(a) the statement is given by an AMIT for a year of income to an entity that is or was a member of the AMIT in respect of the year of income; and
(b) the statement is so given later than 3 months after the end of the year of income.
(11) Nothing in this section prevents the amendment, at any time, of an assessment to decrease the liability of a taxpayer for the purpose of giving effect to section 24 of the International Tax Agreements Act 1953.
(12) Nothing in this section prevents the amendment, at any time, of an assessment to increase the liability of a taxpayer if:
(a) the Commissioner amends a DPT assessment to decrease the liability of the taxpayer to diverted profits tax; and
(b) that increase is attributable to that decrease.
Definitions
(14) In this section, unless the contrary intention appears:
DPT assessment has the meaning given by the Income Tax Assessment Act 1997.
limited amendment period, for an assessment, means the period within which the Commissioner may amend the assessment:
(a) under item 1, 2, 3 or 4 of the table in subsection (1); or
(b) under paragraph (3)(a) or (b).
medium business entity, for a year of income, means an entity (within the meaning of the Income Tax Assessment Act 1997) who:
(a) is not a small business entity for the year of income; and
(b) would be a small business entity for the year of income if:
(i) each reference in Subdivision 328‑C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and
(ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity (within the meaning of that Act) covered by this definition.
scheme has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
scheme benefit has the meaning given by section 284‑150 in Schedule 1 to the Taxation Administration Act 1953.
170A Amendment of assessments—interaction with other Acts
Scope
(1) This section applies if a law other than section 170 or this section provides that section 170 does not prohibit the amendment of an assessment if the amendment is made:
(a) for a particular purpose; and
(b) within a particular period (the later amendment period).
Extensions—applications by taxpayer
(2) Section 170 does not prevent the Commissioner amending the assessment even though the later amendment period has ended if the taxpayer applies:
(a) before the end of the later amendment period; and
(b) in the approved form mentioned in subsection 170(5);
for an amendment for the purpose mentioned in paragraph (1)(a) of this section. The Commissioner may amend the assessment to give effect to the decision on the application.
Extensions—giving effect to private rulings
(3) The Commissioner may amend an assessment even though the later amendment period has ended if:
(a) the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953:
(i) before the end of the later amendment period; and
(ii) for the purpose mentioned in paragraph (1)(a); and
(b) the Commissioner makes a private ruling under that Division because of the application.
The Commissioner may amend the assessment to give effect to the ruling.
Extensions—Federal Court orders or taxpayer consent
(4) If:
(a) the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment for the purpose mentioned in paragraph (1)(a); and
(b) the Commissioner has not completed the examination before the end of the later amendment period or that period as extended;
the later amendment period may be extended as follows:
Extensions of later amendment period
In this case: The position is:
1 The Commissioner, before the end of the later amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the later amendment period The Court may order an extension of the later amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the later amendment period, or that period as extended, because of:(a) any action taken by the taxpayer; or(b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take.
2 The Commissioner, before the end of the later amendment period or that period as extended, requests the taxpayer to consent to extending the later amendment period The taxpayer may, by notice in writing, consent to extending the later amendment period for a specified period.
(5) The later amendment period for an assessment may be extended more than once under subsection (4).
170B Protection for anticipation of certain discontinued announcements
Limit on amending assessments
(1) The Commissioner cannot amend an assessment of a taxpayer about a particular in a way that would produce a less favourable result for the taxpayer if:
(a) the taxpayer has anticipated amendments (see subsection (3)); and
(b) in making the assessment, the particular was ascertained on the basis of the taxpayer’s anticipated amendments having been made; and
(c) that way of amending the assessment would instead ascertain the particular on the basis of the anticipated amendments not having been made.
Anticipation not to give rise to administrative overpayment
(2) If ascertaining that particular on the basis of the taxpayer’s anticipated amendments not having been made:
(a) would not result in an amendment of the assessment; but
(b) would, apart from this subsection, result in an amount the Commissioner paid to the taxpayer on the basis of the assessment being an administrative overpayment (within the meaning of section 8AAZN of the Taxation Administration Act 1953);
the amount of the administrative overpayment is taken, for the purposes of the taxation law, to be an amount to which the taxpayer is entitled.
Meaning of anticipated amendments
(3) One or more hypothetical amendments of the taxation law, taken together, are anticipated amendments a taxpayer has if:
(a) the amendments, if made, would reasonably reflect an announcement mentioned in the table in subsection (8); and
(b) a statement made by or on behalf of the taxpayer:
(i) is consistent with the amendments having been made; and
(ii) is made in good faith; and
(iii) meets the timing requirement in column 2 of an applicable item of the following table.
Timing requirements for statements
Item Column 1 In this case: Column 2 The timing requirement is:
1 The statement is made in a return lodged on or before 14 December 2013 The return:(a) is lodged in the period that the announcement is on foot (see subsection (8)); and(b) was not required to be lodged before the start of that period.
2 The statement is made otherwise than in a return The statement is made in the period that the announcement is on foot.
3 All of the following apply:(a) the statement is made in a return of the taxpayer lodged after 14 December 2013;(b) the return was not required to be lodged on or before that date;(c) just before the statement is made, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the year of income to which the statement relates The statement relates to the application of the taxation law (as hypothetically amended by the amendments) to events or circumstances:(a) that happened or existed on or before 14 December 2013; or(b) to the happening or existence of which the taxpayer had definitively committed on or before 14 December 2013.
(4) In determining, for the purpose of paragraph (3)(a), whether amendments would reasonably reflect an announcement, have regard to the following:
(a) the terms of the announcement;
(b) any related document published after the announcement on behalf of the Commonwealth Government, the Department of the Treasury or the Commissioner;
(c) if the announcement proposes to apply to a particular kind of scheme or practice—that kind of scheme or practice;
(d) existing provisions of the taxation law, if:
(i) the announcement proposes to effect a particular result in relation to the operation of the taxation law; and
(ii) those existing provisions effect that result, or a substantially similar result, in relation to another matter;
(e) any other relevant matter.
Operation of section
(5) Subsections (1) and (2) apply despite any other provision of the taxation law, apart from subsections (6) and (7), (which are about exceptions).
Exceptions
(6) Subsection (1) does not prevent an amendment if:
(a) the taxpayer applies for the amendment; or
(b) the Commissioner may make the amendment in accordance with item 6 (objection, review or appeal) of the table in subsection 170(1).
(7) Subsections (1) and (2) do not apply in relation to a particular ascertained on the basis of a taxpayer’s anticipated amendments, in any year of income, if:
(a) the taxpayer makes a statement (in a return of income or otherwise) for a later year of income that is not consistent with the taxpayer’s anticipated amendments; and
(b) if the assessment for the later year of income was to be made on the basis of the taxpayer’s anticipated amendments, instead of on the basis of the statement, the result would be less favourable to the taxpayer in that year of income.
Note: An amendment of an assessment can be made at any time to give effect to this subsection (see item 27A of the table in subsection 170(10)).
Table of discontinued announcements
(8) The following table lists the announcements to which this section applies. An announcement is on foot during the period:
(a) starting on the day mentioned in column 2 of the table for the announcement; and
(b) ending on 14 December 2013.
Discontinued announcements
Item Column 1 Announcement Column 2 Announcement date
1 Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Bad debts—ensuring consistent treatment in related party financing arrangements”. 8 May 2012
2 Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Capital gains tax—refinements to the income tax law in relation to deceased estates”, second dot point (which is about modifying application dates for 2 minor changes from the 2011‑12 Budget). 8 May 2012
3 The following constitute the announcement:(a) Media Release No. 137, issued by the then Assistant Treasurer on 9 October 2011, titled “No Capital Gains Tax for Properties in Natural Disaster Land Swap Programs”;(b) Budget Paper No. 2, Budget Measures 2012‑13, Part 1, topic headed “Capital gains tax—broadening relief for taxpayers affected by natural disasters”. 9 October 2011
4 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Income tax relief for water reforms”. 10 May 2011
5 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Capital gains tax and other roll‑overs for amalgamations of indigenous corporations”. 10 May 2011
6 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Securities lending arrangements tax rules—extending the scope to address insolvency issues”. 10 May 2011
7 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Capital gains tax—exemption for incentives related to renewable resources or for preserving environmental benefits”. 10 May 2011
8 Budget Paper No. 2, Budget Measures 2011‑12, Part 1, topic headed “Improvements to the company loss recoupment rules”, but not the sentence stating “This measure will modify the continuity of ownership test so that ownership does not need to be traced through certain superannuation entities.”. 10 May 2011
9 Mid‑Year Economic and Fiscal Outlook 2010‑11, Appendix A, Part 2, topic headed “Consolidation—operation of the rules following a demerger”. 9 November 2010
10 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2009‑10, Part 1, topic headed “Uniform capital allowance regime—technical changes”;(b) Media Release No. 048, issued by the then Assistant Treasurer on 12 May 2009, Attachment D headed “Technical changes to uniform capital allowance regime”. 12 May 2009
11 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2007‑08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”;(b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Extension of the single entity rule and entry history rule for certain CGT integrity provisions affecting third parties”. 8 May 2007
12 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2007‑08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”;(b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Trusts joining or leaving a consolidated group or MEC group part way through an income year”. 8 May 2007
13 The following constitute the announcement:(a) Budget Paper No. 2, Budget Measures 2006‑07, Part 1, topic headed “Simplified imputation system—franking credits available to life tenants”;(b) Media Release No. 010, issued by the then Minister for Revenue and Assistant Treasurer on 20 March 2006, titled “Franking credits available to life tenants”. 20 March 2006
(9) In this section:
anticipated amendments, in relation to a taxpayer, has the meaning given by subsection (3).
on foot, in relation to an announcement, has the meaning given by subsection (8).
taxation law has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
170C Power of Commissioner to reduce amount of tax payable in certain cases
For the purposes of the making of an assessment on or after 1 July 1966, the Commissioner may reduce by One cent the amount of tax that would, but for this section, be payable by a taxpayer being a person other than a company or being a company in the capacity of a trustee, before deducting any rebate or credit to which the taxpayer is entitled.
171 Where no notice of assessment served
(1) Where a taxpayer has duly furnished to the Commissioner a return of income, or of profits or gains of a capital nature, and no notice of assessment in respect thereof has been served within 12 months thereafter, the taxpayer may in writing by registered post request the Commissioner to make an assessment.
(2) If within 3 months after the receipt by the Commissioner of the request a notice of assessment is not served upon the taxpayer, any assessment issued thereafter in respect of that income, or of those profits or gains, shall be deemed to be an amended assessment, and for the purpose of determining whether such amended assessment may be made, the taxpayer shall be deemed to have been served on the last day of the 3 months with a notice of assessment in respect of which income tax was payable on that day.
171A Limited period to make assessments for nil liability returns for the 2003‑04 year of income or earlier
(1) If the circumstances set out in column 2 of the following table apply to a taxpayer in relation to the 2003‑04 year of income (a nil year) or an earlier year of income (also a nil year), the Commissioner cannot make an original assessment for that taxpayer for that year in the circumstances set out in column 3: