(d) the transferee must retain the notice, or a copy, until the end of 5 years after the earlier of:
(i) the transferee ceasing to be the owner or lessee of the part of the building; or
(ii) the destruction of the building.
(4AJ) The notice referred to in subsection (4AH) must be given within 6 months after the later of the following:
(a) the end of the year of income of the transferee in which the disposal occurred;
(b) the commencement of subsection (4AH);
or within such further period as the Commissioner allows.
(4AJA) If:
(a) a person (the transferor) disposes of capital works within the meaning of Division 43 of the Income Tax Assessment Act 1997, being capital works begun after 26 February 1992, to another person (the transferee); and
(b) a deduction has been allowed under former Division 10C or 10D of Part III of this Act, or under Division 43 of the Income Tax Assessment Act 1997, in respect of those capital works;
then:
(c) the transferor must give the transferee, within 6 months after the end of the year of income in which the disposal occurred or within a further period allowed by the Commissioner, a notice containing such information as will allow the transferee to work out how Division 43 of the Income Tax Assessment Act 1997 will apply to the transferee in respect of the capital works; and
(d) the transferee must retain the notice or a copy of it until the end of 5 years after the transferee disposes of the capital works or the capital works are destroyed, whichever is the earlier.
(4AL) A person who makes an election in accordance with subitem 22(3), 22A(3), 23(3) or 23A(2) of the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 must retain the election until the end of 5 years after the election was made.
(5) Nothing in this section requires a person to retain records or an election where:
(a) the Commissioner has notified the person that retention of the records or election is not required; or
(b) the person is a company that has gone into liquidation and finally ceased to exist.
Note: A defendant bears an evidential burden in relation to the matters in subsection (5), see subsection 13.3(3) of the Criminal Code.
(5A) An offence under this section is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
(6) In this section:
associate has the same meaning as in the Income Tax Assessment Act 1997.
foreign bank means body corporate that is a foreign ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.
forestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.
forestry manager of a forestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.
participant in a forestry managed investment scheme has the same meaning as in the Income Tax Assessment Act 1997.
Penalty: 30 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
264BB Commissioner may require private health insurers to provide information
(1) The Commissioner may, by notice in writing, require a private health insurer to provide information relevant to the operation of this Act about each person who is covered at any time during a financial year specified in the notice by a complying health insurance policy issued by the insurer or who paid premiums under such a policy.
(2) The information that the Commissioner may require the private health insurer to provide includes the following:
(a) the name, address and date of birth of each person mentioned in subsection (1);
(b) the membership number of the policy;
(c) the name, address and date of birth of any spouse of a person covered by the policy (other than a spouse permanently living separately and apart from the person);
(d) whether the policy covers hospital treatment, general treatment or both;
(e) the date on which the policy was issued;
(f) whether the policy has terminated or been suspended, and, if it has, the date on which it terminated or was suspended;
(g) the amount of the premium payable under the policy;
(ga) whether the premium has been reduced under section 23‑1 of the Private Health Insurance Act 2007, and if so, the amount of the reduction;
(gb) the name, address and date of birth of a participant (within the meaning of the Private Health Insurance Act 2007) in the premiums reduction scheme (within the meaning of that Act) in respect of the policy;
(gc) whether the premium has been increased in accordance with Division 34 of the Private Health Insurance Act 2007, and if so, the amount of the increase;
(h) the period to which the premium relates;
(i) any increase or decrease in the premium;
(j) whether a payment in respect of a premium that was due within a period specified by the Commissioner was not paid.
(3) The information required by a notice under subsection (1) is to be provided:
(a) in a form (including an electronic form) approved by the Commissioner; and
(b) within the period specified in the notice.
(4) In this section, the following terms have the same meanings as in the Private Health Insurance Act 2007:
complying health insurance policy
general treatment
hospital treatment
private health insurer
265A Release of liability of members of the Defence Force on death
(1) Subject to subsection (2), where, in respect of the income of any year of income, income tax is payable by the trustee of the estate of a deceased person who has been a member of the Defence Force, the trustee shall, by force of this section, be released from the payment of so much of that tax as remains after deducting any tax deductions unapplied:
(a) where the assessable income of the year of income consists solely of pay and allowances earned as a member of the Defence Force—from the amount of income tax so payable by the trustee; or
(b) where the assessable income of the year of income includes income other than such pay and allowances:
(i) from the amount of income tax so payable by the trustee; or
(ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of such pay and allowances in the assessable income of that year;
whichever is the less.
(2) Nothing in subsection (1) shall be construed so as to authorize or require the Commissioner to refund any amount paid as or for income tax by or on behalf of the taxpayer or his trustee.
(3) The provisions of subsection (1) do not apply in any case where the death of the taxpayer has occurred in circumstances (including the circumstances of his or her service) in which the Commonwealth would not be liable to pay pensions or compensation:
(a) under Part II or IV of the Veterans’ Entitlements Act 1986 to the dependants of deceased members of the Forces or veterans; or
(b) mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 to the wholly dependent partners of deceased members (within the meaning of that Act).
(4) Any decision of an authority constituted under the Repatriation Act 1920‑1962 on any question affecting the right of any dependants of a deceased member of the Forces to a pension under that Act or under the Repatriation (Far East Strategic Reserve) Act 1956‑1962 or the Repatriation (Special Overseas Service) Act 1962, or any decision of an authority constituted under the Veterans’ Entitlements Act 1986 on a question affecting the right of a dependant of a deceased veteran to a pension under Part II or IV of that Act, or any decision of the Military Rehabilitation and Compensation Commission established under section 361 of the Military Rehabilitation and Compensation Act 2004 on a question affecting the right of a dependant of a deceased member (within the meaning of that Act) to compensation under Chapter 5 of that Act, in respect of his or her death shall, so long as that decision has not been reversed or overruled, be conclusive evidence of the matters of fact or law so decided for the purposes of the application of subsection (3) in relation to that deceased member of the Forces.
(5) In this section:
tax deductions unapplied, in relation to a deceased person, means the total of any amounts withheld under paragraph 12‑45(1)(c) in Schedule 1 to the Taxation Administration Act 1953 from amounts earned by the deceased person as a member of the Defence Force where:
(a) the amounts have not been credited in payment of income tax; and
(b) the Commissioner has not made a payment in respect of them.
265B Notices in relation to certain securities
(1) Subject to subsection (2), for the purposes of this section:
(a) expressions used in this section that are also used in Division 16E of Part III have the same respective meanings as in that Division; and
(b) sections 159GV (other than subsection 159GV(2)) and 159GZ apply as if references in those sections to this Division were references to section 265B.
(2) Subsection (1) applies as if paragraph (c) of the definition of qualifying security in subsection 159GP(1) were omitted.
(3) The holder of a security may apply at any time to the issuer for a notice under this section in relation to the security.
(4) Where the issuer of a security receives an application under subsection (3) in relation to the security, the issuer shall within 21 days of receipt of the application issue a notice in writing to the applicant, expressed to be issued under this section and identifying the security, that states that the notice was issued at a specified time on a specified date and:
(a) where the security is not a qualifying security—that the security is not a qualifying security; or
(b) where the security is a qualifying security—that:
(i) the security is a qualifying security;
(ii) the security was issued for a specified consideration;
(iii) where the security was partially redeemed on one or more occasions before the time of issue of the notice—that the security was partially redeemed by a specified amount or amounts on a specified date or dates; and
(iv) where the security was varied to become a qualifying security—the security was varied, for a specified consideration, to become a qualifying security.
266 Regulations
(1) The Governor‑General may make regulations, not inconsistent with this Act or the Income Tax Assessment Act 1997, prescribing all matters which by this Act or the Income Tax Assessment Act 1997 are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to this Act or the Income Tax Assessment Act 1997, and for prescribing penalties not exceeding a fine of 5 penalty units for offences against the regulations.
Part X—Attribution of income in respect of controlled foreign companies
Division 1—Preliminary
316 Object of Part
(1) The object of this Part is to provide for certain amounts to be included in a taxpayer’s assessable income (Division 9) in respect of:
(a) the attributable income of a CFC (section 456); and
(b) certain changes of residence by a CFC (section 457).
(2) To that end (and for other purposes of this Act) this Part contains rules relating to the following:
(a) interpretation (Division 1);
(b) types of entities (Division 2);
(c) control interests, attribution interests, attributable taxpayers and attribution percentages (Division 3);
(d) attribution accounts (Division 4);
(g) the calculation of attributable income of a CFC (Division 7);
(1) In this Part, unless the contrary intention appears:
accounting period, in relation to company, means an accounting period used by the company in the accounts by reference to which it distributes dividends.
accounting records includes invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes, vouchers and other documents of prime entry and also includes such working papers and other documents as are necessary to explain the methods and calculations by which accounts are made up.
accounts means ledgers, journals, profit and loss accounts and balance‑sheets, and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.
accruals tax law, in relation to a listed country, means a law of the listed country that is declared by regulations for the purposes of this definition to be an accruals tax law.
active income test has the meaning given by section 432.
adjusted tainted income has the meaning given by section 386.
AFI or Australian financial institution means any of the following Australian entities:
(a) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959;
(b) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution;
(c) a registered entity under the Financial Sector (Collection of Data) Act 2001;
(d) a life assurance company.
AFI subsidiary or Australian financial institution subsidiary has the meaning given by section 326.
aircraft means a machine or apparatus that can derive support in the atmosphere from the reactions of the air or from buoyancy, but does not include an air‑cushion vehicle.
associate has the meaning given by section 318.
associate‑inclusive control interest has the meaning given by section 349.
attributable income has the meaning given by Division 7.
attributable taxpayer, has the meaning given by section 361.
attribution account entity has the meaning given by section 363.
attribution account payment has the meaning given by section 365.
attribution credit has the meaning given by section 371.
attribution debit has the meaning given by section 372.
attribution percentage has the meaning given by section 362.
attribution tracing interest:
(a) in relation to a CFC—has the meaning given by section 358; and
(b) in relation to a CFP—has the meaning given by section 359; and
(c) in relation to a CFT—has the meaning given by section 360.
Australian 1% entity, in relation to a company or trust, means an Australian entity whose associate‑inclusive control interest in the company or trust is at least 1%.
Australian entity has the meaning given by section 336.
Australian partnership has the meaning given by section 337.
Australian tax means income tax or withholding tax.
Australian trust has the meaning given by section 338.
CFC or controlled foreign company has the meaning given by section 340.
CFE or controlled foreign entity has the meaning given by section 339.
CFP or controlled foreign partnership has the meaning given by section 341.
CFT or controlled foreign trust has the meaning given by section 342.
CGT roll‑over provisions means former section 160ZZF and Divisions 5A, 5B, 7A and 17 of former Part IIIA of this Act or Divisions 122, 124 and 126, and section 118‑350, of the Income Tax Assessment Act 1997.
commodity means any thing that is capable of delivery under an agreement for its delivery, but does not include an instrument creating or evidencing a chose in action.
commodity investment means:
(a) either of the following contracts:
(i) a forward contract in respect of a commodity;
(ii) a futures contract in respect of a commodity; or
(b) a right or option in respect of such a contract.
company does not include a company in the capacity of trustee.
company title interest, in relation to land, means a right of occupancy of the land, or of a building or part of a building erected on the land, arising by virtue of the holding of shares, or by virtue of a contract to purchase shares, in a company that owns the land or building.
control tracing interest:
(a) in relation to a CFC—has the meaning given by section 353; or
(b) in relation to a CFP—has the meaning given by section 354; or
(c) in relation to a CFT—has the meaning given by section 355.
currency exchange gain, in relation to a company, in relation to a statutory accounting period, means a currency gain realised by the company in the statutory accounting period, to the extent to which it is attributable to currency exchange rate fluctuations.
currency exchange loss, in relation to a company, in relation to a statutory accounting period, means a currency loss realised by the company in the statutory accounting period, to the extent to which it is attributable to currency exchange rate fluctuations.
de facto relationship means:
(a) a relationship between 2 persons (whether of the same sex or different sexes) that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or
(b) a relationship between 2 persons (whether of the same sex or different sexes) who, although not legally married to each other, live with each other on a genuine domestic basis in a relationship as a couple.
depreciation provision means:
(a) any of former sections 54 to 62 of Division 3 of Part III of this Act, any provision of former Divisions 10, 10AAA, 10AA, 10A, 10C and 10D of that Part; or
(b) any provision of Division 40 of the Income Tax Assessment Act 1997 (other than Subdivision 40‑E) or of Division 43 of that Act; or
(c) any provision of the former Division 42 of that Act (other than Subdivisions 42‑L and 42‑M), or the former Subdivisions 330‑A, 330‑C, 330‑H and 387‑G of that Act.
designated concession income, in relation to a listed country, means:
(a) income or profits of a kind specified in the regulations if:
(i) foreign tax imposed by a tax law of the country is not payable in respect of the income or profits because of a particular feature; or