6Taxable amount

6 Taxable amount

(1) A taxable amount is any amount that meets all the following conditions: (a) a State is liable to repay the amount to a person (the taxpayer) because a State franchise law is wholly or partly invalid because of section 90 of the Constitution; (b) the amount is by way of repayment of an amount paid under the State franchise law before 5 August 1997 in respect of a licensing period commencing before 5 August 1997; (c) the amount is claimed by the taxpayer from the State, or a court orders the State to pay the amount to the taxpayer. (2) A taxable amount is reduced by deducting any part of it that a State would have been liable to repay even if the State franchise law were wholly valid.

Note: Example: An amount that is repayable solely because of an overpayment by the taxpayer would be deducted.