105, 1989 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 208, 1992 |\n| ss. 159SP–159SR........... | ad. No. 105, 1989 |\n|  | rep. No. 208, 1992 |\n| s. 159SV................. | ad. No. 105, 1989 |\n|  | am. No. 56, 1994 |\n|  | rep. No. 208, 1992 |\n| ss. 159SW–159SY.......... | ad. No. 105, 1989 |\n|  | rep. No. 208, 1992 |\n| s. 159T.................. | ad. No. 117, 1975 |\n|  | am. Nos. 50 and 56, 1976; No. 108, 1981 |\n|  | rep. No. 123, 1985 |\n| Subdiv. AAC of Div. 17 of.....  Part III (ss. 159T,   159TA–159TL) | ad. No. 135, 1990  rep. No. 208, 1992 |\n| ss. 159T, 159TA–159TL....... | ad. No. 135, 1990 |\n|  | rep. No. 208, 1992 |\n| s. 159V.................. | ad. No. 117, 1975 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 123, 1985 |\n| s. 159W................. | ad. No. 117, 1975 |\n|  | rep. No. 123, 1985 |\n| s. 159X.................. | ad. No. 117, 1975 |\n|  | am. No. 50, 1976 |\n|  | rep. No. 123, 1985 |\n| s. 159XA................. | ad. No. 109, 1981 |\n|  | am. No. 106, 1982; No. 25, 1983 |\n|  | rep. No. 123, 1985 |\n| s. 159Y.................. | ad. No. 117, 1975 |\n|  | rep. No. 123, 1985 |\n| Subdiv. AA of Div. 17 of......  Part III (ss. 159ZA–159ZQ) | ad. No. 38, 1982  rep. No. 138, 1994 |\n| s. 159ZA................. | ad. No. 38, 1982 |\n|  | am. No. 49, 1983; No. 135, 1990 |\n|  | rep. No. 138, 1994 |\n| ss. 159ZB–159ZE........... | ad. No. 38, 1982 |\n|  | rep. No. 138, 1994 |\n| s. 159ZF................. | ad. No. 38, 1982 |\n|  | rs. No. 106, 1982 |\n|  | rep. No. 138, 1994 |\n| ss. 159ZG, 159ZH........... | ad. No. 38, 1982 |\n|  | rep. No. 138, 1994 |\n| s. 159ZJ................. | ad. No. 38, 1982 |\n|  | am. No. 106, 1982; No. 49, 1983 |\n|  | rep. No. 138, 1994 |\n| s. 159ZK................. | ad. No. 38, 1982 |\n|  | am. No. 106, 1982; No. 49, 1983; No. 109, 1986 |\n|  | rep. No. 138, 1994 |\n| s. 159ZKA................ | ad. No. 49, 1983 |\n|  | rep. No. 138, 1994 |\n| ss. 159ZL, 159ZM........... | ad. No. 38, 1982 |\n|  | am. No. 106, 1982 |\n|  | rep. No. 138, 1994 |\n| s. 159ZN................. | ad. No. 38, 1982 |\n|  | am. No. 106, 1982; No. 49, 1983 |\n|  | rep. No. 138, 1994 |\n| s. 159ZNA................ | ad. No. 106, 1982 |\n|  | am. No. 25, 1983 |\n|  | rep. No. 138, 1994 |\n| ss. 159ZNB, 159ZNC........ | ad. No. 106, 1982 |\n|  | rep. No. 138, 1994 |\n| ss. 159ZO, 159ZP........... | ad. No. 38, 1982 |\n|  | rep. No. 138, 1994 |\n| s. 159ZQ................. | ad. No. 38, 1982 |\n|  | am. No. 106, 1982 |\n|  | rep. No. 138, 1994 |\n| s. 160................... | rs. No. 58, 1941; No. 22, 1942 |\n|  | am. No. 50, 1942; No. 10, 1943; No. 28, 1944; No. 4, 1945; No. 6, 1946; No. 11, 1947; No. 44, 1948; No. 66, 1949 |\n|  | rep. No. 48, 1950 |\n|  | ad. No. 44, 1951 |\n|  | am. No. 90, 1952; No. 45, 1953; No. 70, 1959; No. 110, 1964; No. 143, 1965; No. 50, 1966; No. 76, 1967; No. 51, 1973; No. 126, 1974; No. 117, 1975; Nos. 57 and 126, 1977; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 160AA................. | ad. No. 58, 1941 |\n|  | am. Nos. 22 and 50, 1942; No. 11, 1947 |\n|  | rep. No. 48, 1950 |\n|  | ad. No. 126, 1974 |\n|  | rep. No. 117, 1975 |\n|  | ad. No. 123, 1978 |\n|  | am. No. 149, 1979; No. 57, 1980; Nos. 108 and 109, 1981; No. 106, 1982 |\n|  | rs. No. 47, 1984 |\n|  | am. Nos. 123 and 129, 1985; Nos. 49 and 109, 1986 |\n|  | rep. No. 105, 1989 |\n| s. 160ABA................ | ad. No. 6, 1946 |\n|  | rs. No. 44, 1948 |\n|  | am. No. 48, 1950; No. 44, 1951; No. 34, 1963; Nos. 51 and 52, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 36, 1978; No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 107, 1989 |\n| s. 160AC................. | ad. No. 22, 1942 |\n|  | am. No. 50, 1942 |\n|  | rep. No. 48, 1950 |\n|  | ad. No. 87, 1968 |\n|  | am. No. 18, 1969; Nos. 51 and 165, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 126, 1974; No. 117, 1975; Nos. 108 and 111, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 160ACA................ | ad. No. 57, 1978 |\n|  | am. No. 24, 1980; Nos. 108 and 109, 1981; No. 168, 1985; No. 11, 1988; No. 129, 1989 |\n|  | rep. No. 107, 1989 |\n| ss. 160ACB, 160ACC........ | ad. No. 57, 1978 |\n|  | rep. No. 107, 1989 |\n| s. 160ACD................ | ad. No. 49, 1985 |\n|  | am. No. 24, 1980; No. 108, 1981 |\n|  | rep. No. 107, 1989 |\n| s. 160AE................. | ad. No. 22, 1942 |\n|  | am. No. 50, 1942; No. 37, 1945 |\n|  | rep. No. 48, 1950 |\n| s. 160AF................. | ad. No. 3, 1944 |\n|  | rep. No. 85, 1959 |\n| Div. 18 of Part III...........  (ss. 160AF–160AH, 160AJ–160AM) | ad. No. 3, 1944  rep. No. 85, 1959 |\n| Div. 18 of Part III...........  (ss. 160AE–160AG) | ad. No. 18, 1960   rs. No. 80, 1975 |\n| ss. 160AE–160AF........... | ad. No. 18, 1960 |\n|  | rs. No. 80, 1975 |\n|  | rep. No. 51, 1986 |\n| s. 160AG................. | ad. No. 3, 1944 |\n|  | rep. No. 85, 1959 |\n|  | ad. No. 18, 1960 |\n|  | rs. No. 4, 1968 |\n|  | am. No. 51, 1973 |\n|  | rs. No. 80, 1975 |\n|  | rep. No. 51, 1986 |\n| ss. 160AH–160AM.......... | ad. No. 3, 1944 |\n|  | rep. No. 85, 1959 |\n| Div. 19 of Part III...........  (160AN–160AT) | ad. No. 6, 1946   rep. No. 85, 1959 |\n| ss. 160AN, 160AO.......... | ad. No. 6, 1946 |\n|  | rep. No. 85, 1959 |\n| s. 160AP................. | ad. No. 6, 1946 |\n|  | rep. No. 85, 1959 |\n|  | ad. No. 87, 1978 |\n|  | am. No. 123, 1984 |\n|  | rep. No. 73, 1989 |\n| s. 160APKB............... | ad. No. 216, 1991 |\n|  | rep. No. 89, 2000 |\n| s. 160APM............... | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 160APN................ | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 160APNA............... | ad. No. 20, 1990 |\n|  | rep. No. 216, 1991 |\n| ss. 160APR–160APT......... | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| ss. 160APVA, 160APVB...... | ad. No. 48, 1991  rep. No. 216, 1991 |\n| s. 160APVE............... | ad. No. 48, 1991 |\n|  | rep. No. 216, 1991 |\n| s. 160APY................ | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 160APYA............... | ad. No. 20, 1990 |\n|  | am. No. 4, 1991 |\n|  | rep. No. 216, 1991 |\n| s. 160APYAA............. | ad. No. 4, 1991 |\n|  | rep. No. 216, 1991 |\n| s. 160AQ................. | ad. No. 6, 1946 |\n|  | rep. No. 85, 1959 |\n|  | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 160AQA............... | ad. No. 58, 1987 |\n|  | rep. No. 216, 1991 |\n| ss. 160AQCF–160AQCH...... | ad. No. 48, 1991  rep. No. 216, 1991 |\n| Subdiv. BB of Div. 7 of.......  Part IIIAA (ss. 160AQZI–160AQZK) | ad. No. 93, 1999  rep. No. 89, 2000 |\n| ss. 160AQZI–160AQZK....... | ad. No. 93, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 160AR................. | ad. No. 6, 1946 |\n|  | am. No. 44, 1948; No. 44, 1951 |\n|  | rep. No. 85, 1959 |\n| s. 160AS................. | ad. No. 6, 1946 |\n|  | rep. No. 85, 1959 |\n|  | ad. No. 58, 1987 |\n|  | am. No. 5, 1991 |\n|  | rep. No. 101, 1992 |\n| s. 160AT................. | ad. No. 6, 1946 |\n|  | rep. No. 85, 1959 |\n| s. 160ATE................ | ad. No. 79, 2000 |\n|  | rep. No. 89, 2000 |\n| s. 160ATI................ | ad. No. 79, 2000 |\n|  | rep. No. 89, 2000 |\n| Part IIIA.................  (ss. 160A–160D) | ad. No. 17, 1940  rep. No. 44, 1951 |\n| Part IIIA.................  (ss. 160A–160E) | rep. No. 44, 1951 |\n| s. 160A.................. | ad. No. 17, 1940 |\n|  | rs. No. 3, 1944 |\n|  | am. No. 44, 1948 |\n|  | rep. No. 44, 1951 |\n| s. 160B.................. | ad. No. 17, 1940 |\n|  | am. No. 48, 1950 |\n|  | rep. No. 44, 1951 |\n| s. 160C.................. | ad. No. 17, 1940 |\n|  | am. No. 65, 1940; No. 58, 1941; Nos. 22 and 50, 1942; No. 10, 1943; No. 44, 1948 |\n|  | rep. No. 44, 1951 |\n| s. 160D.................. | ad. No. 17, 1940 |\n|  | rep. No. 44, 1951 |\n| s. 160E.................. | ad. No. 58, 1941 |\n|  | am. Nos. 22 and 50, 1942 |\n|  | rs. No. 11, 1947 |\n|  | am. No. 63, 1947 |\n|  | rep. No. 44, 1951 |\n| s. 160ZZOA............... | ad. No. 35, 1990 |\n|  | am. No. 5, 1991 |\n|  | rep. No. 48, 1991 |\n| Part IIIB.................  (ss. 160F–160J) | ad. No. 69, 1941  rep. No. 22, 1942 |\n| Part IIIB.................  (ss. 160F–160T) | ad. No. 11, 1947  rep. No. 81, 1953 |\n| s. 160F.................. | ad. No. 69, 1941 |\n|  | rep. No. 22, 1942 |\n|  | ad. No. 11, 1947 |\n|  | am. No. 48, 1950 |\n|  | rep. No. 81, 1953 |\n| ss. 160G, 160H............. | ad. No. 69, 1941 |\n|  | rep. No. 22, 1942 |\n|  | ad. No. 11, 1947 |\n|  | rep. No. 81, 1953 |\n| s. 160J.................. | ad. No. 69, 1941 |\n|  | rep. No. 22, 1942 |\n|  | ad. No. 11, 1947 |\n|  | am. No. 48, 1950 |\n|  | rep. No. 81, 1953 |\n| s. 160K.................. | ad. No. 11, 1947 |\n|  | am. No. 44, 1948; No. 48, 1950 |\n|  | rs. No. 44, 1951 |\n|  | am. No. 90, 1952 |\n|  | rep. No. 81, 1953 |\n| ss. 160L, 160M............. | ad. No. 11, 1947 |\n|  | rep. No. 81, 1953 |\n| s. 160N.................. | ad. No. 11, 1947 |\n|  | am. No. 48, 1950 |\n|  | rep. No. 81,1953 |\n| s. 160P.................. | ad. No. 11, 1947 |\n|  | rep. No. 81, 1953 |\n| s. 160Q.................. | ad. No. 11, 1947 |\n|  | am. No. 44, 1948; No. 44, 1951 |\n|  | rep. No. 81, 1953 |\n| ss. 160R, 160S............. | ad. No. 11, 1947 |\n|  | am. No. 48, 1950 |\n|  | rep. No. 81, 1953 |\n| s. 160T.................. | ad. No. 11, 1947 |\n|  | rep. No. 81, 1953 |\n| s. 160ZLA................ | ad. No. 82, 1994 |\n|  | rep. No. 170, 1995 |\n| s. 160ZZPJA.............. | ad. No. 46, 1998 |\n|  | rep. No. 94, 1999 |\n| s. 160ZZPZAA............. | ad. No. 46, 1998 |\n|  | rep. No. 94, 1999 |\n| s. 160ZZRAAAA........... | ad. No. 46, 1998 |\n|  | rep. No. 94, 1999 |\n| Note to s. 160ZZSJ.......... | rep. No. 94, 1999 |\n| s. 160ZZSQ............... | ad. No. 122, 1997 |\n|  | rep. No. 94, 1999 |\n| ss. 161B–161D............. | ad. No. 174, 1997 |\n|  | rep. No. 91, 2000 |\n| s. 161E.................. | ad. No. 174, 1997 |\n|  | am. No. 179, 1999 |\n|  | rep. No. 91, 2000 |\n| s. 163C.................. | ad. No. 169, 1995 |\n|  | rep. No. 11, 1999 |\n| s. 165................... | am. No. 10, 1943; No. 51, 1973; No. 123, 1984; No. 78, 1988; No. 174, 1997 |\n|  | rep. No. 91, 2000 |\n| s. 170B.................. | ad. No. 103, 1965 |\n|  | am. No. 51, 1973; No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 91, 2000 |\n| Div. 1 of Part V............  (ss. 178, 180–184) | rep. No. 48, 1986 |\n| s. 178................... | am. No. 108, 1981 |\n|  | rep. No. 48, 1986 |\n| s. 179................... | rep. No. 49, 1985 |\n| s. 180................... | am. No. 10, 1943 |\n|  | rep. No. 48, 1986 |\n| s. 181................... | rep. No. 48, 1986 |\n| s. 182................... | am. No. 63, 1947; No. 48, 1950; No. 18, 1955; No. 39, 1957; No. 17, 1960; No. 115, 1964; No. 143, 1965; No. 85, 1967 |\n|  | rs. No. 123, 1984 |\n|  | rep. No. 48, 1986 |\n| s. 183................... | am. No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 48, 1986 |\n| s. 184................... | am. No. 216, 1973 (as am. by No. 20, 1974); No. 108, 1981 |\n|  | rep. No. 48, 1986 |\n|  | ad. No. 23, 1987 |\n|  | rs. No. 8, 1988 |\n|  | rep. No. 216, 1991 |\n| s. 184A.................. | ad. No. 165, 1976 |\n|  | am. No. 123, 1984 |\n|  | rep. No. 23, 1987 |\n| s. 184B.................. | ad. No. 165, 1976 |\n|  | rep. No. 123, 1984 |\n| s. 184C.................. | ad. No. 165, 1976 |\n|  | rep. No. 23, 1987 |\n| Part V...................  (ss. 185–188, 188A, 188B, 189, 189A, 189B, 190, 193, 199, 200B, 201) | rep. No. 216, 1991 |\n| s. 185................... | am. No. 108, 1981; No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 186................... | rep. No. 216, 1991 |\n| s. 187................... | am. No. 53, 1973; No. 165, 1976; No. 87, 1978; No. 108, 1981 |\n|  | rs. No. 48, 1986 |\n|  | am. No. 23, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 188................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 188A.................. | ad. No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 188B.................. | ad. No. 48, 1986 |\n|  | am. No. 23, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 189................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 48, 1986 |\n|  | am. No. 23, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 189A.................. | ad. No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 189B.................. | ad. No. 8, 1988 |\n|  | rep. No. 216, 1991 |\n| s. 190................... | am. Nos. 48 and 112, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 191................... | rep. No. 48, 1986 |\n| s. 192................... | am. No. 216, 1","sortOrder":1000169},{"sectionNumber":"full-source-retrieval-0171","sectionType":"document_chunk","heading":"Document excerpt 171","content":"973 (as am. by No. 20, 1974) |\n|  | rep. No. 48, 1986 |\n| s. 193................... | am. No. 143, 1965; No. 51, 1973; No. 117, 1975; No. 149, 1979; Nos. 108 and 110, 1981; No. 29, 1982; No. 123, 1984; No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 194................... | am. No. 108, 1981 |\n|  | rep. No. 48, 1986 |\n| s. 195................... | rep. No. 48, 1986 |\n| s. 196................... | rs. No. 53, 1973; No. 165, 1976 |\n|  | am. No. 87, 1978 |\n|  | rep. No. 48, 1986 |\n| s. 196A.................. | ad. No. 53, 1973 |\n|  | am. No. 165, 1976; No. 48, 1986 |\n|  | rep. No. 23, 1987 |\n| s. 197................... | am. No. 53, 1973; No. 165, 1976 |\n|  | rep. No. 48, 1986 |\n| s. 198................... | rs. No. 165, 1976 |\n|  | am. No. 48, 1986 |\n|  | rep. No. 23, 1987 |\n| s. 199................... | rs. No. 165, 1976 |\n|  | am. No. 48, 1986; No. 23, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 200................... | rs. No. 165, 1976 |\n|  | rep. No. 23, 1987 |\n| s. 200A.................. | ad. No. 19, 1979 |\n|  | rep. No. 23, 1987 |\n| s. 200B.................. | ad. No. 48, 1986 |\n|  | am. No. 23, 1987 |\n|  | rep. No. 216, 1991 |\n| s. 201................... | am. No. 123, 1984; No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 202................... | rs. No. 123, 1984 |\n|  | am. No. 46, 1986 |\n|  | rep. No. 48, 1986 |\n| s. 202E.................. | ad. No. 97, 1988 |\n|  | rep. No. 57, 1990 |\n| s. 202ED................. | ad. No. 97, 1988 |\n|  | rep. No. 57, 1990 |\n| s. 203................... | rep. No. 5, 1937 |\n|  | ad. No. 87, 1978 |\n|  | rep. No. 73, 1989 |\n| s. 204A.................. | ad. No. 87, 1978 |\n|  | rep. No. 73, 1989 |\n| s. 207................... | am. No. 46, 1938; No. 108, 1981; No. 123, 1982; No. 123, 1984; No. 101, 1992; No. 120, 1995 |\n|  | rep. No. 11, 1999 |\n| s. 207A.................. | ad. No. 101, 1992 |\n|  | am. No. 120, 1995 |\n|  | rep. No. 11, 1999 |\n| s. 208A.................. | ad. No. 87, 1978 |\n|  | rep. No. 73, 1989 |\n| s. 208B.................. | ad. No. 87, 1978 |\n|  | am. No. 108, 1981; No. 73, 1989 |\n|  | rep. No. 11, 1999 |\n| s. 210................... | am. No. 46, 1938 |\n|  | rep. No. 39, 1962 |\n| ss. 211, 212............... | rep. No. 39, 1962 |\n| s. 212A.................. | ad. No. 48, 1950 |\n|  | rep. No. 39, 1962 |\n| s. 217................... | am. No. 87, 1978 |\n|  | rep. No. 123, 1984 |\n| s. 220AAV............... | ad. No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| ss. 220AAX, 220AAY........ | ad. No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| s. 220AG................. | ad. No. 138, 1994 |\n|  | rep. No. 47, 1998 |\n| s. 220AI................. | ad. No. 138, 1994 |\n|  | rep. No. 47, 1998 |\n| s. 220AT................. | ad. No. 138, 1994 |\n|  | rep. No. 47, 1998 |\n| s. 220AV................. | ad. No. 138, 1994 |\n|  | am. No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| s. 220AW................ | ad. No. 138, 1994 |\n|  | rep. No. 120, 1995 |\n| s. 221................... | rep. No. 58, 1941 |\n|  | ad. No. 22, 1942 |\n|  | am. No. 6, 1946; No. 43, 1954; No. 85, 1959; No. 143, 1965; No. 50, 1966; No. 51, 1973 |\n|  | rep. No. 134, 1980 |\n| s. 221AB................. | ad. No. 165, 1973 |\n|  | rep. No. 26, 1974 |\n| s. 221B.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | rep. No. 216, 1991 |\n| Div. 2 of Part VI............  (ss. 221A–221H,   221J–221H, 221P–221Y) | ad. No. 65, 1940   rep. No. 63, 1947 |\n| ss. 221A–221E............. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221EA................. | ad. No. 87, 1978 |\n|  | rep. No. 73, 1989 |\n| s. 221EB................. | ad. No. 87, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 73, 1989 |\n| s. 221EC................. | ad. No. 45, 1990 |\n|  | am. No. 170, 1995 |\n|  | rep. No. 47, 1998 |\n| s. 221ED................. | ad. No. 45, 1990 |\n|  | rep. No. 47, 1998 |\n| ss. 221EDA–221EDC........ | ad. No. 170, 1995 |\n|  | rep. No. 47, 1998 |\n| s. 221F.................. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221G.................. | ad. No. 65, 1940 |\n|  | am. No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 44, 1951; No. 143, 1965; No. 51, 1973; No. 87, 1978; No. 108, 1981; Nos. 47 and 123, 1984; No. 97, 1988; Nos. 73 and 167, 1989; No. 191, 1992; No. 32, 1993 |\n|  | rep. No. 170, 1995 |\n| s. 221H.................. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221HA................. | ad. No. 10, 1943 |\n|  | rs. No. 3, 1944 |\n|  | rep. No. 63, 1947 |\n| s. 221J.................. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221KA................. | ad. No. 3, 1944 |\n|  | rep. No. 63, 1947 |\n| s. 221KB................. | ad. No. 3, 1944 |\n|  | am. No. 4, 1945 |\n|  | rep. No. 63, 1947 |\n| ss. 221KC, 221KD.......... | ad. No. 3, 1944 |\n|  | rep. No. 63, 1947 |\n| s. 221KE................. | ad. No. 28, 1944 |\n|  | rep. No. 63, 1947 |\n| s. 221KF................. | ad. No. 11, 1947 |\n|  | rep. No. 63, 1947 |\n| s. 221L.................. | ad. No. 65, 1940 |\n|  | am. No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 66, 1949; No. 143, 1965; No. 51, 1973; No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 170, 1995 |\n| s. 221M.................. | ad. No. 65, 1940 |\n|  | am. No. 10, 1943; No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 170, 1995 |\n| s. 221N.................. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221NA................. | ad. No. 123, 1984 |\n|  | am. No. 170, 1995; No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| s. 221NB................. | ad. No. 123, 1984 |\n|  | rep. No. 120, 1995 |\n| s. 221P.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 44, 1951; No. 85, 1959; No. 87, 1978; No. 108, 1981; No. 14, 1983; No. 123, 1984; No. 154, 1986; No. 73, 1989; No. 3, 1992; No. 32, 1993 |\n|  | rep. No. 170, 1995 |\n| s. 221Q.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 216, 1973 (as am. by No. 20, 1974); No. 87, 1978; No. 133, 1980; No. 123, 1984; No. 97, 1988; No. 73, 1989 |\n|  | rep. No. 170, 1995 |\n| ss. 221R, 221S............. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221TA................. | ad. No. 87, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 73, 1989 |\n| s. 221T.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 143, 1965; No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 170, 1995 |\n| ss. 221V–221X............. | ad. No. 65, 1940 |\n|  | rep. No. 63, 1947 |\n| s. 221U.................. | ad. No. 65, 1940 |\n|  | am. No. 3, 1944 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 87, 1978 |\n|  | rep. No. 123, 1984 |\n|  | ad. No. 49, 1985 |\n|  | am. No. 48, 1986 |\n|  | rep. No. 216, 1991 |\n| s. 221Y.................. | ad. No. 65, 1940 |\n|  | rs. No. 63, 1947 |\n|  | am. No. 108, 1981; No. 123, 1984 |\n|  | rep. No. 170, 1995 |\n| s. 221YAA............... | ad. No. 44, 1951 |\n|  | rep. No. 123, 1984 |\n| s. 221YAB................ | ad. No. 85, 1959 |\n|  | rep. No. 38, 1967 |\n| s. 221YBA................ | ad. No. 44, 1951 |\n|  | rep. No. 85, 1959 |\n| s. 221YCA................ | ad. No. 44, 1951 |\n|  | rep. No. 85, 1959 |\n| s. 221YDBA.............. | ad. No. 87, 1978 |\n|  | am. No. 108, 1981 |\n|  | rep. No. 73, 1989 |\n| s. 221YHAA.............. | ad. No. 103, 1983 |\n|  | am. No. 124, 1984 |\n|  | rep. No. 227, 1992 |\n| s. 221YHE................ | ad. No. 14, 1983 |\n|  | rep. No. 47, 1984 |\n| s. 221YHJ................ | ad. No. 14, 1983 |\n|  | am. Nos. 123 and 124, 1984; No. 154, 1986; Nos. 191 and 227, 1992; No. 32, 1993; No. 170, 1995 |\n|  | rep. No. 47, 1998 |\n| s. 221YHK............... | ad. No. 14, 1983 |\n|  | am. Nos. 123 and 124, 1984 |\n|  | rep. No. 227, 1992 |\n| s. 221YHLA.............. | ad. No. 123, 1984 |\n|  | am. No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| s. 221YHLB............... | ad. No. 123, 1984 |\n|  | rep. No. 120, 1995 |\n| s. 221YHO............... | ad. No. 14, 1983 |\n|  | rep. No. 123, 1984 |\n| s. 221YHZF............... | ad. No. 154, 1986 |\n|  | rep. No. 11, 1999 |\n| s. 221YHZG.............. | ad. No. 154, 1986 |\n|  | rep. No. 120, 1995 |\n| s. 221YHZLA............. | ad. No. 35, 1992 |\n|  | rep. No. 11, 1999 |\n| s. 221ZDA................ | ad. No. 123, 1984 |\n|  | rep. No. 11, 1999 |\n| s. 221ZDB................ | ad. No. 123, 1984 |\n|  | rep. No. 120, 1995 |\n| s. 221ZQ................. | ad. No. 14, 1983 |\n|  | rep. No. 11, 1999 |\n| s. 221ZQA................ | ad. No. 123, 1984 |\n|  | rep. No. 11, 1999 |\n| s. 221ZQB................ | ad. No. 123, 1984 |\n|  | rep. No. 120, 1995 |\n| ss. 221ZXH–221ZXJ......... | ad. No. 85, 1998 |\n|  | rep. No. 11, 1999 |\n| Div. 7 of Part VI............  (s. 221ZY) | ad. No. 2, 1989  rs. No. 138, 1992 |\n|  | rep. No. 11, 1999 |\n| s. 221ZY................. | ad. No. 2, 1989 |\n|  | rs. No. 138, 1992 |\n|  | am. No. 116, 1993; No. 138, 1994; No. 45, 1998; No. 106, 2000 |\n|  | rep. No. 11, 1999 |\n| s. 222AJC................ | ad. No. 32, 1993 |\n|  | am. No. 138, 1994; No. 47, 1998 |\n|  | rep. No. 11, 1999 |\n| s. 223................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rs. No. 123, 1984 |\n|  | am. No. 49, 1984; No. 20, 1990; No. 5, 1991 |\n|  | rep. No. 101, 1992 |\n| s. 223A.................. | ad. No. 62, 1987 |\n|  | am. No. 95, 1988 |\n|  | rep. No. 30, 1995 |\n| Part VII..................  (ss. 222–251) | rep. No. 123, 1984 |\n| ss. 222–226............... | rep. No. 123, 1984 |\n| s. 226A.................. | ad. No. 101, 1992 |\n|  | am. No. 11, 1999 |\n|  | rep. No. 91, 2000 |\n| ss. 227, 228............... | rep. No. 123, 1984 |\n| s. 229................... | am. No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| s. 230................... | am. No. 143, 1965; No. 87, 1978; No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| ss. 231, 232............... | am. No. 143, 1965; No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| s. 233................... | am. No. 44, 1951; No. 143, 1965; No. 216, 1973 (as am. by No. 20, 1974); No. 165, 1976; No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| s. 234................... | am. No. 44, 1951; No. 143, 1965; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rs. No. 165, 1976 |\n|  | rep. No. 123, 1984 |\n| s. 235................... | rs. No. 165, 1976 |\n|  | rep. No. 123, 1984 |\n| s. 236................... | am. No. 44, 1951; No. 216, 1973 (as am. by No. 20, 1974) |\n|  | rep. No. 123, 1984 |\n| s. 237................... | am. No. 44, 1951; No. 216, 1973 (as am. by No. 20, 1974); No. 165, 1976 |\n|  | rep. No. 123, 1984 |\n| ss. 238–246............... | rep. No. 123, 1984 |\n| s. 247................... | am. No. 34, 1963; No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| s. 248................... | am. No. 143, 1965; No. 108, 1981 |\n|  | rep. No. 123, 1984 |\n| ss. 249, 250............... | rep. No. 123, 1984 |\n| s. 251................... | am. No. 87, 1978 |\n|  | rep. No. 123, 1984 |\n| s. 251H.................. | ad. No. 10, 1943 |\n|  | rep. No. 216, 1973 |\n| Part VIIB.................  (ss. 251–251Z,   251ZA–251ZH, 251ZJ) | ad. No. 53, 1976   rep. No. 51, 1983 |\n| ss. 251R–251X............. | ad. No. 53, 1976 |\n|  | rep. No. 51, 1983 |\n| s. 251Y.................. | ad. No. 53, 1976 |\n|  | rep. No. 98, 1976 |\n| s. 251Z.................. | ad. No. 53, 1976 |\n|  | rep. No. 98, 1976 |\n| ss. 251ZA–251ZE........... | ad. No. 53, 1976 |\n|  | rep. No. 98, 1976 |\n| ss. 251ZF, 251ZG........... | ad. No. 53, 1976 |\n|  | rep. No. 51, 1983 |\n| s. 251ZH................. | ad. No. 53, 1976 |\n|  | rs. No. 98, 1976 |\n|  | rep. No. 51, 1983 |\n| s. 251ZJ................. | ad. No. 53, 1976 |\n|  | rep. No. 51, 1983 |\n| s. 253................... | rep. No. 88, 1936 |\n| s. 256................... | am. No. 50, 1942; No. 4, 1968; No. 108, 1981 |\n|  | rep. No. 154, 1986 |\n| s. 261................... | am. No. 51, 1973; No. 108, 1981 |\n|  | rep. No. 76, 1996 |\n| s. 264B, 264C.............. | ad. No. 174, 1997 |\n|  | rep. No. 91, 2000 |\n| s. 265B.................. | ad. No. 37, 1945 |\n|  | rep. No. 87, 1978 |\n| s. 279C.................. | ad. No. 105, 1989 |\n|  | rep. No. 61, 1990 |\n| Note to s. 299A............. | rep. No. 44, 1999 |\n| Notes 1, 2 to s. 299A......... | ad. No. 44, 1999 |\n|  | rep. No. 89, 2000 |\n| s. 307................... | ad. No. 105, 1989 |\n|  | rep. No. 46, 1998 |\n| ss. 312–314............... | ad. No. 105, 1989 |\n|  | rep. No. 46, 1998 |\n| ss. 415–417............... | ad. No. 5, 1991 |\n|  | am. No. 170, 1995 |\n|  | rep. No. 46, 1998 |\n| s. 420................... | ad. No. 5, 1991 |\n|  | rep. No. 48, 1991 |\n| s. 431B.................. | ad. No. 190, 1992 |\n|  | rep. No. 138, 1994 |\n| Div. 8 of Part XI............  (ss. 512, 513) | ad. No. 190, 1992  rep. No. 155, 1997 |\n| ss. 512, 513............... | ad. No. 190, 1992 |\n|  | rep. No. 155, 1997 |\n| Heading to The Schedule...... | rep. No. 4, 1945 |\n| Heading to The First.........  Schedule | ad. No. 4, 1945  rep. No. 51, 1973 |\n| Heading to The Second.......  Schedule | rep. No. 51, 1973 |\n| The Third Schedule.......... | ad. No. 11, 1947 |\n|  | rep. No. 81, 1953 |\n| Schedule 6................ | ad. No. 190, 1992 |\n|  | rep. No. 155, 1997 |","sortOrder":1000170}],"analysis":{"kimi_summary":{"_metrics":{"completionTokens":700},"content_quality":"ok","complexity_score":9,"scope_assessment":{"changed":true,"description":"The legislation has grown far beyond its original 1936 scope as a consolidated income tax law. It now contains extensive international tax rules (CFCs, FIFs, transfer pricing), complex corporate rules (franking, streaming, demergers), superannuation provisions, and anti-avoidance measures that were not contemplated in the original Act. The 1997 Act was meant to replace it, but this Act remains essential for many areas, creating a permanent dual-system that increases complexity."},"complexity_factors":["Dual-Act system requiring constant cross-referencing between 1936 and 1997 Acts","Extensive defined terms section with 100+ definitions, many referencing other legislation","Multiple overlapping exemption regimes with conditional logic (e.g., sections 23AA-23AG)","Complex dividend streaming and franking rules with multiple anti-avoidance provisions","International tax rules involving CFCs, FIFs, foreign branches, and attribution accounting","Nested exceptions and deeming provisions throughout (e.g., section 47A on CFC distributions)","Mathematical formulas for calculating deductions, rebates, and apportionment","Substantial transitional provisions preserving old law for existing arrangements","Seven-volume compilation with schedules and extensive endnotes"],"plain_english_summary":"This is the **Income Tax Assessment Act 1936**, one of Australia's two main income tax laws (the other being the 1997 Act). Think of it as the 'old' tax law that still contains many important rules.\n\n**What it does:**\n- Sets out **who pays tax** and **what income is taxable**\n- Contains special rules for **companies, trusts, partnerships, and superannuation funds**\n- Deals with **international tax matters** — including when foreign income is taxed in Australia\n- Includes **anti-avoidance rules** to stop people artificially reducing their tax\n- Governs **deductions** (what expenses you can claim)\n- Contains **franking and dividend rules** (how company profits are taxed when distributed to shareholders)\n\n**Key areas covered in this excerpt:**\n- **Exemptions** for certain income (e.g., foreign earnings for Australians working overseas on approved projects, Defence Force pay for certain overseas duty)\n- **Dividend rules** — including complex rules about 'streaming' benefits to some shareholders and not others\n- **Deductions** — what you can and can't claim, including special limits on car expenses and entertainment\n- **International tax** — rules for foreign branches, controlled foreign companies, and attribution of foreign income\n- **Trust and partnership rules** — how income flows through to beneficiaries and partners\n- **Anti-avoidance** — rules to stop artificial arrangements that reduce tax\n\n**Who it affects:**\n- **All Australian taxpayers** — individuals, companies, trusts, and super funds\n- **Foreign residents** with Australian income\n- **Anyone with international investments or business operations**\n\n**Why it matters:**\nThis Act works alongside the 1997 Act. Many modern tax rules are in the 1997 Act, but important legacy provisions remain here — especially for international tax, trusts, and specific exemptions. The two Acts cross-reference each other constantly, making Australian income tax law a complex dual-system."},"flash_summary":{"complexity_score":9,"scope_assessment":{"changed":false,"description":"Based on the supplied text, the Act's scope is to define tax concepts, allocate administration to the Commissioner, and set specific inclusion/valuation and election rules for various income types (see s1, s6(1), s8). The Act also clarifies limits on how its definitions apply to the 1997 Act (s6(1AA)) and coordinates certain offsets (s6D). The notes do not show an expansion or contraction of scope beyond those mechanical functions, so there is no evidence here of a change in scope from the Act's framing as a detailed income‑tax statute."},"complexity_factors":["Extensive, highly detailed definitions that change the application of many provisions (s6(1) and numerous sub‑definitions)","Multiple deeming and attribution rules that reassign income by beneficial ownership, residency or equity status (s6B, s6F, s6(6))","Cross‑Act interactions and explicit limits on cross‑application (s6(1AA); s6D), requiring co‑ordination with the 1997 Act and Taxation Administration Act","Several elective, alternative methods for taxpayers (meal/entertainment methods s51AEA–51AEC; register percentage calculations s51AEB), increasing choice complexity and record‑keeping","Valuation rules for non‑cash business benefits that require arm’s length valuation and specified reductions (s21A)","Targeted narrow rules with detailed tests (dual resident investment companies s6F; recognised credit unions s6H; royalty and natural resource sourcing s6C, s6CA)","Administrative discretions and delegated rule‑making powers (Commissioner approvals, legislative instruments under s6(2AB), allocation decisions s6BA(3))","Anti‑avoidance and special application clauses that recharacterise payments (s6(4) and bonus share treatment s6BA)","Separate treatment of specialised financial instruments (traditional security rules s26B) that intersect with market definitions and timing"],"plain_english_summary":"What this law does, in plain language:\n\n- This Act is the long, detailed rulebook that defines who pays income tax, what counts as income, how amounts are calculated, and how the tax system is administered (see s1, s6 and many defined terms). It sets definitions for companies, trusts, residents, capital gains, deductible items, taxable income and many other core tax concepts (s6(1)).\n\n- The Commissioner of Taxation runs the system: the Commissioner administers the Act (s8), may approve alternative accounting years (s18), and is given some rule‑making and decision powers (for example, to make legislative instruments modifying specific provisions for limited partnerships with short accounting periods (s6(2AB)–(2AC)) and to treat allocations of cost between original and bonus shares where relevant (s6BA(3))). The Commissioner must also prepare an annual report on how the Act is working (including breaches and evasions) for the Minister (s14).\n\n- The Act spells out source and attribution rules for certain categories of income. Examples include foreign income and foreign tax definitions (s6AB), rules that treat certain income or royalties paid to non‑residents as Australian‑sourced (s6C, s6CA), and deeming rules that re‑attribute income based on beneficial ownership or equity interests (s6B). These rules mechanically decide which country’s tax system can tax a particular amount.\n\n- The Act provides detailed valuation and inclusion rules for particular cases. Examples in the notes: how to value and include non‑cash business benefits in income (s21A); how bonus shares are treated for tax cost and assessable amounts (s6BA); inclusion of gains from certain ‘‘traditional securities’’ (s26B); and special deductions or methods for entertainment and meal expenses (s51AEA, s51AEB, s51AEC). These provisions give taxpayers optional methods or mandatory treatments that change how much taxable income is reported.\n\n- The Act contains targeted categories and carve‑outs: special rules for dual resident investment companies (s6F), recognised credit unions with notional taxable income thresholds (s6H), persons connected with specified United States Government projects (s23AA), and definitions that limit how terms in this Act apply to other tax laws (for example s6(1AA) limits the use of meanings in the 1997 Act).\n\nWhy this matters and who it affects (mechanically):\n\n- Who pays or benefits: The Act applies to a broad set of taxpayers — individuals, companies, partnerships, trusts, superannuation funds and other entities — by defining taxable income, allowable deductions, offsets and assessment rules (s6(1), s18, s21A). Specific provisions create distinct treatments for narrow groups (e.g. credit unions s6H; dual resident investment companies s6F; holders of traditional securities s26B).\n\n- Who decides: The Commissioner makes administrative decisions and can be given power to make legislative instruments that modify how provisions operate in particular situations (s8; s6(2AB)–(2AC); s18). The Minister receives and tables the Commissioner’s annual report (s14).\n\n- Behaviour the law changes: Taxpayers will choose tax methods and keep records to match the treatments the Act specifies. Examples: choosing a register method or the 50% method for meal/entertainment deductions (s51AEA–51AEC); valuing non‑cash business benefits at an arm’s length amount (s21A); recognising whether a security meets the ‘‘traditional security’’ definition and including gains accordingly (s26B); complying with accounting‑period rules, particularly for certain partnership changes (s18, s18A).\n\nCosts, incentives and trade‑offs (mechanical effects and implementation points):\n\n- Compliance and record‑keeping burden: The Act’s many precise definitions and optional methods mean taxpayers must collect evidence and make calculations to apply the right rule (examples: arm’s length valuation and reduction calculations under s21A; maintaining a 12‑week register for meal entertainment if electing that method under s51AEB; tracking share cost allocations under s6BA). These are direct compliance costs borne by taxpayers who use those provisions.\n\n- Administrative discretion and implementation risk: The Commissioner has powers that affect application (approval of accounting periods s18; making legislative instruments for short accounting periods s6(2AB); allocation decisions for bonus shares s6BA(3)). That discretion creates implementation points where taxpayers rely on administrative rulings or instruments and face uncertainty until the Commissioner acts.\n\n- Targeted versus general rules and substitution effects: Several provisions are narrowly targeted (credit unions s6H; dual resident investment companies s6F; specific treatment of royalties and natural resource income s6C, s6CA). Where narrow rules apply, taxpayers near the boundary may change structures or behaviour to qualify or avoid qualification; the text provides the mechanical tests that determine outcomes (e.g. related/control tests in s6F(2)–(3)).\n\n- Cross‑law interaction and scope limits: The Act expressly limits how some of its definitions interact with the Income Tax Assessment Act 1997 (s6(1AA)) and treats offsets from the 1997 Act as credits for the 1936 Act in some cases (s6D). These cross‑references create both coordination needs and potential complexity when applying multiple statutes together.\n\nKey implementation and compliance levers (section pointers):\n\n- Commissioner administration and instruments (s8; s6(2AB)–(2AC); s18).\n- Valuation and non‑cash income rules that affect businesses (s21A).\n- Specific inclusion/treatment rules affecting foreign/royalty/natural resource income and residency (s6AB; s6C; s6CA; s6B; s6F).\n- Elective deduction methods for meal/entertainment and entertainment facility expenses (s51AEA–51AEC).\n- Treatment of bonus shares and traditional securities (s6BA; s26B).\n\nNet effect mechanically: the Act constructs the tax base by defining taxable events, providing valuation rules and elections, assigning administrative responsibilities to the Commissioner, and specifying when income is treated as Australian‑sourced or otherwise reallocated. These mechanical rules determine who reports what amount of income, what deductions are available, and which administration and compliance routes apply."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-assessment-act-1936","history":"/api/acts/income-tax-assessment-act-1936/history","analysis":"/api/acts/income-tax-assessment-act-1936/analysis","conflicts":"/api/acts/income-tax-assessment-act-1936/conflicts","importantCases":"/api/acts/income-tax-assessment-act-1936/important-cases","documents":"/api/acts/income-tax-assessment-act-1936/documents"}}