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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000
The Parliament
of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation Laws
Amendment Bill (No. 5) 2000
No. ,
2000
(Treasury)
A Bill
for an Act to amend the law relating to taxation, and for related
purposes
ISBN: 0642 428816
Contents
Sales Tax Assessment Act
1992 3
Income Tax Assessment Act
1936 4
Income Tax Assessment Act
1936 7
A Bill for an Act to amend the law relating to taxation,
and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment Act (No. 5)
2000.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Section 170 of the Income Tax Assessment Act 1936 does not prevent
the amendment of an assessment made before the commencement of this section for
the purposes of giving effect to this Act.
1 After section 49
Insert:
(1) This section applies to motor vehicles:
(a) designed or adapted for driving by a person who is suffering from a
physical impairment; or
(b) designed or adapted for transporting a person who is suffering from a
physical impairment.
(2) The exempt part is so much of the taxable value as represents the
additional cost of manufacturing the motor vehicle resulting solely from the
vehicle being designed or adapted for the purpose of:
(a) it being driven by a person who is suffering from a physical
impairment; or
(b) it being used for the transportation of a person who is suffering from
a physical impairment.
(3) For the purposes of Schedule 6 to the Exemptions and Classifications
Act, the taxable value of a motor vehicle to which this section applies is taken
to be reduced by the amount of the exempt part.
2 Application
The amendment made by this Schedule applies to dealings with goods on or
after 26 June 1998.
Income
Tax Assessment Act 1936
1 At the end of section
139FA
Add:
(3) This section does not apply to a share if section 139FAA applies to
the share.
2 After section 139FA
Insert:
(1) This section applies to a share in a company if:
(a) the share is acquired within the period starting 7 days before and
ending 7 days after the day on which shares are first acquired under a public
offer of shares in the company; and
(b) the following rights attached to the share are the same as those
attached to the shares acquired under the public offer:
(i) rights in respect of voting;
(ii) rights in respect of dividends;
(iii) rights in respect of distribution of share capital in consequence of
a reduction of share capital;
(iv) rights in respect of distribution of the property of the company in
the event of the winding up of the company; and
(c) there is at least one price at which shares were sold under the public
offer that satisfies the following requirements:
(i) 1,000 Australian residents (other than residents who are employees of
the company or who held shares in the company immediately before the offer was
made) acquired shares at the price;
(ii) the total cost of shares acquired by such Australian residents at the
price was at least $1,000,000; and
(d) the company has been a listed public company for at least 6 months
immediately before the share is acquired.
However, this section does not apply if subsection 139CC(4) applies to the
share.
(2) The market value of a share is the lowest price that satisfies the
requirements of subparagraphs (1)(c)(i) and (ii) at which shares were sold under
the public offer.
What is a public offer?
(3) A public offer of shares is an offer of shares in a company
where:
(a) the offer is by the company or by a person who, immediately before the
offer is made, owns at least 20% of the shares with rights in respect of voting
in the company; and
(b) the offer is made to at least 10,000 Australian residents (other than
residents who are employees of the company or who held shares in the company
immediately before the offer was made).
3 At the end of section
139FC
Add:
(2) In calculating, for the purpose of subsection (1), the market value of
the share that may be acquired by exercising the right, subsection 139FAA(1)
applies as if the share were acquired on the particular day.
4 At the end of section
139FE
Add:
(2) In calculating, for the purpose of subsection (1), the market value of
the share that may be acquired by exercising the right, subsection 139FAA(1)
applies as if the share were acquired on the particular day.
5 At the end of section
139FK
Add:
(2) In calculating, for the purpose of subsection (1), the market value of
the share that is the subject of the right, subsection 139FAA(1) applies as if
the share were acquired on the particular day.
6 Application
The amendments made by this Schedule apply to shares and rights acquired on
or after 2 September 1999.
Income
Tax Assessment Act 1936
1 At the end of subsection
102UE(3)
Add:
“; and (c) the person is not an ultimate beneficiary in respect of
the head trust amount under subsection (4).
2 Paragraph 102UE(4)(c)
Repeal the paragraph, substitute:
(c) the head trust amount is not greater than the amount worked out using
the formula:
where:
lower level trust assessable income means the assessable
income (disregarding any amount attributable to the head trust amount) taken
into account in working out the net income of the lower level trust for the year
of income.
lower level trust deductions means allowable deductions
taken into account in working out the net income of the lower level trust for
the year of income.
3 Section 102UH
Repeal the section, substitute:
The UB statement period, for the trustee of a trust in
relation to a year of income, is the period from the end of the year of income
until the end of:
(a) the period within which the trustee is required to furnish to the
Commissioner the trust’s return of income for the year of income;
or
(b) such further period as the Commissioner allows.
4 Subsection 102UK(1)
Omit “This section”, substitute “Subject to subsection
(2A), this section”.
5 After subsection 102UK(2)
Insert:
Amendment of incorrect statement
(2A) If:
(a) during the UB statement period in relation to a year of income, the
trustee of a closely held trust makes and gives to the Commissioner a statement,
that the trustee believes on reasonable grounds is a correct UB statement, about
the whole or part of a share of the net income of the closely held trust;
and
(b) the statement is not a correct UB statement about some or all (the
amount subject to the error) of the whole or the part of the
share, with the result that, apart from this subsection, this section applies;
and
(c) the trustee could not reasonably have foreseen the event that caused
the statement not to be a correct UB statement; and
(d) either:
(i) before any ultimate beneficiary non-disclosure tax becomes due and
payable on the amount subject to the error as a result of this section applying;
or
(ii) before the end of 4 years after any such tax becomes due and
payable;
the trustee advises the Commissioner in writing of any change that is
necessary to make the statement a correct UB statement about the whole or part
of the amount subject to the error;
this section does not apply, and is taken never to have applied, to the
whole or the part of the amount subject to the error.
6 After section 102UR
Insert:
(1) A person or persons may make a written request to the Commissioner to
be given a notice under subsection 102UR(1) in respect of specified
circumstances in which ultimate beneficiary non-disclosure tax may be
payable.
Compliance with request
(2) The Commissioner must, subject to subsection (3) of this section,
comply with the request.
Further information
(3) If the Commissioner considers that the notice cannot be given unless
the person or persons give the Commissioner further information, the
Commissioner must request the person or persons to give the Commissioner the
information.
Failure to give information
(4) If the person or persons do not give the information, the Commissioner
is not required to comply with the request to give the notice.
7 After section 102US
Insert:
(1) This section applies if the requirements in subsections (2) to (4) are
satisfied.
Requirement for payment of ultimate beneficiary non-disclosure
tax
(2) A requirement for this section to apply is that:
(a) the trustee of a closely held trust does not make a correct UB
statement about the whole or part of a share of the net income of the trust of a
year of income during the UB statement period in relation to the year of income;
and
(b) as a result, the trustee becomes liable, or the persons in the trustee
group become jointly and severally liable, under section 102UK to pay ultimate
beneficiary non-disclosure tax; and
(c) the trustee or any of the persons in the trustee group pays an amount
(the recoverable amount) being some or all of the tax or any
general interest charge under section 102UP in relation to the tax.
Requirement for refusal etc. to provide information or for incorrect
statement
(3) A requirement for this section to apply is that:
(a) either:
(i) the trustee of the closely held trust was unable to make a correct UB
statement about the whole or the part of the share of the net income during the
UB statement period because another person (the information
source), when requested to do so, refused or failed to give information
to the trustee; or
(ii) the trustee of the closely held trust purported to make a correct UB
statement about the whole or the part of the share of the net income during the
UB statement period, where the statement was not a correct UB statement because
it contained incorrect information given to the trustee of the closely held
trust by another person (also the information source), and the
trustee honestly believed on reasonable grounds that the information was
correct; and
(b) the trustee of the closely held trust distributed to the trustee
beneficiary an amount representing some or all of the share of the net income
without withholding an amount under section 254 in respect of the recoverable
amount.
Requirement for person failing to provide information etc. to be an
ultimate beneficiary or trustee of interposed trust etc.
(4) A requirement for this section to apply is that the information source
is:
(a) an ultimate beneficiary; or
(b) the trustee beneficiary; or
(c) the trustee of an interposed trust, or a partner in an interposed
partnership, through which an ultimate beneficiary is presently entitled to some
or all of the head trust amount concerned.
Consequences of section applying
(5) If this section applies, the trustee or the person in the trustee
group mentioned in paragraph (2)(c) may, in a court of competent jurisdiction,
sue for the recoverable amount and recover it from the information source, or if
there is more than one such person, those persons jointly and
severally.
8 At the end of section 254
Add:
(3) In paragraphs (1)(d) and (e), and in its first occurrence in paragraph
(1)(h), tax includes, in addition to the things mentioned in
subsection (2):
(a) ultimate beneficiary non-disclosure tax within the meaning of Division
6D of Part III; and
(b) general interest charge payable under section 102UP in respect of such
tax.
9 Application
(1) The amendments made by this Schedule have the same application as they
would if they had been part of Division 6D of Part III of the Income Tax
Assessment Act 1936 when that Division was originally inserted in that Act
by item 2 of Schedule 1 to the A New Tax System (Closely Held Trusts) Act
1999.
(2) To avoid doubt, the Commissioner may, at any time after the
commencement of this Schedule, under paragraph 102UH(b) of the Income Tax
Assessment Act 1936 as amended by this Schedule, allow a further period in
respect of a year of income that ended before the commencement of this
Schedule.
10 Transitional
The references in paragraphs 102USA(2)(c) and 254(3)(b) of the Income
Tax Assessment Act 1936 as inserted by this Schedule to general interest
charge under section 102UP include a reference to:
(a) general interest charge under item 93 of Schedule 2 to the A New
Tax System (Pay As You Go) Act 1999; and
Note: Item 93 applied a general interest charge to amounts
that became payable before 1 July 1999.
(b) additional tax under section 102UP of the Income Tax Assessment Act
1936 as in force before the commencement of item 92 of Schedule 2 to the
A New Tax System (Pay As You Go) Act 1999.
Note: Item 92 had the effect that additional tax under
section 102UP continued to apply to amounts that became payable before 1 July
1999.