Commonwealth of Australia Bills Commonwealth of Australia Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
New Business
Tax System (Former Subsidiary Tax Imposition) Bill
1999
No. ,
1999
(Treasury)
A Bill
for an Act to impose a tax on certain members of a wholly-owned company
group
ISBN: 0642 418896
Contents
A Bill for an Act to impose a tax on certain members of a
wholly-owned company group
The Parliament of Australia enacts:
This Act may be cited as the New Business Tax System (Former
Subsidiary Tax Imposition) Act 1999.
This Act commences on the day on which it receives the Royal
Assent.
This section imposes a tax that is payable under section 45-25 of the
Income Tax Assessment Act 1997 by a company that was a member of the
wholly-owned group referred to in that section just before the time when the
direct or indirect beneficial ownership referred to in paragraph 45-15(1)(f) or
45-20(1)(f) of that Act was acquired.
(1) The amount of the tax is an amount worked out under subsection (2) as
if it were an amount of income tax payable by the company referred to in section
3.
(2) The amount referred to in subsection (1) is the lesser of:
(a) the outstanding amount of income tax payable by the former subsidiary
referred to in section 45-25 of the Income Tax Assessment Act 1997
(including any amount of general interest charge, or any amount of interest or
penalty payable under section 170AA, 207 or 207A of the Income Tax Assessment
Act 1936, attributable to that amount); and
(b) the amount of income tax that would be payable by the former
subsidiary for the income year in which the amount was included in its
assessable income because of section 45-15 or 45-20 of that Act if:
(i) that amount were its taxable income for the income year; and
(ii) it was not entitled to any tax offset for the income year;
including any amount of general interest charge, or any amount of
interest or penalty payable under section 170AA, 207 or 207A of the Income
Tax Assessment Act 1936, that would be attributable to that
amount.
(3) The amount referred to in paragraph (2)(b) is reduced by any amount
paid by a company (except the former subsidiary) that was a member of the former
subsidiary’s former wholly-owned group.