(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.
160ZZZN Adjusting if Australian branch derives dual inclusion income in a later year
(1) There is an adjustment under subsection (2) for the Australian branch in a year of income (the adjustment year) if:
(a) an amount of a deduction was not allowable for the branch in an earlier year of income under subsection 160ZZZL(2); and
(b) this Part applies in the calculation of the foreign bank’s taxable income in the adjustment year; and
(c) an amount of income or profits of the Australian branch is:
(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
(ii) subject to foreign income tax for the purposes of that subsection in the foreign country in which the foreign bank is a resident.
(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.
(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).
160ZZZP Dual inclusion income not to be applied more than once
(1) For the purposes of paragraphs 160ZZZL(3)(c) and 160ZZZN(1)(c), an amount of income or profits is to be disregarded if:
(a) the amount is dual inclusion income; and
(b) the amount has been applied by a provision of Division 832 of the Income Tax Assessment Act 1997.
(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).
160ZZZR Interpretation
In this Division:
dual inclusion income has the same meaning as in the Income Tax Assessment Act 1997.
foreign income tax deduction has the same meaning as in the Income Tax Assessment Act 1997.
subject to Australian income tax has the same meaning as in the Income Tax Assessment Act 1997.
subject to foreign income tax has the same meaning as in the Income Tax Assessment Act 1997.
(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.
Note: The Commissioner may defer the time for giving the return: see section 388‑55 in Schedule 1 to the Taxation Administration Act 1953.
(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.
(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.
(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.
Note: However, the rules applicable to a return under section 35D of the Superannuation Industry (Supervision) Act 1993 are those specified in that Act.
161A Form and content of returns
(1) The return must be in the approved form.
Electronic returns
(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.
161AA Contents of returns of full self‑assessment taxpayers
A full self‑assessment taxpayer must, in a return for a year of income, specify:
(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
(b) the amount of the tax payable on that taxable income or net income (or that no tax is payable); and
(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
(c) the amount of interest (if any) payable by the taxpayer under section 102AAM for that year of income; and
(d) for a company that is an RSA provider, or a trustee of a superannuation fund in relation to the year of income:
(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
(ii) the amount of the income tax payable on that income (or that no income tax is payable).
161G Tax agent to give taxpayer copy of notice of assessment
Where 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.
Penalty: 30 penalty units.
162 Further returns and information
A 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:
(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
(b) any information, statement or document about the person’s financial affairs.
163 Special returns
Every 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.
166 Assessment
From 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:
(a) the amount of the taxable income (or that there is no taxable income) of any taxpayer; and
(b) the amount of the tax payable thereon (or that no tax is payable); and
(c) the total of the taxpayer’s tax offset refunds (or that the taxpayer can get no such refunds).
166A Deemed assessment
(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:
(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
(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
(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.
(2) Where:
(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
(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:
the following provisions apply:
(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;
(b) the assessment is deemed to have been made on the day on which the return is lodged;
(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:
(i) under the hand of the Commissioner; and
(ii) served on the taxpayer on the day on which the Commissioner is deemed to have made the assessment.
(3) If:
(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
(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;
the following provisions apply:
(c) the Commissioner is taken to have made an assessment of:
(i) the taxable income or net income (or an assessment that there is no taxable income or net income); and
(ii) the tax payable on that income (or that no tax is payable); and
(iii) the total of the taxpayer’s tax offset refunds for the year of income (or that the taxpayer can get no such refunds);
in accordance with what the taxpayer specified in the return;
(d) the assessment is taken to have been made on the day on which the return is lodged;
(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:
(i) under the hand of the Commissioner; and
(ii) served on the taxpayer on the day on which the Commissioner is taken to have made the assessment.
167 Default assessment
If:
(a) any person makes default in furnishing a return; or
(b) the Commissioner is not satisfied with the return furnished by any person; or
(c) the Commissioner has reason to believe that any person who has not furnished a return has derived taxable income;
the 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.
168 Special assessment
(1) The Commissioner may at any time during any year, or after its expiration, make an assessment of:
(a) the taxable income derived (or that there is no taxable income) in that year or any part of it by any taxpayer; and
(b) the tax payable thereon (or that no tax is payable); and
(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).
(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.
169 Assessments on all persons liable to tax
Where 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).
169AA Consolidated assessments
(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:
(a) a non‑resident; or
(b) a person absent from Australia.
(2) The Commissioner may, if it appears to him or her to be expedient to do so:
(a) consolidate all or any of the assessments of the income, profits or gains; and
(b) declare one of the recipients to be the agent of the non‑resident or absent person in respect of the consolidated assessment; and
(c) require the agent to pay income tax on the amount assessed.
(3) If the Commissioner does so, the agent is liable to pay the tax.
169A Reliance by Commissioner on returns and statements
(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.
(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:
(a) that is relevant to the liability of the taxpayer in respect of the year of income; and
(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;
the Commissioner must give attention to that question.
(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.
170 Amendment of assessments
(1) The Commissioner may amend an assessment as follows: