156 Rebate of tax for, or complementary tax payable by, certain primary producers
157 Application of Division to primary producers
158 Application of Division
158A Election that Division not apply
Division 16D—Certain arrangements relating to the use of property
159GE Interpretation
159GEA Division applies to certain State/Territory bodies
159GF Residual amounts
159GG Qualifying arrangements
159GH Application of Division in relation to property
159GJ Effect of application of Division on certain deductions etc.
159GK Effect of application of Division on assessability of arrangement payments
159GL Special provision relating to Division 10C or 10D property
159GM Special provision where cost of plant etc. is also eligible capital expenditure
159GN Effect of use of property under qualifying arrangement for producing assessable income
159GO Special provisions relating to partnerships
Division 16E—Accruals assessability etc. in respect of certain security payments
159GP Interpretation
159GQ Tax treatment of holder of qualifying security
159GQA Accrual period
159GQB Accrual amount
159GQC Implicit interest rate for fixed return security
159GQD Implicit interest rate for variable return security
159GR Consequences of actual payments
159GS Balancing adjustments on transfer of qualifying security
159GT Tax treatment of issuer of a qualifying security
159GU Effect of Division on certain transfer profits and losses
159GV Consequence of variation of terms of security
159GW Effect of Division in relation to non‑residents
159GX Effect of Division where certain payments not assessable
159GY Effect of Division where qualifying security is trading stock
159GZ Stripped securities
Division 16J—Effect of cancellation of subsidiary’s shares in holding company
159GZZZC Interpretation—general
159GZZZD Meaning of eligible entity, eligible interest and eligible proportion
159GZZZE Share cancellations to which this Division applies
159GZZZF Effect on subsidiary of share cancellations to which this Division applies
159GZZZG Pre‑cancellation disposals of eligible interests
159GZZZH Post‑cancellation disposals of eligible interests etc.
159GZZZI Additional application of sections 159GZZZG and 159GZZZH to associates
Division 16K—Effect of buy‑backs of shares
Subdivision AA—Application of Division to non‑share equity interests
159GZZZIA Application of Division to non‑share dividends
Subdivision A—Interpretation
159GZZZJ Interpretation
159GZZZK Explanation of terms
159GZZZL Special buy‑backs not made in ordinary course of trading on a stock exchange
159GZZZM Purchase price in respect of buy‑back
Subdivision B—Company buying‑back shares
159GZZZN Buy‑back and cancellation disregarded for certain purposes
Subdivision C—Off‑market purchases
159GZZZP Part of off‑market purchase price is a dividend if the company is not a listed public company
159GZZZPA No part of off‑market purchase price is a dividend if the company is a listed public company
159GZZZQ Consideration in respect of off‑market purchase
Subdivision D—On‑market purchases
159GZZZR No part of on‑market purchase price is a dividend
159GZZZS Consideration in respect of on‑market purchase
Division 17—Rebates
Subdivision A—Concessional rebates
159H Application
Subdivision AB—Lump sum payments in arrears
159ZR Interpretation
159ZRA Eligibility for rebate
159ZRB Calculation of rebate
159ZRC Notional tax amount for recent accrual years
159ZRD Notional tax amount for distant accrual years
Subdivision B—Miscellaneous
160AAAA Tax rebate for low income aged persons and pensioners
160AAAB Tax rebate for low income aged persons and pensioners—trustees assessed under section 98
160AAA Rebate in respect of certain benefits etc.
160AAB Rebate in respect of amounts assessable under section 26AH
160AD Maximum amount of rebates
160ADA Most tax offsets under the 1997 Assessment Act are treated as rebates
Part IIIB—Australian branches of foreign banks
Division 1—Preliminary
160ZZVA Object
160ZZVB Application
160ZZV Definitions
160ZZW Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity
Division 2—Provisions relating to income tax
160ZZX Income of branch to have Australian source
160ZZZ Notional borrowing by branch from bank
160ZZZA Notional payment of interest by branch to bank
160ZZZC Offshore banking units
160ZZZE Notional derivative transactions between branch and bank
160ZZZF Notional foreign exchange transactions between branch and bank
160ZZZG Losses
160ZZZH Net capital losses
160ZZZI Certain transactions to be disregarded
Division 3—Provisions relating to withholding tax
160ZZZJ Withholding tax on interest paid by branch to bank
Division 4—Extension of Part to Australian branches of foreign financial entities
160ZZZK Treatment like Australian branches of foreign banks
Division 5—Modifications relating to hybrid mismatch rules
160ZZZL Certain “hybrid mismatch” deductions denied
160ZZZN Adjusting if Australian branch derives dual inclusion income in a later year
160ZZZP Dual inclusion income not to be applied more than once
160ZZZR Interpretation
Part IV—Returns and assessments
161 Annual returns
161A Form and content of returns
161AA Contents of returns of full self‑assessment taxpayers
161G Tax agent to give taxpayer copy of notice of assessment
162 Further returns and information
163 Special returns
166 Assessment
166A Deemed assessment
167 Default assessment
168 Special assessment
169 Assessments on all persons liable to tax
169AA Consolidated assessments
169A Reliance by Commissioner on returns and statements
170 Amendment of assessments
170A Amendment of assessments—interaction with other Acts
170B Protection for anticipation of certain discontinued announcements
170C Power of Commissioner to reduce amount of tax payable in certain cases
171 Where no notice of assessment served
171A Limited period to make assessments for nil liability returns for the 2003‑04 year of income or earlier
172 Refunds of amounts overpaid
172A Consequences of amendment of assessments of tax offset refunds
173 Amended assessment to be an assessment
174 Notice of assessment
175 Validity of assessment
175A Objections against assessments
Part IVA—Schemes to reduce income tax
177A Interpretation
177B Operation of Part
177C Tax benefits
177CB The bases for identifying tax benefits
177D Schemes to which this Part applies
177DA Schemes that limit a taxable presence in Australia
177E Stripping of company profits
177EA Creation of franking debit or cancellation of franking credits
177EB Cancellation of franking credits—consolidated groups
177F Cancellation of tax benefits etc.
177G Amendment of assessments
177H Diverted profits tax—objects
177J Diverted profits tax—application
177K Diverted profits tax—$25 million income test
177L Diverted profits tax—sufficient foreign tax test
177M Diverted profits tax—sufficient economic substance test
177N Diverted profits tax—consequences
177P Diverted profits tax—liability
177Q Diverted profits tax—general interest charge on unpaid diverted profits tax or shortfall interest charge
177R Diverted profits tax—when shortfall interest charge is payable
Part VA—Tax file numbers
Division 1—Preliminary
202 Objects of this Part
202A Interpretation
202AA Definition of eligible PAYG payment
202AB Declaration that an arrangement is, or is not, a unit trust
Division 2—Issuing of tax file numbers
202B Application for tax file number
202BA Issuing of tax file numbers
202BB Current tax file number
202BC Deemed refusal by Commissioner
202BD Interim notices
202BE Cancellation of tax file numbers
202BF Alteration of tax file numbers
Division 3—Quotation of tax file numbers by recipients of eligible PAYG payments
202C TFN declarations by recipients of eligible PAYG payments
202CA Operation of TFN declaration
202CB Quotation of tax file number in TFN declaration
202CC Making a replacement TFN declaration in place of an ineffective declaration
202CD Sending of TFN declaration to Commissioner
202CE Effect of incorrect quotation of tax file number
202CEA Validation notices
202CF Payer must notify Commissioner if no TFN declaration by recipient
202CG Disclosing recipients’ tax file numbers to payers
Division 4—Quotation of tax file numbers in connection with certain investments
202D Explanation of terms: investment, investor, investment body
202DB Quotation of tax file numbers in connection with investments
202DC Method of quoting tax file number
202DD Investor excused from quoting tax file number in certain circumstances
202DDB Quotation of tax file number in connection with indirectly held investment
202DE Securities dealer to inform the investment body of tax file number
202DF Effect of incorrect quotation of tax file number
202DG Investments held jointly
202DH Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments
202DHA Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes
202DI Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits
202DJ Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes
Division 4A—Quotation of tax file numbers in connection with farm management deposits
202DL Quotation of tax file number
202DM Effect of incorrect quotation of tax file number
Division 4B—Quotation of tax file numbers in connection with certain closely held trusts
202DN Application of Division
202DO Quotation of tax file numbers
202DP Trustee must report quoted tax file numbers
202DR Effect of incorrect quotation of tax file number
Division 5—Exemptions
202EA Persons receiving certain pensions etc.—employment
202EB Persons receiving certain pensions etc.—investments
202EC Entities not required to lodge income tax returns
202EE Non‑residents
202EG Manner of completing declarations
202EH Declarations under this Division to be retained in certain circumstances
Division 6—Review of decisions
202F Review of decisions
202FA Statements to accompany notification of decisions
Division 8—Tax file number sharing and verification
203 Verification of tax file numbers
204 Disclosure of tax file numbers to certain registrars
Part III—Liability to taxation
Division 10E—PDFs (pooled development funds)
Subdivision A—Shares in PDFs
124ZM Treatment distributions to shareholders in PDF
Unfranked part of distribution exempt from income tax
(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.
Rest of section deals with franked part
(2) The rest of this section applies to the franked part of the distribution.
Usual case
(3) Subsection (4) applies if the assessable income of a year of income of a taxpayer who or that is:
(a) a company or a natural person (other than a company or natural person in the capacity of a trustee); or
(c) a public trading trust in relation to that year of income; or
(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;
would (apart from subsection (4)) include:
(e) the franked part of the distribution; or
(f) any of the franked part of the distribution that flows indirectly to the taxpayer.
This subsection does not apply to cases dealt with in subsections (5) and (6).
(4) Subject to subsection (7), the following is exempt income of the taxpayer:
(a) if paragraph (3)(e) applies—the franked part;
(b) if paragraph (3)(f) applies—so much of the franked part of the distribution as flows indirectly to the taxpayer.
Taxpayers who qualify for venture capital franking tax offset
(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:
(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
(b) if the franked part exceeds the amount so exempt—the excess is, subject to subsection (7), exempt income of the taxpayer.
(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:
(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:
Start formula Venture capital franked part times start fraction Complying superannuation class of taxable income over Total income end fraction end formula
where:
complying 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.
venture capital franked part is the part of the distribution that is franked with a venture capital credit.
total income is the life assurance company’s assessable income for the year of income in which the distribution is made; and
(b) if the franked part exceeds the amount so exempt—the excess is, subject to subsection (7), exempt income of the life assurance company.
No exemption if return prepared on basis that amount assessable
(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.
Where partner entitled to deduction for amount flowing indirectly
(8) If:
(a) any of the franked part of the distribution flows indirectly to a taxpayer who is a partner in a partnership; and
(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
(c) the taxpayer is of a kind mentioned in any of paragraphs (3)(a) to (d);
the amount that flows indirectly is not allowable as a deduction from that assessable income.
(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.
Where trustee assessed on amount flowing indirectly
(10) If:
(a) any of the franked part of the distribution flows indirectly to the trustee of a trust estate; and
(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;
the trustee is not liable under that section to be assessed and to pay tax on the amount that flows indirectly.
(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.
(12) An election must be made in the trustee’s return of income of the trust estate for the year of income concerned.
Interpretation
(13) In this section:
flows indirectly has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.