78ACertain gifts not to be allowable deductions

78A Certain gifts not to be allowable deductions   An Act to consolidate and amend the law relating to the imposition assessment and collection of a tax upon incomes   Part I—Preliminary   1  Short title   This Act may be cited as the Income Tax Assessment Act 1936. 6  Interpretation  (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.  (1) In this Act, unless the contrary intention appears: 100% subsidiary has the same meaning as in the Income Tax Assessment Act 1997. adjusted 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. adjusted 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). AFOF means an Australian venture capital fund of funds within the meaning of subsection 118‑410(3) of the Income Tax Assessment Act 1997. agent: 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. allowable deduction has the same meaning as deduction has in the Income Tax Assessment Act 1997. AMIT (short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997. amount paid‑up on a share means the amount (if any), including any premium, paid on that share. amount unpaid on a share means the amount (if any) unpaid on that share. apportionable deductions has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. approved stock exchange has the same meaning as in the Income Tax Assessment Act 1997. assessable income has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. assessment means:  (a) the ascertainment:  (i) of the amount of taxable income (or that there is no taxable income); and  (ii) of the tax payable on that taxable income (or that no tax is payable); and  (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 Note 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. Note 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.  (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:  (i) of the net income of the trust (within the meaning of section 102M) (or that there is no net income); and  (ii) of the tax payable on that net income (or that no tax is payable); and  (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  (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:  (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  (ii) of the tax payable on that net income (or that no tax is payable); and  (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  (e) the ascertainment of the amount of interest payable under section 102AAM (about distributions from non‑resident trust estates); or  (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  (j) the ascertainment of the amount payable (or that no amount is payable) under the following:  (i) subsection 276‑105(2) of the Income Tax Assessment Act 1997 (AMIT trustee taxed on amounts attributed to foreign resident members);  (ii) subsection 276‑340(2) of that Act (AMIT trustee taxed on trust component deficit of character relating to tax offset);  (iii) subsection 276‑405(2) of that Act (AMIT trustee taxed on shortfall in determined member components of character relating to assessable income);  (iv) subsection 276‑410(2) of that Act (AMIT trustee taxed on excess in determined member components of character relating to tax offset);  (v) subsection 276‑415(2) of that Act (AMIT trustee taxed on amounts of determined trust component that are not reflected in member components);  (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);  (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  (k) the ascertainment of the amount payable under subsection 177P(1) (diverted profits tax). attribution managed investment trust: see AMIT. Australia has the same meaning as in the Income Tax Assessment Act 1997. Australian superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. bank 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. base interest rate has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. basic income tax liability has the meaning given by section 4‑10 of the Income Tax Assessment Act 1997. business has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. capital gain has the same meaning as in the Income Tax Assessment Act 1997. capital loss has the same meaning as in the Income Tax Assessment Act 1997. capital proceeds has the same meaning as in the Income Tax Assessment Act 1997. CGT asset has the same meaning as in the Income Tax Assessment Act 1997. CGT event has the same meaning as in the Income Tax Assessment Act 1997. Chief Executive Centrelink has the same meaning as in the Human Services (Centrelink) Act 1997. child has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. Commissioner means the Commissioner of Taxation. Commonwealth education or training payment has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. company has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. complying approved deposit fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. complying superannuation fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. consolidated group has the same meaning as in the Income Tax Assessment Act 1997. constituent 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. corporate limited partnership has the meaning given by section 94D. corporate tax entity has the same meaning as in the Income Tax Assessment Act 1997. corporate tax rate has the same meaning as in the Income Tax Assessment Act 1997. cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997. creditable acquisition has the meaning given by section 195‑1 of the GST Act. debenture, 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. debt interest has the same meaning as in the Income Tax Assessment Act 1997. deductible gift recipient has the meaning given by the Income Tax Assessment Act 1997. demerged entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997. demerger has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997. demerger allocation means:  (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  (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  (c) the total of both of those market values. demerger 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). demerger group has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997. demerger subsidiary has the meaning given by section 125‑65 of the Income Tax Assessment Act 1997. demerging entity has the meaning given by section 125‑70 of the Income Tax Assessment Act 1997. depreciating asset has the same meaning as in the Income Tax Assessment Act 1997. Deputy Commissioner means a Deputy Commissioner of Taxation. distribution, when used in a franking context, has the same meaning as in the Income Tax Assessment Act 1997. diverted profits tax has the meaning given by the Income Tax Assessment Act 1997. dividend includes:  (a) any distribution made by a company to any of its shareholders, whether in money or other property; and  (b) any amount credited by a company to any of its shareholders as shareholders;  (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  (e) moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:  (i) the company gives the holder of the share a notice when it redeems or cancels the share; and  (ii) the notice specifies the amount paid‑up on the share immediately before the cancellation or redemption; and  (iii) the amount is debited to the company’s share capital account;   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  (f) a reversionary bonus on a life assurance policy. Note: Subsection (4) sets out when paragraph (d) of this definition does not apply.