Column 1 Item Column 2 In this case: Column 3 the position is:
1 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following:(a) the taxpayer had an amount of taxable income, and that no tax was payable;(b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income;and the taxpayer did not deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the later of the following:(a) 31 October 2008;(b) the period of 4 years beginning on the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.
2 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following:(a) the taxpayer had an amount of taxable income, and that no tax was payable;(b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income;and the taxpayer did deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004‑05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.
3 The taxpayer had a tax loss in a nil year, none of which has been carried forward to the 2004‑05 year of income The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004‑05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.
4 (a) the taxpayer had a tax loss in a nil year, some or all of which has been carried forward to the 2004‑05 year of income; and(b) the taxpayer or, if the taxpayer is a member of a consolidated group at the end of the 2004‑05 year of income, the head company notifies the Commissioner, in the approved form, that the taxpayer or the head company had a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following:(a) the day on which the Commissioner received the notification;(b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year.
(2) Subsection (1) does not apply in relation to a nil year if:
(a) the Commissioner is of the opinion there has been fraud or evasion; or
(b) had the Commissioner made an assessment, in accordance with the taxpayer’s return of income, that the taxpayer had no taxable income or that no tax was payable by the taxpayer (assuming that such an assessment could have been made)—this Act would not have prevented the Commissioner amending the assessment at any time.
172 Refunds of amounts overpaid
(1) Where, by reason of an amendment of an assessment, a person’s liability to tax (the earlier liability) is reduced:
(a) the amount by which the tax is so reduced is taken never to have been payable for the purposes of:
(i) provisions of this Act that apply the general interest charge; and
(ii) Division 280 in Schedule 1 to the Taxation Administration Act 1953 (which applies the shortfall interest charge); and
(b) the Commissioner must apply the amount of any tax overpaid in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953.
(1A) However, if a later amendment of an assessment is made and all or some of the person’s earlier liability in relation to a particular is reinstated, paragraph (1)(a) is taken not to have applied, or not to have applied to the extent that the earlier liability is reinstated.
(2) In subsection (1), unless the contrary intention appears, tax includes the general interest charge under a provision of this Act, additional tax under Part VII and shortfall interest charge.
Note 1: The general interest charge is worked out under of Part IIA of the Taxation Administration Act 1953.
Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
172A Consequences of amendment of assessments of tax offset refunds
Amendment increases total of tax offset refunds
(1) If, by reason of an amendment of an assessment, the total of a person’s tax offset refunds is increased, the Commissioner must apply the amount of the increase in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953.
Note: Interest on the amount of the increase may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983.
Amendment reduces total of tax offset refunds
(2) If:
(a) by reason of an amendment of an assessment, the total of a person’s tax offset refunds is reduced; and
(b) as a result, an amount applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 before the amendment was excessive;
the person is liable to pay to the Commonwealth the amount of the excess. The amount is due 21 days after the Commissioner gives the person notice of the amended assessment.
Note: For provisions about collection and recovery of the amount, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
Shortfall interest charge
(2A) If:
(a) a person is liable to pay an amount under subsection (2); and
(b) as a result, the person is liable to pay shortfall interest charge on that amount under section 280‑102F in Schedule 1 to the Taxation Administration Act 1953;
then the shortfall interest charge is due and payable 21 days after the day on which the Commissioner gives the person notice of the charge.
Note: Shortfall interest charge is worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953.
General interest charge
(3) If any of the amount (the overpayment) the person is liable to pay under subsection (2), or any amount of shortfall interest charge on the overpayment, remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) starts at the beginning of the day on which the overpayment or shortfall interest charge was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the overpayment or shortfall interest charge;
(ii) general interest charge on any of the overpayment or shortfall interest charge.
Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.
173 Amended assessment to be an assessment
Except as otherwise provided every amended assessment shall be an assessment for all the purposes of this Act.
174 Notice of assessment
(1) As soon as conveniently may be after any assessment is made, the Commissioner shall serve notice thereof in writing by post or otherwise upon the person liable to pay the tax.
(3) In subsection (1), tax includes additional tax under Part VII.
175 Validity of assessment
The validity of any assessment shall not be affected by reason that any of the provisions of this Act have not been complied with.
175A Objections against assessments
(1) A taxpayer who is dissatisfied with an assessment made in relation to the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.
(2) A taxpayer cannot object under subsection (1) against an assessment ascertaining that:
(a) the taxpayer has no taxable income; or
(b) the taxpayer has an amount of taxable income and no tax is payable.
(3) Subsection (2) does not prevent the taxpayer from objecting against an assessment if the taxpayer is seeking an increase in:
(a) the taxpayer’s liability; or
(b) the total of the taxpayer’s tax offset refunds.
Part IVA—Schemes to reduce income tax
177A Interpretation
(1) In this Part, unless the contrary intention appears:
associate has the same meaning as in Part X.
Australian customer, of a foreign entity, means another entity who:
(a) is in Australia, or is an Australian entity; and
(b) if the foreign entity is a member of a global group—is not a member of that global group.
Australian entity has the same meaning as in Part X.
Australian permanent establishment of an entity means:
(a) if:
(i) the entity is a resident in a country that has entered into an international tax agreement (within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997) with Australia; and
(ii) that agreement contains a permanent establishment article (within the meaning of that subsection);
a permanent establishment (within the meaning of that agreement) in Australia; or
(b) otherwise—a permanent establishment of the person in Australia.
capital loss has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
CMPTI tax offset has the same meaning as in the Income Tax Assessment Act 1997.
DPT base amount has the meaning given by subsection 177P(2).
DPT provisions means sections 177H, 177J, 177K, 177L, 177M, 177N, 177P, 177Q and 177R.
DPT tax benefit has the meaning given by subsection 177J(1).
entity has the meaning given by section 960‑100 of the Income Tax Assessment Act 1997.
foreign entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
foreign entity participant:
(a) if a beneficiary of a trust estate or a partner in a partnership is a foreign entity, the trust estate or partnership has a foreign entity participant; and
(b) if a trust estate or partnership has a foreign entity participant (including through a previous operation of this paragraph):
(i) a trust of which the trust estate or partnership is a beneficiary also has a foreign entity participant; and
(ii) a partnership in which the trust estate or partnership is a partner also has a foreign entity participant.
foreign income tax offset means a tax offset allowed under Division 770 of the Income Tax Assessment Act 1997.
foreign law has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
global group means a group of entities, at least one of which is a foreign entity, that are consolidated for accounting purposes as a single group.
hydrogen production tax offset has the same meaning as in the Income Tax Assessment Act 1997.
innovation tax offset means a tax offset allowed under:
(a) Subdivision 61‑P (about early stage venture capital limited partnerships) of the Income Tax Assessment Act 1997; or
(b) Subdivision 360‑A (about early stage investors in innovation companies) of that Act.
non‑refundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997, other than a refundable R&D tax offset.
refundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997 that is subject to the refundable tax offset rules under section 67‑30 of that Act.
scheme means:
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct.
significant global entity has the meaning given by section 960‑555 of the Income Tax Assessment Act 1997.
standard corporate tax rate means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of the Income Tax Rates Act 1986.
supply has the meaning given by section 9‑10 of the GST Act, but does not include any of the following, or of any combination of 2 or more of the following:
(a) a supply of an equity interest in an entity;
(b) a supply of a debt interest in an entity;
(c) a supply of an option for:
(i) a supply of a kind referred to in paragraph (a) or (b); or
(ii) any combination of 2 or more such supplies.
taxpayer includes a taxpayer in the capacity of a trustee.
(2) The definition of taxpayer in subsection (1) shall not be taken to affect in any way the interpretation of that expression where it is used in this Act other than this Part.
(3) The reference in the definition of scheme in subsection (1) to a scheme, plan, proposal, action, course of action or course of conduct shall be read as including a reference to a unilateral scheme, plan, proposal, action, course of action or course of conduct, as the case may be.
(4) A reference in this Part to the carrying out of a scheme by a person shall be read as including a reference to the carrying out of a scheme by a person together with another person or other persons.
(5) A reference in this Part (other than sections 177DA and 177J) to a scheme or a part of a scheme being entered into or carried out by a person for a particular purpose shall be read as including a reference to the scheme or the part of the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the dominant purpose.
177B Operation of Part
(1) Nothing in the following limit the operation of this Part:
(a) the provisions of this Act (other than this Part);
(b) the International Tax Agreements Act 1953.
(2) This Part does not affect the operation of Division 393 of the Income Tax Assessment Act 1997 (Farm management deposits).
(3) Where a provision of this Act other than this Part is expressed to have effect where a deduction would be allowable to a taxpayer but for or apart from a provision or provisions of this Act, the reference to that provision or to those provisions, as the case may be, shall be read as including a reference to subsection 177F(1).
(4) Where a provision of this Act other than this Part is expressed to have effect where a deduction would otherwise be allowable to a taxpayer, that provision shall be deemed to be expressed to have effect where a deduction would, but for subsection 177F(1), be otherwise allowable to the taxpayer.
177C Tax benefits
(1) Subject to this section, a reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as a reference to:
(a) an amount not being included in the assessable income of the taxpayer of a year of income where that amount would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out; or
(b) a deduction being allowable to the taxpayer in relation to a year of income where the whole or a part of that deduction would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or
(ba) a capital loss being incurred by the taxpayer during a year of income where the whole or a part of that capital loss would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out; or
(baa) a loss carry back tax offset being allowable to the taxpayer where the whole or a part of that loss carry back tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or
(bb) a foreign income tax offset being allowable to the taxpayer where the whole or a part of that foreign income tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or
(bbaa) an innovation tax offset being allowable to the taxpayer where the whole or a part of that innovation tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or
(bba) an exploration credit being issued to the taxpayer where the whole or a part of that exploration credit would not have been issued, or might reasonably be expected not to have been issued, to the taxpayer if the scheme had not been entered into or carried out; or
(bc) the taxpayer not being liable to pay withholding tax on an amount where the taxpayer either would have, or might reasonably be expected to have, been liable to pay withholding tax on the amount if the scheme had not been entered into or carried out; or
(bd) a refundable R&D tax offset, or a non‑refundable R&D tax offset, being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or
(be) a CMPTI tax offset being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or