Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Division has effect notwithstanding anything contained in any law of the Commonwealth other than this Act.
Income Tax Assessment Act 1936
No. 27, 1936
Compilation No. 186
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 7 volumes
Volume 5: Schedules
Volume 7: Endnote 5
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part III--Liability to taxation
Division 10E--PDFs (pooled development funds)
Subdivision A--Shares in PDFs
124ZM Treatment distributions to shareholders in PDF
124ZN Exemption of income from sale of shares in a PDF
124ZO Shares in a PDF are not trading stock
124ZQ Effect of company becoming a PDF
124ZR Effect of company ceasing to be a PDF
Subdivision B--The taxable income of PDFs
124ZS Definitions
124ZTA Taxable income in first year as PDF if PDF component is nil
124ZT SME assessable income
124ZU SME income component
124ZV Unregulated investment component
Subdivision C--Adjustments of the tax treatment of capital gains and capital losses of PDFs
124ZW Definitions
124ZX Companies to which this Subdivision applies
124ZY Classes of assessable income
124ZZ Treatment of capital gains
124ZZA Allocation of gain amounts and loss amounts to classes of assessable income
124ZZB Assessable income etc. in relation to capital gains
124ZZD No net capital loss
Division 11--Interest paid by companies on bearer debentures
126 Interest paid by a company on bearer debentures
127 Credit for tax paid by company
128 Assessments of tax
Division 11A--Dividends, interest and royalties paid to non - residents and to certain other persons
Subdivision A--General
128AAA Application of Division to non - share dividends
128A Interpretation
128AA Deemed interest in respect of transfers of certain securities
128AB Certificates relating to issue price of certain securities
128AC Deemed interest in respect of hire - purchase and certain other agreements
128AD Indemnification etc. agreements in relation to bills of exchange and promissory notes
128AE Interpretation provisions relating to offshore banking units
128AF Payments through interposed entities
128B Liability to withholding tax
128C Payment of withholding tax
128D Certain income not assessable
128F Division does not apply to interest on certain publicly offered company debentures or debt interests
128FA Division does not apply to interest on certain publicly offered unit trust debentures or debt interests
128GB Division not to apply to interest payments on offshore borrowings by offshore banking units
128NA Special tax payable in respect of certain securities and agreements
128NB Special tax payable in respect of certain dealings by current and former offshore banking units
128NBA Credits in respect of amounts assessed in relation to certain financial arrangements
128P Objections
128R Informal arrangements
Division 11C--Payments in respect of mining operations on Indigenous land
128U Interpretation
128V Liability to mining withholding tax
128W Payment of mining withholding tax
Division 12--Oversea ships
129 Taxable income of ship - owner or charterer
130 Commissioner may require master or agent to make return
131 Determination by Commissioner
132 Assessment of tax
133 Master liable to pay
134 Notice of assessment
135 Clearance of ship
135A Freights payable under certain agreements
Division 15--Insurance with non - residents
141 Interpretation
142 Income derived by non - resident insurer
143 Taxable income of non - resident insurer
144 Liability of agents of insurer
145 Deduction of premiums
146 Exporter to furnish information
147 Rate of tax in special circumstances
148 Reinsurance with non - residents
Division 16--Averaging of incomes
149 Average income
149A Capital gains, abnormal income and certain death benefits to be disregarded
150 First average year
151 First application of Division in relation to a taxpayer
152 Taxpayer not in receipt of assessable income
153 Taxpayer with no taxable income
154 Excess of allowable deductions
155 Permanent reduction of income
156 Rebate of tax for, or complementary tax payable by, certain primary producers
157 Application of Division to primary producers
158 Application of Division
158A Election that Division not apply
Division 16D--Certain arrangements relating to the use of property
159GE Interpretation
159GEA Division applies to certain State/Territory bodies
159GF Residual amounts
159GG Qualifying arrangements
159GH Application of Division in relation to property
159GJ Effect of application of Division on certain deductions etc.
159GK Effect of application of Division on assessability of arrangement payments
159GL Special provision relating to Division 10C or 10D property
159GM Special provision where cost of plant etc. is also eligible capital expenditure
159GN Effect of use of property under qualifying arrangement for producing assessable income
159GO Special provisions relating to partnerships
Division 16E--Accruals assessability etc. in respect of certain security payments
159GP Interpretation
159GQ Tax treatment of holder of qualifying security
159GQA Accrual period
159GQB Accrual amount
159GQC Implicit interest rate for fixed return security
159GQD Implicit interest rate for variable return security
159GR Consequences of actual payments
159GS Balancing adjustments on transfer of qualifying security
159GT Tax treatment of issuer of a qualifying security
159GU Effect of Division on certain transfer profits and losses
159GV Consequence of variation of terms of security
159GW Effect of Division in relation to non - residents
159GX Effect of Division where certain payments not assessable
159GY Effect of Division where qualifying security is trading stock
159GZ Stripped securities
Division 16J--Effect of cancellation of subsidiary's shares in holding company
159GZZZC Interpretation--general
159GZZZD Meaning of eligible entity , eligible interest and eligible proportion
159GZZZE Share cancellations to which this Division applies
159GZZZF Effect on subsidiary of share cancellations to which this Division applies
159GZZZG Pre - cancellation disposals of eligible interests
159GZZZH Post - cancellation disposals of eligible interests etc.
159GZZZI Additional application of sections 159GZZZG and 159GZZZH to associates
Division 16K--Effect of buy - backs of shares
Subdivision AA--Application of Division to non - share equity interests
159GZZZIA Application of Division to non - share dividends
Subdivision A--Interpretation
159GZZZJ Interpretation
159GZZZK Explanation of terms
159GZZZL Special buy - backs not made in ordinary course of trading on a stock exchange
159GZZZM Purchase price in respect of buy - back
Subdivision B--Company buying - back shares
159GZZZN Buy - back and cancellation disregarded for certain purposes
Subdivision C--Off - market purchases
159GZZZP Part of off - market purchase price is a dividend if the company is not a listed public company
159GZZZPA No part of off - market purchase price is a dividend if the company is a listed public company
159GZZZQ Consideration in respect of off - market purchase
Subdivision D--On - market purchases
159GZZZR No part of on - market purchase price is a dividend
159GZZZS Consideration in respect of on - market purchase
Division 17--Rebates
Subdivision A--Concessional rebates
159H Application
Subdivision AB--Lump sum payments in arrears
159ZR Interpretation
159ZRA Eligibility for rebate
159ZRB Calculation of rebate
159ZRC Notional tax amount for recent accrual years
159ZRD Notional tax amount for distant accrual years
Subdivision B--Miscellaneous
160AAAA Tax rebate for low income aged persons and pensioners
160AAAB Tax rebate for low income aged persons and pensioners--trustees assessed under section 98
160AAA Rebate in respect of certain benefits etc.
160AAB Rebate in respect of amounts assessable under section 26AH
160AD Maximum amount of rebates
160ADA Most tax offsets under the 1997 Assessment Act are treated as rebates
Part IIIB--Australian branches of foreign banks
Division 1--Preliminary
160ZZVA Object
160ZZVB Application
160ZZV Definitions
160ZZW Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity
Division 2--Provisions relating to income tax
160ZZX Income of branch to have Australian source
160ZZZ Notional borrowing by branch from bank
160ZZZA Notional payment of interest by branch to bank
160ZZZC Offshore banking units
160ZZZE Notional derivative transactions between branch and bank
160ZZZF Notional foreign exchange transactions between branch and bank
160ZZZG Losses
160ZZZH Net capital losses
160ZZZI Certain transactions to be disregarded
Division 3--Provisions relating to withholding tax
160ZZZJ Withholding tax on interest paid by branch to bank
Division 4--Extension of Part to Australian branches of foreign financial entities
160ZZZK Treatment like Australian branches of foreign banks
Division 5--Modifications relating to hybrid mismatch rules
160ZZZL Certain "hybrid mismatch" deductions denied
160ZZZN Adjusting if Australian branch derives dual inclusion income in a later year
160ZZZP Dual inclusion income not to be applied more than once
160ZZZR Interpretation
Part IV--Returns and assessments
161 Annual returns
161A Form and content of returns
161AA Contents of returns of full self - assessment taxpayers
161G Tax agent to give taxpayer copy of notice of assessment
162 Further returns and information
163 Special returns
166 Assessment
166A Deemed assessment
167 Default assessment
168 Special assessment
169 Assessments on all persons liable to tax
169AA Consolidated assessments
169A Reliance by Commissioner on returns and statements
170 Amendment of assessments
170A Amendment of assessments--interaction with other Acts
170B Protection for anticipation of certain discontinued announcements
170C Power of Commissioner to reduce amount of tax payable in certain cases
171 Where no notice of assessment served
171A Limited period to make assessments for nil liability returns for the 2003 - 04 year of income or earlier
172 Refunds of amounts overpaid
172A Consequences of amendment of assessments of tax offset refunds
173 Amended assessment to be an assessment
174 Notice of assessment
175 Validity of assessment
175A Objections against assessments
Part IVA--Schemes to reduce income tax
177A Interpretation
177B Operation of Part
177C Tax benefits
177CB The bases for identifying tax benefits
177D Schemes to which this Part applies
177DA Schemes that limit a taxable presence in Australia
177E Stripping of company profits
177EA Creation of franking debit or cancellation of franking credits
177EB Cancellation of franking credits--consolidated groups
177F Cancellation of tax benefits etc.
177G Amendment of assessments
177H Diverted profits tax--objects
177J Diverted profits tax--application
177K Diverted profits tax--$25 million income test
177L Diverted profits tax--sufficient foreign tax test
177M Diverted profits tax--sufficient economic substance test
177N Diverted profits tax--consequences
177P Diverted profits tax--liability
177Q Diverted profits tax--general interest charge on unpaid diverted profits tax or shortfall interest charge
177R Diverted profits tax--when shortfall interest charge is payable
Part VA--Tax file numbers
Division 1--Preliminary
202 Objects of this Part
202A Interpretation
202AA Definition of eligible PAYG payment
202AB Declaration that an arrangement is, or is not, a unit trust
Division 2--Issuing of tax file numbers
202B Application for tax file number
202BA Issuing of tax file numbers
202BB Current tax file number
202BC Deemed refusal by Commissioner
202BD Interim notices
202BE Cancellation of tax file numbers
202BF Alteration of tax file numbers
Division 3--Quotation of tax file numbers by recipients of eligible PAYG payments
202C TFN declarations by recipients of eligible PAYG payments
202CA Operation of TFN declaration
202CB Quotation of tax file number in TFN declaration
202CC Making a replacement TFN declaration in place of an ineffective declaration
202CD Sending of TFN declaration to Commissioner
202CE Effect of incorrect quotation of tax file number
202CEA Validation notices
202CF Payer must notify Commissioner if no TFN declaration by recipient
202CG Disclosing recipients' tax file numbers to payers
Division 4--Quotation of tax file numbers in connection with certain investments
202D Explanation of terms: investment, investor, investment body
202DB Quotation of tax file numbers in connection with investments
202DC Method of quoting tax file number
202DD Investor excused from quoting tax file number in certain circumstances
202DDB Quotation of tax file number in connection with indirectly held investment
202DE Securities dealer to inform the investment body of tax file number
202DF Effect of incorrect quotation of tax file number
202DG Investments held jointly
202DH Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments
202DHA Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes
202DI Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits
202DJ Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes
Division 4A--Quotation of tax file numbers in connection with farm management deposits
202DL Quotation of tax file number
202DM Effect of incorrect quotation of tax file number
Division 4B--Quotation of tax file numbers in connection with certain closely held trusts
202DN Application of Division
202DO Quotation of tax file numbers
202DP Trustee must report quoted tax file numbers
202DR Effect of incorrect quotation of tax file number
Division 5--Exemptions
202EA Persons receiving certain pensions etc.--employment
202EB Persons receiving certain pensions etc.--investments
202EC Entities not required to lodge income tax returns
202EE Non - residents
202EG Manner of completing declarations
202EH Declarations under this Division to be retained in certain circumstances
Division 6--Review of decisions
202F Review of decisions
202FA Statements to accompany notification of decisions
Division 8--Tax file number sharing and verification
203 Verification of tax file numbers
204 Disclosure of tax file numbers to certain registrars