Commonwealth act

Income Tax (Untainting Tax) Act 1998

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

65 of 1998

Collection

act

Plain English Summary

1/10 complexity

This is a short technical law that formally creates a specific tax on companies choosing to "untainting" their share capital accounts.

In the late 1990s, company law reforms allowed companies to convert certain "tainted" share capital (amounts previously treated like taxable dividends) back to regular share capital. To prevent tax avoidance—where shareholders might otherwise receive company money as tax-free capital instead of taxable dividends—this Act imposes a tax on that conversion process.

Key points:

What it does: Legally imposes the "untainting tax" (a constitutional requirement for any Commonwealth tax)
Who it affects: Companies that choose to untainting tainted share capital accounts
How it works: This Act doesn't set the tax rate or calculation rules; it simply authorises the tax. The actual amounts payable are calculated under sections 160ARDT and 160ARDY of the Income Tax Assessment Act 1936 (the main tax law).

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Current sections

Direct links to the current provisions in Income Tax (Untainting Tax) Act 1998.

Income Tax (Untainting Tax) Act 1998

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View image in the official source

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

View image in the official source

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

An Act to impose a tax in relation to untainting tainted share capital accounts of companies

Contents

1 Short title..................................1

2 Commencement..............................1

3 Imposition of tax..............................2

View image in the official source

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

An Act to impose a tax in relation to untainting tainted share capital accounts of companies

[Assented to 30 June 1998]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Income Tax (Untainting Tax) Act 1998.

2 Commencement

This Act commences at the same time as section 1 of the Taxation Laws Amendment (Company Law Review) Act 1998.

3 Imposition of tax

Tax payable under section 160ARDT or 160ARDY of the Income Tax Assessment Act 1936 is imposed.

[Minister's second reading speech made in—

House of Representatives on 8 April 1998

Senate on 23 June 1998]

(57/98)

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

meta-content-style-type: text/css meta-content-type: application/xhtml+xml; charset=utf-8 title: untainting tax bill 24/02/98

?xml version="1.0" encoding="utf-8" standalone="no"?>

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

An Act to impose a tax in relation to untainting tainted share capital accounts of companies

Contents

1 Short title..................................1

2 Commencement..............................1

3 Imposition of tax..............................2

Income Tax (Untainting Tax) Act 1998

No. 65, 1998

An Act to impose a tax in relation to untainting tainted share capital accounts of companies

[Assented to 30 June 1998]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Income Tax (Untainting Tax) Act 1998.

2 Commencement

This Act commences at the same time as section 1 of the Taxation Laws Amendment (Company Law Review) Act 1998.

3 Imposition of tax

Tax payable under section 160ARDT or 160ARDY of the Income Tax Assessment Act 1936 is imposed.

[Minister's second reading speech made in—

House of Representatives on 8 April 1998

Senate on 23 June 1998]

(57/98)