(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
(iii) paragraph (c) of the definition of taxable income were omitted;
would be the company’s taxable income of the PDF notional year is $1 or more—that amount; or
(b) otherwise—a nil amount.
permanent 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:
(a) a place where the person is carrying on business through an agent;
(b) a place where the person has, is using or is installing substantial equipment or substantial machinery;
(c) a place where the person is engaged in a construction project; and
(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;
but does not include:
(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;
(f) a place where the person is carrying on business through an agent:
(i) who does not have, or does not habitually exercise, a general authority to negotiate and conclude contracts on behalf of the person; or
(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;
not being a place where the person otherwise carries on business; or
(g) a place of business maintained by the person solely for the purpose of purchasing goods or merchandise.
Note: 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.
person has the same meaning as in the Income Tax Assessment Act 1997.
pooled superannuation trust has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
post FIF abolition credit means a post FIF abolition credit arising under:
(a) subsection 23AK(6); and
(b) subsection 717‑220(2) of the Income Tax Assessment Act 1997; and
(c) subsection 717‑255(2) of that Act.
post FIF abolition debit means a post FIF abolition debit arising under:
(a) subsection 23AK(2); and
(b) subsection 23B(1); and
(c) subsection 717‑220(3) of the Income Tax Assessment Act 1997; and
(d) subsection 717‑255(3) of that Act.
post FIF abolition surplus has the meaning given by section 23AK.
prescribed dual resident means a company that satisfies either of the following conditions:
(a) the first condition is that:
(i) the company is a resident of Australia within the meaning of subsection 6(1); and
(ii) there is an agreement (within the meaning of the International Tax Agreements Act 1953) in force in respect of a foreign country; and
(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
(iv) that provision has the effect that the company is, for the purposes of the agreement, a resident solely of the foreign country;
(b) the alternative condition is that the company:
(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
(ii) it is also a resident of another country; and
(iii) its central management and control is in another country.
primary production business has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
principal beneficiary of a special disability trust has the same meaning as in the Income Tax Assessment Act 1997.
private 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.
proclaimed superannuation standards day means 1 July 1990.
provider, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.
prudential standards has the same meaning as in the Income Tax Assessment Act 1997.
rebatable benefit has the meaning given by subsection 160AAA(1).
rebate income of an individual for a year of income is the sum of:
(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
(b) the individual’s reportable superannuation contributions for the year of income; and
(c) the individual’s total net investment loss for the year of income; and
(d) the individual’s adjusted fringe benefits total for the year of income.
recognised large credit union has the meaning given by section 6H.
recognised medium credit union has the meaning given by section 6H.
recognised small credit union has the meaning given by section 6H.
reduced cost base of a CGT asset has the same meaning as in the Income Tax Assessment Act 1997.
relative has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
reportable superannuation contributions has the same meaning as in the Income Tax Assessment Act 1997.
resident or resident of Australia means:
(a) a person, other than a company, who resides in Australia and includes a person:
(i) whose domicile is in Australia, unless the Commissioner is satisfied that the person’s permanent place of abode is outside Australia;
(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
(iii) who is:
(A) a member of the superannuation scheme established by deed under the Superannuation Act 1990; or
(B) an eligible employee for the purposes of the Superannuation Act 1976; or
(C) the spouse, or a child under 16, of a person covered by sub‑subparagraph (A) or (B); and
(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.
resident trust for CGT purposes has the same meaning as in the Income Tax Assessment Act 1997.
return on a debt interest or equity interest has the same meaning as in the Income Tax Assessment Act 1997.
return 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.
royalty 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:
(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;
(b) the use of, or the right to use, any industrial, commercial or scientific equipment;
(c) the supply of scientific, technical, industrial or commercial knowledge or information;
(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);
(da) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:
(i) satellite; or
(ii) cable, optic fibre or similar technology;
(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:
(i) satellite; or
(ii) cable, optic fibre or similar technology;
(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;
(e) the use of, or the right to use:
(i) motion picture films;
(ii) films or video tapes for use in connexion with television; or
(iii) tapes for use in connexion with radio broadcasting; or
(f) a total or partial forbearance in respect of:
(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);
(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);
(iia) the reception of, or the granting of the right to receive, any such visual images or sounds as are mentioned in paragraph (da);
(iib) the use of, or the granting of the right to use, any such visual images or sounds as are mentioned in paragraph (db);
(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
(iii) the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e).
RSA has the same meaning as in the Income Tax Assessment Act 1997.
Note: That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997.
RSA provider has the same meaning as in the Income Tax Assessment Act 1997.
Note: That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997.
Second Commissioner means a Second Commissioner of Taxation.
share in a company has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
share capital account has the same meaning as in the Income Tax Assessment Act 1997.
shareholder includes member or stockholder.
shareholders’ funds has the same meaning as in the Life Insurance Act 1995.
shortfall interest charge means the charge worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.
small business entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
social security law has the meaning given by the Social Security Act 1991.
special disability trust has the same meaning as in the Income Tax Assessment Act 1997.
spouse has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
statutory income has the meaning given by the Income Tax Assessment Act 1997.
Student Assistance Secretary has the meaning given by the Income Tax Assessment Act 1997.
subsidiary member of a consolidated group or a MEC group has the same meaning as in the Income Tax Assessment Act 1997.
superannuation benefits means individual personal benefits, pensions or retiring allowances.
superannuation fund means:
(a) a scheme for the payment of superannuation benefits upon retirement or death; or
(b) a superannuation fund within the definition of superannuation fund in section 10 of the Superannuation Industry (Supervision) Act 1993.
superannuation fund for foreign residents has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
superannuation lump sum has the same meaning as in the Income Tax Assessment Act 1997.
tainted, in relation to a company’s share capital account, has the same meaning as in the Income Tax Assessment Act 1997.
tax means income tax imposed as such by any Act, as assessed under this Act, but does not include mining withholding tax or withholding tax.
taxable Australian property has the same meaning as in the Income Tax Assessment Act 1997.
taxable income has the same meaning as in the Income Tax Assessment Act 1997.
taxable supply has the meaning given by section 195‑1 of the GST Act.
tax cost is set has the same meaning as in the Income Tax Assessment Act 1997.
tax loss has the same meaning as in the Income Tax Assessment Act 1997.
tax offset refund has the meaning given by the Income Tax Assessment Act 1997.
taxpayer means a person deriving income or deriving profits or gains of a capital nature.
this Act includes:
(a) the Income Tax Assessment Act 1997; and
(b) Part IVC of the Taxation Administration Act 1953, so far as that Part relates to:
(i) this Act or the Income Tax Assessment Act 1997; or
(ii) Schedule 1 to the Taxation Administration Act 1953; and
(c) Schedule 1 to the Taxation Administration Act 1953.
Note: 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.
total net investment loss has the same meaning as in the Income Tax Assessment Act 1997.
trading stock has the meaning given by section 70‑10 of the Income Tax Assessment Act 1997.
Tribunal means the Administrative Review Tribunal.
trustee 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:
(a) an executor or administrator, guardian, committee, receiver, or liquidator; and
(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;
unfranked part of a distribution has the same meaning as in the Income Tax Assessment Act 1997.
VCLP means a venture capital limited partnership within the meaning of subsection 118‑405(2) of the Income Tax Assessment Act 1997.
VCMP means a venture capital management partnership.
venture capital deficit tax has the same meaning as in the Income Tax Assessment Act 1997.
venture capital management partnership has the meaning given by subsection 94D(3).
Veterans’ Affairs Secretary means the Secretary of the Department administered by the Minister administering the Veterans’ Entitlements Act 1986.
withholding tax has the same meaning as in the Income Tax Assessment Act 1997.
work and income support related withholding payments and benefits means:
(a) payments from which an amount:
(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
(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
(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
(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).
Note: 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.
year of income means an income year as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997.
year of tax means the financial year for which income tax is levied.
(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.
(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:
(a) that commences or ends under section 18A; and
(b) that would, but for that section, form part of an accounting period so adopted.
(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.
(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.
(3) The express references in this Act to companies do not imply that references to persons do not include references to companies.
(4) Paragraph (d) of the definition of dividend in subsection (1) does not apply if, under an arrangement: